
Originally Posted by
Value trader
You are absolutely right noticing that we have to estimate market timing properly trading options. I don't think that there are any indicators for that purpose, however there are some price action techniques that can help you out.
For example, there is a chart pattern called "congestion". Normally, it's a local trading range and it starts with big elongated candlestick that is called "Measuring candlestick" (or measuring bar). If you have 4 consecutive candlesticks located right within that measuring candlestick, odds are high that congestion will prolong for at least 10 bars.
It means that you can filter attempts of price to get our of the range before congestion is completed (before you have 10 internal bars/candlesticks within measuring bar).