Unusual Volume with Gap

unusual volume with gap risk profile aggressive or speculative trade strategy market with bullish price action, with gap up move and crossing 200 day moving average (ma) the golden cross is a classic trading signal used to trade market bottoms the key component of the strategy is when the 50 day moving average crosses above the 200 day moving average it is a popular technical indicator in stock trading, mainly used to invest in markets that have been in a bear market but are showing signs of bottoming this strategy involves a breakaway gap structure characterized by unusual volume activity the price action during the gap move is also above the 200 day moving average the gap typically occurs after the price has corrected by at least 15%, possibly up to 30% additionally, a bullish signal is when the 20 day moving average crosses above the 50 day moving average (optional) options strategies/bot group u nusual volume with gap bots in this case, we have four bots under the “unusual volume with gap” bot strategy unusual volume with gap sell put spread (40/20) https //www optioncircle com/bot/unsualvolgap2sellp unusual volume with gap long call 50/30/10 butterfly https //www optioncircle com/bot/unusualvolgapup2bf unusual volume with gap leaps https //www optioncircle com/bot/unusalvolgap2lps unusual volume with gap – call spread 40/20 https //www optioncircle com/bot/unusualvolgapup2p bot workflow bot rules trading strategies time create a schedule for the bot to run daily, weekly, or monthly equity pre screen technical preferences and import them directly into the bots consider the following criteria unusual volume with gap price above 200 ma price crossed 200 ma price 15% 30% below 52 week high price > $10 open gap up 2% unusual vol up decision (technical indicator) added additional real time or historical market or technical indicators as needed to optimize the performance or minimize losses open position example execute a sell put spread or bull put spread set delta at 40/20 (mid price bid price) ensure open interest is greater than 50 close order (oco) close the position if profit exceeds 75% loss exceeds 50% within 2 days before the expiry