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EURUSD: In French, Merci!All that Glitters is not Gold. DXY is the one to watch as it approaches 106.00 One more failure of it? may be. What if it breaks and moves past 106.00 The cue and clue is Euro. A potential H n S, shake it to believe it? If that neck- is offered as the line of break. We can take solace in French by Merci, thank you. Welcome to the world of Par (1.0000) Not the probable, but not out of the canvass. 1.0670 supports short term while 1.0720 offers. Only a close below 1.0760 above offers hope, bring me some who sees that as a possibility
by sreebhashyam
AUDUSD: Cup and Slip Not much in the news, everything in the price. Just the slip and news and shock of Aus defeated by Afghan, The rounding top or the inverted cup and handle, pushes price action to the lowest area of support. The big picture trendline support is lurking to life line. It is also in the area of Mid Bollinger Band. We have seen this before and many times in this range. Lows of 0.6640-50 eyes lower end of 0.6610 What is interesting this time we have failed Inv HnS pattern Below 0.6645-55 towards 6610-15
by sreebhashyam
NIFTY: Double Engine!It is rare to find this pattern, for that matter in the last one month the Candles that we see are once in a lifetime kind off. The fade off story continues in the open, the double engulfing pattern is powerful one and sends the warning signs for any more move higher than what we have seen already. Crude prices remain higher, USDINR higher in controlled environment. This week would be vital and we end the first half of the year. Not much in data front today in Global Markets save some sentiment from Europe. The half year would close with some of inflation data from various countries from Canda and PPI from US, which markets would not care much. USDINDEX continue to move at higher range of 105.80+ and break past 106.00 is what is in store, big hurdle is around the 106.50. The PIP graph shows the break of near-term price channel and thus action is towards the south may be towards the 23200 while we stay below the 23550-600 area. Supports 23420-23380-2330 Supply 23550-23580-23620
NSE:NIFTY
by sreebhashyam
Sterlite - Double bottom formation - Best Above 145Sterlite Tech - have bounced the base and formed a double bottom formation. FII's /DII's have raised their stakes while Promoters have reduced. There is a Double bottom neckline breakout at 140. One can take safe bet above 145 and average upwards. Targets 175/240/316 and above that Open Sky. Strict stop loss of 125. Disclaimer : Educational Content. Please do your own research. My earlier views on this chart. I see mostly promoters selling their stakes to FII/DII's as the only change.
NSE:STLTECH
by jain_geetesh
MOTHERSON: Interesting SetupLike always the chart should tell you everything you need to know about Motherson. Now for the readers, here are some pointers: - The price broke a structure in June to rally about 20% - Currently, it is at a very crucial point. The previous strong support is now acting as a strong resistance. - The 100 rupee mark is also a strong psychological resistance for companies like Motherson - The price is now consolidating at the resistance zone which is a good sign. - The bodies have gotten smaller showing indecision. - The long upper wicks show the presence of sellers. - A strong high-volume break and sustenance above the zone will be crucial. - We then have an ATH zone sitting right at the top. We will keep updating the comments for every unfolding price action. You may follow us for regular updates. Have Requests, Questions, or Suggestions? DM us or comment below.👇 ⚠️Disclaimer: We are not registered advisors. The views expressed here are merely personal opinions. Irrespective of the language used, Nothing mentioned here should be considered as advice or recommendation. Please consult with your financial advisors before making any investment decisions. Like everybody else, we too can be wrong at times ✌🏻
NSE:MOTHERSON
by TheChartereds
5
Supertrend Indicator: Best for Options Trading?Supertrend Indicator: Best for Options Trading? The Supertrend indicator is a popular tool in technical analysis, designed to identify trends in asset prices. Unlike other indicators that only show direction, Supertrend also considers volatility, making it more responsive to market conditions. It generates buy and sell signals, indicating optimal entry and exit points based on trend strength. In options trading, where timing and trend clarity are crucial, Supertrend's ability to manage risk and confirm trends can significantly enhance strategy effectiveness. This article explores why the Supertrend indicator is uniquely suited for navigating the complexities of options markets. What is the Supertrend Indicator? The Supertrend is a tool for technical analysis that helps to determine the direction of price trends in financial markets. It overlays the cost charts and provides buy and sell signals in line with the current trend. Unlike simple moving averages, Supertrend incorporates both price direction and volatility by adjusting its values as per market conditions. There are two main components of this system: i) a basic moving average line ii) an upper/lower band that fluctuates according to volatility. Traders often use it to verify trends, place stop-loss orders, and set entrance into trades or exit points. In general, its simplicity and efficiency in trend-following