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BANKNIFTY

How to Trade in Options By Big Bull👑👑Royal Trade👑 Hello Guys in This Video We share How to Trade in Option's Market. 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. 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. NOTE #We Are Not Promote Anything #This channel Purpose to share market ideas. Thanks for Watching🙏
NSE:RELIANCEEducation
by Optionclub
Market Architecture By 👑Royal Trend👑👑Royal Trend👑 In this video we try to understand the Market Architecture. How market really work with number's 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. 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. NOTE #We Are Not Promote Anything #This channel Purpose to share market ideas. Thanks for Watching🙏
NSE:NIFTYEducation
by Optionclub
Actual Trading in Intraday and Long👑💲👑👑Royal Trend👑 In this video we try to understand the Actual Trading in Intraday and Long Term Treading How market really work with number's 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. 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. NOTE #We Are Not Promote Anything #This channel Purpose to share market ideas. Thanks for Watching🙏
NSE:BANKNIFTYEducation
by Optionclub
How To Trade in Option's Market By 👑Royal Trade👑 👑Royal Trade👑 Hello Guys in This Video We share How to Trade in Option's Market. 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. 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. NOTE #We Are Not Promote Anything #This channel Purpose to share market ideas. Thanks for Watching🙏
NSE:BANKNIFTYEducation
by Optionclub
2
How To Trade with Neowave Trading IdeaHello Everyone, Welcome to you all, this is an educational post in which you will learn how to trade with our neowave trading chart. For better understanding also watch the video which will be available soon. See the below image ## This is how a Neowave structure looks in which a stock price goes up and down. ##These no 12345, I called them motive waves mean trending direction. As you can see these are in diffrent colors. Each color represent a trend cycle mean for how many days this particular stocks is going up or down. See the below example ## As you can see in below examples , group of smaller cycles made bigger cycles and bigger cycles made more bigger cycles and so on Example 1 Example 2 ## But this hard to understand for ordinary eyes and neowave coding style is always differ between neowave analyst also. For one neowave analyst one trend is short and for other it can be intraday.it just there perspective. For every other person 12345 is create confusion, hard to tell how long this trend will go up. you just dont know this 12345 is short term cycle or longterm cycle. To solve this i am changing coding style ##As name represent itself its cycles s for short cycles, m for medium cycles and l for longterm cycles. see the below chart Now see the below image for another part of neowave which is called correction ## As you know every trending cycles, there comes an consolidation period in which price gives some retracement but never retraced 100 percent of previous trend. This consolidation is represent as correction in neowave. ## This correction comes in same cycles in which the cycles was trend. As you can see short cycles trend in the image, after s5 there comes a flat pattern which is labbeld as SC1, this c stand for correction.same for ther cycles. These are the list of the cycles which will be labbled in my chart. See the below chart for complete list. Now next part is important for you. These are the expected time frame for the repected cycles. If you love the post than give it a boost and keep following us for more trading idea. Thank You
NSE:NIFTYEducation
by Neowave-forecast
2
How to calculate stock weightage on index. #What is Stock weightage on an index ? --> Stock weightage on an index is the relative importance of a particular stock in the index. It is calculated by dividing the market capitalization of the stock by the total market capitalization of all the stocks in the index. -->The weightage of a stock in an index is important because it determines how much the stock will move the index when its price changes. A stock with a higher weightage will have a greater impact on the index's movement than a stock with a lower weightage. How the stock weightage on an index is calculated ? -->There are two main methods for calculating stock weightage on an index: Market capitalization-weighted index: This is the most common method. The weightage of a stock in a market capitalization-weighted index is determined by its market capitalization. This means that the larger the market capitalization of a stock, the higher its weightage in the index. This is the most reliable and popular method to calculate stock weightage on an index. Price-weighted index: In a price-weighted index, the weightage of a stock is determined by its price. This means that the higher the price of a stock, the higher its weightage in the index. -->as an example, the stock weightage in Nifty Bank, like in any other index, is calculated using a free-float market capitalization-based method. Here's a simple explanation of how it's done: Market Capitalization: The market capitalization of a company is the total market value of all its outstanding shares. It is calculated by multiplying the company's share price by the total number of outstanding shares. Free-Float Market Capitalization : Free-float market capitalization considers only the portion of a company's shares that are available for trading in the open market. It excludes shares held by promoters, governments, and other strategic investors that may not be readily available for trading. Weightage Calculation: To calculate the weightage of a stock in Nifty Bank, you take its free-float market capitalization and divide it by the sum of the free-float market capitalization of all the stocks in the index. -->For example: Let's say Nifty Bank comprises three stocks with the following free-float market capitalization: Bank A: Rs. 50,000 crore Bank B: Rs. 30,000 crore Bank C: Rs. 20,000 crore Total free-float market capitalization of Nifty Bank = Rs. 50,000 crore + Rs. 30,000 crore + Rs. 20,000 crore = Rs. 100,000 crore -->Now, to calculate the weightage of each stock: Bank A weightage = (Rs. 50,000 crore / Rs. 100,000 crore) * 100 = 50% Bank B weightage = (Rs. 30,000 crore / Rs. 100,000 crore) * 100 = 30% Bank C weightage = (Rs. 20,000 crore / Rs. 100,000 crore) * 100 = 20% --> The stock weightage in Nifty Bank will be adjusted periodically based on the changes in the free-float market capitalization of the constituent stocks. As stock prices change in the market, the weightage of individual stocks in the index will also change to reflect their current market value. All the best !! Follow us for more such insightful information and Give it a like if you appreciate the information. Queries will be answered in comment section.
