Use These Stock Chart Signals to Find Winning Options Trades

Core Insights - The article emphasizes the importance of using multiple indicators to identify potential trades, rather than relying on a single signal [1] - Gavin McMaster demonstrates a systematic approach to trading by combining candlestick screeners, options flow data, and chart analysis [1][11] Group 1: Candlestick Screening - The initial step involves using a candlestick screener to filter large-cap stocks with high options volume, focusing on bearish engulfing patterns as strong reversal signals [2][3] - Examples of bearish candidates include Occidental Petroleum (OXY) and Exxon Mobil (XOM), which exhibit stacked signals indicating potential downward movement [3] Group 2: Bullish Patterns - The second step involves scanning for bullish engulfing patterns, highlighting stocks such as Broadcom (AVGO), Uber (UBER), and Snowflake (SNOW) [4][5] - While Uber shows a bullish engulfing pattern, its negative flow suggests it is not a strong candidate [5] Group 3: Chart Confirmation - The third step is to confirm findings with charts, where candlestick patterns and options flow provide the setup, and accumulation/distribution indicators validate the presence of buyers or sellers [6][7] - Bearish engulfing candles indicate strong negative sentiment, while bullish engulfing candles, combined with positive options flow and a strong uptrend, suggest a solid bullish candidate [8][9] Group 4: Tools and Resources - The article encourages the use of Barchart's candlestick screeners to filter patterns, layer in options flow for sentiment confirmation, and utilize snapshot charts with accumulation/distribution indicators to assess trade strength [12] - A full step-by-step guide and beginner's guide to candlesticks are available for further training [12]