Detailed Explanation of Current Stock Market Indicators

Following is an explanation of stock-option-trading-strategies.com's proprietary current stock market indicators for the overall stock market.

These trading "secrets" are sometimes quite obvious if you observe the markets closely and objectively. Unsuccessful investors routinely ignore the overwhelming impact of such factors. Instead they insist on trading based on what they think the market should be doing or what they hope it will do. They continue using their own favorite strategies on their own favorite stocks without respecting the market.

While there are always exceptions, stocks going against the overall trend, your best bet is to concentrate on those going with it.



1. FIT(Future Intermediate-term Trend)
Direction of your trades should be in tune with the new market trend. When the trend is up focus mostly on long trades. When the trend is down focus mostly on short trades. When the trend is "trading range" you can trade both ways and also pursue delta-neutral option strategies. When the trend is changing, change with it, don't get left behind.

2. SSE (Shakeout / Squeeze Environment)
Timing of your trades is critical for success. Strategy and direction are not enough. Long positions should be opened after a shakeout in an uptrend, before the next squeeze up. Short positions should be opened after a squeeze in a downtrend, before the next shakeout down.

3. WLF (Winner / Loser Focus)
Stock selection should be mostly those that are currently in focus. For example, popular stocks during intermediate-term uptrends or tragedy stocks during intermediate-term downtrends.

4. CMP (Current Short-Term Manipulation Pressure)
Manipulation must be respected and used to your advantage -- it will either dampen or exacerbate the magnitude and quickness of price movements.

5. BRR (Behavior Rewarded Recently)
Patterns repeat. Use them until they stop repeating. Always remain on the lookout for new patterns.