You selected the build-up type as SC (Short Covering). Based on my understanding, when short sellers are trapped and cover their positions, the stock price rises. This typically means that during a short covering move, we should consider buying call options. However, your filter is showing a put buying signal, and you mentioned that the market went down that day. If the market was indeed bearish, it implies that short sellers were not trapped. If they weren't trapped, why would they need to cover their shorts? This inconsistency raises questions. I would suggest you review your video and clarify your explanation. In short covering scenarios, the price should rise, and your tool should have indicated a call-buying opportunity instead of a put-buying signal. If the market went down throughout the day, it would suggest that put writers were trapped, leading to long unwinding, not short covering. If I'm misunderstanding something, please correct me and reply in the comments.
You selected the build-up type as SC (Short Covering). Based on my understanding, when short sellers are trapped and cover their positions, the stock price rises. This typically means that during a short covering move, we should consider buying call options. However, your filter is showing a put buying signal, and you mentioned that the market went down that day.
If the market was indeed bearish, it implies that short sellers were not trapped. If they weren't trapped, why would they need to cover their shorts? This inconsistency raises questions. I would suggest you review your video and clarify your explanation.
In short covering scenarios, the price should rise, and your tool should have indicated a call-buying opportunity instead of a put-buying signal. If the market went down throughout the day, it would suggest that put writers were trapped, leading to long unwinding, not short covering.
If I'm misunderstanding something, please correct me and reply in the comments.