Growing a “Dry Powder” Garden to Feed your Perfect Crypto Portfolio in 2024

Generating CASH to Invest in the Bull Altcoin Season!

Cryptocurrency Investing

Using BITO Call Options

to Grow Cash for your Crypto Portfolio

The HOW & the WHY:

A quick intro on this topic. BITO has been my most profitable trade for the last 16 Months. By a Landslide %.

I do want to point out that I use the CALLS on BITO, BITX and directionally, BITI primarily as a "DRY POWDER" generator for my Cryptocurrency Investing.

I have used the profits for purchasing $COIN (Coinbase Stock), $BTCO & $ARKB (Bitcoin ETF Shares) as well as sending money from my Traditional Trading Account to my Crypto Exchange Accounts.

Could it be used as a TRADE for the sole intent of generating CASH or Profits? Of Course.

I am simply sharing the How and the Why with you as it is "What I Do".

And remember: None of this is Financial Advice, it is simply me sharing my personal experiences.

*** Do what you will with the information. Now Read On! ***

Highlights:

BITO
BITX
BITI
SBIT
OPTIONS
CALLS

CHARTING
ENTRIES
PPO/ADX PINCH PLAY
EXITS
AUTOMATED ORDERS
DRY POWDER

At the CORE of the Strategy:

The ADX/PPO Pinch Play Charting Method

Explain how to use the PPO / ADX Indicators to assist with CALL OPTIONS ENTRIES

Using the PPO (Percentage Price Oscillator) and ADX (Average Directional Index) indicators can be helpful in identifying potential entry points for call options in trading.

Here's how you can utilize each indicator:

PPO (Percentage Price Oscillator):
- Understanding PPO: PPO is a momentum oscillator that measures the difference between two moving averages as a percentage of the larger moving average.
- Signal Line: PPO typically consists of two lines - the PPO line and the Signal line. When the PPO line crosses above the Signal line, it indicates a bullish signal, suggesting that the momentum is shifting upwards.
- Divergence: Look for divergences between the PPO and price movement. If the price is making higher highs while the PPO is making lower highs, it could indicate weakening bullish momentum and potential reversal.
- Entry Point: One strategy is to enter a call option when the PPO line crosses above the Signal line, signaling bullish momentum. This crossover could indicate a potential upward movement in the underlying asset's price.
ADX (Average Directional Index):
- Trend Strength: ADX measures the strength of a trend, regardless of its direction. A high ADX value indicates a strong trend, while a low ADX value suggests a weak trend or consolidation.
- Thresholds: Traders often use threshold levels, such as 25 and 50, to interpret ADX values. A value above 25 suggests a developing trend, while a value above 50 indicates a very strong trend.
- Directional Movement: ADX also consists of two lines - the +DI (Positive Directional Indicator) and the -DI (Negative Directional Indicator). The crossover of these lines can indicate potential trend reversals.
- Entry Point: When the ADX line rises above a certain threshold (e.g., 25 or 30) and continues to climb, it suggests increasing trend strength. This could be a signal to enter a call option, especially if the underlying asset is in an uptrend.

Using Both Indicators Together:

Look for confluence between signals from both indicators. For example, if the PPO indicates a bullish crossover and the ADX suggests increasing trend strength, it strengthens the case for a call option entry.
Additionally, consider other factors such as support and resistance levels, volume, and market sentiment before making a trading decision.

Remember that no indicator is foolproof, and it's essential to practice risk management and use stop-loss orders to protect your capital. Additionally, back testing your strategies and continuously refining them based on market conditions is crucial for long-term success.

IMAGE: The example above can be applied to any SYMBOL

PPO/ADX Pinch Play

(FYI: I use ThinkorSwim / TD Ameritrade for my OPTIONS Trading)

Note: The actual PINCH on the SCREEN is not infallible. There are times that I still wait as I am looking at the CHART at Large. I wait for a FINAL Confirmation and then the REAL "Secret Sauce" is on FINE TUNING the actual ENTRY.

*** That is covered in my "soon to be released" online course. ($9.77)

~

SETTING UP A PPO/ADX Screener in Tradingview:

Setting up a screener for PPO/ADX pinch type plays in TradingView involves creating a custom screener with specific criteria that identify potential trading opportunities based on the convergence or divergence of the PPO and ADX indicators. Here's a step-by-step guide to setting up such a screener:

Access the Screener Tab:
- Log in to your TradingView account and navigate to the "Screener" tab.
Create a New Screener:
- Click on the "Create a New Screener" button to start building your custom screener.
Define the Criteria:
- Click on "Add Condition" to specify the criteria for your screener.
- For PPO/ADX pinch type plays, you'll need to define conditions related to both indicators.
PPO Condition:
- Add a condition related to the PPO indicator. For example, you might specify that the PPO line is close to crossing above or below the Signal line, indicating a potential pinch.
- You can set specific parameters such as the proximity of the PPO line to the Signal line, the direction of the crossover (bullish or bearish), and the timeframe (e.g., daily, hourly).
ADX Condition:
- Add a condition related to the ADX indicator. Look for instances where the ADX is relatively low, suggesting a lack of trend strength, which often precedes a potential trend reversal or breakout.
- Specify parameters such as the ADX value being below a certain threshold (e.g., 20 or 25) to identify potential pinch setups.
Combine Conditions:
- You can combine the PPO and ADX conditions using logical operators (AND, OR) to narrow down the results further.
- For example, you might require that both the PPO and ADX conditions are met simultaneously to identify high-probability setups.
Save and Test:
- Once you've defined all the criteria, save your screener and give it a descriptive name.
- Test the screener by running it against historical data to see if it accurately identifies the types of setups you're looking for.
Refine and Adjust:
- Refine your screener criteria based on the results of your testing. You may need to adjust parameters or add additional conditions to improve the accuracy of the screener.
Monitor and Execute Trades:
- Once your screener is set up and refined, regularly monitor the results to identify potential trading opportunities.
- When the screener identifies a PPO/ADX pinch type play that meets your criteria, conduct further analysis on the specific asset and market conditions before executing trades.

By following these steps, you can create a custom screener in TradingView to identify PPO/ADX pinch type plays, helping you discover potential trading opportunities in the market.

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The YouTube Video below is a bit older, but it will give you the "GIST" of using the PPO/ADX for Entries

*** Our Course will have ALL Updated VIDEOS using BITO as the Sample for Training Purposes. ***

Is there More?

Yes, a ton more.

I know this can be like DRINKING from a Fire Hose. So I am going to stop here on this Topic.

I am RELEASING a FULL Online Course

covering the PPO/ADX Pinch Play for BITO/BITX CALL Option Plays

FOR NOW! There is More. But I will have follow-up POSTS to this one and the ENTIRE Process will be in the Online Course that I publish here. Just stay tuned and be a Subscriber to the FREE Newsletter.