Option and Database TradingThe 80% Rule is a Market Profile concept and strategy. If the market opens (or moves outside of the value area ) and then moves back into the value area for two consecutive 30-min-bars, then the 80% rule states that there is a high probability of completely filling the value area.
The 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.
Chart Patterns
Technical analysisThe MACD indicator (or oscillator) is one of the best indicators for identifying trends and reversals in the financial markets. The MACD strategy in its most basic form involves using the crossing of the smoothed out signal line over the MACD line as your entry or exit point for a trade.
The best MACD setting for day trading often uses a faster configuration, such as 3-10-16, to capture quick price movements. While the default 12-26-9 is popular, shorter settings can improve sensitivity to intraday trends. Optimal settings vary by strategy and asset volatility.
MACD TradingMoving average convergence/divergence (MACD) is a technical indicator to help investors identify entry points for buying or selling. The MACD line is calculated by subtracting the 26-period exponential moving average (EMA) from the 12-period EMA. The signal line is a nine-period EMA of the MACD line.
A common strategy is to buy when the MACD line crosses above the signal line, as this indicates bullish momentum. Another strategy is to sell when it crosses below (which indicates bearish momentum).
Top Trader SetupThe 3 5 7 rule is a risk management strategy in trading that emphasizes limiting risk on each individual trade to 3% of the trading capital, keeping overall exposure to 5% across all trades, and ensuring that winning trades yield at least 7% more profit than losing trades.
What is a good setup for day trading? A good day trading setup includes a powerful computer or laptop, high-resolution monitor or monitors, ergonomic desk and chair, reliable charting software, high-speed internet connection, and access to real-time news feeds and stock scanners.
Three White Soldiers | Educational | Colpal The Three White Soldiers candlestick pattern is commonly used in technical analysis.
The pattern identifies potential bullish reversals in a downtrend or a period of consolidation. Traders often use the pattern and other technical analysis tools, such as support and resistance levels, trend lines, and volume indicators, to confirm the trend’s strength and potential entry and exit points.
The Three White Soldiers pattern can be used on various time frames, from short-term intraday charts to longer-term weekly or monthly charts, depending on the trading strategy and goals.
Disclaimer: This is for educational purpose. Definition and details can be found on any other search engine / books/ articles etc.
MACDIf MACD is above the signal line, the histogram will be above the MACD's baseline or zero line. If MACD is below its signal line, the histogram will be below the MACD's baseline. Traders use the MACD's histogram to identify peaks of bullish or bearish momentum, and to generate overbought/oversold trade signals.
The difference between the two lines is represented on the histogram. If the MACD were to be trading above the zero line, it would confirm an uptrend, below this and the indicator would be used to confirm a downtrend.
Data Trading in optionsOptions data captures information on options contracts, including pricing and trading volumes, useful for investment strategies. Discover our guide and top options data providers.
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.
Option chainAn options chain displays all available option contracts for a security, organized by expiration date and strike price. Options chains typically show each contract's bid price, ask price, volume, open interest, and implied volatility (IV).
Option chains also allows traders with the option to select the best expiration date for their options trading. The option's expiration date is the day it will stop being tradeable. Traders may use the option chain to identify the expiry date that provides the optimal balance of risk and return for their transaction.
Journey of Advanced Divergence TradingCommon types of trading are intraday, positional, swing, long-term trading, scalping, and momentum trading. Trading involves exchanging goods or services. In stock trading, investors buy and sell stocks from companies within regulated markets overseen by Indian regulatory bodies.
Master these skills and then you'll get a genuine shot at being a trading master.
Skills #1 and #2 – Research and Analysis. ...
Skill #3 – Adapting Your Market Analysis to Changing Market Conditions. ...
Skill #4 – Staying in the Game. ...
Skills #5 and #6 – Discipline and Patience. ...
Bonus Skill #7 – Record Keeping. ...
In the End.
Classic Double Correction PatternThis is a classic example of Double correction (Double three) in HDFCLIFE.
Marked in the first box, we can see Flat Correction where wave B is retraced to the 81% level. We are fulfilling the minimum requirement (61.8%) of wave B. Here in wave C, we see three waves. This is the first hint of an upcoming complex correction. The whole wave is marked as W here.
In the second box, there is a perfect Zig-zag pattern. Wave B is retraced to 50% here. Also, we can see three waves in wave C, which gives us wave Y.
These two waves are connected by wave X which is retraced to 111%.
This is the best example of Double correction.
This analysis is for educational purposes only.
This analysis is based on Elliott Wave theory and Fibonacci analysis.
Professional TradingWhat Is Technical Analysis?
Technical analysis is a method of evaluating statistical trends in trading activity, typically involving price movement and volume. It is used to identify trading and investment opportunities.
