Understanding Options Trading Terminology: An In-Depth GuideUnderstanding Options Trading Terminology: An In-Depth Guide
Embarking on the journey of options trading requires a solid grasp of key terms. Let's delve into the intricacies of these terms to equip you for successful trading.
# Call Options (CE) and Put Options (PE)
**Call Options (CE):**
- When you buy a Call option (going Long), you're betting on the stock's upward movement.
- Selling a Call option (going Short) means you're betting on the stock's downward movement.
**Put Options (PE):**
- Selling a Put option (going Short) is a bet on the stock's upward movement.
- Buying a Put option (going Long) means you're betting on the stock's downward movement.
# Expiration Date
The expiration date is when the option owner must exercise their right to buy or sell the underlying asset. After this date, the option becomes worthless. Indian markets usually see monthly expiries on the last Thursday, though weekly or daily expiries exist.
# Options Premium
The options premium is the price paid by the buyer to the seller for the right to buy or sell the underlying asset. Influenced by market price, strike price, time until expiration, and asset volatility, it represents the cost of the option contract.
*Example:* Buying a call option on Reliance Industries with a strike price of 2,200 INR and a premium of 50 INR means paying 50 INR per share for the right to buy Reliance Industries shares at 2,200 INR before expiration.
# Lot Size
Lot size refers to the number of contracts traded in a single order. For NIFTY 50 index options in India, the lot size is typically 50 contracts. Understanding lot size is crucial, impacting trading costs and potential profitability.
# Strike Price
The strike price is where the option buyer can buy or sell the underlying asset. In India, NIFTY index options often have strike prices set at regular intervals, like every 50 points.
*Example:* If the NIFTY index is at 21,000, strike prices may include 20,950, 21,000, and 21,050. Buying a call option with a strike of 21,050 bets on the index rising above that level.
# Spot Price
The spot price is the current market price of the underlying asset. It's essential in determining the intrinsic value of an option, which is the difference between the spot price and the strike price.
# Breakeven Points
Breakeven points are critical for traders. Let's illustrate:
- Selling a BN 6th Dec. 47400 CE (call option) with an expiry on 6th December.
- If BN closes at 47400 on expiry, the contract is valued at 0.
- If BN closes below 47400, it's valued at 0.
- If BN closes at 47401, it's priced at 1, and so on.
Understanding breakeven points is key to managing trades effectively.
Armed with this terminology, you're better prepared to navigate the dynamic landscape of options trading. Stay tuned for more insights into mastering this exciting financial realm!"
Community ideas
ADORWELDVolatility Contraction Pattern is popularized by Mark Minervini, who is a two times US Investing Champion. Last year he won the championship with a record-beating 300+% in the year. He primarily uses VCP for his trading setups. It is a twist on the ascending triangle pattern with some variation.
It has the following characteristics:
The Stock must be in stage 2 uptrend.
A period of price consolidation must take place in thebase.
Price consolidation occurs after a stock has moved up in the price, the consolidation (or correction) is a constructive chart pattern that allows the stock to digest the bullish price movement.
Price volatility must contract through the base (from left to right).
During this period of price consolidation the stock price will correct.
Price must correct through a series of smaller contractions.
Each contraction should be tighter than the last, representing the absorption of more weak holders. Ideally this pattern has between2-4 contractions.
NIFTY SMALL CAP 100 Hello & welcome to this analysis on the index
The index has had a dream run since April of this year.
What lies ahead? Does it continue its outperformance or does it lose its shine and starts seeing profit booking?
Currently at a resistance in higher time frame with support quite far. The Dec quarterly candle and the Jan monthly candle will give clarity for what is to come.
One should avoid fresh aggression at current levels in it and set trail stop loss triggers based on risk appetite at this juncture.
Happy Investing
Risk, reward, and our absolutely EPIC Black Friday dealWorld-class climbers require the best equipment, gear, and preparation - they can't scale the most difficult mountains without anything else. For the world' best traders, they too must have access to the best tools and features. To climb to the top of modern markets, great research is a prerequisite.
Our sponsored athlete, Alex Honnold, is the best free solo climber on Earth, known for scaling Yosemite's 3200-foot El Capitan without a rope. He once told us the following :
"One way to de-risk my climbing is to practice on similar climbs until I have a high degree of confidence that I can successfully do whatever I've set out for. If I have a proven track record on very similar climbs then I know that the risk can't be too high. I guess the other way to say that is just to practice until a climb feels easy. If it's well within my comfort zone then it's no longer very risky."
This Black Friday, we want to give traders, investors and anyone interested in markets the tools they need to get to their goals. That means practice, it means getting out there, testing new ideas, and finding the perfect trading strategy. All of you can get up to 70% OFF one of our paid plans from now until the end of the week.
That's right... our epic Black Friday deal has begun. Now's your time to get the tools required to summit markets, to become the glorious trader you've always wanted to be with one of our paid plans, which offers the following:
⦿ Up to 8-charts layout
⦿ Up to 25 indicators per chart
⦿ Up to 20K historical bars
⦿ Up to 400 price alerts
⦿ Up to 400 technical alerts
⦿ Volume profile tools
⦿ Time Price Opportunities
⦿ Custom timeframes
⦿ Multiple watchlists
⦿ Bar Replay
⦿ Indicators on indicators
⦿ Intraday Renko, Kagi, Line Break, Point & Figure charts
⦿ Charts based on custom formulas
⦿ One month free
⦿ And much, much more
Remember: Our deal won’t last long, the clock is ticking. If you have any additional questions, check out the FAQ on our official Black Friday page .
Treat yourself to a plan and keep following us as we publish educational posts throughout the week. We'll show you several tips about using your new plan as each post will be designed to help you take full advantage of our epic Black Friday sale.
Love,
TradingView ❤️
Follow us on Instagram , Twitter , and Telegram for more valuable content! 💘
Risk and Opportunity . . .Risk in simple term means possibility of unexpected outcome ie "Something happens as A Surprise..!". Surprises are positive as well as negative.
Negative surprises are known as risk. However, positive surprises are opportunities
So we must always speak our risk and opportunities at same time when discussing risk.
We invest in risky assets for positive surprises, but we can not rule out occurrence of negative surprises.
So, how can individual investor deal with this situation?
To deal with risk we need to understand " what can possibly happen to our portfolio/investment? ".
