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.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.