As described on the chart, the candle on 31st March indicates a bull market.
Below are the reasons why i expect a reversal and looking at a trap:
1. Linear Regression - 2 Standard Deviation(SD) - Price approaching a 2 SD point which indicates a 95% probability of a reversal.
2. Pearson's R coefficient indicates a strong correlation with 91.4% supporting the odds of reversal
3. The trendline fan's confluence with 3SD makes the area extremely strong resistance.
4. The current PCR is trending at 1.27 indicating an over-bought scenario.
5. 21.59 - Volatility Skew indicates market's bearish Sentiment.
Trade Suggestions:
Spreads -
1. Bear Put Spread
2. Ratio Spreads -
This is my view and not a recommendation.
Below are the reasons why i expect a reversal and looking at a trap:
1. Linear Regression - 2 Standard Deviation(SD) - Price approaching a 2 SD point which indicates a 95% probability of a reversal.
2. Pearson's R coefficient indicates a strong correlation with 91.4% supporting the odds of reversal
3. The trendline fan's confluence with 3SD makes the area extremely strong resistance.
4. The current PCR is trending at 1.27 indicating an over-bought scenario.
5. 21.59 - Volatility Skew indicates market's bearish Sentiment.
Trade Suggestions:
Spreads -
1. Bear Put Spread
2. Ratio Spreads -
This is my view and not a recommendation.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.