Unlike fundamental analysis, which attempts to evaluate a security's value based on financial information such as sales and earnings, technical analysis focuses on price and volume to draw conclusions about future price movements.
Key Takeaways
Technical analysis is used to evaluate price trends and patterns and thereby identify potential investments and trading opportunities.
Technical analysts believe past trading activity and a security's price changes can be valuable indicators of the security's future price movements.
Technical analysis may be contrasted with fundamental analysis, which focuses on a company's financials rather than historical price patterns or stock trends.
Technical analysis was introduced by Charles Dow.
MINDSET SECRETS FOR WINNING"The Stock Market Isn’t a Place; It’s a Mindset" 🌌💡
The market doesn’t owe anyone, but it teaches everyone. We often think of trading as mastering charts, predicting moves, and hitting targets. But in reality, it’s about understanding one thing: the market is an emotional battlefield.
5 Unwritten Truths Every Trader Learns (the Hard Way) 🔥
Patience Pays
Sometimes the best trade is no trade. Observing, waiting, and holding back is harder than hitting ‘Buy.’ But it’s what separates the cool-headed from the compulsive.
Respect the Trends
They say, “the trend is your friend,” and it’s true. But only if you know when to step back. Real traders respect the power of trends and don’t challenge them without good reason.
Capital Preservation > Profits
Winners protect their capital. When the trade goes against you, it’s not about ego or proving yourself right; it’s about conserving what you can to trade another day.
Embrace the Small Wins (very important...these compound over time)
In a game where giants battle, small wins are the stepping stones to long-term growth. Consistency beats speed in trading; even the smallest gains compound over time.
Stay Humble, Stay Hungry
The moment we think we have it all figured out, the market humbles us. It’s a reminder that we’re always students here. True traders stay humble, and in that humility, they keep growing.
The Final Word 🧠✨
Trading isn’t just a skill; it’s a mindset. The best traders aren’t just analysts; they’re philosophers of the market, lifelong learners in the art of resilience, risk, and reward.
#TradingMindset #MarketWisdom #StayHumble #KeepLearning
TRAPS IN DOWNTREND"In a downtrending market, price movement often creates imbalances at various levels. When approaching a major demand zone, price frequently traps immediate buyers and sellers, creating false signals. It then proceeds to fill these imbalances at minor levels, trapping sellers along the way, before reaching significant areas where true momentum is initiated. This is often followed by a rapid decline from these major areas.
Understanding higher time-frame candle closings is essential for interpreting these scenarios accurately. This is just one example, as sometimes price may react solely at minor imbalance zones, never reaching major areas, or there may be no imbalances at all. To effectively assess any market condition, observing the candle closings on a higher time frame is crucial.
Follow for more in-depth educational insights."
Know this before you QUIT TRADINGTrading Myths Busted: The Truth Every Trader Needs to Know
If you've been trading (or thinking about it), you've probably heard these myths. Let’s set the record straight 👇
❌ Myth #1: "99% of Traders Lose Money"
🔍 Reality: It's not that 99% fail—it’s that 99% don't approach trading like a skill. The successful ones invest in learning, adapt to mistakes, and follow rules. Discipline wins over "luck" every time. Are you part of the 1% willing to put in the work?
❌ Myth #2: "Trading Is Just Gambling"
🔍 Reality: Gambling is pure chance. Trading, on the other hand, rewards research, patience, and skill. Successful traders work with data, not dice.
❌ Myth #3: "Only Big Players Can Win"
🔍 Reality: Start with what you have. Big wins are great, but successful traders know how to leverage any amount—even small—by sticking to sound risk management. Your account size doesn’t define your potential; your discipline does.
❌ Myth #4: "The Market Is Out to Get Me"
🔍 Reality: The market doesn’t care about you. It’s not “against” anyone—it just moves. Your job is to understand those moves, not fight them. Control your decisions, and let the rest play out.
💡 Final Truth: Trading is a Skill, Not a Game of Luck
Every trader starts somewhere, faces losses, and meets challenges. The difference? Those who succeed see losses as lessons, not defeats. Bust the myths, learn the process, and remember: trading isn’t for thrill—it’s for growth.
#TradingMyths #MarketMindset #TruthInTrading #TraderLife
Morning Star + Flag pattern - Trend ReversalMorning Star - The Morning Star pattern is a classic bullish reversal pattern in technical analysis. The pattern consists of three candlesticks: two large ones with different directions and a smaller candlestick between them.
Flag Pattern - A sudden move in either direction followed by the price consolidates in a range following the sharp move, and the price then continues to move in the same direction after it breaks out of the range. Its visual resemblance to a flag and a pole
Why PRO takes losses and everybody else LOSESTrading isn’t just about making gains—it's about managing losses like a professional. Here are some ideas on what separates amateurs from seasoned traders and how you can elevate your mindset:
Shift from Emotion to Execution:
Pros don't get attached to trades. They let data guide decisions, not emotions. Instead of celebrating a win or stressing over a loss, they focus on consistent execution. Tip: Try setting specific exit rules before you enter a trade, so you’re never swayed by market noise.