strategies make it popular among traders. How to Calculate Supertrend Indicator? The Supertrend indicator is calculated using the formula below: Supertrend=(High+Low)/2+(Multiplier)*(ATR) Where: High and Low refer to the highest and lowest prices for an underlying asset over a given period of time. ATR (Average True Range) measures market volatility. The ATR is calculated from the highest, and lowest prices as well as the closing price of an underlying asset over a specific time frame Multiplier is a constant value that traders use to push the indicator to be more or less sensitive to price movements. Follow these steps to calculate the Supertrend Indicator for option trading: Determine the indicator's period: Determine the ATR over a specified period, typically 14 periods, but can also be adjusted. Calculate the Average True Range (ATR): This measures market volatility and is based on the highest and lowest prices as well as the closing price of the underlying asset over that particular period. To calculate ATR, sum up all true ranges for each day and divide them by the number of periods. Calculate the multiplier: This ranges from 1-2 typically depending on the underlying asset’s volatility where higher multipliers are used for more volatile underlying assets. Calculate the upper and lower bands: The upper band is calculated by adding the ATR multiplied by the multiplier to the median price, and subtracting the ATR multiplied by the multiplier from the median price. The lower band is calculated by subtracting the ATR multiplied by the multiplier from the median price. Benefits of Using Supertrend Indicator in Option Trading Using the Supertrend indicator in option trading offers several benefits that can enhance trading strategies and decision-making processes: 1. Trend Identification The Supertrend indicator helps traders identify whether the market is trending up or down. This is crucial in options trading because trading with the trend increases the chances of making profitable trades. For example, if the Supertrend shows an uptrend (green line), traders might consider buying call options or selling put options, aligning their strategy with the market's direction for higher probability trades. 2. Entry and Exit Signals The indicator gives clear signals for entry and exit points. When the price crosses above the Supertrend line, it can signal a buy opportunity (or a signal to sell puts). On the other hand, when the price crosses below the Supertrend line, it can signal a sell opportunity (or a signal to buy puts). 3. Risk Management Supertrend also acts as a dynamic stop-loss level. Traders can place their stop-loss orders just below the Supertrend line (for long positions) or above the Supertrend line (for short positions). This helps in managing risk effectively by limiting potential losses if the market moves against the position. 4. Volatility Adjustment The Supertrend indicator adjusts to volatility, making it adaptable to different market conditions for option trading. In highly volatile markets, the Supertrend lines widen, which reflects increased volatility and adjusts the stop-loss levels accordingly. This feature is particularly useful in options trading where volatility plays a significant role in pricing. Limitations and Challenges of Supertrend Indicator Using the Supertrend indicator in option trading comes with several limitations that traders should be aware of: 1. Lagging Indicator The Supertrend indicator is primarily a trend-following indicator, which means it reacts to price movements after they occur. In fast-moving markets, this lag can result in delayed signals, potentially causing traders to enter or exit positions later than ideal. 2. Whipsaws Like many trend-following indicators, the Supertrend can produce false signals during periods of market consolidation or when there are sudden price spikes followed by reversals (whipsaws). These false signals can lead to losses if traders act on them without confirming market conditions. 3. Market Volatility High market volatility can make the Supertrend indicator less reliable. When markets are highly volatile, rapid price movements can trigger frequent and inconsistent signals from the indicator. Traders may receive multiple buy or sell signals in a short period, leading to confusion and potentially poor trading decisions. Therefore, during periods of high volatility, it's crucial for traders to exercise caution and consider using additional indicators or techniques to confirm signals before taking action. 4. Parameter Sensitivity The performance of the Supertrend indicator heavily depends on its parameters (e.g., ATR multiplier, period). Adjusting these parameters can alter the indicator's sensitivity to price movements, but finding the optimal settings for different market conditions requires extensive testing and may not always be straightforward. All in all, the Supertrend indicator, while offering various benefits, should be used with caution and in conjunction with other indicators for a comprehensive analysis and decision-making for trading options. Conclusion Incorporating the Supertrend indicator into your option trading strategy can provide valuable insights into market trends and potential entry points for trades. Remember to combine it with other indicators and adjust settings to suit your trading style. Dhan is the first broker in the world to offer Options Trading from TradingView.com. Know more about this here !
