Options Trading: Technical Analysis and Swing Trading Techniques

FREE Marketclub Trading Software

NOTE: We are not professional traders and our investment group is not equipped to offer trading advice. Our options trading techniques are based on strategies taught by AJ Brown at tradingtrainer.com. We recommend that you visit his website to obtain option trading strategies and options trading education. He also provides a good trading mentoring program if you are looking for trading advice or options trading course. Get free video tutorials on covered call option writing strategy and options trading from his site.

Daily Trading Video

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HOTLIST OF STOCKS BASED ON CANDLESTICK PATTERNS

Bearish Candlestick Watchlist.

Watchlist of bullish candlestick patterns.

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You will need a Google account to access the hotlist above. The table above provides a list of stocks and options that have undergone the scrutiny of technical analysis and are determined to be good candidates for entering a position for the next day's trading day. Clarification of each column in the table are described below:

Column 1 -- This column identifies the analysis date.  We typically perform the charting analysis the night before the options are to be traded. For example, an analysis date of August 23 implies that the stocks and/or options are ready to be traded the following day ( August 24), assuming that the follow through criteria are met.

Column 2 -- This column identifies the stock symbol to be monitored and traded.

Column 3 -- This column provides the potential option to buy if the stock meets the follow thru criteria.

Column 4 -- This column identifies the type of option to buy. Our group does not partake in the more elaborate options trading strategies, such as option strangles, option straddles, iron condors etc.  We typically enter a position by buying either a CALL option or a PUT option. We do not enter a position by selling ( or writing ) CALLS and PUTS. We do, on occasions, will trade covered calls. Our entry positions tend to be in-the-money calls and puts options or deep in-the-money calls and puts. Our target options are usually at least 2-3 months before expiration.

Column 5 -- The reference template column identifies the various chart patterns that we apply to each stock to help analyze a stock's price movements and trending behavior (i.e. these charts reflect different timeframes for us to follow as part of AJ Brown's stock trend trading system).  We utilize 6 different chart templates with various combinations of leading and lagging indicators to help guide our entry and exit decisions.  The six different templates that we employ are the Reactive, Chaiken, Buffered, Breakout, Short-term Trend, and Oscillatory templates. For an in-depth explanation of our chart analysis methodologies, refer to the stock chart analysis page.

Column 6 -- The earnings date for each stock is identified. Consolidating stock patterns near an earnings date may indicate that the stock may break-out immediately before, during, or immediately after an earnings announcement. These breakouts tend to be very powerful, exhibiting huge price moves and a lot of opportunity for gains.

Column 7 --  The Support Level column is intended to identify the price where a stock may find support, during its retracement downwards.

Column 8 --  The Resistance Level column is intended to identify the price where a stock may find resistance during an up-move.

Column 9 --  The Follow Thru column is intended to identify specific characteristics that must be satisfied during the trading day before a position can be entered.

Column 10 -- The comments column will usually identify special entry criteria that is above and beyond those points already identified in column 9.  Any insight on the catalysts that may impact the price of the stock will also be identified in this column.

The list of stocks and options from past hotlists have been saved to another page. These archived charts contain company data that may be useful for future analysis.

DISCLAIMER:  This website serves the members of its investment group. The stock and options trading ideas identified in the above table have been analyzed by our members for our members. We do not sell our stock trading ideas. We do not offer an options trading course and we do not sell any type of products on this website. We are not stock and options trading experts, but merely an investment community of options traders. As such, you, the reader, are to use the data presented in this website purely for informational purposes only. If you are looking for validation on our stock picks, or looking for stock trading education or similar investment mentoring programs, we recommend you research the following sites:

The Options Industry Council - provides free information on options trading and also offers online options education to the public.

The Options Clearing Corporation - as a guarantor of options trading transactions, the OCC ensures that the obligations of the options contracts are free of errors and the transactions are fulfilled in the most expeditious manner. The OCC provides documentation and publications on options trading for the general public.

The US Securities and Exchange Commission - The mission of the SEC is to protect the investors, maintain fair, orderly and efficient markets and facilitate capital information. The reader may obtain legal documents and trading practices and guides from this site.

Learn to trade stocks using personal coaching program - obtain one-on-one trading coaching and advice.  To get information on other trading coaching programs, visit these trading websites: Stock Coaching Program Review and the Day Trading Education pages. Another trading coaching program worth mentioning is the tradingauthority.com trading education.  Its educational program is an intensive 2-month hands-on trading course that emphasizes on the trading psychology and constant interaction between the student and the trading coach.  To obtain feedback from other websites on the effectiveness of the program, visit the Trading Authority Coaching Review.

Learn to trade options with tradingtrainer.com - The AJ Brown options trading website, tradingtrainer.com, is a trading advisory website dedicated to options trend trading. This site offers training on options trading with a daily online trading seminar, providing daily broad market analysis, daily stock chart technical analysis, daily recommended stock candidates and weekly webinars where students are able to interact with the teacher in a live conference call. To read reviews on AJ Brown's tradingtrainer.com options education program, visit the options trading advisory website, the AJ Brown option trading review, and information on the tradingtrainer.com trading coaching program.

Stock Trading System for entry/exit signals - This site provides the trading tools to enable the investor to scan for stocks that have high probability of winning and also provides entry and exit signals for each stock. We found a couple of good reviews of this trading tool at the following websites:  MarketClub Trading System Review and Market Club Trading and Charting Analysis.Testimonials from actual users can be found at the Market Club Trading Service page.

Recommended reading - The Trend Strategist Handbook by Price Headley is a good ebook for the novice trader as well as long-time traders.  The book goes into details on technical stock chart analysis.  For more information on the contents of the ebook, visit the Price Headley Handbook review website.

Options Trading Guides.