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Chart Patterns

Divergence Secrets What Are Options? An option is a financial contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a fixed price (called the strike price) on or before a certain date (called expiry). There are two types of options: Call Option – gives the right to buy. Put Option – gives the right to sell. The person who buys an option pays a fee known as the premium. The seller (also called the option writer) receives this premium and has the obligation to carry out the contract if the buyer chooses to exercise it.
OANDA:XAUUSDEducation
by SkyTradingZone
Part 2 Intraday Trading Master ClassWhy Option Trading Is Growing Rapidly in India In recent years, India has seen an explosive rise in options trading due to: Weekly expiries (more opportunity) Low entry capital High liquidity in BankNifty and Nifty options Rise of online brokerages Wide availability of market data and tools Social media awareness Because of the leverage and excitement options offer, many new traders are drawn to them—though disciplined ones survive longer.
Education
by SkyTradingZone
Part 1 Intraday Trading Master ClassWho Wins More—Option Buyers or Sellers? Option buyers have limited risk and unlimited reward, but their probability of success is lower because: Time decay works against them. They need strong directional movement within a short time. Option sellers (writers) have limited profit but higher probability of winning because: Time decay works in their favor. Markets stay range-bound more often than they trend strongly. Thus, professional traders often prefer option selling strategies like: Iron condor Straddle Strangle Credit spreads Covered calls Retail traders, on the other hand, prefer buying options due to lower capital requirements.
FOREXCOM:XAUUSDEducation
by SkyTradingZone
Learn Candle PatternsCandlestick patterns are one of the most important tools in technical analysis, used by traders around the world to understand market psychology, predict price movement, and identify buying or selling opportunities. Each candle on the chart tells a story—who is in control (bulls or bears), the strength of the price move, and the potential reversal or continuation of the trend. When combined into patterns, candlesticks offer powerful signals that help traders make better decisions. A single candlestick is made of four data points: open, high, low, and close. The body represents the open-to-close range, while wicks (shadows) show the highs and lows. Bullish candles generally close above the open, and bearish candles close below the open. Understanding this basic structure is essential before analyzing patterns. Candlestick patterns are broadly categorized into reversal patterns and continuation patterns. Reversal patterns indicate a potential change in trend, while continuation patterns suggest the existing trend is likely to continue. These patterns can be single-candle, double-candle, or multi-candle formations.
NSE:NIFTYEducation
by TechnicalExpress
Premium Chart Patterns Chart patterns are one of the most powerful tools in technical analysis. They visually represent how price behaves over time and help traders understand market psychology, identify trend direction, and predict future price movements. Whether a trader is dealing with equities, commodities, currencies, or indices like NIFTY or BANKNIFTY, chart patterns offer high-probability setups for both intraday and positional trading. At their core, chart patterns indicate market sentiment—fear, greed, indecision, accumulation, distribution, breakouts, or reversals. When repeated price behaviour forms recognizable shapes on a chart, traders can use them to anticipate the next move. These shapes emerge from support, resistance, trendlines, and consolidation zones. Broadly, chart patterns are classified into three categories: Reversal Patterns – Signal a trend reversal Continuation Patterns – Indicate the trend will resume Bilateral Patterns – Suggest breakout in either direction
NSE:SBINEducation
by TechnicalExpress
Part 12 Trading Master Class With ExpertsRisk in Option Trading Although options can be powerful, they carry risks: 1. For Option Buyers Premium can become zero if market doesn’t move as expected. Time decay works against buyers. 2. For Option Sellers Potentially unlimited loss in selling naked calls or puts. Require higher capital and margin. 3. Volatility Risk Sudden drop in volatility can reduce premium even if direction is correct. 4. Liquidity Risk Some strike prices have low liquidity, making entry/exit difficult.
NASDAQ:TSLAEducation
by SkyTradingZone
Part 9 Trading Master Class With Experts What Are Options? Options are financial contracts that give a trader the right, but not the obligation, to buy or sell an asset at a fixed price (called the strike price) before or on a specific date (called the expiry). The underlying asset could be a stock, index, commodity, or currency. Because options provide choice (whether to exercise or not), they are called “options.” There are two main types: Call Option – gives you the right to buy at a fixed price. Put Option – gives you the right to sell at a fixed price. In both cases, you pay a premium (price of the option). This is the maximum loss for option buyers.
NSE:HDFCBANKEducation
by SkyTradingZone
Candle Patterns Explained Doji Candle – Indicates market indecision where opening and closing prices are almost equal. Hammer Candle – A bullish reversal signal appearing after a downtrend with a long lower wick. Shooting Star – A bearish reversal pattern with a small body and a long upper shadow at the top of an uptrend. Bullish Engulfing – A large bullish candle fully engulfs the previous bearish candle, signaling potential trend reversal upward. Bearish Engulfing – A large bearish candle fully engulfs the previous bullish candle, hinting at a possible downward reversal.
NSE:NIFTYEducation
by TechnicalExpress
Premium Chart AnalysisHow to Trade Chart Patterns To effectively trade chart patterns, follow these steps: Identify the Pattern Early Use clear trendlines to mark support and resistance zones. Confirm shape and symmetry before assuming a pattern. Wait for Breakout Confirmation A breakout should be supported by volume expansion—this validates the move. Avoid acting before confirmation; false breakouts are common. Set Entry and Exit Points Enter after a confirmed breakout (preferably with candle close beyond resistance/support). Target = Height of pattern projected from breakout point. Stop-loss = Just below (for bullish) or above (for bearish) the breakout level. Use Multiple Timeframe Analysis Confirm pattern on higher timeframes to avoid false signals. Align short-term setups with long-term trends for stronger conviction.