NSE:BANKNIFTYEducation
by InvestyourAsset
How To Trade In Option's By Big Bulls🤑💸✔✔💲🙏#HDFCBANK #BANKNIFTY #NIFTY50 #NIFTY #SENSEX #TATA Intraday trading involves buying and selling options within the same trading day, rather than holding them for an extended period. By adopting this approach, traders can make profits by capitalizing on the short-term price movements of the underlying asset.22-Apr-2023 Is option buying good for intraday? Trading intraday options can be a great way to benefit from short-term market fluctuations and make quick money. Before you dive headfirst into the fast-paced world of intraday options, it's important to have a sound strategy with an understanding of risks and rewards. The long black candlestick is 'the mother' and the small candlestick is 'the baby'. The smaller the second candlestick, the stronger is the reversal signal. The shadows of the second candlestick do not have to be contained within the first candle's body. Which candle is best for option trading? Here are the top 5 candlestick patterns that traders must know: Doji. The Doji pattern is formed when the Open Price and Close Prices are the same or almost the same, and there is Low and High Price, so the candle has nearly nobody with a lower and upper wick. ... Hanging Man. ... Hammer. ... Morning Star and Evening Star. 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. RBI Forex Reserve Grow is this Good or Bad ? 1st 140 Billion loss hua hai or ab 20 Billion Grow hua hai to hai to abi bhi loss mai Gover..t abi losss mai hai
NSE:NIFTYEducation
by ISL-TREND
7
Everyday Of The Week Is An Expiry Day | Impact Of 0 DTE Options After the latest circular from NSE, MidCPSelect Nifty which tracks a handpicked 25 stocks will have expiry date shifted from Wednesdays to Mondays. And BankNifty which tracks the top most banks in India will have expiries on Wednesdays instead of Thursdays. This change in status-quo has created a situation wherein we have a daily expiry. Much similar to the 0 DTE (zero day to expiry) by CBOE in the US. Many economists have published whitepapers on how this could impact the options trading industry, speculations, index movements. But we still have no clarity on how the future will unfold. You might already know how “options” as a financial instrument is a double edged sword due to the leverage it provides. Let me try to voice my version of what will happen! Stock markets have already caught the attention of the wanna be rich guys. Although options trading is a newer concept, stock market & betting has been here for more than 100 years. People generally buy stocks in the anticipation that they could sell it back at a higher cost and thereby profiting. Most often these buys are not because they like the underlying company or have done the research of the firm but just to get rich quick. Options trading is the next level of betting from stock trading. Options instruments CALL & PUTS give the ability of the buyer to handle a higher number of shares of the firm for a fraction of the total cost (for a limited time). That limited time is the catch here. Every option instrument will expire on a predetermined date called expiry day. Whereas the stocks have no expiry dates. What this means is that if you have purchased CALL OPTIONS you expect the stock to move up real quick before the expiry, if it doesn’t you lose the premium paid. Whereas in stocks you have the privilege to hold the shares as long as you like. The reason options were introduced was to hedge the owner of the shares against its short term fluctuations. For eg: If I own 100 shares of XYZ and I wish to hold this for the next 10 years, but a recent report says XYZ company has lost one of its licenses & the shares could tank. What I could do is buy PUT options of the firm so that my downside is protected for the short term. When I decide to buy the PUT options someone has to take the counter position. It could be the market maker or a speculator. The market maker, if he decides to sell that PUT option to me, has a net long exposure, which means he makes money only if the stocks stay as they are or move up. Technically no market maker likes to have a directional exposure, so he will immediately take another few trades to become delta neutral. Or it could be a speculator who is just there to make money. This guy may not have a stock holding against the position he has taken. Most likely this person has the belief that stock XYZ is moving up. Stocks still have a monthly expiry, which gives ample time for the buyer/seller of the option instrument to change or modify their long/short exposure according to the price action/news flow. Whereas Indices are now set with weekly & monthly expiries. Earlier both Nifty50 and BankNifty expired on the same day ~ Thursday. So the speculation was either mostly on that one day or via overnight positions built up towards the expiry. With the new changes 6 separate indices are set to expire on separate days of the week, which means a speculator has the opportunity to gamble into a long or short exposure every single day of the week. We now know the speculator is only interested in making money provided his views/research is accurate. Honestly I still dont believe any retail trader is a match for the institutions with their supercomputers, mathematical modeling or the kind of talent they attract. So if someone has to lose money in this process, it has to be the lowest hanging fruit. Since there are daily expiries, the retail trader is enticed into an opportunity to make easy money. The good thing is that overnight is not there, but this trader has to be knowledgeable enough on what he is getting into. Both the size & count of betting will increase & its going to be a harvest for the Government, Brokers & Professional Traders. After a while it