NSE:BANKNIFTY
by Dhan
BUY TODAY SELL TOMORROW for 5%DON’T HAVE TIME TO MANAGE YOUR TRADES? - Take BTST trades at 3:25 pm every day - Try to exit by taking 4-7% profit of each trade - SL can also be maintained as closing below the low of the breakout candle Now, why do I prefer BTST over swing trades? The primary reason is that I have observed that 90% of the stocks give most of the movement in just 1-2 days and the rest of the time they either consolidate or fall Trendline Breakout in GARFIBERS BUY TODAY SELL TOMORROW for 5%
NSE:GARFIBRES
by Kapil-Mittal
4
NIFTY: Full Moon and Doji Star!June 21, Longest day, T Shirt Day, Music Day, Full Moon Day and Yoga Day. Wear Hear Feel and survive, TGIF. The last near five plus trading days, it is clear the Fade the open rally which is visible. We posted the same. Volumes are a concern in this up move, despite the sparkle in many places. Weeklies are near Doji as of now. Doji in itself is not a bad or good thing, but appearing at the important top, with lower volume suggest cautionary concern. Swiss Central Bank cuts rates, currency dives, UK keeps rates steady, currency dives. So, no clear correlation. It is all the way, Dollar that is in demand. Watch our own currency move past 84 this time. Higher crude prices, lower domestic currency are showstoppers in the short run. Dollar Index posts classical Follow Three pattern which is rare, similar is visible at the bigger frames, something is going to give way. Watch Dollar Index 106.00 break. #DXY #USDD Japan Core inflation cools, PMI flash Manufacturing comes tad lower. EIA inventories lower, keeps Crude Prices higher. Canada and UK Retail sales later, Existing Home sales and Flash PMI in US to eke out the week. Taxation on High Frequency trades, F n O are the talk of the town, what starts, can end in unwanted moves. For the day 23630 should cap while we might see move towards yesterday low around the 23430-450 area. Supports 23530-23480-23430-23380 Supply 23600-23630-23650
NSE:NIFTY
by sreebhashyam
These 10 Trading Indicators are IncredibleTrading indicators are tools that examine price movements and market directions, giving useful information on when to buy or sell securities or hold them. From simple moving averages (SMA) to Ichimoku Clouds and other complex ones, each indicator offers unique benefits that traders may use as they navigate through financial markets with confidence and precision. In this article, we discuss 10 trading indicators that can change your trading strategies drastically. Best Trading Indicators Here are 10 commonly used trading indicators that traders often find useful: 1. Moving Average (MA) A Moving Average (MA) is a line, which smoothes out price data by averaging the prices for a given amount of time. It aids traders in discovering trends by filtering random price noise. When the new data points replace the oldest ones, the average moves with the price, thus reflecting the direction of trends in terms of visuals. MAs help traders define support and resistance levels as well as recognize possible trend reversals. 2. Relative Strength Index (RSI) Relative Strength Index (RSI) shows how fast and how much the price of a stock changes. It is displayed on a scale ranging from 0 to 100. If the RSI is above 70, this means that the stock is overbought and it will soon lose value. Conversely, if the RSI drops below 30 it implies oversold conditions which could mean prices may rise. Based on these levels, traders use the RSI to identify potential buying or selling opportunities. 3. MACD (Moving Average Convergence Divergence) Moving Average Convergence Divergence (MACD) is designed to help traders measure the momentum and direction of price trends. It has two moving averages – the MACD line and signal line – together with a histogram that depicts their disparities. Crossovers between these lines are often indicative of possible turns in market direction, with bars in the histogram showing how strong or weak such movement of prices was. MACD helps traders identify buy and sell signals as well as confirm trend reversals. 4. Bollinger Bands The Bollinger Bands are made up of a moving average line, with two standard deviation ranges above and below it. They assist traders in determining market volatility as well as target prices. When the bands widen, volatility increases, suggesting potential trading opportunities. On the other hand, narrowing bands indicate decreasing volatility and may precede a breakout or significant price movement. Traders often use Bollinger Bands to identify overbought or oversold conditions and to anticipate trend reversals or continuations. 