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I am a newbie who is learning stock options trading and who is planning to write vertical credit spreads for “lunch money” (i.e., small income). To hold a balanced (i.e., “delta neutral”) portfolio, first, I'll look at bull spreads and, then, I'll look at bear spreads.
Say that, using an “ouija board,” I have identified three dozen stocks that are or will be trending up. However, I charted many of the stocks and, for at least some, it appears that they started to rally some time ago.
How can I tell, using indicators, if the stocks are “running out of fuel” or if the price of the stocks will rise in the near future?