is going to be like any gambling sport or a lottery business. Market makers will be glad to offer a wider bid/ask spread and profit, usually the end trader is not aware of this slippage. Since the volume of trades are going to explode, there is a risk of risk-oversight. Let me try to explain. Case1: Markets prefer to stay range bound — this is the best case for all the participants. Most often the day ends just like the day begins & there are no hefty options adjustments, roll up or roll down. The premiums in the strikes will be normal (usually low) Since the swings are normal, option strikes do not create unwanted build up of open interest (volumes will be as usual) This scenario is safe for all the participants even though there is an equal amount of money to be won or lost. Case2: If the markets start to pick a direction — it is going to have a spiraling effect which cannot be quantified by any mathematical modeling If the markets are moving against a net sell position, the trader will start covering to reduce loss. This will create a spike in open interest of that strike & nearby strikes. Once the volumes begin to spike, more speculators will jump in creating premium mispricing. When the option premium mis-pricing exists, arbitrageurs will enter the game. Market makers will be glad to write options & counter balance it by going long or short in the underlying. This algo or HFT will further escalate the directional move. This 2nd category will create a self perpetuating trap if left unchecked. The high frequency traders are usually computerized and do not stop if they see the directional movement picking up speed. These machines feed on this distress & usually suck the soul out of the retail traders. Well it’s not a fault, but the machines are engineered that way. The indices would fall or rise for no real reason and could wipe out a select portion of traders due to their unlimited loss options exposure. And the next day this index could revert to normal as this fall/rise was just due to speculation & nothing to do with fundamentals. A black monday or a flash crash could be normal and more frequent. And there are 2 instances where this could even translate into deeper wounds. The same component stocks, almost in the same weightage are participating in adjacent expiries. FinNifty on Tuesdays & BankNifty on Wednesdays Nifty50 on Thursdays & Sensex on Fridays. So if we had a big movement on a Tuesday, it could even set the stage for further acceleration on Wednesday as the same underlying component stocks were impacted. Having said all these, I am sure there would be many think tanks who would have thought through all these & implemented some safety nets to protect the vulnerable subset of people. If the case1 scenario plays out it should be a hunting ground even for a commoner like you & me to make some money!
NSE:NIFTYEducation
by viswaram
Option's Trading With CandleStick Pattern's🤑💲💰💸❤#We Make Only Profit. #HDFCBANK #BANKNIFTY #NIFTY50 #NIFTY #SENSEX #TATA The long black candlestick is 'the mother' and the small candlestick is 'the baby'. The smaller the second candlestick, the stronger is the reversal signal. The shadows of the second candlestick do not have to be contained within the first candle's body. Which candle is best for option trading? Here are the top 5 candlestick patterns that traders must know: Doji. The Doji pattern is formed when the Open Price and Close Prices are the same or almost the same, and there is Low and High Price, so the candle has nearly nobody with a lower and upper wick. ... Hanging Man. ... Hammer. ... Morning Star and Evening Star. 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. RBI Forex Reserve Grow is this Good or Bad ? 1st 140 Billion loss hua hai or ab 20 Billion Grow hua hai to hai to abi bhi loss mai Gover..t abi losss mai hai
NSE:BANKNIFTYEducation
by ISL-TREND
8
#Drow Trend Line Like Professional🤑💸#We Make Only Profit. #HDFCBANK #BANKNIFTY #NIFTY50 #NIFTY #SENSEX #TATA whats is trend line? Trendlines are easily recognizable lines that traders draw on charts to connect a series of prices together or show some data's best fit. The resulting line is then used to give the trader a good idea of the direction in which an investment's value might move. KEY TAKEAWAYS: 1. Trendlines indicate the best fit of some data using a single line or curve. 2. A single trendline can be applied to a chart to give a clearer picture of the trend. 3. Trendlines can be applied to the highs and the lows to create a channel. 4.The time period being analyzed and the exact points used to create a trendline vary from trader to trader. What Do Trendlines Tell You? The trendline is among the most important tools used by technical analysts. Instead of looking at past business performance or other fundamentals, technical analysts look for trends in price action. A trendline helps technical analysts determine the current direction in market prices. Technical analysts believe the trend is your friend, and identifying this trend is the first step in the process of making a good trade. /*****************************************************************************************/ 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. what is option ? Options are a type of derivative product that allow investors to speculate on or hedge against the volatility of an underlying stock. Options are divided into call options, which allow buyers to profit if the price of the stock increases, and put options, in which the buyer profits if the price of the stock declines. RBI Forex Reserve Grow is this Good or Bad ? 1st 140 Billion loss hua hai or ab 20 Billion Grow hua hai to hai to abi bhi loss mai Gover..t abi losss mai hai laken wo Backup bhi ready kr rhe hai take 2023 kese wjh se krab bhi jaye to economy pe zada Farak na pade..