Embrace Small Losses to Avoid Big Ones:
Losing trades are inevitable, but pros keep them small. Amateurs sometimes hold onto losses, hoping they’ll recover, while pros cut losses early. Tip: Adopt a strict risk-reward ratio and stick to it. Think of it as a way to protect your capital for future trades.
Every Loss is a Lesson:
Professionals look at every losing trade as data, not failure. They analyze it: Was there an overlooked signal? Did the market behave unexpectedly? They use losses to refine strategies. Tip: Keep a trading journal. Record wins and losses along with your thought process. Patterns will emerge over time.
See Trading as a Business:
For pros, trading isn’t gambling; it’s a business. They’re less concerned with each individual trade and more focused on their overall strategy and risk management. Tip: Calculate your monthly performance, not just individual trades. Aim for consistent, steady growth.
Stay Calm During Drawdowns:
Market conditions change, and even the best traders experience drawdowns. It’s about staying in control, sticking to your plan, and trusting your process. Tip: Take a break if emotions start taking over. Sometimes stepping away can be the best decision you make.
Remember: Trading is a journey, not a sprint. It’s not about winning every trade but about thinking long-term, focusing on learning, and developing resilience. Keep pushing forward, keep learning, and most importantly, keep trading smart!
WHAT IS BREAKER BLOCK?What is a Breaker Block?
A breaker block often forms following a significant consolidation phase, where price gathers liquidity at both support and resistance levels. This action traps buyers and sellers on either side, creating a pool of liquidity that fuels the market for a strong breakout or breakdown. During this move, any imbalances, like an unfilled Fair Value Gap (FVG), are typically left unaddressed as price moves swiftly in one direction without a retest.
While these imbalances may remain unfilled in the immediate move, they could be filled at a later point when price returns to those levels.
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ADVANCED OPTION TRADING Nifty option chain is considered to be the best advance warning system of sharp moves or break outs in the index.
An option chain will consist of both call and put options, along with other details. Option chain trades are more informed, as investors can compare different contracts. It can help investors view the strike price, bid price, ask price, volume, and other details for available contracts.
OPTION DATABASE TRADING An option chain is a comprehensive list that shows you all available option contracts for a given stock. These are sorted by their expiration date, which is the last day you can trade or use the option, and strike price, which is the price at which you can buy (call) or sell (put) the stock.
Nifty option chain is considered to be the best advance warning system of sharp moves or break outs in the index.
SHORT TRADE EXAMPLE GOLDMarket Analysis:
The asset is exhibiting a clear downtrend, with price action consistently breaking lows while struggling to break any recent highs.
A significant demand zone is visible below, indicating a potential target area for a continuation of the current trend.
Recent price movements show a trap set for buyers at a resistance level, followed by a confirmed break of a minor support level, which has formed a strong bearish engulfing candle.
Trade Setup:
We will wait for a retracement to gain a favorable entry.
Entry confirmation will be taken on a lower time frame to ensure alignment with the trend.
Stop Loss (SL) will be set at the most recent swing high for controlled risk, while the Take Profit (TP) target aligns with the demand zone below.
For more in-depth trade logic and strategies, make sure to follow and drop a comment below!
HOW TO TAKE TRADE IN UPTRENDAs we analyze the price movement, we observe a consistent pattern of higher highs without any break of structure (BOS) on the lows, indicating a clear uptrend. After a BOS, an optimal entry point may emerge at strategic retracement levels, such as 0.5, 0.618, or within a Fair Value Gap (FVG) or Order Block.
Detailed Breakdown:
Current Trend: Price consistently moves upward, forming higher highs. Without breaking key lows, it signals the strength of the ongoing trend.
Entry Strategy After BOS: Following a break in structure, look for retracement points such as 0.5, 0.618 levels, FVGs, or established order blocks. This approach aligns with seeking high-probability entries with potential for significant returns.
Sell Setup Logic:
Why Not to Sell: Although we observe the price hitting minor order blocks post-BOS, attempting a sell in an uptrend goes against the primary trend logic. Major lows remain intact, meaning that downward moves here are only temporary pullbacks.
Optimal Setup: We wait for the price to approach a major order block, ideally near a retracement point, which provides a higher probability of continuation.
Confirmation for Buy:
Once price reaches the major order block and begins reversing, look for confirmation through a bullish engulfing candle on a lower time frame.
Place a stop-loss at the swing low and target buy-side liquidity to capture the maximum potential of the setup.
Multi-Time Frame Analysis:
Multi-time frame analysis is essential for precision. Analyzing across different time frames provides insights into minor and major trends, allowing you to confirm entry points and enhance trade accuracy.
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