Indicator State: PCS READY = TRUE (98/100 Score)
My indicator explicitly flagged this candle as PCS READY, which means every condition required to sell a bullish put credit spread was met:
- Trend: ✅
- RSI (40–65): ✅
- ATR% > 1.5: ✅
- Gap% < 4: ✅
- Above swing low (20): ✅
- SMA50 > SMA200: ✅
On Dec 26:
- 9 EMA (white) > 20 EMA (yellow) > 50 EMA (orange)
- EMAs are sloping upward and fanned, not tangled
- Price is holding above the 20 EMA after a pullback
Leading into Dec 26:
- Strong upside impulse earlier in December
- Controlled pullback into the 20 EMA
- No daily close below the 50 EMA
- Dec 26 candle holds structure (no trend damage)
This confirms the pullback was mean reversion within a trend, not distribution.
Since Price is really close to support I do believe this one can go both ways but we aren’t looking for much and we also got quite a bit of time.
TRADE LOG:
Ticker: RDDT
DTE: 42
Spread Type: Put Credit Spread
Short Strike: 190
Long Strike: 185
Credit Received: $1.16
Target Exit Price: $0.60
Result: Position is closed