BSE:SENSEXEducation
by ISL-TREND
2
#How to Trade in Option Market 💲🤑💲💸💰#We Make Only Profit. #HDFCBANK #BANKNIFTY #NIFTY50 #NIFTY #SENSEX #TATA 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. what is option ? Options are a type of derivative product that allow investors to speculate on or hedge against the volatility of an underlying stock. Options are divided into call options, which allow buyers to profit if the price of the stock increases, and put options, in which the buyer profits if the price of the stock declines. RBI Forex Reserve Grow is this Good or Bad ? 1st 140 Billion loss hua hai or ab 20 Billion Grow hua hai to hai to abi bhi loss mai Gover..t abi losss mai hai laken wo Backup bhi ready kr rhe hai take 2023 kese wjh se krab bhi jaye to economy pe zada Farak na pade..
NSE:HDFCBANKEducation
by ISL-TREND
5
A FEW PARAMETERS TO FILTER STOCKS FOR INTRADAY TRADINGThere are few things to be considered before selecting a stock for intraday such as, 1)Volume 2)Price 3)Mimicking Stocks VOLUME: Always Select a stock which has a high liquidity, which means the stock should have at least average daily volume of above 1 million (10 lakhs). PRICE: Many would not consider this as a important parameter. but it must be considered. Choosing penny stocks for intraday is not a good choice at all. Always prefer stocks trading above Rs.100 for intraday MIMICKING STOCKS: Look for the stocks which move in sync with the index. So when the index moves upward/downward, there is a high possibility for the stock to go up/down similarly. Few such examples are 1)Nifty & Reliance, 2)Bank nifty& HDFC Bank, 3)Nifty IT & TCS. SUMMARY #Make a List of 10 stocks, which have good volume (>10 lakhs) & price above 100 #Try to Pick stocks from F&O category as they are the most liquid stocks & these stocks can't be manipulated easily by the operators. #Make sure the 10 stocks are from various industries. Because if we pick stocks from same industries, they are likely to move in tandem. #As a beginner, one should trade within only those 10 stocks every single day for at least 6 months. The reason behind is, every stock has a certain behaviour of its own & when we trade same stocks for a long time, one will get to know the in & out of the stocks & eventually be better at trading. #Another good reason is, every stock is subjected to move according to its corporate action ( Earnings, AGM, Dividends etc.,) So it becomes easy to pay attention to the news related to a particular company, when we trade very few stocks. SAMPLE 10 STOCKS LIST: Finance 1)SBI 2)ICICI Pharma 3)SUNPHARMA 4)BIOCON Auto 5)MAHINDRA & MAHINDRA 6)TATA MOTORS IT 7)INFY 8)TECHM Fmcg 9)HINDUNILEVER Metal 10)TATA STEEL Disclaimer : These are not rigid rules. All the above said are the things which am using for long time successfully. If you are successful with any other method, please continue that. Happy Profit Making, Divyaa Pugal
Editors' picks
NSE:NIFTYEducation
by Divyaapugal
23
The Ultimate Rules for Options Day Trading SuccessNSE:BANKNIFTY Introduction If you want to be a successful options day trader, it's not just about having a good strategy. You also need to develop your expertise, seek guidance when needed, and be dedicated to your goals. To do this, you need to be disciplined and follow some options day trading rules. These rules can help you avoid common mistakes and take away the guesswork. Here are some rules that every options day trader should know and if you use them in a disciplined manner then they have been proven to help beginners become winning options day traders. Some important rules are :- Rule 1 Setting Realistic Goals for Options Day Trading One of the most important rules for success in options day trading is to have realistic expectations. Options trading is not a way to get rich quickly, but it can be a profitable career if you put in the time and effort to learn and master the craft. You need to be prepared for a learning curve and be willing to stick with it even when it gets tough. You should also expect losses, as no strategy can guarantee gains all the time. Good money and risk management can help minimize losses. Rule 2 Start Small to Grow Big When you're new to day trading options, it's important to be cautious. You're still learning about options trading and the financial market, so take your time. Don't rush into things, even if you're excited. Start by practicing with paper trading and then move on to smaller options positions. Gradually increase your positions as you become more familiar with day trading options. This approach helps you minimize your losses and develop a systematic method for entering positions. Rule 3 Know your limits You may be tempted to trade as much as possible to develop a winning monthly average but that strategy will have the opposite effect and land you with a losing average. Remember that every options trader needs careful consideration before that contract is set up. Never overtrade and tie up your Capital. Overtrading will make money for your broker not you. Rule 4 Get Prepared Mentally, Physically, and Emotionally for Options Trading To succeed in options day trading, you need to take care of your mental, physical, and emotional health. This means getting enough sleep, eating