Analysys

IWM is in upswing from 3/10 , as per my trading strategy march 11th is oppertunity to enter a bullish put spread.
On 3/19 the red candle is bearish sign, but the top of the candle is above previous day.
But on 3/20 the red candle clearly showed the downward pressure.
A good entry point for bearish call spread.
But next trading day 3/23 it went past 3/20 high...
clearly a false signal.

My IC and Vertical Trading Plan

Stratagy is to sell verticals on IWM ( for now) on both sides and form IC.

• Sell verticals Criteria

For bearish call spread , the IWM should be

• crossing downwards OverBought region of WilliamPercentR (10,-20,80)
• Should have a red candle in the top.
• near the top band of Accelaration Bands (20)
• exhibiting resistance in that area.

For Bullish put spread ,

• crossing upwards OverSold region of WilliamPercentR (10,-20,80)
• Should have a Green candle in the bottom.
• near the bottom band of Accelaration Bands (20)
• exhibiting support in that area.

Entry points

• Short side of the verticals with delta of <>
• Width of 2 ( for IWM)
• Credit of > 0.20
• 5 contracts at a time
• Or 20% of the portfolio
• 4 entries Max.
• With time of 30 days.

Exit Points

• Short side delta is > 0.30
• Buy the short side only.?