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RSI part 2 RSI Indicator: Best Settings for Day Trading Strategies Short-term intraday traders (day trading) often use lower settings with periods in the range of 9-11. Medium-term swing traders frequently use the default period setting of 14. Longer-term position traders often set it at a higher period, in the range of 20-30. To use the RSI indicator, check if the value is above 70 to show an asset is overbought, or below 30 to show it is oversold. Traders can use these signals to find possible trading opportunities
NSE:NIFTYEducation
by SkyTradingZone
RSI part 2 The relative strength index (RSI) is a momentum indicator used in technical analysis. RSI measures the speed and magnitude of a security's recent price changes to detect overbought or oversold conditions in the price of that security. The RSI is displayed as an oscillator (a line graph) on a scale of zero to 100. The best RSI settings are typically a 14-period timeframe with 70 as the overbought level and 30 as the oversold level. These settings can be adjusted based on specific trading strategies.
BSE:SENSEXEducation
by SkyTradingZone
Option Trading part 1When options are better. Options can be a better choice when you want to limit risk to a certain amount. Options can allow you to earn a stock-like return while investing less money, so they can be a way to limit your risk within certain bounds. Options can be a useful strategy when you're an advanced investor. You don't need a considerable sum of money to become an options trader. You can start small with a capital of less than Rs 2 lakhs too. However, as you start small, you need to be a careful trader so that you can cut down on the possibility of losses and enhance the return potential of your trades.
BSE:SENSEXEducation
by SkyTradingZone
Few Important Information about tranding Few Important Information about tranding Trading refers to the process of buying and selling financial assets, including stocks, bonds, currencies, and commodities. Trading is done with the explicit goal of making profits from price changes in the short term. Trading involves the buying and selling of financial assets, such as stocks, to earn profits based on the price fluctuations of these assets. There are different types of trading, and traders use various strategies, techniques, and tools to decide when to buy or sell different assets
NSE:IGLEducation
by SkyTradingZone
Trading CANNOT Generate MONTHLY INCOMEWhen it comes to trading, many people envision it as a fast track to consistent monthly income. The idea of making a predictable, regular amount of money every month is alluring, especially in the world of day trading or intraday trading. But while the potential is there, focusing too much on generating monthly income from trading can quickly lead to frustration and even financial loss. Let’s break down why this is the trap and how to avoid it. 1. Volatility Makes Consistency Hard One of the main reasons monthly income from trading is a trap is the inherent volatility in the markets. The market is unpredictable, and prices fluctuate based on a variety of factors, from economic reports to geopolitical events. If you’re looking for consistent returns month after month, you’re setting yourself up for disappointment. Even professional traders who have years of experience deal with large variations in their profits month to month. 2. Risk Management Becomes Secondary In the pursuit of consistent monthly profits, traders often overlook the importance of risk management. They become desperate to meet monthly income goals and may take larger-than-usual risks, which can backfire. Trading is about probabilities, not certainty. Risk management must remain the top priority, even if it means taking fewer trades or accepting losses when the market conditions aren’t right. 3. Psychological Pressure The pressure to make money every month can be psychologically taxing. When traders don’t hit their income goals, they can feel demotivated, frustrated, and anxious, which can cloud their judgment and lead to poor decision-making. This emotional rollercoaster can cause traders to deviate from their well-thought-out plans and strategies, leading to bigger losses. 4. Inconsistent Performance Traders who focus too much on monthly income often ignore the fact that trading performance is naturally cyclical. Some months will be better than others, and periods of drawdown are a normal part of the process. By expecting monthly profits, traders may miss out on the bigger picture and fail to understand that trading is a long-term game. 5. Better Alternatives Instead of chasing monthly income, a better approach is to focus on developing a solid trading plan, refining your strategies, and managing risk effectively. By treating trading as a business rather than a job with a monthly salary, traders can avoid the trap of unrealistic expectations. Remember that trading is about consistency over time, not about monthly income. Conclusion The trap of monthly income in trading is a dangerous mindset that can lead to poor decision-making and unnecessary stress. While the goal of making money in the markets is valid, it’s crucial to remain patient and realistic about the outcomes. Focus on honing your skills, managing your risk, and understanding that the market will not always deliver monthly profits. The key to success in trading is consistency over the long term, not a monthly paycheck.
NSE:NIFTYEducation
by keshevdugar
4
Profitable Advance TradingThe defining feature of day trading is that traders do not hold positions overnight; instead, they seek to profit from short-term price movements occurring during the trading session.It can be considered one of the most profitable trading methods available to investors. Trading strategy based on moving averages. Trading strategy based on technical analysis and price patterns. Trading strategy based on Fibonacci retracements. Candlestick trading strategy. Trend trading strategy. Flat trading strategy. Scalping. Trading strategy based on fundamental analysis.
