Data Base Trading Part = 4 #Institutions Options chain can be defined as the listing of all option contracts. It comes with two different sections: call and put. A call option means a contract that gives you the right but does not give you the obligation to buy an underlying asset at a particular price and within the option's expiration date.
An option chain trading strategy can be formulated by seeing accumulations in OI (open interest) and volumes in various option strikes. You should note, here, that open interest implies the number that tells you how many options or futures contracts are presently outstanding/open, within the market.
Educationalposts
Turbo Breakout Setup: High-Probability Trades with Precision.NSE:CNXFINANCE
Hello Traders,
In this video, I have explained a Breakout trading setup that will generate only high-probability breakout trades, that have high success rate than another breakout.
The setup is based on a pure price action structure and does not require any indicators just we are using volume as a confirmation tool.
Why does this setup work?
The logic is very simple
let's talk about the 1st variation of this setup:- Fake Breakout
as you can see in this setup most of the time the structure completes after a fake breakout.
So that fake breakout means the short sellers in the correction phase trying to defend there stop loss and make prices go down but what do you think for how long they will be able to defend that zone when buyers' strength is increasing? so after that when buyers push the price a little above-failed breakout zone the price hits short sellers stop losses and include new buying at that level to push prices toward the sky.
What about scenario 2nd:- NO failed breakout but horizontal range inside trend resistance line.
When the trend Resistance line and horizontal line break at the same price point it invites many traders to put a limit order above that horizontal line and most of the short sellers also have put their stop loss when that zone hit the price again and start moving towards the sky.
Other factors and detailed setup have been explained in the video.
Any setup is useless without a pre-defined stop loss cause you need to focus on capital protection first then you can aim for profits.
Always take calculated risks and use proper position sizing.
This is only for educational purposes only.
Always trade with stop-loss.
I hope you found this idea helpful.
Please like and comment.
Share with Your Friends.
Keep Learning,
Happy Trading!
Zig Zag corrective pattern and the Case study of Natural GasHello Friends,
Here we had shared some major points and characteristics of Zigzag Correction pattern of Elliott waves.
Also we had shared real example chart study of zigzag pattern as a case study of NaturalGas, in which their are some principles and guidelines, which are perfectly going through in chart of NaturalGas.
Principles and Guidelines of Zigzag correction pattern
1) Zigzag correction pattern is a 3 waves structure which is labelled as A-B-C
3) Subdivision of wave A and C is 5 waves, either impulse or diagonal
4) Wave B can be any corrective structure as 3 subdivisions
5) Zigzag is a 5-3-5 correction structure
Fibonacci measurements
Wave B is always contra trend which generally retraces near 50% or 61.8% of wave A, and can also retraces up to 85.4% to 90% of wave A
Wave C can generally be expected near 100% of wave A, but sometimes if it is extended then it can show 123.6%, 138.2% or up to 161.8% also.
Sometimes if wave C is truncated then it can be near 61.8% of wave A.
But ,If wave C is going more than 161.8% of wave A, then we should be cautious, because it can also be some kind of impulse wave instead of corrective wave.
Case Study of Natural Gas
Natural Gas almost done as expected till now as per zigzag corrective pattern, it would not be wonder if it looks to be doing a double correction higher in wave (ii) bounce & can see 2.786 level sometimes in next week before turning down as a wave (iii) of 5 of (C), On lower time frame if it doesn't crosses high of March 2023, then it can show some down moves to complete wave (iii), (iv) and (v) of 5 of bigger degree wave (C).
After big correction as zigzag pattern which had already reached extreme levels in wave (C) which is more then 123.6% of wave (A), so now anytime it can start fresh impulse moves towards north directions, so instead of finding selling opportunities, one should try to find buying opportunities only after confirmation, and confirmation is price crossing high of march 2023, once its crossed peak point of march 2023 then no selling is recommended, then its only buy on dips with invalidation levels of Low of April 2023 as a stoploss, because it must be ending the bigger correction from last year peak, and can be taken as fresh impulse is started.
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/u/RK_Charts/ 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.
Trading is a waste of time Trading is a waste of time - until you do this!
Welcome back for another exciting video, an educational video, and an eye-opening video for a lot of traders, and I have given it a very, very interesting title that is Trading a Waste of Time.
Let's find out in this short video. Recently reading a book called The Best Loser Wins.
It's written by Tom Hoggard , he goes by the name of Trader Tom on YouTube .And I urge you to check him out. There are some things that I have learned from his book and I'd like to share it with you.
The particular data is of 2019 and these brokers are all located in European Union and, by law they are required to post the failure rates , how many clients are losing money in their market in their accounts.
Out of a hundred clients, 89 clients were in a loss. And the situation is same for almost each and every broking houses.
So eventually the brokers are making money, but the clients are not.
Whenever as a beginner or even a seasoned trader, we are looking at these data and we believe that we are not in this statistical data. We are in the winning percentage in the remaining 10%, but it's not like that for the markets. We are just a statistic. Right? And even if you look at the top 10 broking forms in the world, the majority of people are in a loss.
So that really makes us ask this question. Is trading really a waste of time? Are we just wasting our time in trading? And a lot of people, it's a very fine detail and a lot of people might agree with me that, in the initial stages it's really hard to be consistent in making money, right?
And I'll discuss the reason with you because this particular reason is not discussed.