Some of outcome of risk can be
a. Temporary decrease in value of portfolio.
b. Not able to sell (liquidate) portfolio when needed.
c. Delayed return on portfolio.
d. Total loss of capital.
e. Returns lower than expectation(inflation)
Once this is known, we can take relevant actions to deal with these outcome.
Actions are of two types:
1. Action taken before surprise has happened. These may be one of many of following
- Limiting amount to 5% in any of the stock
- Diversification of portfolio among debt/equity/gold/Real estate
- buying put option against our long position
- buying medical insurance to avoid untimely selling of portfolio in case of medical emergency
- invest in income generating asset (rental / high dividend yield stock)
2. Action taken when the surprise event has occurred. Such as
- Booking minor loss at SL to avoid higher losses on wrong decision
- Rebalancing portfolio allocation when there is major down/up movement in one of asset class
We need to understand and accept that: we can not know how much return will be made on equity/risky investment, also we do not know when this return will come.
Chart I have put here is of 4 very robust investible instruments. This shows how multiple robust assets behave over longer periods.
By rebalancing among such diversified instruments in portfolio can help generate returns while mitigating risk and taking advantage of opportunities.
Hope after reading this post you will have better insight on risk.
Mastering Trade Setup with simplicity of dow theorySimplifying Trade Strategies with Dow Theory Wisdom
Welcome to the world of trading, where the Dow Theory can be your trusty guide. Let's break down an easy trade strategy that suits different market situations.
Dow Theory Insights
Dow Theory, a key tool in technical analysis, says understanding trends is crucial. Figuring out the trend is where we start, setting the stage for smart trade decisions.
Bullish View
If we're feeling positive
Higher Lows: Check if prices keep going up.
Near Support: Make sure prices are close to a support zone.
Reversal Signs: Look for any candle patterns signaling a turnaround.
Buying Setup:
Stoploss: Think of it like a safety net, set it at the recent lowest point.
Execute a buy trade when these factors line up, always keeping an eye on that stoploss.
Bearish View
If we're feeling negative
Lower Highs: Check if prices keep going down.
Near Resistance: Make sure prices are close to a resistance zone.
Reversal Hints: Look for any candle patterns signaling a potential shift.
Selling Setup:
Stoploss: Your safety measure, set it at the recent highest point.
Execute a sell trade when these conditions come together, always mindful of that stoploss.
Sideways View
For a market that's just hanging out
Draw Lines: Sketch lines above and below the current prices (Support and Resistence Trendlines)
Be Patient: Hang tight until prices break above or below those lines.
Only jump into a trade when the market decides where it's going.
In the lively world of trading, Dow Theory keeps us wise. By using these strategies, along with clever stoploss placements, you can navigate the markets with ease
This post is for educational purposes only. Trading involves risk, and past performance is not indicative of future results. Always do your research and consider consulting a financial advisor before making any investment decisions. I am not sebi registered analyst. My studies are for educational purpose only. Please Consult your financial advisor before trading or investing. I am not responsible for any kinds of your profits and your losses.
Most investors treat trading as a hobby because they have a full-time job doing something else.
However, If you treat trading like a business, it will pay you like a business.
If you treat like a hobby, hobbies don't pay, they cost you...!
Hope this post is helpful to community
Thanks
RK💕
Disclaimer and Risk Warning.
The analysis and discussion provided on in.tradingview.com is intended for educational purposes only and should not be relied upon for trading decisions. RK_Charts is not an investment adviser and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Charts does not share in your profits and will not take responsibility for any losses you may incur. So Please Consult your financial advisor before trading or investing.
IDFC LTD: DIWALI PICK 2023 Stock is forming higher highs and higher lows which is he basic definition of an uptrend and has given a breakout of 15 years of range in an impulsive manner. The impulse unfolding will have a five structure of which 'Third-wave' is still unfolding. As we already know that Third waves are the wonder to behold, the Stock has a potential to reach 220-240 in the coming 1-2 years. On the downside major support is at 75. Only a sustained closing below 75 will force us for the re-assessment the idea. Until then we are aggressively bullish on the stock for 220-240 zone and beyond that in the coming years.
Happy Diwali
#Diwali2023
Mastering the Art of Diamond Pattern Trading in Crypto and StockWhat is a Diamond Pattern?
The diamond pattern is a unique formation characterized by two converging trend lines, creating a pattern that resembles a diamond or kite. Within this pattern, price movements oscillate, presenting traders with an opportunity to make informed decisions. However, to successfully navigate the diamond pattern, you need to understand its nuances and follow a disciplined trading strategy.
Trading the Diamond Pattern: A Step-by-Step Approach
1. Identifying the Pattern
The first step in diamond pattern trading is identifying the pattern on the price chart. Pay close attention to two converging trend lines between which prices fluctuate. This visual cue is crucial for decision-making.
2. Determining the Trend Direction
Once you've identified the diamond pattern, the next step is to determine the direction of the trend. The diamond pattern's context within the existing trend is essential:
If the diamond pattern forms during an uptrend, it is considered a bearish pattern. This suggests a potential reversal.
If it forms during a downtrend, it indicates a bullish reversal pattern.
3. Opening the Trade
After determining the trend direction, wait for a breakout from the diamond pattern to confirm your trade's direction. Your actions will differ depending on the type of pattern:
For a bearish reversal pattern, open a short trade as soon as the price breaks below the lower trend line.
For a bullish reversal pattern, open a long trade when the price breaks above the upper trend line.
4. Setting a Stop Loss
To limit potential losses, it's essential to set a stop loss order. For a long trade, place your stop loss just below the low of the breakout candle. For a short trade, position your stop loss just above the high of the breakout candle. This ensures that you are protected if the trade goes against your expectations.
5. Setting the Target
Determining the target for a diamond pattern trade is critical for managing your risk-reward ratio. The target can be calculated by measuring the height of the diamond pattern, from the highest to the lowest point, and adding this distance to the breakout point. Remember, the target can be adjusted to align with your risk tolerance and trading style.
6. Managing the Trade
As the trade unfolds, closely monitor price action and adjust your stop loss and take profit orders accordingly. If the trade is moving in your favor, consider taking partial profits or tightening your stop loss to lock in gains.
7. Avoiding False Breakouts
Diamond patterns are susceptible to false breakouts, where the price briefly exits the pattern but then quickly retraces. To minimize this risk, wait for the price to close outside the pattern before entering the trade. This extra confirmation can significantly improve your success rate.