NSE:BANKNIFTY1!Education
by SkyTradingZone
3
Database Trading Option // Options market data can provide meaningful insights on the price movements of the underlying security. We look at how specific data points pertaining to options market can be used to predict future direction. Typically a trading dataset will provide information about trades that are made over the course of the day By analysing the information provided in the option chain, traders can identify potential trading opportunities and make informed decisions about buying or selling options contracts. Option chains are used by traders to analyse and evaluate the market's expectations of an asset's future price movements.
NSE:BANKNIFTY1!Education
by SkyTradingZone
3
PCR Trading Option A Advance Guide However, no PCR can be considered ideal, but usually, a PCR below 0.7 is typically viewed as a strong bullish sentiment while a PCR more than 1 is usually considered as a strong bearish sentiment. One way to calculate PCR is by dividing the number of open interest in a Put contract by the number of open interest in Call option at the same strike price and expiry date on any given day. It can also be calculated by dividing put trading volume by call trading volume on a given day.
NSE:BANKNIFTY1!Education
by SkyTradingZone
3
TradingBoth index futures and stock F&Os can be easily understood by tracking Open Interest. Simply put, when Open Interest increases, it means more money is moving into the futures contract, and when open interest drops, it means money is moving out of the contract. The 90/10 strategy, popularized by Warren Buffett, allocates 90% of your portfolio to a low-cost S&P 500 index fund and 10% to short-term government bonds. This aims for long-term growth through stocks while offering stability with bonds.21 May 2024
NSE:DIVISLABEducation
by SkyTradingZone
3
Database TradingEvery trader and investor asks, “Where is the overall market (or a specific security price) headed?” Several methodologies, intensive calculations, and analytical tools are used to predict the next direction of the overall market or of a specific security. Options market data can provide meaningful insights on the price movements of the underlying security. We look at how specific data points pertaining to options market can be used to predict future direction. Typically a trading dataset will provide information about trades that are made over the course of the day. This includes various different details about the trades, such as the bid, bid size and ask size. This information is known as quote data.
NSE:NIFTYEducation
by SkyTradingZone
3
ADX Trading The average directional index (ADX) is a technical indicator used by traders to determine the strength of a financial security's price trend. It helps them reduce risk and increase profit potential by trading in the direction of a strong trend. Many traders consider the ADX to be the ultimate trend gauge because it is so reliable. ADX quantifies trend strength by measuring the degree of directional movement in price. ADX calculations are based on a moving average of price range expansion or contraction over a given period. The default setting is 14 periods, although other settings can be used. ADX can be used with any financial security, including stocks, exchange-traded funds, and futures. The average directional index, known as ADX, is a technical tool used by traders to gauge trend strength. Trading with the trend is considered a fundamental trading practice that reduces risk and increases profit potential. ADX calculations use a moving average of price range expansion or contraction. ADX is less useful when prices enter a trading range. While ADX is a lagging indicator, it is considered reliable.
NSE:BANKNIFTYEducation
by SkyTradingZone
3
Strength Index (RSI) IndicatorThe relative strength index (RSI) is a momentum indicator used in technical analysis. RSI measures the speed and magnitude of a security's recent price changes to detect overbought or oversold conditions in the price of that security. The RSI is helpful for market participants in identifying trends. In a strong uptrend, the RSI typically stays between 40 and 90, with the 40-50 range acting as support. In a strong downtrend, the RSI ranges from 10 to 60, with the 50-60 range serving as resistance.
BSE:SENSEXEducation
by SkyTradingZone
3
Advance database trading Advanced trading strategies usually involve multiple technical indicators and more complicated instruments, such as options and futures. Why Not Buy Before the Dividend and Results show that migration to a MongoDB database would be most beneficial in terms of cost, storage space, and throughput. In addition, organisations wishing to take advantage of autoscaling and the maintenance power of the cloud should opt for a cloud native solution.
NSE:NIFTYEducation
by SkyTradingZone
3
Option And Data Base Trading OptionMetrics provides the highest quality and most comprehensive historical options data on the market today. Leading investment and academic institutions worldwide rely on the accuracy of our options data to measure volatility, assess risk, and analyze investment strategies. By analysing the information provided in the option chain, traders can identify potential trading opportunities and make informed decisions about buying or selling options contracts. Option chains are used by traders to analyse and evaluate the market's expectations of an asset's future price movements.
