MRNA Soft TA – Buying P270 & P300 11/15 at Open
What's up fellow retards,
I am applying my strategy as a day trader to see what our long term resistance and support levels are. I'm a day trader of three years that has consistently used standard deviations, relative volatility index, and volume on a 6month and 1year time frame to determine my buy/sell areas on stocks, no matter whether I am swing trading or trading intraday.
-Easy Breakdown of Statistical Standard deviations – 68% of a stock's price range over a given time frame is within 1 statistical standard deviation (2 blue lines) of it's average/regression trend (middle line), 95% within two deviations (first upper and lower purple lines), and 99.7% within 3 deviations (second upper and lower purple lines), known as the 68-95-99.7 rule. Most importantly, these deviations also function as true support and resistance levels, with deviations, once crossed, becoming either the new resistance or new support level. I generally use this to find stocks that are trading above +2 deviations to short/buy puts or at -2 deviations to buy calls/stock as these areas represent only 5% of the price action over a given time period and statistically, there's a 95% chance the price will drop back below or climb back above +2/-2 deviations, respectively. I did this with Amazon puts recently as AMZN was trading above +2deviations. Otherwise I mostly trade off deviation support and ride volume up to next deviation resistance level before exiting the position which is what these TAs will be about.
-So, let's keep it simple stupid. Moderna, MRNA, is currently trading right along +2 deviation support on 6month chart, and right below +2deviation support on the daily(one year) chart. I've drawn red price level lines at these deviation support/resistance levels that carry over onto the one day chart. You'll need to download the charts to see the deviation levels.
First Image is the One Year and 6 month chart from right to left – https://imgur.com/KZgqC2E
This is the intraday chart with the same red price level deviation support/resistance lines carried over – https://imgur.com/B7nOWox
We are BARELY holding +2 6month deviation support of around $215. At open today, I'll be buying $270 and $300 calls for October 15th.
Now, because deviation support is being held I expect there's a slight chance MRNA needs to complete its move up to +2deviation resistance on one year of $332 area before reversing, in which case, I'M JUST GONNA BUY MORE PUTS – https://imgur.com/GG4hhCo
-Why $270 as my lower target? Because it's +1 Deviation on the One year chart. I could play the Mean/Average/Regression line (middle line on one year/6month/intraday) but I like to manage my risk and will be selling the PUTS once the price target of $272 area is reached (remember +1/-1deviation is blue lines on the charts) since this is the first statistical support area where the price may bounce a bit since we have deviation support on both one year and 6 month – https://imgur.com/QyZlioQ
Good luck out there you stupid monkeys, make some money today!
Submitted July 22, 2021 at 02:08PM by CodeMaitre
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