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Lecture For Option Trader or Intraday TraderIntraday trading, also known as day trading, means buying and selling stocks on the same day to profit from price changes. Traders need to close their trades before the market closes. If not, the broker might automatically close them or turn them into regular trades. Yes, profits from intraday trading are considered business income and taxed according to your income tax slab. How is intraday trading taxed? Intraday trading profits are treated as short-term capital gains, added to taxable income, and taxed based on applicable slab rates.
NSE:HDFCBANKEducation
by SkyTradingZone
3
Technical Analysis Part - 1An RSI divergence occurs when price moves in the opposite direction of the RSI. In other words, a chart might display a change in momentum before a corresponding change in price. A bullish divergence occurs when the RSI displays an oversold reading followed by a higher low that appears with lower lows in the price. The RSI provides immediate signals for buying and selling, helping you understand whether an asset is overbought or oversold. RSI readings below 30 signal buy opportunities, indicating the asset is undervalued. Conversely, RSI readings above 70 signal sell opportunities, suggesting the asset is overvalued.
NSE:HDFCBANKEducation
by SkyTradingZone
A-Z About HEIKEN ASHI CandlesticksHEIKEN ASHI Strategy: 1.INTRODUCTION (WHY HEIKEN ASHI CANDESTICKS) Often trading on the trend gets difficult due to price action that makes trader exit trades early. (USELESS NOISE FORMED BY TRADITIONAL CANDLES) This mainly happens due to impact of one single candle or bar on Trader’s ability to hold positions. Through Heiken Ashi Candles , this problem is largely solved as Price Trend is clearly represented through these. LOOK at the difference between TRADITIONAL and HEIKEN-ASHI Candlesticks below: A) TRADITIONAL candlestick with a lot of noise during uptrend and downtrend which confuses most of the traders and forces them to exit early B) HEIKEN-ASHI with a smooth buttery experience while trading: -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 2.TYPES OF CANDLES Let us now come to the types of Heiken Ashi candles. In this chart, I have done 5 markings to explain the various types of candles in Heiken Ashi. a)The wide range yellow/green candles indicates good momentum and shows the stock shall be bullish for some more days unless and until there are signs of reversals b)The small body green/yellow candles represents the continuation of the trend although they show that the stock is not very bullish but is bullish c)SPINNING TOP- is formed when the body of the candle is very small (NOT A DOJI) and there is wick equal on both upper and lower side. d)The wide range red candles shows weakness in the stock e)INDECISIVE Candles- are formed when it is neither of the above candles (small body and irregular size wicks on up and down side) Always remember, size of body, shadows, and range of candle determines whether it Is bullish, bearish or neutral candle Do read futhur to understand -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 3) KEY RULES to follow There are broadly 5 rules that need to be followed when trading with Heiken Ashi Candles. DO HAVE A LOOK AT THE CANDLES SIMULTANEOUSLY Rule 1 – Green candles with no lower shadows indicate a strong uptrend: When you spot these on charts, be in the trade and don’t think about profit booking. You might want to add to your long position and exit short positions. Rule 2 – Candles with a small body with upper and lower shadows indicate trend change: These are indecision candles and require more confirmation. Rule 3 – Red/Black candles with no upper shadow indicates strong a downtrend: When you spot these on charts, be in the trade and don’t think about profit booking. You might want to add to your short position and exit long positions Rule 4 – Candles with long lower shadows represent Buying interest. Always take note of these candles and assess price action after you spot these candles. Rule 5 – Candles with long upper shadows represent selling interest and be cautious with existing long positions if you spot such Candles. -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 4) INITIATION AND CONTINUATION: You just need to know 2 types in trend analysis 1.INITIATION CANDLE 2.CONTUATION CANDLES 1.Initiation candle is one that sets the tone of Trend and defines underlying momentum for price. This is why Initiation candles are most important in Trend Analysis and Price action trading. 2.Continuation candles are ones that reaffirm the direction of trend and are useful to increase positions in the direction of trend. FREE TIP: When you begin price trend analysis, always look for initiation Heiken Ashi candles and then look for continuation candles. -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 5) IDENTIFYING STRONG TRENDS: In the chart below, let us see how a strong Up/Down trend looks like. In Heiken Ashi, we should be measuring strength of move based on Initiation Candles (Candles that represent strong trend). If you look at the chart, all markings that I have done are that of Strong Initiation candles on the downside and upside (BUY/SELL) When such candles are visible on the chart, invariably Price tends to move up/low. Always keep range of Candle in mind. It should be wide with no upper/lower shadows for uptrend and downtrend respectively. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 6) COMMON MISTAKES Most Common mistake when using Heiken Ashi Candles is to Enter or Exit Trades based on the color of Candle. Most beginners commit this mistake and this should be avoided at all times. Whether it is Heiken Ashi Candles or any other charting method, you need to understand the overall Market Trend and Context. Without this, you will find it difficult to Trade successfully over a longer period of time.