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About Options Technical Analysis
In order to predict the future direction of the market, technical analysis based on
options volume is a very powerful tool. Options volume analysis
is critical for anyone who wants to predict financial market
movements and build a successful Options Trading System.
As price is always a function of volume, Options technical analysis needn’t always focus
on the price. Options volume technical analysis centers on the volume of ALL
contracts traded for a particular security, not just around the volume of any
particular contract. This system provides a precise picture of the market and
direction. By doing the options volume analysis in the form of a chart and
through the analysis of the chart’s behavior, the future direction of the market
and market reversals can be predicted.
This trading system has a level of subjectivity because it is not 100% mechanical.
MarketVolume and its system of volume technical analysis are the basic
technologies behind this Options Trading System. What allows our analysts to
make informed, but still somewhat subjective decisions as to where the market is
going in the mid and long-term, and to make a trade based on the results of that
analysis is the MarketVolume’s JavaVolume. This system also incorporates other
forms of technical analysis.
The importance of index charts and index indicators is known to every Options trader
and Options analyst, but that is not the whole picture. What sets our analysts
apart from the “traditional” technical analyst, is that they concentrate on the
collective volume for all options. “Fundamental Options Volume Analysis” is a
good term for the type of technical analysis behind our Options Trading System,
where we analyze the CAUSE of the price movements, instead of just analyzing the
resulting price.
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Best Months
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Apr 2008: |
+224% |
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Mar 2008: |
+241% |
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Feb 2008: |
+341% |
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Dec 2007: |
+227% |
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Nov 2007: |
+167% |
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Oct 2007: |
+127% |
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Jan. 2007: |
+83% |
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Nov. 2006: |
+122% |
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Oct. 2006: |
+71% |
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Aug. 2006: |
+74% |
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July 2006: |
+73% |
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Mar. 2006: |
+75% |
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Based on actual trades autotraded by major brokers |
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Uncovered SPY Options
Signals
Past 2 Months |
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+338%
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-0%
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Our
Signals |
Buy
& Hold |
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As of 5/16/2008 |
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