NSE:NIFTYEducation
by SkyTradingZone
3
Advance Profitable Trading MindsetOne of the most important psychological characteristics of winning traders is the ability to accept (1) risk and (2) the fact that you may well be wrong more often than you are right in initiating trades. Winning traders understand that trade management is actually a more important skill than market analysis. Trading strategy based on moving averages. Trading strategy based on technical analysis and price patterns. Trading strategy based on Fibonacci retracements. Candlestick trading strategy. Trend trading strategy. Flat trading strategy. Scalping.
BSE:SENSEXEducation
by SkyTradingZone
3
professional trading mindsetThey are disciplined in their trading and can view the market objectively, regardless of how current market action is affecting their account balance. They don't give in to being excessively excited about winning trades or excessively despairing about losing trades. Stick to Your Discipline. ... Lose the Crowd. ... Engage Your Trading Plan. ... Don't Cut Corners. ... Avoid the Obvious. ... Don't Break Your Rules. ... Avoid Market Gurus. ... Use Your Intuition.
NSE:NIFTYEducation
by SkyTradingZone
3
Technical Analysis Technical analysis is a means of examining and predicting price movements in the financial markets, by using historical price charts and market statistics. It is based on the idea that if a trader can identify previous market patterns, they can form a fairly accurate prediction of future price trajectories. What exactly are the two types of technical analysis? Chart patterns and technical (statistical) indicators are the two main types of technical analysis. Chart patterns are a subjective type of technical analysis in which technicians use certain patterns to indicate regions of support and resistance on a chart.
NSE:BANKNIFTYEducation
by SkyTradingZone
3
Fibonacci Analysis and Key Levels for Olectra Greentech: Tradin The chart appears to be a technical analysis of Olectra Greentech Ltd, featuring Fibonacci retracement levels, volume data, and RSI. Here's a detailed analysis of the setup: ### 1. **Key Fibonacci Levels**: - **0.382 Level (Resistance)**: Around ₹1,661.05. The price is currently testing this level. A breakout above it could indicate bullish momentum. - **0.5 Level (Resistance)**: Near ₹1,585.40, which previously acted as a resistance but now seems broken. - **0.618 Level (Support)**: Around ₹1,526.70. This level could act as a strong support in case of a retracement. - **0.786 Level (Support)**: At ₹1,466.00, marking another significant support level. ### 2. **Price Action**: - The price has shown a recovery from lower levels, breaking above key Fibonacci levels, indicating strong buying pressure. - The stock is trading at ₹1,651.30, close to resistance zones, suggesting a potential test of higher levels if momentum continues. ### 3. **Volume**: - Recent green candles are supported by increased volume, signaling strength in the upward move. - Look for sustained volume to confirm further bullishness. ### 4. **RSI (Relative Strength Index)**: - The RSI is at **61.72**, which indicates bullish momentum. However, it is nearing overbought levels (above 70), so caution is advised. ### 5. **Potential Scenarios**: - **Bullish**: A breakout above ₹1,661.05 could lead to testing higher Fibonacci levels like ₹1,750.15 (R3). - **Bearish**: If the price fails to sustain above ₹1,661.05, it might retrace to support levels at ₹1,585.40 (R1) or ₹1,526.70 (S2). ### 6. **Trading Strategy**: - **For Long Positions**: - Enter on a confirmed breakout above ₹1,661.05 with a target around ₹1,750.15. - Place a stop-loss below ₹1,585.40 for risk management. - **For Short Positions**: - Look for rejection signals around ₹1,661.05 to enter shorts. - Target the support zone at ₹1,526.70, with a stop-loss above ₹1,685.00. Would you like additional insights or a refined trading plan?
NSE:OLECTRAEducation
by AnkurDasTrader
Darvas Box in RelianceSimple method like Darvas box can also give good idea of trend. Darvas box are trading ranges in which stock prices moves. Applying strict rule in this method would lead to analysis paralysis. It looks obvious once we mark boxes around ranges. There will be some whipsaws at the edges of these boxes. Current level of Reliance seems to be at the bottom of the latest trading range marked by red box. Trading the box range is good method for swing trades if the box range is sufficiently large. I use this for mostly large cap stocks which are not very volatile. Hope this will encourage people to start making boxes on their favorite large cap stocks.
NSE:RELIANCEEducation
by yndesai
9
Option TradingThe four basics of technical analysis are price, volume, time, and sentiment. Price analysis involves studying historical prices to identify trends and patterns. Volume measures the number of shares traded, indicating the strength of a price movement. Time analysis looks at the duration of price trends and cycles. What are Technical Charts and their types? In Technical Analysis, technical charts are used by professional traders to make an informed decision about the buying and selling of securities. Charts are the graphical representation of a security's price, volume, history and time intervals.
BSE:SENSEXEducation
by SkyTradingZone