8. Trading with Proper Risk Management
Just like any trading strategy, risk management is paramount. Only risk a small percentage of your trading account on each trade, and never invest more than you can afford to lose. Always use stop loss orders to protect your capital.
Additional Tips for Trading the Diamond Pattern
- Confirm with Other Indicators
While the diamond pattern can be a reliable signal, it's wise to confirm it with other technical indicators, such as moving averages, momentum indicators, or volume indicators. Seek additional signals that support the breakout direction.
- Pay Attention to Multiple Time Frames
To enhance your trade's probability of success, look for the diamond pattern on various time frames, including daily, weekly, and monthly charts. Trade only when it aligns with the larger trend, increasing your chances of a winning trade.
- Be Patient
Diamond patterns take time to develop fully. Rushing into a trade before the pattern matures can lead to false breakouts and unnecessary losses. Exercise patience and wait for the pattern to confirm before making your move.
- Practice with a Demo Account
Before risking real capital, practice trading the diamond pattern on a demo account. This allows you to refine your strategy, identify optimal entry and exit points, and gain confidence in your trading plan.
In conclusion, mastering the diamond pattern in your trading strategy requires a combination of technical analysis skills, a disciplined approach, and a commitment to risk management. The diamond pattern can offer valuable insights into potential trend reversals or continuations, but successful trading relies on careful observation and strategic execution.
Follow us for More Quality Analysis.
Must Like and Share if it is really helpful.
Thank you
TradingView Masterclass: How To Use The Top ToolbarIn this guide, you’ll learn about all the different tools that are available to you on the chart. Specifically, we’ll be looking at the toolbars that are located at the top, bottom, left and right of the chart:
To summarize the chart above, the breakdown looks like this:
■ Top toolbar: Chart tools
■ Left-side toolbar: Drawing tools
■ Right-side toolbar: Community tools
■ Bottom toolbar: Advanced tools
Now, let’s dive into each one starting with the top toolbar where you’ll find many of the most important chart tools for all your research needs. Keep in mind that we’ve ordered each item below as if we are moving from the furthest point at the top left to the furthest point to the top right. Let’s begin!
⦿ Symbol Search (Keyboard shortcut: type the ticker)
- Open the symbol search at the top left-hand corner to access over 100,000 global assets across equities, forex, crypto, futures, and more.
- You can find them by their ticker (e.g., type RELIANCE for Reliance Industries) or by their description names (e.g., type the name Central to find CENTRALBK stock).
It’s also possible to find your favorite symbols with partial searches, that is, to write part of the ticker or description name and then select the corresponding asset in the search results. If you want to filter by asset type, you can select one of the following: Stocks, Funds, Futures, Forex, Crypto, Indices, Bonds and Economy (economic indicators).
⦿ Time Intervals (Keyboard shortcut: press ,)
- Select the time interval for the chart. For instance, say you’re looking at a candlestick chart and you choose a daily chart. That means each trading day will be represented by 1 candle.
- The most common time intervals are: 1m, 5m, 30m (intraday setups) 1h, 4h (swing trading setups) and 1D, 1W and 1M (long-term trading setups).
- Traders can create custom intervals as well by clicking on the Time Interval arrow and then selecting the specific parameters needed. Don’t forget to add it to your favorites if you want it to be featured in the Quick Access toolbar.
⦿ Chart types
- We have more than 15 chart types available to analyze all price movements, including the new HLC area, Line with markers and Step line.
- Most traders prefer to use Bars, Candles and Area charts, but everyone has a different approach to markets. Be sure to find the chart type that fits your style.
⦿ Indicators, Strategies, and Metrics (Keyboard shortcut: press /)
- Indicators, Strategies, and Metrics are designed to provide additional insight and information that may otherwise be difficult to see.
- We have over 200 technical and financial indicators while also supporting over 100,000 custom scripts coded by our community. The best way to get started here is to start exploring the Indicators, Strategies, and Metrics menu as soon as possible.
⦿ Indicator Templates
Here, you can save your custom indicator setups so that you can load them at any point in time. This tool is essential if you utilize different forms of analysis. For example, if you chart technicals and fundamentals, you can make two separate templates that can be loaded at any point depending on your need.
⦿ Alert (Keyboard shortcut: Alt + A)
Alerts are used to create custom price alerts. Instead of watching markets 24/7, go ahead and create an alert at a precise level and then wait for that alert to trigger. Let our alerts do the heavy lifting. They’re always watching markets for you.
It is also possible to configure them different notifications so that you can be alerted through email, our free app or with a webhook.
⦿ Bar Replay
Bar Replay is a powerful, yet simple tool for backtesting. All experience levels can use Bar Replay for backtesting, practicing or learning about price history. To get started, click the Bar Replay button and then select a historical moment to rewind the chart backward to that point in time. Then, you can press play or pause, and retrade that moment to see how your strategy performs.
⦿ Undo/Redo Scroll (Keyboard shortcut: Ctrl + Z / Ctrl + Y)
Any changes made to the charts such as drawings or indicators can be deleted or recreated. This works just like a Word document you might create on Microsoft or Google. Use the keyboard shortcuts to quickly undo or redo specific actions.
⦿ Multi-chart Layout
If you have an Essential, Plus, Premium, or Ultimate plan, you can analyze multiple charts on your screen at the same time. Simply choose one of the available layouts from the menu to get started. You can also synchronize symbols, intervals, crosshairs, time and data ranges with the selected layout.
⦿ Manage Layouts
Create, rename and load all the layouts that you save. You can also share your layout and enable the autosave option, which is very handy so that all of your work is saved automatically. Managing your layouts is an essential part of your analytical process because it enables multiple different chart layouts to be accessed as quickly and easily as possible.
⦿ Quick Search
Need to find a function or tool on your chart? Open and use Quick Search to do that. The name of the tool is just as it can be used: quickly search for the things you need to edit, add or remove on your chart, and do it in a flash.
⦿ Chart Settings
This is where you can customize all of the fine details about your chart. The Chart Settings menu has everything from the chart color, to the gridlines and labels, the text of the scales, and more.
⦿ Fullscreen Mode (Shift + F)
When this is enabled, you will see only the chart. To exit Full screen mode, click ‘Esc’.
⦿ Snapshot and Publish
Here you can download your charts as images, copy links, share tweets, publish ideas, create live streaming video content, and comment on assets with our latest feature Minds. If you want to share your expert analysis or get feedback from others, you’ll surely want to learn how these social tools work. Go ahead and give it a try - join our community of traders.