a healthy diet, exercising regularly, avoiding excessive alcohol and smoking, and reducing stress in your environment. These habits will help you stay alert and focused throughout the day. So, take the time to care for yourself and perform at your best every day. Rule 5 Do Your Homework Daily – Plan your day Before the market opens, study the financial environment and news to develop a daily trading plan. This is called pre-market preparation and it's essential to stay competitive and align your strategy with the day's conditions. Develop a pre-market checklist that includes evaluating support and resistance, checking the news, assessing volume and competition, determining safe exits for losing positions, and considering market seasonality. Rule 6 Analyse Your Daily Performance Track your options day trading performance daily to notice patterns in your profits and losses. This will help you understand why you're gaining or losing money and fine-tune your processes for maximum returns. Reviewing your daily performance will also help you make long-term decisions for your options day trading career. Rule 7 Pay Attention to Volatility Volatility is how likely the price will change over time in the financial market. It can be good or bad for an options day trader, depending on their goals and position. Many factors affect volatility, like the economy, world events, and news reports. Straddle and strangle strategies are helpful in volatile markets. There are three types of volatility: price, historical, and implied. Price is based on supply and demand, historical looks at past performance, and implied predicts future performance. Rule 8 Use Option Greeks Greeks are measures that help to determine an option's price sensitivity in relation to other factors. They are represented by letters from the Greek alphabet and are used in complex formulas to determine option pricing. Despite their complexity, Greeks can be calculated quickly and efficiently, allowing options day traders to use them to improve their trades for maximum profit. Delta, Gamma, Vega, Theta, Rho Learn about option greeks from here I hope you found this helpful. Please like and comment. Keep Learning, Happy Trading!
Editors' picks
NSE:BANKNIFTYEducation
by SANJAYPATIDAR_
4
Interpretation Of Chart Patterns According To Market Phase.NSE:BANKNIFTY1! As we all know market moves in phases What are those phases? A primary bull or bear trend consists of two phases, specifically Accumulation phase: if the market rises after consolidating, we say that the consolidation represents accumulation (buying activity). Distribution phase: if the market declines after consolidating, we say that the consolidation represents distribution (selling activity) The main issue arises when a trader tries to know whether this consolidation is accumulation or distribution. So how can we overcome that issue? As a trader, we have to try to look for evidence that suggests whether accumulation or distribution is taking place during consolidation and out of that evidence we will discuss how we can use chart patterns to identify the phase. Chart patterns belong to one of two groups, that is, reversal or continuation. Chart patterns have intrinsic and extrinsic biases. What is the intrinsic bias of chart patterns? Intrinsic bias means the inherent bullish or bearish sentiment associated with a chart pattern. For example,1. An ascending triangle pattern has an inherently bullish bias. 2. A head and shoulder pattern has an inherently bearish bias. 3. A descending triangle pattern has an inherently bearish bias. ## A symmetrical triangle and rectangle/horizontal range pattern have an intrinsically neutral bias What is the extrinsic bias of chart patterns? Extrinsic bias refers to as location-based sentiment of a chart pattern. Like a pattern forming at some location which is historically a strong resistance zone (Market top) so if an ascending triangle forms at that location then its extrinsic bias will be bearish. Example 1: An descending triangle is an intrinsically bearish pattern, but if it is forming at a strong support location then the extrinsic bias will be bullish. Example 2: An ascending triangle is intrinsically bullish, that is, it has a bullish bias. Regardless of where this pattern occurs with respect to past price action, it will always be inherently a bullish indication, but If this bullish pattern is found at the price level of some historically significant market top/Resistance, then we say that it is extrinsically bearish, cause the pattern is located at a significant resistance. Factors determining the extrinsic bias of the pattern • Direction of the preceding trend. • Location with respect to historical extremes in price. • Location with respect to the phase of an underlying market cycle • Location with respect to other support and resistance barriers to price. • Bullish or bearish divergent formations. How can we use this extrinsic and intrinsic bias? When extrinsic bias and intrinsic bias both are in agreement then the possibility of a reversal at market tops or bottoms is significant. Similarly, for trends, when the intrinsic bias of the chart pattern is in agreement with the directionality of the trend, i.e., the trend sentiment, the