Use These Stock Chart Signals to Find Winning Options Trades
Spotting the right trade isn’t about one single indicator — it’s about stacking multiple signals to increase probability.
In a recent step-by-step video, Gavin McMaster showed how to use Barchart’s candlestick screeners alongside options flow data and chart analysis to find trades with real potential.
Step 1: Start With the Candlestick Screener
Gavin filtered for large-cap stocks with high option volume and scanned for bearish engulfing patterns (a strong reversal signal).
Example: Occidental Petroleum (OXY) and Exxon Mobil (XOM)
- Bearish engulfing candles appeared.
- Options flow showed strong negative sentiment.
- Accumulation/distribution charts confirmed distribution (selling pressure).
Together, these stacked signals create a strong bearish candidate.
Step 2: Scan for Bullish Engulfing Patterns
Switching to the bullish side, Gavin highlighted names like AVGO, UBER, and SNOW:
Broadcom (AVGO)
- Bullish engulfing candle
- Options flow = bullish net sentiment
- Chart = strong uptrend riding the 20-day moving average
- Accumulation/distribution = steady buying pressure since April lows
Uber (UBER)
- Bullish engulfing pattern, but flow was negative → not as strong a candidate.
Snowflake (SNOW)
- Bullish engulfing candle + very bullish flow
- Chart = strong uptrend and powerful accumulation line → great bullish candidate.
Step 3: Confirm With Charts
Candlesticks + flow give you the setup. Then, the snapshot chart and accumulation/distribution indicator confirm whether buyers (or sellers) are really behind the move.
- Distribution = selling pressure → bearish trades.
- Accumulation = buying pressure → bullish trades.
Tools to Try This Yourself
- Explore Barchart’s Candlestick Screeners to filter bullish and bearish patterns.
- Layer in Options Flow to confirm net trade sentiment.
- Pull up Snapshot Charts with the Accumulation/Distribution indicator to confirm strength behind the move.
- Watch Gavin’s full Step-by-Step Guide to Finding Winning Options Trades, plus our Beginner’s Guide to Candlesticks, for deeper training.
Bottom Line
By stacking candlestick signals with options flow and chart confirmation, you can move beyond guesswork and build higher-conviction options trades.
Watch the clip with Gavin McMaster to see the examples in action:
- Catch the full video for the complete strategy and a daily routine for new opportunities.
- Try the candlestick screeners on Barchart today and see what trade ideas pop up for tomorrow’s session.
On the date of publication, Barchart Insights did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.