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Let's use the Owl Bundle on Thinkorswim to identify short term trade opportunities, To achieve this, we will begin with a market view and then compare various sectors to identify the one with the most abnormal condition. Next, we will examine the top ten holdings within the chosen sector to determine which ones are in a compounded critical state that are about to pop higher or lower quickly. The Owl Bundle on Thinkorswim comes programmed with indicators and metrics developed by Dr. Ken Long, aimed at finding trading opportunities.
Volatility is actually one of the trader’s best friends, because it’s a clear measure that a financial instrument is moving. And isn’t that what we want? To find things that are moving, so we can sell much higher than we bought or vice versa? If a stock isn’t moving, if it doesn’t have volatility, this can be a frustrating endeavor. By finding stocks and ETFs that have a high volatility, what we call ‘finding the mover’, we’re able to be ready for a larger move that we can capitalize on with our trading techniques and proper risk management.
When using the Owl Bundle on Thinkorswim to identify trade opportunities, we adopt a "Logic chain" approach that involves analyzing sectors and the symbols within them. To do this, we examine the S&P500 sector ETFs and rank them according to Rstat/MyRisk from highest to lowest. In our analysis, XLY, XLK, and XLC emerged as the top three symbols
