Better System Trader 240: "Uncovering hidden market reaction zones" - with Fabio Ruggeri
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Jul 11, 2024 Fabio Ruggeri discusses uncovering hidden market reaction zones by using alternative data sources to gain an edge over traditional chart trading. Topics include the impact of alternative data on trading decisions, types of data revealing market reaction zones, challenges of technical analysis, and more.
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Alternative Data Unlocks New Trading Edges
- Alternative data beyond price charts gives traders new sources of edge previously reserved for institutions.
- Fabio Ruggeri explains that data like options flow, weather, and credit-card transactions reveal market drivers hidden from standard charts.
Options Drive Underlying Price Moves
- Options flow can move underlying prices even for traders who don't trade options directly.
- Fabio says ignoring options means missing a major part of market positioning and volatility signals.
Learn Options Basics Even If You Don't Trade Them
- Learn basic option mechanics and monitor option markets even if you don't trade options yourself.
- Use options data as a sentiment and volatility indicator to improve entries, exits and strategy choice.