Unusual Volume with Gap
9 min
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).
Unusual Volume with Gap
Options Strategies/Bot Group: Unusual Volume with Gap
Unusual Volume with Gap
Bots
In this case, we have four bots under the “Unusual Volume with Gap” bot strategy:
Unusual Volume with Gap
Bot Workflow
Unusual Volume with Gap
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.