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deepseek_indicator

Options Trading Indicators

Last Updated: newdate

Table of Contents

Core Indicators

1. Implied Volatility (IV)

**Purpose:** Measures expected price movement (options pricing)  
**Best For:** Selling premium when high  
**Key Thresholds:**
  * IV Rank >50% → Good for selling
  * IV Percentile >70% → Overpriced

2. Volume Profile + VWAP

**Purpose:** Identifies liquidity levels  
**Usage:** 
  * POC (Point of Control) = Strong S/R
  * VWAP = Trend confirmation

Platform Setup

ThinkorSwim

1. Charts → Studies → Add:
   * ''ImpVolatility''
   * ''VolumeProfile''
   * ''PutCallRatio''
2. Save as template (Right-click → Save Study Set)

Tradovate

1. Chart → Indicators → Add:
   * Volume Profile
   * Bollinger Bands (20,2)
2. Note: Requires external IV data

Strategy Combinations

Strategy Indicators Trigger Condition
Credit Spreads IV Rank + Volume Profile IV Rank >50% at POC
Directional RSI(14) + MACD RSI <30/MACD crossover
Earnings Plays PCR + OI Changes PCR spike + OI buildup

Pro Tips

1. **Confirmation:** Always use 2+ indicators (e.g., High IV + Overbought RSI)
2. **Timeframes:** 
   * Day trading: 5-min charts with tighter bands
   * Swing trades: Daily charts with standard settings
3. **Backtesting:** Test combos in paper trading first

Cheat Sheet

{{NEWTAG>red|SELL SIGNALS}}
• IV Rank >50% 
• RSI >70 + Price at upper BB

{{NEWTAG>green|BUY SIGNALS}}  
• IV Rank <30%  
• RSI <30 + MACD crossover
deepseek_indicator.txt · Last modified: 2025/03/28 05:23 by lwattsii