I welcome any and all criticism. I am by no means an expert. I noticed the new Volume Delta indicator and the fact that it shows a new way to look at volume and the pressure of buyers vs. sellers.
I noticed for NVDA specifically, there is almost a support level for each buyer and seller pressure on a day to day basis. Meaning, on any given day the level of pressure by bears and by bulls typically hits a certain threshold and there is an equal price reaction. These roughly estimated levels are the horizontal blue lines on the VD indicator. I also watch 1-day RSI and confirm it's movement with 5-day RSI.
My strategy is the following, wait until 1-day RSI shows overbought/oversold, use 5-day RSI to confirm this. Then use VD to confirm, for example, an overbought position is supported with unusually bullish pressure, assume a short intraday or intraweek correction and buy highly volatile short-term, right outside of the money puts... and the opposite is true for Bearish pressure and then buying the corresponding Calls.
I noticed for NVDA specifically, there is almost a support level for each buyer and seller pressure on a day to day basis. Meaning, on any given day the level of pressure by bears and by bulls typically hits a certain threshold and there is an equal price reaction. These roughly estimated levels are the horizontal blue lines on the VD indicator. I also watch 1-day RSI and confirm it's movement with 5-day RSI.
My strategy is the following, wait until 1-day RSI shows overbought/oversold, use 5-day RSI to confirm this. Then use VD to confirm, for example, an overbought position is supported with unusually bullish pressure, assume a short intraday or intraweek correction and buy highly volatile short-term, right outside of the money puts... and the opposite is true for Bearish pressure and then buying the corresponding Calls.