Tradescape

May 7, 2024

Tradescape = Trading Landscape

The tradescape is how easy it is to make gains depending on the unusual options flow volume for that trading day.

Every morning at 10:00 am, the tradescape report is sent to our Discord.

There are three modes:

Hard Mode: 0-95% Volume

Normal Mode: 95-120% Volume

High Mode: 120%+ Volume

Each Tradescape has its own set of rules to give you an edge in the market.

Hard Mode: If the price is chopping, it will start to move around 1300. Only trade calls below the open price and puts above the open price. Towards the end of the session, look for a mean reversion to the open price (OP) or a possible big end-of-day (EOD) move.

Normal Mode: You can follow the price action up to 2 strikes, with a likelihood of reaching 3 or more. If the price is chopping, don’t trade and wait until after 1300. Avoid trading alerts if you are late to the move. This could be a potential trend day.

High Mode: Follow price action with bulls above the open price and bears below. Expect a trend day with the price closing at the session high or low. Do not attempt to reverse the price action unless it is significantly above or below the open price.

On Hard Mode days, we can expect mean reversion, where the price returns to the open price (OP). This doesn’t happen 100% of the time, but often if the price is above or below the OP, it will revert back. Remember, the goal is to lose small and win big!

Another handy way to use volume is as a “when to enter/exit” indicator. If volume is ramping up as the market moves up or down, it’s a good sign the trend will keep going. But if the market’s on the move and volume starts to stall or drop, it’s likely the trend is running out of steam and we might see some choppy action or even a reversal. Keep an eye on this when trading, and use it as an extra check to keep your trades sharp!