Option trading can be successful only by understanding the essence of Time.
Either Options buying or selling the most important aspect is to know if the Time is on the buy or sell side and this combined with Candlestick can simply convert your losing positions into profitable ones.
What are Time techniques and cycles? It is a very simple and easy concept that can help to understand the date and time when markets are reversing from down to up.
Below is the chart of Bank Nifty along with Time cycles reversals on a 15 minutes chart.
Bank Nifty 15 minutes chart:
Time Traders – The vertical lines shown above represents Time reversal areas. During the uptrend this time cycles worked like magic giving opportunity to buy everytime prices moved within this time zone and then formed a positive Candlestick pattern.
Many of the breakout fail only because time is not in favor and above chart clearly represents that by buying everytime with price confirmation near the cycle low gave amazing opportunity to trade.
Now during the downtrend let us understand how the cycle changes. We combine both Price and Time confirmation to take a long trade. For taking the short positions we need to see break below the time cycle low. We can see that at 1.45 pm during the latest cycle the low was broken which gave a classic sell signal. So when the cycle low is taken out by prices it confirms to take a sell trade.
Now the next cycle is due on Friday the 13th and we will closely watch it near 10:15 am. Yes exact time of reversal can be predicted. If near the zone of 10.15 time we get price confirmation by Candlestick it can provide another amazing opportunity to buy Options if the positive pattern is seen or else if low is broken it will be opportunity to sell calls.
In a nutshell, Time is the essence of Trading Options successfully but many are ignoring this most important element of trading by focusing merely on prices.
Mentorship on Timing the Market – To create the passive source of Income, achieve financial freedom and trade with an edge with consistency by leveraging options learn the science of Time which will be the focus for Mentorship March 2023, check here
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