Repaints The PAM High Low Chart Setup For ThinkOrSwim

[kartik2272]

Question: Heard in the video "70 Delta Option". Correct? Just wanted to know what is your choice for DTE? 0DTE, 1DTE or longer Dated Option? A newbee question (please).

 

[OGOptionSlayer]

Question: Heard in the video "70 Delta Option". Correct? Just wanted to know what is your choice for DTE? 0DTE, 1DTE or longer Dated Option? A newbee question (please).

If you are brand new to trading, you should never touch 0 dte's and only play 70 deltas. The market is already working against you and you don't want your emotions to do the same, although if you are new, chances are you will be emotional even with 70 deltas.

I recommend taking a standard option that expires a week out with a 70 delta if you are a new trader so you give the trade time to breathe.

The reasoning is that you probably won't get in at the right time, you will definitely mismanage the trade as you are learning, and you want to lose as little as possible while you learn.

I will also say that the very best option contract traders I know of only trade 70 deltas and they've been doing it for a very long time. If you trade anything less, you are paying entirely too much for premium and there is not enough intrinsic value in the contract so your positions will be subjected to time melting your premium off the contract instead of price action.

 

[kartik2272]

If you are brand new to trading, you should never touch 0 dte's and only play 70 deltas. The market is already working against you and you don't want your emotions to do the same, although if you are new, chances are you will be emotional even with 70 deltas.

I recommend taking a standard option that expires a week out with a 70 delta if you are a new trader so you give the trade time to breathe.

The reasoning is that you probably won't get in at the right time, you will definitely mismanage the trade as you are learning, and you want to lose as little as possible while you learn.

I will also say that the very best option contract traders I know of only trade 70 deltas and they've been doing it for a very long time. If you trade anything less, you are paying entirely too much for premium and there is not enough intrinsic value in the contract so your positions will be subjected to time melting your premium off the contract instead of price action.

Thank you for taking time to reply. Much appreciated. Feel very confident that I am on the right path. Glad I came across this "PAM" at the right moment. Look forward to updates and lots more.

 

[Chemmy]

@Chemmy We have a group member in the discord that as we are putting PAM into practice, we have found tremendous value of being able to have two timeframes for buy call and buy put signals. So the picture will probably explain it better but essentially having a 3m timeframe in a 15m timeframe and having them different colors is amazing and really allows you to fully kill it with PAM. Take a look and is it something we can do on the next iteration?

You mean basically overlaying the time frames? Yes, that shouldn't be too hard to do -- happy to add that in, or to just have the option to choose any higher time frame to overlay. Sorry, I likely won't be around much this week due to family matters though. I may be able to get back with the next batch of updates sometime next week.

 

[OGOptionSlayer]

You mean basically overlaying the time frames? Yes, that shouldn't be too hard to do -- happy to add that in, or to just have the option to choose any higher time frame to overlay. Sorry, I likely won't be around much this week due to family matters though. I may be able to get back with the next batch of updates sometime next week.

No worries. Thanks for everything you do. PAM has really caught fire.
Basically, the group just likes having two timeframes for buy calls and two for buy puts where you can have a 3m and 15m represented on the same chart with the 15m overlayed on the 3m. It's really nice. I have it set up manually and have shared my grid with others but it will be the best update to PAM yet.

 

[doink]

Hello! Just wanted to say thank you @Chemmy and @OGOptionSlayer for this indicator! After reading through all the posts, I decided to give it a try this morning. I caught a 20 point move on /ES and took profit at the bottom of the channel where it just happen to start to reverse.

https://imgur.com/a/trkarzM

Also caught some puts on Microsoft using the same method:

https://imgur.com/a/iiItaGg

Took the 2DTE 272.50 Puts from 1.65 to 5.00. I also used /NQ to gauge market conditions.

Edit: this is my first post and I kept getting the "image unable to load" message but it looks like it fixed itself.

 

[TradingNumbers]

Anybody using this in the daily timeframe?

 

[tenacity11]

Anybody using this in the daily timeframe?

I use daily and weekly along with the 3 and 15m

 

[TradingNumbers]

I use daily and weekly along with the 3 and 15m

How do you decide on your swing entries with daily? Same rules as intraday? Any additional confirmation?

 

[tenacity11]

How do you decide on your swing entries with daily? Same rules as intraday? Any additional confirmation?

https://imgur.com/a/GEUtSbN

 

[OGOptionSlayer]

Anybody using this in the daily timeframe?

Honestly, I have moved to the 3m with 3m PAM and 15m PAM overlayed. It's beautiful. I caught 32% move on 416p's today.

 

[tenacity11]

https://imgur.com/a/GEUtSbN

I also work with ICT concepts namely Order Blocks but I keep things very simple. No other indicators or oscillators.

 

[OGOptionSlayer]

I use daily and weekly along with the 3 and 15m

The only thing I use differently than you is the 10m instead of the 15m. Given the accuracy of PAM long term, I feel this is a safe transition. I moved from 15m to 10m.

 

[tenacity11]

The only thing I use differently than you is the 10m instead of the 15m. Given the accuracy of PAM long term, I feel this is a safe transition. I moved from 15m to 10m.

So basically you're saying 3m and 10m as opposed to 3 and 15? I will say it is really nice to see how PAM intersects with order blocks.

 

[METAL]

The only thing I use differently than you is the 10m instead of the 15m. Given the accuracy of PAM long term, I feel this is a safe transition. I moved from 15m to 10m.

I tested it on the 5m with the 15m overlay. i think I used it correctly and it is impressive. I actually used the HAM strat I am working on to take trade on a 2m and this for confirmation. Great work!

 

[Focus]

So basically you're saying 3m and 10m as opposed to 3 and 15? I will say it is really nice to see how PAM intersects with order blocks.

How do you identify order blocks while using PAM? What do you use to identify the order blocks?

 

[tenacity11]

How do you identify order blocks while using PAM? What do you use to identify the order blocks?

are you using TOS? I can post my study if you are.

 

[Focus]

are you using TOS? I can post my study if you are.

Yes, I use TOS.

 

[tenacity11]

Yes, I use TOS.

This shows both bullish and bearish order blocks.

https://usethinkscript.com/threads/order-block-finder-for-thinkorswim.12162/#post-104418

 

[OGOptionSlayer]

So basically you're saying 3m and 10m as opposed to 3 and 15? I will say it is really nice to see how PAM intersects with order blocks.

I'm still trying to wrap my head around the order blocks concept the way he teaches it. I would like to add FVG's to PAM as FVG's tend to be filled and then price moves away from it. I think it's another good area of confluence for PAM to have built inside of it.