Thanks for reading and we hope this post helps all traders and investors. Whether you’re an experienced professional or someone just getting started, we plan to create more guides like this to ensure you know how to maximize the features on our platform.
Next week, we’ll share part two of this series, and cover the drawing tools menu on the left-side of the chart.
- Team TradingView
Be sure to follow us on Instagram , YouTube , and Telegram for more valuable content! 💘
Technical Analysis with Elliott Wave InsightToday, we're exploring Ward Wizard Innovations & Mobility Ltd., an Indian electric vehicle manufacturer, with an intriguing twist of Elliott Wave theory for market insights.
Before we dive into the waves, here's some background:
Ward Wizard Innovations & Mobility Limited is a publicly-held electric vehicle manufacturing company based in India. It's dedicated to producing eco-friendly electric scooters and vehicles. Not just in India, but its impact extends to countries like Uganda and Nepal.
Now, back to the chart and Elliott waves:
Recently, the stock witnessed a substantial decline from January 2022 to July 2023, followed by a period of consolidation.
Going back to its origins in May 2015 up to July 2021, we identify a significant wave ((1)), marking a robust upward trend.
This was followed by wave ((2)), an Expanded Flat correction (A)-(B)-(C) in blue. Wave ((2)) concluded near 161.8% of wave (A) as wave (C) of ((2)).
Now, the exciting part:
The best possibility is that we're currently experiencing a significant wave ((3)), known for bringing about robust upward momentum. This wave holds the potential to surpass previous all-time highs.
Elliott Wave theory is a captivating tool, helping us understand market psychology and forecast future price movements based on wave patterns.
Remember, there's a crucial detail:
We've set an invalidation level at 33.20, representing the low of July 2023. If prices drop below this level, it might indicate a different wave scenario.
Conclusion:
Our analysis hints at the potential for a strong bullish wave ((3)).
Markets are full of surprises, and risk management is your best companion on this journey.
I am not Sebi registered analyst. My studies are for educational purpose only.
Please Consult your financial advisor before trading or investing. I am not responsible for any kinds of your profits and your losses.
Most investors treat trading as a hobby because they have a full-time job doing something else.
However, If you treat trading like a business, it will pay you like a business.
If you treat like a hobby, hobbies don't pay, they cost you...!
Hope this post is helpful to community
Thanks
RK💕
Disclaimer and Risk Warning.
The analysis and discussion provided on in.tradingview.com is intended for educational purposes only and should not be relied upon for trading decisions. RK_Charts is not an investment adviser and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Charts does not share in your profits and will not take responsibility for any losses you may incur. So Please Consult your financial advisor before trading or investing.
Follow Discipline- Be a Better TraderHi traders,
It's been a while since I have written something on trading psychology. So, here is small writeup that may help some traders in conquering their endeavors.
I won't and I can't discuss all the psychological aspects but would like to throw some light upon a few important ones.
You must have heard a lot about What-nots of trading- Do not fear; Don't be greedy; Don't lose your edge; Don't lose patience but there is little on What-should be done to avoid these limitations.
As per my experience, there are two paths that lead to same destination (trading success). Path1 is hit and trial method. I am sure most traders follow this path and suffer. It could be due to lack of awareness or knowledge of the stock market. This ignorance leads to greed >> losses >> fear. Eventually, ignorance develops indiscipline habits if you are not following the cautious approach and learning.
Majority of traders fail to understand the need to learn before they lose their entire capital.
Some of them strive to learn and improve slowly. The latter has good chances to reach their destination but there is no certainty.
On Path2, traders seek help from other. They know that they do not have enough knowledge about the markets and there is someone else who has better knowledge and that someone may help in making the former profitable. Unfortunately, most of the so called knowledgeable are involved in fraudulent activities and it's difficult to filter out good one. Fake Ids, fake PnL screen shots and edited videos are a common practice on social media. There are only a few genuine people and those who are able to find those good mentors or guides are just lucky.
Having a good mentor or knowledge is just primary, the real journey begins after that. Earlier you were fighting with someone else in the stock market but now with all the knowledge that you have, you are fighting with youself. You just realize that the real limitations are within oneself and hence psychological in nature.
I won't delve into those limitations as you all must have read about them at one point or the other. However, I would like to briefly discuss a few solutions to them.
🚀You must have an edge that works. When I say Edge, I mean a strategy or plan. A plan that works means a plan that may not work all the time but most or the time. It could also be a plan that works only 50% of time but with better risk to reward, at least 1:2. The best way is to find/devise such a strategy and backtest off market for its accuracy and intricacies.
Basically, a strategy has three basic elements: Entry, Exit, Stoploss and Trailing stoploss.
🚀You must fix maximum loss per day or maximum number of losing trades per day or maximum profit per day. This is particularly for day traders. If you are in front of the screen all the time, there are higher chances of overtrading. So, you have to learn the habit of discipline yourself with a few trades only. By the end of day you will see that only a couple of trades would fit into your trading plan. If you take a large number of trades per day, you will surely gain nothing by the EoD.
🚀Also its important to book profits when available. You would often notice making good profit in your first trade, losing some part of it in the second, and then closing a third one in a loss. It needs to be realised that the first good trade was enough to call it a day.
🚀Try not to turn a trade in good profit into a losing trade. The problem occurs when you have say, 5000 unrealized profit and then it reduces to 3000. Now you want that 2000 back ignoring that you are still making 3000. This is where trailing stoploss works. Develop a habit of using this locking mechanism so that even if something goes wrong, you still realize gains in a winning trade.
🚀When your trailing stop is hit and stock still resumes in your predicted direction, "do not re-enter". Try to find a second trade later that fits your setup/strategy.
🚀After taking entry, it's important to fix your stoploss as per your strategy. Do not reverse your trade just because your stoploss is hit. This may lead to worst trades in most cases.
🚀Its not bad to buy something that is cheap. You can buy it if it fits into your strategy. Just keep your position within manageable loss limits.
Although these points look simple, yet I am sure that in the beginning you won't be able to follow these few points religiously. It would need a lot of time to follow this discipline. The journey may be difficult but only a strong trading psychology will make you a better trader.
Do boost and share your thoughs in the comment section.
What is Price Action ? Beginners Guide in Easy Steps NSE:NIFTY
What is Price Action Really?
