MEG.TO Trading Methodology 🎯
1. The Line in the Sand (LITS) System
Current LITS: C$27.89
Purpose: Acts as our binary decision maker
Rule: Only trade bullish above, bearish/avoid below
Current Status: Trading at C$23.09 (BELOW line by -17.2%)
2. Entry Criteria
Must be ABOVE C$27.89
Volume confirmation required
Prefer low IV environments (<30% IV Rank)
Look for consolidation patterns or clear trend
3. Options Strategy Preferences
ATM Strikes: Primary focus due to higher Vega
Delta Target: Minimum 0.30 delta
Position Sizing:
Larger above LITS
Small/No positions below LITS
4. Risk Management Rules
Hard Stop: Below Line in the Sand
Position Exit:
Full exit when price breaks below C$27.89
Scale out at technical resistance
Options Specific:
No naked puts below LITS
Define risk on all positions
Roll or close at 21 DTE
5. Current Market Context
52-Week Range: C$19.68 - C$34.00
Trading Channel: C$22.54 - C$25.06
Status: Bearish (Below LITS)
Action Required: NO new bullish positions
6. Recovery Requirements
Reclaim C$27.89
Hold above for 2-3 sessions
Show volume confirmation
Develop clear base pattern
7. Key Principles
Discipline over emotion
System rules are non-negotiable
Capital preservation first
Wait for setup, don't chase
This methodology has kept us out of trouble during the recent decline from C$34 to C$23.09, demonstrating its effectiveness in capital preservation. Remember: The best trade is often no trade when conditions aren't met.
1. The Line in the Sand (LITS) System
Current LITS: C$27.89
Purpose: Acts as our binary decision maker
Rule: Only trade bullish above, bearish/avoid below
Current Status: Trading at C$23.09 (BELOW line by -17.2%)
2. Entry Criteria
Must be ABOVE C$27.89
Volume confirmation required
Prefer low IV environments (<30% IV Rank)
Look for consolidation patterns or clear trend
3. Options Strategy Preferences
ATM Strikes: Primary focus due to higher Vega
Delta Target: Minimum 0.30 delta
Position Sizing:
Larger above LITS
Small/No positions below LITS
4. Risk Management Rules
Hard Stop: Below Line in the Sand
Position Exit:
Full exit when price breaks below C$27.89
Scale out at technical resistance
Options Specific:
No naked puts below LITS
Define risk on all positions
Roll or close at 21 DTE
5. Current Market Context
52-Week Range: C$19.68 - C$34.00
Trading Channel: C$22.54 - C$25.06
Status: Bearish (Below LITS)
Action Required: NO new bullish positions
6. Recovery Requirements
Reclaim C$27.89
Hold above for 2-3 sessions
Show volume confirmation
Develop clear base pattern
7. Key Principles
Discipline over emotion
System rules are non-negotiable
Capital preservation first
Wait for setup, don't chase
This methodology has kept us out of trouble during the recent decline from C$34 to C$23.09, demonstrating its effectiveness in capital preservation. Remember: The best trade is often no trade when conditions aren't met.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.