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If the RSI is more than 50, then a rise in the price is expected. However, call option buying will occur if the RSI value is more than 50, but lesser than 70. On the contrary, buying put options is suggested if the RSI value.
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Personally I like to filter signals in two ways with this indicator: either: Stochastic crosses 80 (for put) or 20 (for call) line or: Stochastic is pointing upwards (for call) or downward (for put) Moving Average Different strategies developed at the intersection of Moving Average.
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