Strategy Education - Options Alerts

Core Strategy Components

🎯 Opening Range Breakout (ORB)

Use the day's first 5 minutes as a baseline. Breaks above/below that range with volume/context often kick off directional moves.

📐 Fibonacci Pullback 38.2–61.8%

Many trends pause between 38.2% and 61.8% of the prior swing. Confluence in this zone can be a high-quality continuation entry.

📊 Stochastic RSI (K/D Cross)

Measures momentum of RSI. A bull cross (K>D) above ~50 suggests upside momentum; bear cross (K<D) below ~50 suggests downside.

📈 EMA(200) Context

A long-term moving average. Price above can be bullish context; below can be bearish context on that timeframe.

🔄 4h Bias Alignment

Higher-timeframe momentum filter. Only take longs when 4h momentum is up; shorts when 4h momentum is down.

📉 Trendlines (pivots)

Connecting recent pivot highs/lows gives quick support/resistance and slope context.

🛡️ Risk & Trade Plan

Always define risk (SL/TP), avoid chasing, limit daily loss, and size based on plan—not emotion.

✨ Multi-Timeframe Confluence

Our strategy requires 4 factors to align: ORB breakout + StochRSI cross + 4h bias + Fibonacci zone. This dramatically reduces false signals.

How It All Works Together

Our strategy requires 4-way confluence before triggering an alert:

Opening Range Breakout (30 pts) - Price breaks above/below the first 5-minute bar with a 0.08% buffer
3m StochRSI Cross (20 pts) - K line crosses above D (bull) or below D (bear) for entry timing
Fibonacci Zone (20 pts) - Price must be within the 38.2%-61.8% retracement zone
4h Momentum Bias (15 pts) - Higher timeframe confirms the directional move

Bonus factors: EMA200 context (+10 pts) and trendline support (+5 pts) add to signal quality. The scoring system helps you understand the strength of each setup, with 100 being perfect confluence.

📚 Strategy Education