#Squeeze momentum indicator mt5 series

The short call, on the other hand, starts losing premium at a quick clip. Under these circumstances, long ITM calls hold mostly intrinsic value and suffer minimal premium decay.

This is when an investor might sell some ATM calls close to expiration to complete the vertical spread.Ī best-case scenario at this point is a market that goes back into a choppy consolidating phase. That happens when the momentum on the histogram changes color (in this case, from light blue to dark blue), indicating the trending price action is likely reaching a conclusion. Next, the investor could wait for the momentum on this trade to end. To get price movement that closely mimics the underlying asset, an investor could look at options with a delta of at least 0.70. Initially, an investor could buy ITM calls. In this scenario, with the histogram above zero, a bullish options strategy might make sense.įor example, an investor could consider legging in to a bullish call vertical spread.

#Squeeze momentum indicator mt5 series

The first green dot after the series of red dots suggests the squeeze is on, and this market could be ready to move.

Wealth and Investment Management Solutions.

Meet the experts behind Schwab's investing insights.

Environmental, Social and Governance (ESG) Investing.

Bond Funds, Bond ETFs, and Preferred Securities.

ADRs, Foreign Ordinaries & Canadian Stocks.

Environmental, Social and Governance (ESG) ETFs.

Environmental, Social and Governance (ESG) Mutual Funds.

Benefits and Considerations of Mutual Funds.