Guide for Using the Indicator for Long-Term Investing
Guide for Using the Options 360 Indicator for Long-Term Investing and DCA into ETFs
If you’re looking to use the Options 360 Indicator for long-term investing or a Dollar-Cost Averaging (DCA) strategy into buying shares of ETFs like QQQ or SPY, follow this guide to maximize your returns and minimize risks.
Step-by-Step Guide
- Set the Indicator Sensitivity to ‘Less’
- Go to “Settings → Inputs → Less”
- Start by adjusting the sensitivity of the Options 360 Indicator to ‘Less’. This setting is optimized for long-term investing and helps to smooth out short-term volatility, giving you clearer signals for DCA opportunities.
- Check the 5-Year (5Y) Chart
- Switch to the 5-Year (5Y) Chart view. This longer timeframe is ideal for identifying broader market trends and capturing long-term growth opportunities.
- Switch to the 5-Year (5Y) Chart view. This longer timeframe is ideal for identifying broader market trends and capturing long-term growth opportunities.
- Look for a Green Arrow
- Observe the 5Y chart for a green arrow signal. This indicates a buying opportunity based on historical patterns and market trends, suggesting that the market is likely in an upward trajectory.
- Observe the 5Y chart for a green arrow signal. This indicates a buying opportunity based on historical patterns and market trends, suggesting that the market is likely in an upward trajectory.
- Buy and DCA
- When the green arrow appears on the 5Y chart, it’s time to buy and DCA into your chosen ETF (e.g., QQQ or SPY). Continue buying in increments at regular intervals, regardless of short-term fluctuations, to build your position steadily over time.
- When the green arrow appears on the 5Y chart, it’s time to buy and DCA into your chosen ETF (e.g., QQQ or SPY). Continue buying in increments at regular intervals, regardless of short-term fluctuations, to build your position steadily over time.
- No Need to Exit
- Since DCA is a strategy for long-term wealth accumulation, there’s no need to exit based on the indicator signals. The goal is to accumulate shares over time and ride the long-term upward trend of the market, which historically rises 80% of the time.
Why Use the Options 360 Indicator for Long-Term DCA Investing?
The Options 360 Indicator helps you:
- Identify optimal entry points for long-term growth based on historical data.
- Minimize the emotional stress of market volatility by focusing on longer-term trends.
- Safely build and accumulate ETF positions over time, ensuring you ride the 80% probability of market growth in the long run.
By following this guide, you can confidently use the Options 360 Indicator to implement a strategic DCA approach that aligns with your long-term investing goals.
If you prefer reading the document in google doc, here’s the link: https://docs.google.com/document/d/1ck_GR3dSXKiwhmigwspMXHV–3l-rOs7mwaeXDJyl_w/edit?tab=t.0#heading=h.a7nld2uxrozv
Happy investing, and may your portfolio grow steadily!