potential for a continuation is usually greater. For example, The inverse head and shoulder pattern have an intrinsically bullish bias, and it is also forming at a strong support location then its extrinsic bias is also bullish. Like, If both are in alignment then we can say that this is an accumulation phase and a long entry can be initiated. ##When attempting to determine the reliability of potential reversals during the accumulation and distribution phases, or continuations during the trend phase, it is important to look for agreement between the intrinsic and extrinsic biases. If Any disagreement is seen as an indication that a reversal or continuation may be inherently weak. ##Intrinsically neutral formations, their extrinsic bias or sentiment is derived from the trend sentiment. For example, a symmetrical triangle will adopt an extrinsically bullish bias in an uptrend and an extrinsically bearish bias in a downtrend. By considering these Factors while trading chart patterns in different market phases will give an in-depth insight and helps in making more informed and rational decisions. I hope you found this helpful. Please like and comment. Keep Learning, Happy Trading!
Editors' picks
NSE:BANKNIFTYEducation
by SANJAYPATIDAR_
79
Trend Analysis and its Characteristics.MCX:GOLD1! What is Trend and how to identify it? A trend is the overall direction of a market or an asset's price. an uptrend is defined using peak and trough analysis. An uptrend is represented by a series of successively higher highs (peaks) and lows (troughs), while a downtrend is represented by a series of successively lower highs and lows. ->One can identify it by determining peaks and troughs. ->By using trendlines ->Price remaining above or below an overlay indicator. we can quickly identify the general direction of a market or an asset by looking at the price chart but what we have to learn is to identify the quality of the current trend and how we can do that, by gauging the strength of the trend. Here are some significant points which help us in understanding the mood and quality of a trend. The highest skill any trader can aspire to is the ability to read pure price action. 1. Cycle Amplitude Look for decreasing cycle amplitude in uptrends and downtrends. A decrease in cycle amplitude in an uptrend is an early indication that there may potentially be an underlying weakness in the uptrend. In a similar fashion, a decrease in cycle amplitude in a downtrend is regarded as a bullish indication. 2. Cycle Period A gradual reduction in the cycle period during an uptrend is an early indication that there may potentially be an underlying weakness in the uptrend and a gradual reduction in the cycle period during the downtrend is a bullish indication. 3.Average Bar Range A decrease in the average bar range in an uptrend and downtrend is an early indication of potential weakness in the current trend. -> you can track the bar range using the average true range (ATR) oscillator 4.Bar Retracement Symmetry A change in the number of bars in a retracement is also an early indication of a potential change in trend behaviour. 5. Average Candlestick Real Body to Range Ratio A gradual decrease in the real body to candlestick range is also an early indication of potential weakness in a Trend. 6. Angular Symmetry and Momentum Any change in the Angle of trend is significant:- i.) An upside acceleration in price is bullish whereas an upside deceleration in price is bearish ii.) A downside acceleration in price is bearish whereas a downside deceleration in price is bullish. #It should be noted that although an upside acceleration in price is bullish, the uptrend may not be self‐sustaining if the rate of ascent was excessive. Such rapid increases in price usually end in a blow-off or buying climax with prices subsequently collapsing. Similarly, downside acceleration in prices may also end in a selling climax. 7. Frequency and Depth of Trend-Based Oscillations When a trend moves with reasonable retracements not too short and not too big, it indicates a healthy trend which has profit taking along the way as the trend unfolds. Traders and investors tend not to react as emotionally and irrationally at higher prices where the risk of losing pent‐up and unrealized profit is greater. 8.Relative Measure of Consolidation Size and Duration Trend interruptions are more significant if: ■ Price formations are of greater magnitude (taller chart patterns). ■ Price formations develop over a longer period (wider chart patterns). Larger trend interruptions normally tend to lead to a greater probability of a reversal. In a strong uptrend, a larger head and shoulders formation would be deemed more bearish than a smaller formation. Similarly, a larger rounding bottom formation would be more bullish than a smaller one in a downtrend. In short, size takes precedence over form. Moreover, the longer it takes for a consolidation to unfold, the greater will be its disruptive power with respect to the trend, should a reversal occur. By considering these characteristics while analysing trend will give a in depth insight and helps in making more informed and rational decisions. I Hope you found this helpful. Please like and comment. Keep Learning, Happy Trading!