When I started learning I was using a lot of indicators and crap but then I heard about Price action, its meaning is pretty vague and confusing after a lot of effort I get to know that the simplest things work best.
Let's see a structured way to approach Price Action analysis.
1. Chart Reading Bar by Bar.
Studying the Previous candle reflects a lot of important information on the market movement and future direction.
2. Reading the Context and the whole Structure.
*The circles marked on the chart show the best location where certain candlestick formation offers good trading opportunities.
*The reading chart in the overall structure helps to eliminate taking trades in the direction of exhausted trends.
3. Identifying Momentum Increase or decrease.
4. Adding Volume Confirmations.
Volume is the better half of price and without volume analysis can be incomplete.
These are some of the factors that start the price action analysis.
By practice, one can look into the deeper significance of these factors and use them easily.
I hope this has added some new value to your knowledge,
if you like these educational ideas,
Share your views and like.
Will Upload the Next Part with more factors.
Keep Learning,
Happy Trading.
Mastering RSI with 11 StrategiesWhat is RSI indicator:-
RSI is a momentum oscillator which measures the speed and change of price movements. RSI moves up and down (oscillates) between ZERO and 100. Generally RSI above 70 is considered overbought and below 30 is considered oversold. Some traders may use a setting of 20 and 80 for oversold and overbought conditions respectively. However this may reduce the number of signals. You can also use RSI to identify divergences, strength, reversals, general trend etc.
Calculation:-
There are three basic components in the RSI - Avg Gain, Avg Loss & RS.
Avg Gain = Average of Upward Price Change
Avg Loss = Average of Downward Price Change
RS = (Avg Gain)/(Avg Loss)
RSI =
First Calculation:-
RSI calculation is based on default 14 periods.
Average gain and Average loss are simple 14 period averages.
Average Loss equals the sum of the losses divided by 14 for the first calculation.
Average Gain equals the sum of the Gains divided by 14 for the first calculation.
First Average Gain = Sum of Gains over the past 14 periods / 14.
First Average Loss = Sum of Losses over the past 14 periods / 14.
The formula uses a positive value for the average loss.
RS values are smoothed after the first calculation.
Second Calculation:-
Subsequent calculations multiply the prior value by 13, add the most recent value, and divide the total by 14.
Average Gain = / 14.
Average Loss = / 14.
if
Average Loss = 0, RSI = 100 (means there were no losses to measure).
Average Gain = 0, RSI = 0 (means there were no gains to measure).
Logic of this indicator:-
RSI is an oscillator that fluctuates between zero and 100 which makes it easy to use for many traders.
Its easy to identify extremes because RSI is range-bound.
But remember that RSI works best in range bound market and is less trustworthy in trending markets.
A new trader need to be cautious because during strong trends in the market/security, RSI may remain in overbought or oversold for extended periods.
Chart Timeframe:-
RSI indicator works well on all timeframes.
Timeframe depends on which strategy or settings are you using.
Generally a lower timeframe like 1 min, 3 min, 5 min, 15 min, 30 min, 1 Hr etc is used for intraday trades or short duration trades
and higher timeframes like 1 day, 1 week, 1 month are used for positional or long term trades.
//-------------------------------------------------------------------------------------------------------------------
Strategy 1:- (Basis Strategy of Overbought and Oversold)
Overbought:(chart below)
Usually an asset with RSI reading of 70 or above indicates a bullish and an overbought situation.
overbought can be seen as trading at a higher price than it should.
traders may expect a price correction or trend reversal and sell the security.
but RSI indicator can stay in the overbought for a long time when the stock is in uptrend - This may trap an immature trader.
an Immature trader will enter a sell position when RSI become overbought (70), whereas a mature trader will enter sell position when RSI line crosses below the overbought line (70).
Oversold:(charts below)
An asset with RSI reading of 30 or below indicates a bearish and an oversold condition.
oversold can be seen as trading at a lower price than it should.
traders may expect a price correction or trend reversal and buy the security.
but RSI indicator can stay in the oversold for a long time when the stock is in downtrend - This may trap an immature trader.
an Immature trader will enter a buy position when RSI become oversold (30), whereas a mature trader will enter buy position when RSI line crosses above the oversold line (30).
Note:
so its better to wait for reversal signal.
traders may use 20 instead of 30 as oversold level and 80 instead of 70 as overbought level.
new traders may learn to use the indicator as per the prevailing trend to get better results.
false signals may be avoided by using bullish signals in bullish trend and bearish signals in bearish trend.
//-------------------------------------------------------------------------------------------------------------------
Strategy 2:- (RSI strength)
RSI crossing centreline 50 in the below chart showing strength and buy/sell signal.
Centre line is at RSI 50.
if RSI is above 50 its considered bullish trend. (increasing strength)
if RSI is below 50 its considered bearish trend. (decreasing strength)
RSI crossing centre line (50) upside may be a buy signal.
RSI crossing centre line (50) downside may be a sell signal.
//-------------------------------------------------------------------------------------------------------------------
Strategy 3:- (RSI 40 and RSI 60 Support and Resistance )
RSI 40 acting as support in the below chart
In an uptrend RSI tends to remain in the 40 to 90 range with 40 as support (buying opportunity at support).
RSI 60 acting as resistance in the below chart
In a downtrend RSI tends to remain in 10 to 60 range with 60 as resistance (selling opportunity at resistance).
Note:
These ranges may change depending on RSI settings and change in the market trend.
//-------------------------------------------------------------------------------------------------------------------
Strategy 4:- (Divergence)
Below chart shows a simple example of Bullish Divergence and Bearish Divergence.
An RSI divergence occurs when price moves in the opposite direction of the RSI.
A bullish divergence is when price is falling but RSI is rising. which means RSI making higher lows and price making lower lows (buy signal).
A bearish divergence is when price is rising but RSI is falling. which means RSI making lower high and price making higher highs (sell signal).
Divergences are more strong when appear in an overbought or oversold condition.
There may be many false signals during a strong uptrend or strong downtrend.
In a strong uptrend, RSI may show many false bearish divergences before finally reversing down.
same way in a strong downtrend, RSI may show many false bullish divergences before finally reversing up.
//-------------------------------------------------------------------------------------------------------------------
Strategy 5:- (RSI Swing Rejections or Double Top & Double Bottom)
Bullish swing rejection or Double Bottom: (buy signal) (see the chart below)
RSI goes below oversold (30).
