Go to http://ExpertOptionTrading.com/videos for more free videos on option strategies you have a chart that looks like that. I'm sorry, but it just doesn't make sense to me. I just tend to use the simplest charting method possible. Just these three alone is all I really need to determine trend. As you can see, we tried a little rally here again. Volume did not cooperate. There is no big bar. There is no big green bar here, indicating that people are starting to buy up shares like crazy. This market is not ready to bottom out yet. It looks like there is still a good deal of selling pressure going on. As long as the difference between up volume and down volume is increasing, that means that there is increasing selling pressure coming into the market. It hasn't ended yet. It's a very steady decline. There is more selling pressure coming into the market, at that means prices are going to head a little bit lower here. If we see a large green bar in here, maybe it could be the beginning of a new trend upward in the market, and the market could start to turn around. Until we see that, we don't want to take any action. That's it for these three. I call these the Happy Family indicator. They're all real-time. The last indicator that I'm going to show you - I take the NASDAQ QQQs ETFs. I take the QIDs. Let me just show you what both of these ETFs are. These are two ETFs. The QQQs - the indicator is the PowerShares Exchange Traded Fund for the NASDAQ. In other words, it reflects the prices of the NASDAQ 100, in an ETF. The NASDAQ 100 is a very interesting indicator. A lot of small players, a lot of people in the technology industry, use that, and like to buy and sell this index. It's more reflective of not professional money, but of the individuals. The QID is just the opposite of the QQQ. The QUID is actually a ProShares UltraShort of the QQQs. In other words, it acts in the completely opposite direction of the QQQs. When the market is going up, the QUIDs will go down. You can see today that the QIDs are up for today, because the market is down. It's up $1.57 here. The reason they do that is because sometimes, it's very hard to sell short the NASDAQ 100. Instead of using the NASDAQ itself; instead of shortening the QQQs, they provided an ETF that allows you to just buy this, if you think the market is going down. It's very similar to the VIX, in the fact that it correlates negatively with the market in general. In other words, this one is going up, and the market is going down. When this one is going down, the market is going up. What I've done is set up my chart here, by taking the QQQQ - that's a symbol, the four Q's - a minus sign, and then the QID. The goal of this type of indicator is to simply measure the enthusiasm or disappointment of the participants who are trading the Qs and the QIDs. In other words, what I get is an emotional indicator, a sentiment indicator, by taking the difference between these two. My reasoning is that when people are buying the QQQs, you're going to see prices spike up. What will happen is, people will ignore the QIDs, and they will buy the QQQs, if they think the market is going up. When people are buying the QID, prices will decline rapidly. It's an emotional buying. Then, they will ignore the QQQs. They will go ahead and buy the QIDs, as a substitute from shorting the market. People, in general, feel more comfortable actually buying something, rather than selling it short. To some people, selling stock short is considered to be extremely dangerous, or something like that. It's not, but they feel that there is more risk in selling something short. For more videos on option strategies be sure to check out our channel: http://www.youtube.com/user/howtotradeoptions To learn more about the Expert Option Trading course go to: http://ExpertOptionTrading.com Additional Tags ================ vertical spreads, options greeks, what is options trading, option volatility, option spreads, options volatility, how to trade in options, option strategies, index options, equity options, virtual trading, options spreads, virtual options trading, options trading tutorial, option trading strategy, options trading course, how to trade stock options, options trading systems, options training, learning options, learn to trade options, option trading tutorial, options trading strategy, option trading course, option trading systems, options trading basics, option trading basics, option trading system, options trading courses, options trading training, trade options, what is a stock option, options strategies
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Duration: 8m 21s
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