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MCX:GOLD1!Education
by SANJAYPATIDAR_
40
How to compare relative performance between stocks and indices ?You can compare the relative performance by using the compare option on charts. The compare function tool is used to compare the market movements of two or more different symbols simultaneously. Popular use for a comparison chart is comparing two companies within the same sector. Click on the Compare or Add symbol button (displayed as plus sign) on the toolbar along the top of the chart, search and add the indices/stock which you would like to compare. You will see a representation of the percentage comparison from the beginning price point to the current price. To delete the comparison line right-click on it and click on ‘Remove’. This example is comparison chart of Nifty Bank and Nifty PSU Bank. After 12 years i.e. 1st November, 2010 - 7th November, 2022: Nifty Bank - 214% Positive Nifty PSU Bank - 31% Negative Nifty PSU Bank has given breakout. I hope this little information on comparing indices/stocks is useful. Please feel free to write any additional information in the comments section below. Thanks and happy learning/trading. Disclaimer: This is for demonstration and educational purpose only. This is not buying or selling recommendations. I am not SEBI registered. Please consult your financial advisor before taking any trade.
NSE:CNXPSUBANKEducation
by MandeepSinghKohli
How to set an alert for BankNifty Intraday Strategy [5min TF] ? Set Alert on 77% Profitable Bank-Nifty Back-tested Intraday Strategy with FREE TRIALS Trend Follower Intraday for 5 minute Time-Frame (Adjustable) , that has the time condition for INDIAN | CRYPTO | FOREX Markets // ══════════════════════════════════════════════════════════════════════════════════════ // Unlike the Free Scripts - Risk Management , Position Sizing , Partial Exit etc. are also included . Send us a Message to know more about the strategy. // ══════════════════════════════════════════════════════════════════════════════════════ // The Timing can be changed to fit other markets, scroll down to "SQUARE-OFF TIME" to know more. The commission is also included in the strategy . The basic idea is when , 1) EMA1 crosses above EMA2 , is a Long condition. 2) EMA1 crosses below EMA2 , is a Short condition. 3) Green Section indicates Long position. 4) Red Section indicates Short position. 5) Allowed hours specifies the trade entry timing . 6) ATR STOP is the stop-loss value on chart , can be adjusted in INPUTS. 7) Target 1 is the 1st target value on chart , can be adjusted in INPUTS. 8) RISK is Maximum Risk per trade for the intraday trade can be changed . 9) Total Capital used can be adjusted under INPUTS. 10) ATR TRAIL is used for trailing after entry , as mentioned in the inputs below. 11) Check trades under the list of trades . 12) Trade only in liquid stocks . 13) Risk only 1-5% of total capital. 14) Inputs can be changed for better back-test results, but also manually check the trades before setting alerts 15) SQUARE OFF TIME - As you change the time frame , also change the square-off time to the candle's closing time. Eg: For 3min Time-frame , Hour = 2Hrs | Minute = 57min 16) Strategy stops for the day if you have a loss . 17) COMMISSION value is set to 10Rs and SLIPPAGE value is set to 1 . Go to properties to change it . Apply it to your charts Now ! Send us a message for FREE TRIALS | Instant Access Thank You ☺
NSE:BANKNIFTYEducation
by The_Algo_Engineer
1
CHOOSING OPTIONS STRIKEChoosing wrong strike prices can lead to big losses even when our analysis is right. It's due to Theta decay. So Lets understand some basics of options strike price. There are three types of strike prices based on their moneyness. 1)ATM (At the Money) 2)OTM (Out of the Money) 3)ITM (In the Money) FOR CALL OPTIONS : Lets assume Stock ABC is trading at 150 (spot price). Then, Spot price = 150 ATM Strike = 150 Any strike above spot price is OTM for call option. Ex : 160 ,170,180 etc., Any strike below spot price is ITM for call option. Ex : 140, 130, 120 etc., FOR PUT OPTIONS : Stock ABC is trading at 150 (spot price). Spot price = 150 ATM Strike = 150 Any strike above spot price is ITM for put option. Ex : 160 ,170,180 etc., Any strike below spot price is OTM for put option. Ex : 140, 130, 120 etc., HOW TO CHOOSE THE STRIKE AMONG THE ABOVE THREE MONEYNESS 1)Follow a simple rule, Buy a strike price which is closer to the spot price. "OTM STRIKES ARE BIG NO" . 2) Remember! when we are buying an option, the stock / index needs to move up / down with a good momentum. So that our option will gain some value & we will be in profit. So it doesn't make sense to buy a OTM call / put. Because if a strike price is far away from spot price, it won't give us much movement due to time decay. I have even shared my option strike rules as follow. Friday, Monday & Tuesday = ATM strikes Wednesday & Thursday = ITM strikes This is how I used to pick strikes for intraday. The reason is simple because, if we are closer to the expiry (Thursday) the effect of theta decay is very high. Due to which our premiums will not move much even if the stock / index has moved pretty well. By following these rules, our chances of losing money will drop drastically. Happy Learning & Earning :) - DivyaaPugal
