Options R strategy in PFOREX Assist - Market Signals & Analysis

Options R strategy in PFOREX Assist

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Options R strategy in PFOREX Assist

Ninety Eighth session - PFOREX Assist Tutorial

Welcome back to Forex professional training.

In this session we will review;

  • The available R strategies on Options trades
  • The R strategy examples in PFOREX Assist

R strategy for Options (Call/Put)

The components and specifications of R-strategy is described thoroughly in session 94. Due to high performance of this strategy, it is suitable for Options market especially on Trend markets with suitable slope.

The reversal signals are delivered by these strategies. The available types on Options (Call/Put) trades are as follows;

  • R Options Type I
  • R Options Type II
  • R Options Type III

Options R strategy in PFOREX Assist - Support Resistance Line

R Strategies

RO Type I

After fluctuations of price trend near the Trend line, if a powerful reversal candlestick pattern forms near the Trend line then a reversal spot can be detected. The Overbought/Oversold conditions by RSI or Stochastic will confirm the generated signal as well.

The bullish signal will be generated after price decreases toward the Trend line and a powerful reversal candlestick appears. The Trend line must connect at least 2 valleys on the bearish trend. If RSI line passes the level 30 or Stochastic line passes the level 20 toward top then the reversal spot can be detected and the bullish trend is confirmed.

The bearish signal will be generated after price increases toward the Trend line and a powerful reversal candlestick appears. The Trend line must connect at least 2 peaks on the bullish trend. If RSI line passes the level 70 or Stochastic line passes the level 80 toward bottom then the reversal spot can be detected and the bearish trend is confirmed.

The specifications of this strategy are as follows;

  • Market type: Trend market
  • Symbols: Entire symbols
  • Time-frames: All timeframes
  • Elements: Trend line, Reversal candlestick pattern, RSI and Stochastic
  • Entry Price:
    • Buy Order: Reversal Bullish candlestick near the Trend line (Support line)
    • Sell Order: Reversal Bearish candlestick near the Trend line (Resistance line)
  • Confirmations: Hidden Divergence and Divergence/Convergence

Now let’s check some examples of this strategy.

The NZDUSD price has decreased and a Trend line can be plotted by connecting three valleys. The price proceeded toward the Trend line which acts as a support line. An Engulfing candlestick pattern appeared near the Trend line to specify the reversal spot toward up.

Options R strategy in PFOREX Assist - Trend Line - Bullish Signal

The next example shows a bearish signal in which Trend line (resistance line) connects the peaks on a bullish trend. As price went near the Trend line, a Shooting Star pattern formed and the reversal spot is determined for the downward trend.

Options R strategy in PFOREX Assist - Trend Line - Bearish Signal

RO Type II

After fluctuations of price trend near the Trend line, when price crosses the Trend line with Closing price on the other side of the Trend line and then a powerful reversal candlestick pattern forms then a reversal spot can be detected. The Overbought/Oversold conditions by RSI or Stochastic will confirm the generated signal as well.

Bullish format: After price decreases toward the Trend line and crosses the Trend Line with a candlestick, which the Closing price is below the Trend line, if a powerful reversal candlestick appears then a bullish signal will be generated. The Trend line must connect at least 2 valleys on the bearish trend. If RSI line passes the level 30 or Stochastic line passes the level 20 toward top then the reversal spot can be detected and the bullish trend is confirmed.

Bearish format: After price increases toward the Trend line and crosses the Trend line with a candlestick, which the closing price is over the Trend line, if a powerful reversal candlestick appears then a bearish signal will be generated. The Trend line must connect at least 2 peaks on the bullish trend. If RSI line passes the level 70 or Stochastic line passes the level 80 toward bottom then the reversal spot can be detected and the bearish trend is confirmed.