(PRICE ACTION IS THE KING) This is just an additional filter like an indicator and should not be treated as the only parameter in your strategy...If trading was so easy then 90% wouldn't have lost their money in trading...Trading is like cooking you need to add the right ingredients in the right amount to taste a dish good.A pinch of salt less can ruin the entire hardword behind making the dish...Similar is trading...Will make a tutorial on risk management as well...Do let me know if you are interested only then it would be wise for me to proceed ahead. One of the main things you have to do is to analyze which candles contribute to Trend and which do not. This effective way of filtering out relevant candles from non relevant one’s is what will help you succeed with Heiken Ashi Candles. FREE TIP:(SAVES TIME DO READ) Always divide your Candles into two types; 1.Candles that have impact on Trend 2.Candles that have no impact This way, you will know which one’s to be focussed upon. -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 7)DISADVANTAGES: EVERY + HAS A - ELSE EVERY TRADER WOULD HAVE USED THIS STRATEGY TO MAKE TONS OF MONEY EVERYDAY The one main disadvantage that most traders refer to is that by the time Traders take positions based on Heiken Ashi Candles, the entire move is already over. While there is some merit to this, it is important to note that this mainly applies to short time frame charts. On higher time frame charts (30 Min to Monthly time frame), Heiken Ashi has tremendous benefits and Traders should try and incorporate these in their Trading arsenal. -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- I hope this tutorial as helpful for you to understand some basics of HEIKEN-ASHI candlesticks...There are many other types of candlesticks which have their own importance like RENKO and PnF candlesticks...Do let me know in the comments whether I should make posts on STOCKs that I Trade/EDUCATIONAL posts like this FOLLOW me for many more such content ahead...DO hit the like button...Till then, HAPPY TRADING :)
HEducation
by keshevdugar
166
How to trade in option market 💸🙏😊 👑Royal Trend👑 Topic Trading Things Topic - Option Trade and Trading 💸💸💸💸👑🤑 #If u Buy stock without stop loss that mean U are weak in Physiology #Train Your self To take small trade with Stop-loss How to make Big Profit💸 With Small Account In this video we try to Identify Trend and Entry By Big Bull👑🤑🤑💸💸 How market really work with number's How important is option chain analysis? The option chain analysis data provides a very comprehensive view for all the available options for any particular underlying asset. This helps in understanding and selecting the correct option for trading or investment purpose. Difference between technical analysis and option trading Technical analysis and options trading can go hand in hand. Many of the best practices for options trading come directly from technical analysis concepts. Technical analysis focuses on price. Fundamental analysis does not solely focus on price. why we learn option chain? Option chain is a chart that will give in-depth information related to all stock contracts available for Nifty stocks. The best thing about the option chain is that it provides valuable information about the current security value and how it will affect it in the long term. What is the purpose of option chain? It can be used in creating an option strategy at several strike prices. It can be used to analyse and draw noteworthy insights about the stock and its probable movements. It helps the traders in evaluating the liquidity and the depth of the option contract. Technical trader ​Technical trading is a broader style that is not necessarily limited to trading. Generally, a technician uses historical patterns of trading data to predict what might happen to stocks in the future. This is the same method practiced by economists and meteorologists: looking to the past for insight into the future. NOTE #We Are Not Promote Anything #This channel Purpose to share market ideas. Thanks for Watching🙏
NSE:BANKNIFTYEducation
by Optionclub
2
BEGINNERS RULE :1. Before starting any new venture, we must learn the basics of that subject. So, learn the basic ABCD of trading. 2. Beginners should avoid the Futures and Option (f&o) trading. First, one needs to get a good grip over the cash equity segment. 3. Learn technical analysis and try to master any one strategy and stick to it. 4. Avoid dependence on anyone for too long, "Trust your own setup always” 5. Don't be impressed so quickly and start dreaming after seeing other trader's earning or profits screenshot. 6. 'Simplicity is the best policy.' Keep your analysis simple and stick to basics. 7. Backtest your new setup for at least 3 months to find out the Return on Investment (ROI) percentage. 8. Price Action is above all. Don't complicate your study with too many indicators/tools. We have come here to earn money, not to complete a Ph.D. 9. Avoid business/finance TV channel recommendations. Don't follow it blindly. 10. Mistakes are fine but try to avoid committing again and again. 11. Use proper and safe trailing stop-loss. Keep learning and earning. Happy profit making :)
HEducation
by Divyaapugal
6
RELIABLE CANDLESTICK PATTERNPattern Name: Bullish Engulfing Pattern Type: Bullish Reversal No. of Candles: 02 How to Identify it? 1)There must be a preceding Downtrend. 2)A short Red candle followed by a long green candle. 3)The Green candle should open lower & closes higher than the Red candle. 4) The Green candle should completely engulf the Red candle. The psychology behind it : 1)The Bears lose momentum & the Bulls take charge and manage to close above the red candle. 2)It implies the bulls have fully overridden the bears. How to trade it? 1)Look for the Bullish Engulfing at the bottom of the Downtrend. 2)Upon confirmation, open a Long position in the 3rd Candle. 3)Place a Stoploss below the low of the Green candle.
NSE:HDFCBANKEducation
by farhanf7867
Can you predict such falls? Fibonacci Retracements - (bad audio)Market fall may have taken few by surprise, but followers of price action techniques should have this scenario in their plan. Trend analysis (or Elliot wave analysis) along with Fib Retracements could be of enormous help if used in tandem with price action. They at least give you minimum target and levels, so that you are able to ride the trend and also do not make impulsive entry decisions. (Disclaimer: the audio quality is really bad. Somehow the system is not allowing external mic and using internal mic which is capturing lot of noise. Tried typical methods but not working. If you have solution let me know)
NSE:NIFTYEducation
by jay21shah