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NSE:RELIANCEEducation
by Divyaapugal
25
30 mins candle sticks strategy for next day trading setup 30 mins candle sticks strategy for next day trading setup : I want to share a strategy which is based on candle sticks price action and the time period we should take as base. If we are able to find the setup at right time (trading sense) then win rate would be 60%+, works well in trending market; side ways market this setup may not work. Stop Loss is key and ensure to put it along with the entry. Calculation of SL is an art and science, spend time on understanding it first before catching up/learning any strategies. SL will save us from wrong entries and ensures capital is saved. We get many opportunities of trade setups, so avoid FOMO (fear of missing out). Will try to explain strategy in simple words. I also welcome constructive feedback to make this much more better and also request you ignore this strategy if this is not making any sense to you. I am sharing only for educational purpose and not recommending anyone for real trading. Thanks in advance! There will always be room for improvement and this is not any fool proof system/strategy and neither want to prove that this is correct, every transaction has a buyer and seller mindset. So please be cautious! What we need : Candle sticks of 15 mins time frame Confirmation with indicators should be in same trend with candle stick trend 1. RSI (For trend identification) 2. Stoch (Entry and Exit confirmations / Overbought and Oversold confirmations) 3. Any other indicator of your choice which adds value to setup and confluence Bit of explanation on time period: Indian market starts at 915am and ends by 330pm which has about 25 candlesticks of 15 mins (time frame). Sentiments of the market behavior will be based on the timings, like in the morning trend will have an impact of over night news and/or once Europe market opens its impact will be around 1pm.. etc. 315pm till 330pm will have all closures for intraday by brokers which directly or indirectly impacts the candlesticks. So ideally if we consider 245pm and 300pm candle stick, in total 30 mins; this would typically create a base for next day strategy. That means taking these two candle sticks and marking high and low of them will give us a preparatory base for next day on how to setup trade or what needs to be done. Rules of the game : Once we mark the high and low of 245pm till 315pm candle sticks, price moving up from the high can be considered our entry with a stop loss of just below the high line and look for a good RR. If the price goes down the low point marked then it can still go down and our entry can be at that place keeping stop loss just above that low line and look for a good RR. If market opens big gap up then chances of it falling till the high line are high; once it reaches this high line, it can further try for next target of touching low line. In similar way if market opens big gap down then chances of it raising up till the low line are high; once it reaches this low line and then it will try to touch the high line. If one entry has already come in any of above setup in a day then don’t expect that it will give you another setup as it would have exhausted already with the levels given; So one day one setup only. Stop Loss : There are various ways to keep SL here (Please work out acceptable SL as per your risk appetite and entry should be truly based once SL is identified correctly. If you do not know how to keep SL’s then this strategy may not work and also hitting of SL. Please be cautious!) 1. Just below high line or just above the low lines 2. Half of the market area, high and low 3. For a short entry at low line, SL can be high line or for a long entry at high line, SL can be at low line 4. Prior candle high or low or entry candle high or low 5. Or any of your best working SL ideas Risk Reward: If you are having good understanding of the market/asset where you are applying this strategy then ideal RR should be 1:1.5 and can be trailed for a bigger reward too. Please do a good back testing of this strategy. Avoid : • If you do not understand the strategy • If you do not understand how candle sticks are behaving • If candle stick pattern is not respecting high and low lines marked as mentioned above • If there is no confluence of the setup with indicators • When calculated SL is way high due to the formed candle stick (large or big candle stick, if taking entry after this candle) • When there is no confidence on the setup • Fear of Missing Out • In a sideways market, hitting of SL will be high Please do let me know if you have any questions would be happy to respond. Please do like and share this idea. Thanks Disclaimer : This analysis/strategy is only for educational purpose and not be considered as any trading idea/tip. Please consult your financial advisor before you take any trade and we are no way responsible for your profits/losses. Thank you! I will also put some examples (todays live charts) for better understanding :
NSE:BANKNIFTYEducation
by AdhigamaTrading
37
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