A Trade To Exploit The Stock Slide
You can follow this trade almost anywhere. I noticed a great set up on my charts today and it caught my attention because it has proven to be incredibly effective at producing wins. The best part was on a chart of DIA, the ETF that tracks the Dow Jones Industrial Average. Anywhere you look online on TV or even in print they are always showing you what is happening with the Dow.
Take a look at this chart and notice the RSI indicator at the bottom. It is the key to this set up.
The RSI or Relative Strength Index is very effective at showing movements with strong momentum behind them. In this case it is showing us a possible downturn in strength, and a PUT option would be most effective.
It is $452 now and a move to $442 could equal a potential 48% return on a PUT option.
This is one of the tools I use to spot trades that I send out with specific instructions in my Diamond Paycheck Alerts program.
One of the great things about RSI is that it shows great trade opportunities in up or down markets so often, when it seems like there are no good trades to be found, it can be the tool that uncovers hidden profit potential.
Last week the DIA trade would have made a 67% profit.
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