The social media of Twitter, YouTube, it has all created an image where if you're not doubling your money every month, then you are a loser in the market.
But in fact, trading is a very tough profession and it's really hard to make money and initial days protecting your money is one of the biggest tasks in surviving in the market.
Protecting yourself from ruin is one of the biggest achievements in trading.
So whenever we are starting our journey as a trader, where is our focus? What are the questions we are looking for? What are the things we are usually focused on? , we are on the internet looking for strategies, how to do scalping, how to do seing trading, how to use the indicators, the MACD and RSI, and how we can use different types of breakout indicators, right?
These are the focal points of. I remember when I started trading, these are the things I was looking for. A hundred percent strategy, no loss strategy. These are the things that I was looking for initially, but these are usually the wrong answers.
You know, in an area where 90% people are in a loss, then you need to ask yourself that.
Because it has never been easier to trade because you go back 10 to 15 years, it was not easy to trade. You had to call your broker. And now we have an online trading system where we can just buy and sell stocks at an instant, right?
That leads to high liquidity. And high liquidity usually means you can enter and. Very fast and you don't have to pay much for it. And you have all the tools available, especially a tool like Trading View, where you get each and every trading charts, indicators without paying a single penny.
So it has never ever been easier to trade. So why are we all still losing money? We are only creating brokerage for our broking firm.
This takes us to another and final topic is that in the year 2019, one Forex brokerage firm did an analysis of over 25,000 traders.
And over a span of 15 months or 16 months.
So that is a long period of time and over five crore trades were analyzed.
So it was a very big data to analyze and that would give us a clear picture.
So in that analysis it was recorded that out of hundred. , the traders were profitable in 60 of them and they lost money in 40 of them.
So this is a very good data, right? Your win, your hit ratio is very high in the total amount of trades.
So eventually the data is in your favor, but there's a small catch . When the traders are winning, they're winning 40 points.
And when they lose, they lose around 75 points. This is a recipe for disaster. This particular thing created a lot of problems for me in the initial trades during my initial career.
And this might be creating a lot of problems for people who are trading for the past one or two years in this high VIX environment because, you know, on paper, on week to week basis, you are winning And, and suddenly there's one particular day when you lose it all and that is the day when it drags your capital back to square one.
So this is the biggest reason why it's very difficult for people to manage their trades.
Cause it all comes down to how much you win when you win, and how much you lose when you lose.
This brings us to the concept of risk . right in this modern area, uh, where option selling and creating spreads and selling naked options has been a very famous thing to do for the past couple of years. That is what happens whenever you're selling options, you have a probability of one 68%.
That is a one standard deviation, right?
So out of hundred trades you are going to win in 68% of them. But what you do and how you come out of the remaining 30 trades when the situation is not going to go in your favor, that is all going to matter.
And that is the crux of thing that makes your journey as a successful trader.
Our position in the market is very, very small for the market to know that we even exist or not.
If you look at the data, if you just reverse the win and the loss points, even if you're winning only 50% of the times, then also your position is going to be in a net profit.
So that's it for the guys.
That makes this particular question really interesting. Is trading a waste of time?
You're wasting of time, or are you smart enough to realize this thing that the other traders are doing and are in a loss?
And what are you doing to improve this position and to improve your survival In this market.
So that's it for you guys. I hope I have provided some value in this video, and if you found the video helpful, don't forget to follow me @piyushrawtani Trading View. And if you have any queries, feel free to post it in the comments section.
Thank you very much and good night.
Technical analysis behind todays TATAMOTOR -13% fall👑 Drop a follow here: @Averoy_Apoorv_Analysis 👑 ----------------------- 🔥🔥 Target: 2000 Followers 🔥🔥
Self-explained chart : Just educational purpose
⌛ Motivational and psychological area ⌛
✣Trade only if you are in the right mindset, if you have been emotionally weak for some time, take your time and don't trade, trade with a happy and + mindset only.
✣If you want to make money, firstly be prepared to lose it, only that much which you can afford and that much by which you can make a mistake again, learn from them and grow
✣Don't lose hope and keep grinding
✣I have seen my friends on youtube streaming games with watching 10, constantly they streamed for a year or two and now they are buzzing with 1k to 2k watching daily.
✣Focus on the process, you are here to make money not stupid decisions, and lose it all
✣No one will help you climb the mountain, few will tell the path, so follow good people, make good mentors and make good decisions and choices in the stock market.
✣Believe in yourself :)
🎓🎓 Some info about me :)
➼My name is Apoorv and I am a 2nd year Engineering student, I want to pursue trading as my career, and thus whatsoever setups or trades I potentially see on my charting platform, I post it here and share them with you all.
➼I hope you will love my simple analysis style.
➼Feel free to suggest your view on this as learning is earning here :)
➼I take my trades on my Zerodha account :)
➼I don't take all the trades I post
➼These charts are my and only my work, my thought process, just from an educational point of view and no calls.
☃☃☃☃ Thank You Have a Nice Trading Day ☃☃☃☃
Why Trendlines are less reliable compared to Horizontal Lines* I am always trying to avoid trend lines when Open a chart.
* You can find Support and Resistance with help of trend line but if want to initiate a trade trend lines are less reliable as compared to Horizontal Boundary.
# Thats why i always preferred Horizontal Boundary lines when initiate my trade.
Kindly let me know if you have any questions.