RSI comes back above 30.
RSI falls back again towards 30 without going below oversold (30).
RSI comes up back again and breaks above recent high.
Bearish swing rejection or Double Top: (sell signal) (see the chart below)
RSI goes above overbought (70).
RSI comes back below 70.
RSI rises back again towards 70 without going above overbought (70).
RSI comes down again and breaks below recent low.
//-------------------------------------------------------------------------------------------------------------------
Strategy 6:- (Trendline Support and Resistance)
Below chart shows RSI Trendline Resistance:
Connect three or more points on the RSI line as it falls to draw a RSI downtrend line (RSI resistance trendline).
Everytime it takes resistance from a RSI downtrend line its a selling opportunity.
Below chart shows RSI Trendline Support:
Connect three or more points on the RSI line as it rises to draw a RSI uptrend line (RSI support trendline).
Everytime it takes support on a RSI uptrend line its a buying opportunity.
//-------------------------------------------------------------------------------------------------------------------
Strategy 7:- (Trendline Breakout and Breakdown)
Below chart shows RSI Trendline Breakout:
Connect three or more points on the RSI line as it falls to draw a RSI downtrend line (RSI resistance trendline).
Whenever it breakout above RSI resistance trendline its a buying opportunity.
Below chart shows RSI Trendline Breakdown:
Connect three or more points on the RSI line as it rises to draw a RSI uptrend line (RSI support trendline).
Whenever it breakdown below RSI support trendline its a selling opportunity.
Note:
Correlate both the RSI and the closing price to ensure proper breakout or breakdown.
Challenge is to correctly identify if a breakout or breakdown is sustainable or its a false signal.
//-------------------------------------------------------------------------------------------------------------------
Strategy 8:- (RSI Crossover same timeframe)
RSI with two different RSI length crossing each other on same timeframe.
when lower RSI length crossing above higher RSI length its a buy signal.
when lower RSI length crossing below higher RSI length its a sell signal.
for example RSI with length 7 & length 14 on 15 Minutes timeframe.
//-------------------------------------------------------------------------------------------------------------------
Strategy 9:- (RSI Crossover Multi timeframe)
RSI with same RSI length but on two different timeframes crossing each.
when lower timeframe RSI crossing above higher timeframe RSI its a buy signal.
when lower timeframe RSI crossing below higher timeframe RSI its a sell signal.
for example RSI with length 14 on 5 Minutes and 1 Hr timeframes.
//-------------------------------------------------------------------------------------------------------------------
Strategy 10:- (RSI EMA/WMA Crossover)
RSI and EMA chart below:
RSI and WMA chart below:
RSI and SMA chart below:
when RSI crossing above EMA/WMA/SMA its a buy signal.
when RSI crossing below EMA/WMA/SMA its a sell signal.
//-------------------------------------------------------------------------------------------------------------------
Strategy 11:- (RSI with Bollinger bands)
Bollinger bands and RSI complimenting each other and giving a Buy signal in below chart:
Bollinger bands and RSI complimenting each other and giving a Sell signal in below chart:
if a security price reaches upper band of a Bollinger Band channel and also the RSI is above 70 (overbought), a trader can look for selling opportunities (reversal) (sell).
but in case price reaches upper band of a Bollinger Band channel but RSI is not above 70 (overbought), there may be chance that security remains in an uptrend, so a trader may wait before entering a sell position.
if a security price reaches lower band of a Bollinger Band channel and also the RSI is below 30 (oversold), a trader can look for buying opportunities (reversal) (buy).
but in case price reaches lower band of a Bollinger Band channel but RSI is not below 30 (oversold), there may be chance that security remains in an downtrend, so a trader may wait before entering a buy position.
so bollinger band with RSI can give a double confirmation on a reversal.
Note:
In this way you may use stochRSI or RSI with MACD for better accuracy.
RSI can be used with many other indicators to increase accuracy.
//-------------------------------------------------------------------------------------------------------------------
Limitations of the RSI:-
RSI works best in range bound market and is less trustworthy in trending markets.
So new traders may get trapped in an uptrend or a downtrend if they forget to see the overall long term trend of that security.
Traders should set stop loss and take profit levels as per risk reward ratio.
Note:
Don't confuse RSI and relative strength. RSI is changes in the price momentum of a security.
whereas relative strength compares the price performance of two or more securities.
//-------------------------------------------------------------------------------------------------------------------
Like other technical indicators, RSI also is not a holy grail. It can only assist you in building a good strategy. You can only succeed with proper position sizing, risk management and following correct trading Psychology (No overtrade, No greed, No revenge trade etc).
ABOVE SHARED EXPLANATION AND STRATEGIES OF RSI ARE FOR EDUCATIONAL PURPOSE ONLY. YOU MAY PAPER TRADE TO GAIN CONFIDENCE AND BUILD FURTHER ON THESE.
Coding Note:-
//you may do simple coding in tv to make an effective indicator with alerts using RSI/EMA/Bollinger Bands etc.
//I feel Simple strategy or indicator is the best.
//As per me Indicator's are not good or bad. Its the Risk reward where most of the traders fail. Position sizing and Risk Reward can make an indicator effective or ineffective upto an extent.
//Below is a simple code in "version 5" which can be coded.
//Condition (Amend conditions as per your requirement).
Buy= ta.crossover(rsi,X)//Exit Sellposition//X can be EMA, SMA, WMA etc (for example define ema as EMA=ta.ema(close,50))//X=EMA
Sell= ta.crossunder(rsi,X)//Exit Buyposition//X can be EMA, SMA, WMA etc(for example define wma as WMA=ta.wma(close,50))//X=WMA
or
//if want to use different rsi length but same timeframe
rsi1=ta.rsi(close,7)// RSI length 7
rsi2=ta.rsi(close,14)// RSI length 14
or
//if want to use same length on different timeframes
rsi1=request.security(syminfo.tickerid,'5',ta.rsi(close,14))// RSI length 14 on 5 min timeframe
rsi2=request.security(syminfo.tickerid,'60',ta.rsi(close,14))// RSI length 14 on 1 hour timeframe
Buy= ta.crossover(rsi1,rsi2)//Exit Sellposition
Sell= ta.crossunder(rsi1,rsi2)//Exit Buyposition
//Plot
plotshape(Buy,title='Buy',text='Buy',location=location.belowbar,style=shape.labelup,size=size.tiny,color=color.rgb(27, 130, 1),textcolor=color.new(color.white,0))
plotshape(Sell,title='Sell',text='Sell',location=location.abovebar,style=shape.labeldown,size=size.tiny,color=color.rgb(233, 7, 7),textcolor=color.new(color.white,0))
//Alerts
alertcondition(Buy, "Enter Buy Exit Sell", "Buy")
alertcondition(Sell, "Enter Sell Exit Buy", "Sell")
//For NonRepaint :
//you may use previous candle closing. So that indication appears on next candle. for eg. may use close instead of close .
