snappyfrog
721 posts
msg #159252
- Ignore snappyfrog
modified |
6/29/2022 10:28:17 PM
I have been following the McClellan Oscillator (advancing minus declining stocks)
for divergence from SPY close.
SPY was in consolidation from late May - June 8, 2022 while McClellan was showing
a drop. This gave me confidence in buying puts to short SPY.
This lead me to wondering if I could use the McClellan in any way to help
me buy puts / calls.
I came up with this filter that looks at the 10 day high and low of the McClellan.
When the McClellan value leaves the 10 day value of the low, I want to buy a call (go long),
holding until the McClellan actually drops from the 10 day high value. I would then
sell the call and buy puts (go short). I would repeat this process to sell the puts and
go back into calls.
There are some fakes, but I have the RSI(14) in the chart also to help guide me on when
to hold through a slight reversal / flag / pennant. I consider a RSI value above 53 as being
bullish strength while below 47 to be bearish strength.
Note also that RSI will tend to stay below 60 in a bearish market and above 40 in
a bullish market.
Your thoughts and ideas are always appreciated.
Edit: When you click to Fetch, if it says you have exceeded your subscription, just
click it again.
|
compound_gains
222 posts
msg #159253
- Ignore compound_gains |
6/30/2022 12:40:24 PM
How far out are you buying the calls / puts?
|
snappyfrog
721 posts
msg #159260
- Ignore snappyfrog |
7/1/2022 7:57:04 AM
I am buying monthlies at least 1 month out.
|
sanket_9999
5 posts
msg #159465
- Ignore sanket_9999 |
8/16/2022 11:01:47 AM
Hi can you please explain when to buy the SPY and sell SPY?
|
snappyfrog
721 posts
msg #159480
- Ignore snappyfrog |
8/22/2022 9:47:23 AM
I pull my buy / sell Criteria in the original post.
One thing I didn't mention is watching RSI(14). Depending on the
Strength (above 53) or weakness (below47) makes a difference
On if and when I buy / sell also.
|
ron22
255 posts
msg #159503
- Ignore ron22 |
8/26/2022 5:22:05 PM
Snappy, Interesting filter. Did you have a chance to back test it? Thank you for posting it.
|
snappyfrog
721 posts
msg #159526
- Ignore snappyfrog |
9/1/2022 8:33:10 AM
Have not back tested it except for looking at the chart over the last year.
It does give some head fakes when used alone, but RSI helps in those cases.
I recently bought $425 puts on the 19th of Aug
when McClellen made a head and shoulders pattern with RSI oversold.
I am still holding the puts.
|
ron22
255 posts
msg #159539
- Ignore ron22 |
9/1/2022 4:24:27 PM
Snappy, Using RSI for confirmation is a good approach. Thanks.
|
snappyfrog
721 posts
msg #159570
- Ignore snappyfrog |
9/8/2022 8:31:47 AM
Bought on Aug 19th at $889 will sell at open today at approximately $2800.
|
shillllihs
6,044 posts
msg #159571
- Ignore shillllihs |
9/8/2022 10:29:19 AM
Your system seems great right now that it’s a bear market but flip it and I’m not sure it works, look back 2 years. I may be wrong.
|