Historically, technical analysis has proven to be an excellent predictor of future price trends. Large amounts of quantitative data are analyzed to determine the most likely price action that can be seen using visuals. Technical analysis uses sophisticated math to predict trends and market direction based on historical data. That’s where technical analysis comes in. While the individual option flow trades account for the newest (and usually non-public) information the fastest for rapid price movements, we don’t know what quantitative data the trader considered before entering the trade. ![]() Through analyzing the options flow, we can understand professional traders' sentiment and potentially discover a trade they made using a proprietary strategy (and take the same trade). Historically, smart money has used this substantial information advantage to outperform retail traders by a wide margin. ![]() Smart money uses this information advantage to confidently take significant (and often highly-leveraged) positions that often cause sizable directional swings in the market. Institutional investors (“smart money”) use their considerable resources to access market-moving information before other market participants.
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