//Soon will be posting strategies on Supertrend, Bollinger Bands etc. which are simple and easy to code.
//Tc Happy Trading and Happy Coding.
Hope you like it
Happy trading :-)
#banknifty positional view:-The movement from 38,163 to 46,369 is 7,756 point upmove, followed by a flat correction (zig zag, the reason the wave b pullback was 97.86% of the wave a). If we look at the rules of the flat the wave c must end near 123.6% i.e. 42,887 but we took a buffer of 161.8% to figure out a reversal zone.
Reversal Zone:- 41,829 - 42,887, safe traders can go long once the trend line breakout happens, the market in the analysis.
Use this dip for fresh buying opportunities.
All is well with the market, nothing to fear.
Rules of Regular Flats:-
Guidelines
• A corrective 3 waves move labelled as ABC
• Subdivision of wave A and B is in 3 waves
• Subdivision of wave C is in 5 waves impulse / diagonal
• Subdivision of wave A and B can be in any corrective 3 waves structure including zigzag, flat, double three, triple three
• Wave B terminates near the start of wave A
• Wave C generally terminates slightly beyond the end of wave A
• Wave C needs to have momentum divergence
Fibonacci Ratio Relationship
• Wave B = 90% of wave A
• Wave C = 61.8%, 100%, or 123.6% of wave AB
Regards,
SG
ICOMDEX & MCX CRUDEOIL – Bigger Picture AnalysisICOMDEX CRUDE OIL
Timeframe: Monthly
It is the ICOMDEX monthly timeframe chart where the price has started a new impulsive cycle from the low of 1270. The price has broken out 20 & 50 Exponential moving averages. RSI is snowing bullish momentum with a 56.97 level.
Wave formation and Fibonacci relationships:
Wave (2) retraced 38.2% of wave (1).
Wave (3) is a power-extended wave with 3.618% Fibonacci extension.
Wave (2) is trading above the starting point of wave (1)
Wave (4) retraced 61.8% of wave (3).
Wave (4) hasn’t entered the price territory of wave (1) and has formed a complex correction of W-X-Y.
Crude oil has accomplished the complex correction and marked evidence by breaking the descending channel of the corrective structure. According to the Elliott wave principle, an impulsive cycle can only be confirmed by breaking out the sub-wave X of the previous correction. If the price breaks out wave X, traders can see the following levels: 10550 – 11500 – 12744+ . Not having confirmation will be the confirmation of the continuation of the corrective phase.
MCX CRUDE OIL
Timeframe: Weekly
As we can see on the above chart, we are getting a similar structure, and mainly the confirmation. ICOMDEX & MCX CRUDE OIL can be a comrade to confirm each other, just like we used to compare Dow Jones with other indices.
If the price breaks out 7657 , traders can trade crude oil for the following targets: 8200 – 8950 – 9950+ . We still need to look at the lower timeframe to connect the worm’s-eye view(Micro picture) with the given eagle view.
Understanding Impact of Bond Yield Differential on EquitiesOver the past decade the interest rate differential between US and India has been constantly going down. This has largely been due to stronger fiscal position of India and also gradual weakening of US Public Finances.
This has led to the Rupee becoming more stable against the Greenback, thereby reducing the rate of inflation in India.
Further, this has resulted in rising of equity markets over the last decade, and more importantly, the same setup is likely to stay or become better over the next two decades.
Hence long term retail investors in India can benefit from this by placing algo based orders to buy Index ETFs on dips and reduce their cost of buying and stay invested over the long term thereby getting benefit of power of compounding.
---------------------
Trading View Script:
Confidence Petroleum India Ltd : Stock Analysis💡 Company Overview:
Confidence Petroleum India Ltd is a leading manufacturer of LPG cylinders and a prominent supplier of auto LPG in India. With an extensive network of bottling plants and Auto LPG dispensing stations across the country, the company also serves industrial and commercial clients through packed LPG cylinders.
💡 Financial Performance (2017-2023):
Over the years, the company's net profit has demonstrated a steady growth trajectory. This consistent increase is attributed to rising sales, indicative of a healthy operation. A gradual profit rise, rather than sudden spikes, signifies the company's stability and sustained market presence.
💡 Institutional Interest:
Recent stake additions by Domestic Institutional Investors (DIIs) highlight growing market confidence in the company. Institutional investments often indicate a positive outlook and can influence market sentiment positively.
💡 Technical Analysis:
✔️ Double Bottom Pattern:
The stock displayed a double bottom pattern, indicating a potential trend reversal. The first bottom at 45-48 initiated buying interest. The second bottom at 56-59, coupled with increased buying activity, partially confirmed the pattern.
1st Bottom (45-48):
The first bottom at 45-48 initiated buying interest, marking the start of a potential uptrend.
2nd Bottom:
Efforts to break out at 81-83 faced strong supply, causing price falls.Then the Buyers from the first bottom re-entered the market, driving the price up.
Strong Upward Movement - Double Bottom Confirmation:
A strong upward movement confirmed the double bottom pattern. The breakout above the neckline indicated a potential sustained uptrend.
✔️ Volume Analysis:
🔹Volume A: Increased volume during upward movements highlighted heightened participant interest.
🔹 Volume B: Lack of significant volume indicated market indecision or limited trading interest.
🔹 Volume C: Comparing volume with corresponding price range provided insights into market activity.
🔹 Volume D: Volume decreased during the fall from 96, indicating reduced selling pressure.
💡 Assumptions and Market Outlook:
Considering the stable financial growth, institutional interest, and technical patterns, the stock appears poised for an upward move. The formation of a doji candle in the weekly timeframe, coupled with decreasing volume alongside price, supports the assumption of weakening selling pressure and potential for an upward trend.
🔹 Day frame
The stock retested the breakout area (81-84) with low volume, suggesting potential stability at higher levels.
If you are looking for an entry try at current level cmp 84
targt 90-100-130+
Study before making an investment decision.
