Cmagik is designed to trade Price Action as it happens, no searching for News that may or may not cause a stocks price to move. We use custom charts, watchlists and scans to discover price momentum visually as it begins. We then enter the trade and ride the ride, getting out when momentum slows. We use a comprehensive, step-by-step strategy I’ve created, the Cmagik Edge. This is designed for swing trading options (typically holding positions for 2-10 days) with a focus on high-probability setups that combine momentum, trend confirmation, and volatility. It integrates my specific 6 indicators (Hull(10), SynthPMO, Heiken Ashi Candles, TTM Scalper, 0.8 Bollinger Band breakouts, and PSAR) for signal generation, and uses my watchlist columns (Red Vol %, PSAR, Hull(10), Close above high of low day/Close below low of high day, VWAP, ATR expansion, Ken Rose breakouts) for initial stock screening. Combining this strategy with my custom charts, watchlists and scans trading becomes VISUAL and much easier to master. ( see my setup above).

Important Disclaimers:

• This is a hypothetical strategy based on common technical analysis principles. IT IS NOT FINANCIAL ADVISE, and past performance does not guarantee future results. Trading options involves significant risk of loss, including the potential to lose more than your initial investment. Always backtest strategies, use risk management, and consult a licensed financial advisor.
• Assumptions: You’re using a platform like Thinkorswim, TradingView, or similar for scanning and charting. Indicators are standard (e.g., Hull Moving Average with period 10, Synthetic PMO, Heiken Ashi candles, TTM Scalper Alert, Bollinger Bands with 0.8 standard deviation, Parabolic SAR). Adjust parameters if your implementations differ.
• Focus: Bullish long calls for upside swings and bearish long puts for downside swings. Aim for liquid stocks/options with high implied volatility (IV) for swing potential.
• Risk Management: Never risk more than 1-2% of your portfolio per trade. Use position sizing based on account size (e.g., max 5-10% allocation per trade).

Step 1: Stock Selection (Watchlist Screening)

Use the watchlist columns to filter for high-potential stocks. Scan daily (end-of-day or pre-market) for stocks meeting at least 4-5 of these criteria to create a focused list of 5-10 candidates. Prioritize liquid stocks (avg. daily volume > 1M shares, price > $10) in trending sectors.

• Red Vol %: Look for >20% red volume (indicating selling pressure for bearish setups) or < -20% (strong buying for bullish). This flags unusual volume shifts.
• PSAR: Stock price above PSAR for bullish bias (uptrend); below for bearish (downtrend).
• Hull(10): Price above Hull(10) white for bullish; below and red for bearish. This smooths trends for early momentum detection.
• Close above high of low day/Close below low of high day: Bullish if close > high of recent low day (breakout from lows); bearish if close < low of high day (breakdown).
• VWAP: Price above VWAP for bullish (value area support); below for bearish (resistance).
• ATR Expansion: ATR > 1.5x its 14-day average, indicating volatility expansion for swing potential (helps avoid choppy markets).
• Ken Rose Breakouts: Positive breakout (e.g., price crosses above a key Rose level) for bullish; negative for bearish.

Screening Example:

• Bullish Filter: Price > Hull(10), > PSAR, > VWAP, Close > high of low day, ATR expansion >1.5x, Ken Rose breakout positive, Red Vol % < -20%.
• Bearish Filter: Opposite of above.
• Output: A shortlist (e.g., AAPL, TSLA) ready for indicator confirmation.

Step 2: Chart Setup and Indicator Confirmation

For each shortlisted stock, pull up a daily chart (with 1-hour overlays for precision). Overlay my 6 indicators to confirm a swing setup. Require confluence from at least 4/6 indicators for a valid signal. This “Cmagik Edge” combines trend, momentum, and reversal signals for an edge.

• Hull(10): Primary trend filter (smooth MA for reduced lag).
• SynthPMO: Momentum oscillator; look for crossovers above/below zero for buy/sell signals.
• Heiken Ashi Candles: Smoothed candles for trend strength (series of blue for bullish, red for bearish).
• TTM Scalper: Reversal alert; buy on green arrow (up), sell on red (down).
• 0.8 Bollinger Band Breakouts: Bands set to 20-period, 0.8 SD (tighter than standard 2.0 for earlier signals). Breakout above upper band for bullish; below lower for bearish.
• PSAR: Dots flip above price for bearish signal; below for bullish.

Confluence Rule: Enter only if 4+ indicators align with the watchlist bias (bullish or bearish).

Step 3: Option Contract Parameters

Once a stock is confirmed, select options for swing trading. Focus on out-of-the-money (OTM) or at-the-money (ATM) strikes for leverage, with 30-60 days to expiration (DTE) to balance theta decay and swing hold time.

