Chart IQ – option trading strategy and indicator, which became popular in the late 1990s. To work with this strategy, the trader must download the indicator from the website chartiq.com. Incidentally the site gives users the right to use the free trial version for 10 days.
Unfortunately, the version of ChartIQ for MetaTrader software does not exist (at least we have not found it).
This indicator provides signals to buy Call or Put options. The signals provided by this indicator are divided into 2 types: nine-periodic and thirteen-periodic. By the way, thirteen-periodic signal is stronger than nine-periodic one.
Call option buy signal occurs when the indicator shows 9 green bars in a row. After closing the ninth bar, the trader should buy Call option. The same situation with a Put option, but the signal occurs when 9 red bars closing in a row. If the trader bought a Call option, but prices continue to go down, then it is possible to compensate for the losses by buying Call option for the second time after the close of the thirteenth green bar. The second Call option is preferable to buy with doubled volume. The same applies to the Put option.
This strategy is best used on the hourly chart with an expiration period of 1-3 hours.