Optional analysis. How does the method actually work?

Optional analysis. How does the method actually work?

Optional analysis. How does the method actually work?

We know a lot about technical analysis. Many traders use it in their trading, but it has one significant drawback – subjectivity of use. And this is due to the placement of levels.

Some traders place price levels higher, others lower, and others may not place levels at all in a certain area. But the profitability of your chosen trading system largely depends on the correct placement of levels.

In addition, over time, the levels lose their strength, which is why the price easily breaks through them.

But there is another method of analysis that can find really strong levels on the chart, and the price starts from them with amazing accuracy. The method is called ""option analysis"".

First, let's look at what option levels are in General.

An option level is a significant accumulation of Put or Call contracts at a certain price level. Of course, to clearly understand how to define them and work with these levels, you need to get a certain amount of knowledge.

Today, in this article, I would like to show you the potential opportunities for making a profit in transactions made on the basis of option analysis. To do this, I, Viktor Brel, a trader at the Forex Academy, have prepared for You an analysis of the trading week based on option analysis. Over the past week, a number of transactions were made based on the analysis of option levels.

Let's start in order. The first in our list will be everyone's favorite currency pair EUR / USD:

Last week, a sale was opened for the EUR / USD currency pair at the price of 1.0751 with a target of 1.0623. As you can see on the chart above, the price eventually reached the planned Take Profit, but I did not wait for it to go to the planned price level and closed the deal on the market, as I was confused by the moment of the price rebound from 1.0656. As a result, the transaction resulted in a profit of 81 points (810 pips).

At the moment, I have again opened a sell trade on the EUR / USD currency pair with the first target of 1.0590, where after the correction I will again look for the entry point to sell:

The currency pair very well correlated with EUR/USD, the basis for opening a trade can take levels for the currency pair EUR/USD but in the mirror. Ie if EUR/USD is a sell signal, then the dollar/franc should look for an entry point to buy. However, option analysis allows you to find important price levels on this currency pair as well.
USD/JPY currency pair

For this currency pair, a Buy deal was opened with a target of 116.924. However, the market could not overcome the resistance level around 115.250, after which the price began to decline, and the deal was closed with a Stop-Loss at the price of 114.610. As a result, a profit of 202 points (2020 pips) was obtained.
USD / CAD currency pair

The trade was opened at 1.3045 and closed at Stop-Loss in less than an hour. The loss on this transaction was 48 points (480 pips).

As you can see from the chart below, after the price passed another 30 points (300 pips), a reversal occurred and the price rushed up:

However, in total, for all the transactions carried out, a profit of 202+81-48=235 points was obtained. Of course, this is not the best trading week. Most often, the goals for taking profit are more distant and can be 300-700 points.

Option analysis allows you to ""spy"" on the intentions of major players and conclude deals with a high mathematical expectation.

Some traders place price levels higher, others lower, and others may not place levels at all in a certain area. But the profitability of your chosen trading system largely depends on the correct placement of levels.

In addition, over time, the levels lose their strength, which is why the price easily breaks through them.

But there is another method of analysis that can find really strong levels on the chart, and the price starts from them with amazing accuracy. The method is called ""option analysis"".

First, let's look at what option levels are in General.

An option level is a significant accumulation of Put or Call contracts at a certain price level. Of course, to clearly understand how to define them and work with these levels, you need to get a certain amount of knowledge.

Today, in this article, I would like to show you the potential opportunities for making a profit in transactions made on the basis of option analysis. To do this, I, Viktor Brel, a trader at the Forex Academy, have prepared for You an analysis of the trading week based on option analysis. Over the past week, a number of transactions were made based on the analysis of option levels.

Let's start in order. The first in our list will be everyone's favorite currency pair EUR / USD:

Last week, a sale was opened for the EUR / USD currency pair at the price of 1.0751 with a target of 1.0623. As you can see on the chart above, the price eventually reached the planned Take Profit, but I did not wait for it to go to the planned price level and closed the deal on the market, as I was confused by the moment of the price rebound from 1.0656. As a result, the transaction resulted in a profit of 81 points (810 pips).