Thank you
Ankith Shaju
Mighty Nifty - Oct 5Price is moving in the range 19300 to 19500.
Pattern : Supply/demand.
Range : Medium
Trend strength : Normal
A different perspective.
Buy Above : 19460.
Stop Loss : 19420.
Targets : 19500, 19530 and 19580.
Sell below : 19380.
Stop Loss : 19420.
Targets : 19350, 19320 and 19280.
Check the live market updates. Expected expiry day range is 19600 to 19250.
Hit the like button to Rock !! Show some energy !!
Note : This is my pre market analysis and my trading journal. Not a suggestion to buy or sell.
You are responsible for whatever you do.
EMA, Envelope & Bollinger bands for Trend Trade with Small SLWhat is an EMA:-
An exponential moving average (EMA) is a moving average that measures the average price of a security and assigns more weight and meaning to the most recent data points. Compared to SMA, EMA responds more effectively to recent price changes and applies equal importance to all observations over the period.
What is an Envelope:-
Envelopes are technical indicators that are typically plotted over a price chart with upper and lower bands. The most common example of an envelope is a moving average envelope or an exponential moving average, which is created using two moving averages that define upper and lower price range levels.
What is an Bollinger Bands:-
A Bollinger Band is a technical analysis tool defined by a set of trendlines. They are plotted as two standard deviations, both positively and negatively, away from a simple moving average or an exponential moving average of a security's price and can be adjusted to user preferences.
Logic:-
We all have heard about Reversal trading based on "Bollinger Bands" and "Envelope" when upper and lower bands are far from the basis centre line. but these upper and lower bands can also be used for Breakout and Breakdown (Trend) trading with small/limited Stoploss.
Chart Timeframe:-
200 EMA is a standard EMA used by many traders and it can be used in any timeframe. 200EMA can be used in Envelope & Bollinger Bands also. I recommended to use it on 5 minute or 15 minutes chart on stocks or indices for intraday trading, on 4Hour or 1 Day chart on stocks for for Swing trading, on 1 Week chart on stocks for positional Trading.
//-------------------------------------------------------------------------------------------------------------------
Strategy 1:- (EMA high/close/low)
Three EMA's can be plotted with Length 200 for all three, but source different for all three high/close/low.
When price close above EMA (high) its a Breakout, Buy - keeping Stoploss as price closing below EMA (low) and Target as per 1:3 or 1:5 risk reward ratio.
When price close below EMA (low) its a Breakdown, Sell - keeping Stoploss as price closing above EMA (high) and Target as per 1:3 or 1:5 risk reward ratio.
//------------------------------------------------------------------------------------------------------------------
Strategy 2:- (Envelope - Upper Band/Basis/Lower Band)
Envelope can be plotted with Length - 200, Percent - 0.05 , Source - close, you may use Percent as per your risk reward and as per the setting which suits you. however i have used percent - 0.05 for 5 min and 15 minutes timeframe for intraday in index here in this idea.
When price close above upper band its a Breakout, Buy - keeping Stoploss as price closing below lower band and Target as per 1:3 or 1:5 risk reward ratio.
When price close below lower band its a Breakdown, Sell - keeping Stoploss as price closing above upper band and Target as per 1:3 or 1:5 risk reward ratio.
//-------------------------------------------------------------------------------------------------------------------
Strategy 3:- (Bollinger Bands - Upper Band/Basis/Lower Band)
Bollinger Bands can be plotted with Length - 200, Basis MA type - EMA , Source - close, StdDev - 0.3 you may use StdDev as per your risk reward and as per the setting which suits you. however i have used StdDev - 0.3 for 5 min and 15 minutes timeframe for intraday in index here in this idea.
When price close above upper band its a Breakout, Buy - keeping Stoploss as price closing below lower band and Target as per 1:3 or 1:5 risk reward ratio.
When price close below lower band its a Breakdown, Sell - keeping Stoploss as price closing above upper band and Target as per 1:3 or 1:5 risk reward ratio.
Note:- You may also keep Basis centre line as Stoploss in both Breakdown or Breakout trades but remember that in this case Stoploss will be smaller but will be more frequent as compare to the above situation when we are keeping upper and lower bands as Stoploss.
//-------------------------------------------------------------------------------------------------------------------
Like other technical indicators, These indicators also are not a holy grail. It can only assist you in building a good strategy. You can only succeed with proper position sizing, risk management and following correct trading Psychology (No overtrade, No greed, No revenge trade etc).
ABOVE SHARED EXPLANATION AND STRATEGIES OF EMA, Envelope, Bollinger Bands ARE ONLY FOR EDUCATIONAL PURPOSE ONLY. YOU MAY PAPER TRADE TO GAIN CONFIDENCE AND BUILD FURTHER ON THESE.
Coding Note:-
//you may do simple coding in tv to make an effective indicator with alerts using EMA/Envelope/Bollinger Bands.
//I feel Simple strategy or indicator is the best.
//As per me Indicator's are not good or bad. Its the Risk reward where most of the traders fail. Position sizing and Risk reward can make an indicator effective or ineffective upto an extent.
//Below is a simple code in "version 5" which can be coded.
//Condition (Amend conditions as per your requirement of Breakout/Breakdown trade).
Buy= ta.crossover(close,upperband)//Exit Sellposition//for Envelope or BB
Sell= ta.crossunder(close,lowerband)//Exit Buyposition//for Envelope or BB
or
Buy= ta.crossover(high,ema)//Exit Sellposition//for EMA
Sell= ta.crossunder(low,ema)//Exit Buyposition//for EMA
//Plot
plotshape(Buy,title='Buy',text='Buy',location=location.belowbar,style=shape.labelup,size=size.tiny,color=color.rgb(27, 130, 1),textcolor=color.new(color.white,0))
plotshape(Sell,title='Sell',text='Sell',location=location.abovebar,style=shape.labeldown,size=size.tiny,color=color.rgb(233, 7, 7),textcolor=color.new(color.white,0))
//Alerts
alertcondition(Buy, "Enter Buy Exit Sell", "Buy")
alertcondition(Sell, "Enter Sell Exit Buy", "Sell")
//For NonRepaint :
//you may use previous candle closing. So that indication appears on next candle. for eg. may use close.
//Soon will be posting strategies on Supertrend, RSI etc. which are simple and easy to code.
//Tc Happy Trading and Happy Coding.