Below is a list of Indices, ETFs and Stocks that trade weekly options. This list is what I would usually go through to look for potential large cap movers. Since these are most of the most liquid ETFs and Stocks, these are the types of stocks you would want to trade on options.
The most crucial indicators that may dictate future price movement when trading off charts are the most common and will always be displayed on a chart. These are Price Action and Volume!!
Price is the most basic component of stock charts and can be the most indicative of a future price movement. short term movement either up, down or side ways can be a valuable indicator when trading based on technical analysis. Most of the lagging technical indicators that analysts use are calculated using short term price movement. Using certain charts such as candle stick charts and HLOC bar charts can reveal even more detailed information by including opening, closing, high and low prices for the specified period.
Volume in another key indicator that may be of great value when determining if a stock is ready to make a move . A drastic change in volume within a given time period may reveal increased buying or selling interest in a stock.
Chart patterns repeat themselves over and over in different stocks throughout time. After trading from some time and being able to get that market eye, that feeling, that edge, etc., technical trader can identify a certain pattern and establish an entry price as well as a stop loss price. The advantage of technical analysis is that it provides specific entry and exit points for a trader to obtain the best risk reward while limiting the risk and determining profit taking areas.
As I continue to develop the site and add additional information, I plan to create a repository for personal charts I have observed on a daily basis which depict certain patterns. Keep in mind im no bad ass like other traders around the tradernet, even those that claim to know it all but really don’t know jack! I have come to understand the markets, technical analysis and have put in my time. Trading is a journey of constant learning and I don’t plan to stop any time soon!
For the time being, I’ll provide a few links below to external sites with basic information on chart patterns to get those of you who want to learn the basics started.
The following link is to a site which is straight forward and explains some basic chart patterns which I tend to use alot like wedges, triangles and flags:
As time permits, I will continue to add recent examples of actual stocks as I see them.