The specifications of this strategy are as follows;

  • Market type: Trend market
  • Symbols: Entire symbols
  • Time-frames: All timeframes
  • Elements: Trend line, Reversal candlestick pattern, RSI and Stochastic
  • Entry Price:
    • Buy Order: Reversal Bullish candlestick over the Trend line (Support line)
    • Sell Order: Reversal Bearish candlestick below the Trend line (Resistance line)
  • Confirmations: Hidden Divergence and Divergence/Convergence

Now let’s check some examples of this strategy.

On the CADJPY price chart, Trend line connects at least 3 valleys with support effect on price movement. After price crossed the Trend line, the Closing price of the bearish candlestick formed lower than the resistance line. A powerful bullish candlestick pattern formed to confirm the bullish trend.

Options R strategy in PFOREX Assist - Breakout Spot - Bullish Signal

In the next example, Trend line as resistance line has connected 4 peaks. A long bullish candlestick pattern crossed the Trend line with Closing price over it. A powerful bearish candlestick just formed after that with Closing price below the Trend Line to confirm the reversal downward spot.

Options R strategy in PFOREX Assist - Breakout Spot - Bearish Signal

RO Type III

In this type, after fluctuations of price trend near the Trend line, when price crosses the Trend completely, if a powerful reversal candlestick pattern forms then a reversal spot can be detected. The Overbought/Oversold conditions by RSI or Stochastic will confirm the generated signal as well.

Bullish format: After price decreases toward the Trend line and crosses the Trend Line completely, if a powerful bullish candlestick appears then a signal will be generated. The Trend line must connect at least 2 valleys on the bearish trend. If RSI line passes the level 30 or Stochastic line passes the level 20 toward top then the reversal spot can be detected and the bullish trend is confirmed.

Bearish format: After price increases toward the Trend line and crosses the Trend line completely, if a powerful bearish candlestick appears then a signal will be generated. The Trend line must connect at least 2 peaks on the bullish trend. If RSI line passes the level 70 or Stochastic line passes the level 80 toward bottom then the reversal spot can be detected and the bearish trend is confirmed.

The specifications of this strategy are as follows;

  • Market type: Trend market
  • Symbols: Entire symbols
  • Time-frames: All timeframes
  • Elements: Trend line, Reversal candlestick pattern, RSI and Stochastic
  • Entry Price:
    • Buy Order: Reversal Bullish candlestick below the Trend line (Support line)
    • Sell Order: Reversal Bearish candlestick over the Trend line (Resistance line)
  • Confirmations: Hidden Divergence and Divergence/Convergence

Now let’s check some examples of this strategy.

On EURGBP price trend, Trend line has connected 3 valleys. The price then crossed the Trend line (support line) completely and a bullish Hammer candlestick below the Trend line appeared to specify the reversal spot toward top.

Options R strategy in PFOREX Assist - Reversal Spot - Bullish Signal

In the next example, the Trend line connects 3 peaks of the bullish trend. Then price passed the Trend line, which acts as a resistance line, toward top. Finally a powerful Shooting Star candlestick pattern formed above the Trend line to determine the reversal spot for the bearish trend.

Options R strategy in PFOREX Assist - Reversal Spot - Bearish Signal

Notices

You can download PFOREX Assist app for iOS and other platforms devices to receive these signals instantly, however I have to insist that all the services provided PFOREX are as information, not as suggestion nor advice.

That concludes this session, until next time and another session, take care.

Linkages & Notices

You can also view the video of this session available on the PFOREX Financial Video tutorials.

You can also find the video of this session on PFOREX YouTube Channel.

PFOREX Assist app provides BEST & FREE trading signals and market analysis. PFOREX Assist is available on App Store (iOS version) & Play Store (Android version).

The PDF file of this session is also available.


PFOREX Educational materials in text and video formats are developed by PFOREX Department of Education to enhance and improve investors’ knowledge and trading skills. Due to high risks and volatile fluctuations in financial markets, traders and investors must develop their trading skills and knowledge. It is strongly recommended to apply Risk and Capital Management when trading in financial market.

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