FX:XAUUSDEducation
by TechnicalExpress
Part 8 Trading Master Class With ExpertsRisks in Option Trading While options offer great potential, they also come with risks, especially for sellers. Time Decay: The value of an option decreases as it nears expiry. Volatility Risk: Unexpected drops in volatility can reduce premium value. Unlimited Loss (for Writers): Option sellers can face huge losses if the market moves sharply against them. Complexity: Understanding option behavior and Greeks requires knowledge and experience. Therefore, beginners should start small and practice on demo accounts or low-risk strategies before committing large capital.
BSE:SENSEXEducation
by SkyTradingZone
Part 7 Trading Master Class With Experts Types of Option Strategies Option trading is not just about buying calls or puts; it involves strategic combinations to profit under various market conditions. Some popular strategies include: a) Bullish Strategies Bull Call Spread: Buying a lower strike call and selling a higher strike call. Bull Put Spread: Selling a higher strike put and buying a lower strike put. b) Bearish Strategies Bear Call Spread: Selling a lower strike call and buying a higher strike call. Bear Put Spread: Buying a higher strike put and selling a lower strike put. c) Neutral Strategies Iron Condor: Selling one call and one put at close strikes while buying further out-of-the-money options. Straddle: Buying both a call and put at the same strike to profit from big moves in either direction. Strangle: Buying a call and a put at different strikes to benefit from volatility. These strategies allow traders to earn consistent returns by managing risk rather than relying purely on market direction.
FXOPEN:XAUUSDEducation
by SkyTradingZone
Part 4 Learn Institutional Trading Participants in the Options Market There are four types of participants in the options market: Buyers of Call Options – Expect the price to go up. Sellers of Call Options – Expect the price to stay the same or fall. Buyers of Put Options – Expect the price to fall. Sellers of Put Options – Expect the price to stay the same or rise. Buyers take limited risk (the premium) with unlimited profit potential, while sellers take limited profit (the premium received) but unlimited risk.
TVC:GOLDEducation
by SkyTradingZone
Part 3 Learn Institutional Trading How Option Trading Works When you trade options, you’re speculating on how the price of the underlying asset will move within a specific time frame. Here’s how it works for both types of options: a) Call Option Example Suppose Reliance stock is trading at ₹2,500. You buy a Call Option with a strike price of ₹2,520, paying a premium of ₹20. b) Put Option Example You buy a Put Option on Reliance with a strike price of ₹2,480 and pay a ₹15 premium.
NSE:BAJFINANCEEducation
by SkyTradingZone
Part 2 Ride The Big Moves Key Terminology in Option Trading To understand option trading, you must be familiar with a few important terms: Underlying Asset: The financial instrument (e.g., NIFTY, Bank NIFTY, Reliance Industries) on which the option is based. Strike Price: The fixed price at which the underlying can be bought or sold. Premium: The price paid by the buyer to the seller for owning the option contract. Expiry Date: The last day on which the option can be exercised. In India, index options usually expire weekly or monthly. Lot Size: The minimum quantity of the underlying asset that can be traded per option contract. In the Money (ITM): When exercising the option gives a profit. At the Money (ATM): When the strike price equals the current market price. Out of the Money (OTM): When exercising the option gives no profit.
TVC:USOILEducation
by SkyTradingZone
Part 1 Ride The Big Moves What is an Option? An option is a financial derivative whose value is derived from an underlying asset such as a stock, index, or commodity. Options come in two primary forms: Call Option: It gives the holder the right to buy the underlying asset at a predetermined price (known as the strike price) before or on the expiry date. Put Option: It gives the holder the right to sell the underlying asset at a predetermined strike price before or on the expiry date. The buyer of an option pays a premium to the seller (also called the writer) for this right. The seller receives the premium as income but takes on the obligation to buy or sell the asset if the buyer chooses to exercise the option.
NASDAQ:TSLAEducation
by SkyTradingZone
Candle Patterns Understanding the Basics of a Candlestick Each candlestick represents the price movement of an asset within a specific time period — it could be one minute, one hour, one day, or even one week. A candlestick consists of four main components: Open – the price at which the asset started trading for the period. Close – the price at which the asset finished trading for that period. High – the highest price reached during the period. Low – the lowest price reached during the period. The body (the thick part of the candle) shows the range between the open and close prices. If the close is higher than the open, the candle is bullish (usually green or white). If the close is lower than the open, it’s bearish (usually red or black). The thin lines above and below the body are called wicks or shadows, showing the highest and lowest traded prices.
TVC:GOLDEducation
by TechnicalExpress
Divergence Explained with ClarityOption Trading in India: Settlement and Expiry In India, options are European-style, meaning they can only be exercised on the expiry date (unlike American options, which can be exercised anytime). Most traders don’t hold options till expiry — they square off (buy or sell back) before expiry to realize profits or cut losses. Expiry cycles: Index Options (like NIFTY/BANK NIFTY): Weekly and Monthly expiries. Stock Options: Monthly expiries only. The settlement happens in cash; there’s no physical delivery for index options, while stock options can have physical settlement at expiry.
NSE:TCSEducation
by SkyTradingZone
Part 2 How to Draw Accurate Support and Resistance LevelsParticipants in Option Trading There are four primary participants in the options market: Buyer of Call Option (Long Call) – Expects the price to rise. Seller of Call Option (Short Call) – Expects the price to fall or remain flat. Buyer of Put Option (Long Put) – Expects the price to fall. Seller of Put Option (Short Put) – Expects the price to rise or remain flat. Each participant has a specific risk-reward profile. Option buyers have limited risk (the premium paid) and unlimited profit potential. Option sellers, on the other hand, have limited profit (premium received) but potentially unlimited risk.
CRYPTO:BTCUSDEducation
by SkyTradingZone