5. Stochastic Oscillator This indicator compares a security’s closing price to its price range over a set period, typically 14 days. It measures where the current price is relative to its recent price range, indicating potential overbought (when prices are considered high) or oversold (when prices are considered low) conditions. Traders use it to anticipate trend reversals or confirm ongoing trends, with readings above 80 suggesting overbought conditions and below 20 indicating oversold conditions. 6. Average True Range (ATR) ATR measures the volatility of a financial asset by calculating the average range of price movements over a specified period. It helps traders understand the potential for price movement and volatility in the market. A higher ATR suggests greater price volatility, while a lower ATR indicates lower volatility. Traders use ATR to set stop-loss levels, determine position sizes, and assess the risk of a trade relative to potential rewards. 7. Volume Volume in trading refers to the total number of shares or contracts traded within a specific timeframe. It's crucial because it confirms price trends: increasing volume often validates a trend, while decreasing volume may signal a reversal. Traders use volume to gauge market strength: higher volume suggests strong interest and momentum, supporting the current price direction. On the other hand, low volume may indicate lack of conviction among traders, potentially signaling a change in trend. 8. Ichimoku Cloud This indicator helps traders identify trend direction, support, and resistance levels. It consists of five lines: the Conversion Line (Tenkan-Sen), Base Line (Kijun-Sen), Leading Span A, Leading Span B, and the Cloud. The Cloud, or Kumo, represents an area where future support or resistance may form. Traders use the Ichimoku Cloud to confirm trends, spot potential reversals, and determine entry and exit points in the market. 9. Fibonacci Retracement Fibonacci Retracement is a tool used in trading to identify potential levels of support or resistance based on Fibonacci ratios. These ratios (such as 23.6%, 38.2%, 50%, 61.8%, and 100%) are derived from the Fibonacci sequence, where each number is the sum of the two preceding ones. Traders use Fibonacci Retracement to predict where a price might reverse or consolidate during a trend, aiding in entry and exit decisions. 10. On-Balance Volume (OBV) On-Balance Volume (OBV) tracks cumulative buying and selling pressure by adding volume on days when prices close higher and subtracting it on days when prices close lower. This indicator helps traders confirm trends: if OBV rises with price increases, it suggests strong buying pressure and a bullish trend. Conversely, if OBV falls while prices rise, it may indicate weakness and potential reversal. OBV is straightforward and useful for assessing the strength of price movements based on volume dynamics. Conclusion Now that you've discovered these ten incredible trading indicators, remember that success in trading comes from understanding and applying them wisely. Try out various indicator combinations and strategies to discover what suits your trading style and preferences the best. For more this kind of educational content follow our youtube and instagram channel. Youtube:
NSEIX:NIFTY1!
by Dhan
NIFTY: Bulls in the bank, Bear's outside, but insde!When was the last time one witnessed NIFTY in marginal RED while Nifty Bank is roaring Green. The differential move is near 2% If differential is the only factor, then it was in 2022 such a move did unfold, but not with NIFTY near neutral or shade RED and NIFTYBANK deep green. That time both were reasonably up. Are we about to witness move from equity to bonds, thus helping the banks as rush of liquidity in bonds can push the yields down, the cost of deposits can go down, in turn the profits on the securities portfolio. While global inflation concerns remain adhoc, recent US inflation softer tone is largely on the energy prices. Which is now back around the 85 dollars. So, expecting early cut in US is as good as it tomorrow comes kind of. Host of Central Bank ahead, China keeps steady. before that Brazil. We have the BoE and the Swiss Central Bank later in the day. Not much of important data, but the EIA inventories are one to keep a tab on it. Bulls go berserk on the banks, while bears go all out on ex-banks, keeping them well to the bank. The fall in volumes more so after the steep EXIT poll crash remained the concern. The last couple of days increase in Volume relatively to the recent ones remain the concern. Recall 23500-23800 is the best in the current run, which we pencilled in, hence markets would re-work on these lines. 23200 is the new base while short term, failure around the 23420 opens up if profit taking in NIFTYBANK opens. Supports 23480-23420-23350-23330 Supply 23580-23620-23680
NSE:NIFTY
by sreebhashyam