• Contract Type: Long calls for bullish setups; long puts for bearish.
• Strike Selection:
  • Bullish: OTM call 5-10% above current price (e.g., if stock at $100, strike $105-110).
  • Bearish: OTM put 5-10% below current price (e.g., strike $90-95).
• Expiration: 7-30 DTE to capture swings without excessive time decay. Avoid earnings dates.
• Delta: Target 0.4-0.6 for moderate sensitivity to stock movement.
• Implied Volatility (IV): Enter when IV Rank >50% (for premium expansion potential). Avoid IV crushes.
• Position Size: Buy 1-5 contracts per $10K account size, based on risk (e.g., max loss per trade = premium paid * contracts).
• Greeks Consideration: Positive gamma/vega for swings; monitor theta to exit before decay accelerates.

Step 4: Entrance Parameters

Enter the trade at the next open (or intraday if on 1H chart) only if all criteria are met. This is designed for high-conviction, low-frequency trades (1-3 per week).

Bullish Entry (Long Call):

1. Watchlist: Bullish bias from screening (e.g., price > Hull(10), > PSAR, ATR expansion).
2. Indicators Confluence:
   • Hull(10): Price crosses above Hull(10).
   • SynthPMO: Crosses above zero or rising strongly.
   • Heiken Ashi: 2+ consecutive green candles.
   • TTM Scalper: Green buy arrow.
   • 0.8 Bollinger Band: Price breaks above upper band.
   • PSAR: Dots below price (uptrend confirmation).
3. Additional: Volume spike (>1.5x avg), stock > VWAP, no major news resistance.
4. Confirmation: Wait for a 1H close above the breakout level to avoid false starts.
5. Enter: Buy the call option as defined in Step 3.

Bearish Entry (Long Put):

• Mirror image: Price below Hull(10)/PSAR/VWAP, SynthPMO below zero, 2+ red Heiken Ashi, red TTM Scalper arrow, break below lower 0.8 Bollinger Band.

Stop-Loss on Entry: Set a mental/invisible stop at 20-30% below entry premium (e.g., if premium $5, stop at $3.50-4.00) or if stock reverses below key level (e.g., PSAR flip).

Step 5: Exit Parameters for Maximum Profit

Exits prioritize profit maximization while cutting losses. Use a tiered approach: trailing stops for winners, hard stops for losers. Target 2-3x risk-reward ratio (e.g., risk $1 to make $2-3).

Profit-Taking Exits (Scale Out for Max Profit):

• Initial Target: 50-100% ROI on option premium (e.g., if bought at $5, sell half at $7.50-10). Triggered by:
  • SynthPMO overbought (e.g., >+2 for bullish).
  • Heiken Ashi reversal (first red candle in uptrend).
  • Price hits upper/lower 0.8 Bollinger Band extension (e.g., 2x breakout distance).
• Trailing Stop: For remaining position, trail based on PSAR (exit if PSAR flips) or Hull(10) (exit if price crosses below/above it). Add ATR-based trail: Move stop to 1-2 ATR below recent high (bullish) to lock in gains.
• Full Exit: At 200%+ ROI, or if TTM Scalper shows reversal arrow, or by expiration if no better signal (but aim to exit 7-14 days before expiry to avoid theta burn).
• Time-Based: If no movement in 5 days, exit to avoid opportunity cost.

Loss-Cutting Exits:

• Hard Stop: Exit if option loses 30% of premium (e.g., from $5 to $3.50) or stock breaks key support (e.g., below PSAR/Hull(10) for bullish).
• Reversal Signal: Immediate exit if 3+ indicators flip (e.g., Heiken Ashi turns red, TTM Scalper red arrow).
• Volatility Collapse: Exit if ATR contracts <1x average or IV drops 20% (premium erosion).

Max Profit Optimization Tips:

• Scale out: Sell 50% at first target, let 50% ride with trailing stop to capture bigger swings.
• Re-entry: If exited early but signals re-align, re-enter with half size.
• Backtesting: Test on historical data (e.g., 2023-2024) for win rate (aim >60%) and expectancy.
• Journal: Track trades with notes on which indicators drove the edge

This strategy streamlines your tools into a cohesive easy to learn system, emphasizing confluence for reduced false signals. It clearly shows you price action, momentum and volatility with visually color enhanced indicators at a glance (green scalper arrow, white Hull(10), and  blue candles)  is the setup. Now that we have found a stock beginning to show signs of a move with the watchlist, we then look at the chart synthPMO slope to see if price momentum has begun, if it has we jump in and ride the ride until the Hull(10) turns red or the synthPMO has a negative slope change and then we exit the trade. Very easy with the tools Cmagik puts on your screen.

See my setup below: /BTC 10/3/25 high of 125,033.00.

Chart indicators: Hull(10) MA, SynthPMO, TTM Scalper, 0.8 Bollinger band breakout, PSAR, Heikenashi candles.

Watchlist Columns: Rel Vol., PSAR, Hull(10), CAHOLD/CBLOHD, Vwap, ATR expansion, Ken Rose breakouts.

You can purchase my download package for Think or Swim when you join cmagik.com which will install my Charts, Watchlists and Scans as well as the 24 on your computer: email me  cort@cmagik.com  if interested.