Lower VWAP Examples during Late Morning + Afternoon

The morning is the time I like to trade ideally - right around or after the market open - however the later morning - after 10:30 eastern, and afternoon around 1pm eastern are both also great times to trade - and great times to see patterns. Here is another look at the lower VWAP reverse - 

What I notice are two things - the time it reverse - and the way it reverse - when it is later in the day I look more closely at the other indicators. What are they doing - where are their signs of patterns like a rectangle or head and shoulders or wedge / triangle or broadening pattern on the indicator - where is it showing a rounded bottom or area of momentum that might work out - 

Here is a 4 to 1 example that goes from a low of $4 up to $16 in a short amount of time - this corresponds to a $200 raw risk (50% value x 100 x strike price) to $800 profit. 

You can see the trend reversed near an area the Average Directional Index (ADX) was already topping out, and all of the lower indicators - Stochastic + Relative Strength Index (RSI) were making the beginning of a rounded bottom. What sells it for me is the price action on the price chart itself first: 

You can see first it sits on the lower VWAP level on the 5m chart (lower VWAP in yellow) then it explodes up to the middle VWAP (first resistance level) before retesting on a long lower wick (good second entry). 

The option price remains mostly unaffected or stable here - i.e. (therefore) the option trade is risky on first entry - there is no hammer - the trend is down - and ultimately risky at the middle VWAP level long - however the option price remains stable - it does not punish the long call option holder - even though the price abruptly changed - this is a good indication the price is ready to move higher. 

The real entry on the shorter time frame shows a clear bullish hammer forming + positive RSI value above oversold threshold of 30: See my paper on google.com/scholar about the RSI 30 threshold - 

It is an optimal place to go long - in an upward trending market. 

This makes a clear good identification to go long - especially as the price sits near the lower oversold level of Resistance 4 (R4) on the Camarilla pivot point - (Investopedia.com / camarilla pivot points). To read more - or Think or Swim documentation or Barchart.com or Bearbulltraders.com 

This is where I have a pre-determined dollar amount in mind (e.g.) for example I will look at the $4 call options that have a strike price near the level I think price will get to (optimal delta method). Then when price makes a move toward that amount - I get out with profit - or I diligently hold and manage the trade - getting out at the first sight of weakness or indecision. 

- do you suppose this is a better betting method - than to just blindly bet and hold? I suppose you could do either as long as you are documenting - 

So the long red maribozu candle is hard to bet against - but it comes on a confirmed pattern - bullish option chain reflected information - and moves towards the upper Support 3 Level (S3) - a lower resistance (R4) to upper support 3 (or support 4) are good areas to identify and manage risk - and hold for profit. You can likely place a limit to sell order near the price target - and fix your risk with the option based on your bank roll and overall betting scheme.