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technical analysis for covered call writing

Setting Up A Technical Chart + An Example Of An Ideal Chart

Technical analysis is the method of predicting future stock price movements based on observation of historical stock price movements. It is an essential tool in the armamentarium of covered call writers, and critical in achieving maximum success. We use technical analysis in our stock selection process, buy/sell decisions, strike price selections and exit strategy determinations. […]

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Technical analysis for covered call writing

Binary Options Are The Latest Rage, But Barely Like Traditional Options by Guest Author Tom Cleveland

Over the past few years, the popularity of traditional options has grown exponentially, as investors have been more willing to experiment with a broader set of investment genres. The market has responded to this more expansive behavior by creating a myriad of new products such as “weeklys” and “minis”, topics Alan has addressed on this […]

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Technical charts

Technical Analysis: Bar Charts vs. Candlestick Charts

Technical analysis is a key component to our stock selection process as well as our buy-sell decisions. One of the first choices we need to make is the format of the price chart. Sometimes that decision is difficult if presented with several outstanding options. For example, you’re offered a choice of two tickets to one […]

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Technical analysis for covered call writing

Support and Resistance: Technical Analysis for Covered Call Writing

Technical analysis is an integral component of our BCI methodology for covered call writing. When identifying stocks for our watch lists and portfolios, we look for uptrending price patterns and utilize moving averages to confirm these trends. In an ideal situation the price bars (OHLC) bounce off and above the short-term (20-day) exponential moving average. When […]

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Technical Analysis and Covered Call Writing

Moving Averages And Our Covered Call Selections

Technical analysis is a critical part of our covered call writing success. We use it for both stock selection, exit strategy execution and timing of our trades. We screen stocks fundamentally and technically via the IBD 50, SmartSelect Scan and MSN Scouter. We make sure we have industry diversification and cash allocation equality. Earnings reports and […]

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Covered Call Writing and The CBOE’s Volatility Index (VIX)

Stock options strategies, including covered call writing, factor in a multitude of parameters including fundamental and technical analysis as well as many common sense principles. In my books, DVDs and seminars I discuss determining market tone before making any investment decisions. One of the main factors I utilize in this determination is the VIX. The VIX […]

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Technical Analysis: How to Use Volume in our Covered Call Decisions

When learning how to trade options volume must always be factored in. Volume is the number of shares or contracts that trade over a specific period of time, usually one day. On a chart, volume is represented as a histogram (vertical bars) overlaid on or below the price chart. This indicator is an essential part […]

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The Stochastic Oscillator- A Momentum Technical Indicator

When using the covered call writing strategy, it is critical to select stocks with positive price momentum. This will increase the probability of maximizing our profits. One of the technical indicators included in the BCI methodology is the stochastic oscillator. The stochastic oscillator is a momentum indicator that shows the location of the current closing […]

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Volume- A Critical Technical Analysis Indicator

Volume is the number of shares or contracts that trade over a specific period of time, usually one day. On a chart, volume is represented as a histogram (vertical bars) below the price chart. This indicator is an essential part of every technical formation as a price pattern will typically have a volume pattern attached […]

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Technical Market Theories:More Tools for the Technical Analyst plus Industry in the Spotlight

Chapter 8 in Cashing in on Covered Calls is devoted to technical analysis. This is a method of predicting future stock price movements based on observation of historical stock price movements. We use it to identify trends and for our buy/sell decisions.  The parameters I chose for my system include moving averages, MACD, stochastics and […]

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