At the moment, I have again opened a sell trade on the EUR / USD currency pair with the first target of 1.0590, where after the correction I will again look for the entry point to sell:

The currency pair very well correlated with EUR/USD, the basis for opening a trade can take levels for the currency pair EUR/USD but in the mirror. Ie if EUR/USD is a sell signal, then the dollar/franc should look for an entry point to buy. However, option analysis allows you to find important price levels on this currency pair as well.
USD/JPY currency pair

For this currency pair, a Buy deal was opened with a target of 116.924. However, the market could not overcome the resistance level around 115.250, after which the price began to decline, and the deal was closed with a Stop-Loss at the price of 114.610. As a result, a profit of 202 points (2020 pips) was obtained.
USD / CAD currency pair

The trade was opened at 1.3045 and closed at Stop-Loss in less than an hour. The loss on this transaction was 48 points (480 pips).

As you can see from the chart below, after the price passed another 30 points (300 pips), a reversal occurred and the price rushed up:

However, in total, for all the transactions carried out, a profit of 202+81-48=235 points was obtained. Of course, this is not the best trading week. Most often, the goals for taking profit are more distant and can be 300-700 points.

Option analysis allows you to ""spy"" on the intentions of major players and conclude deals with a high mathematical expectation.

Some traders place price levels higher, others lower, and others may not place levels at all in a certain area. But the profitability of your chosen trading system largely depends on the correct placement of levels.

In addition, over time, the levels lose their strength, which is why the price easily breaks through them.

But there is another method of analysis that can find really strong levels on the chart, and the price starts from them with amazing accuracy. The method is called ""option analysis"".

First, let's look at what option levels are in General.

An option level is a significant accumulation of Put or Call contracts at a certain price level. Of course, to clearly understand how to define them and work with these levels, you need to get a certain amount of knowledge.

Today, in this article, I would like to show you the potential opportunities for making a profit in transactions made on the basis of option analysis. To do this, I, Viktor Brel, a trader at the Forex Academy, have prepared for You an analysis of the trading week based on option analysis. Over the past week, a number of transactions were made based on the analysis of option levels.

Let's start in order. The first in our list will be everyone's favorite currency pair EUR / USD:

Last week, a sale was opened for the EUR / USD currency pair at the price of 1.0751 with a target of 1.0623. As you can see on the chart above, the price eventually reached the planned Take Profit, but I did not wait for it to go to the planned price level and closed the deal on the market, as I was confused by the moment of the price rebound from 1.0656. As a result, the transaction resulted in a profit of 81 points (810 pips).

At the moment, I have again opened a sell trade on the EUR / USD currency pair with the first target of 1.0590, where after the correction I will again look for the entry point to sell:

The currency pair very well correlated with EUR/USD, the basis for opening a trade can take levels for the currency pair EUR/USD but in the mirror. Ie if EUR/USD is a sell signal, then the dollar/franc should look for an entry point to buy. However, option analysis allows you to find important price levels on this currency pair as well.
USD/JPY currency pair

For this currency pair, a Buy deal was opened with a target of 116.924. However, the market could not overcome the resistance level around 115.250, after which the price began to decline, and the deal was closed with a Stop-Loss at the price of 114.610. As a result, a profit of 202 points (2020 pips) was obtained.
USD / CAD currency pair

The trade was opened at 1.3045 and closed at Stop-Loss in less than an hour. The loss on this transaction was 48 points (480 pips).

As you can see from the chart below, after the price passed another 30 points (300 pips), a reversal occurred and the price rushed up:

However, in total, for all the transactions carried out, a profit of 202+81-48=235 points was obtained. Of course, this is not the best trading week. Most often, the goals for taking profit are more distant and can be 300-700 points.

Option analysis allows you to ""spy"" on the intentions of major players and conclude deals with a high mathematical expectation.

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