MACD Divergence TradingMoving average convergence/divergence (MACD) is a technical indicator to help investors identify entry points for buying or selling. The MACD line is calculated by subtracting the 26-period exponential moving average (EMA) from the 12-period EMA. The signal line is a nine-period EMA of the MACD line.
The indicator is calculated by subtracting a 26-period Exponential Moving Average from the 12-period moving average. There is also a histogram available on the indicator which can also be used as a divergence indicator. As a result, you will then see the MACD line, which shows as an indicator below the price chart.
HDFCBANK
Technical AnalysisTechnical analysis is a means of examining and predicting price movements in the financial markets, by using historical price charts and market statistics. It is based on the idea that if a trader can identify previous market patterns, they can form a fairly accurate prediction of future price trajectories.
Technical analysis is a strategy for predicting movement in the stock market, or other securities markets, that relies on information from short periods of time. For this reason, day traders or other short-term traders often use technical analysis.
Option Trading Options are a type of contract that gives the buyer the right to buy or sell a security at a specified price at some point in the future. An option holder is essentially paying a premium for the right to buy or sell the security within a certain time frame.
When options are better. Options can be a better choice when you want to limit risk to a certain amount. Options can allow you to earn a stock-like return while investing less money, so they can be a way to limit your risk within certain bounds. Options can be a useful strategy when you're an advanced investor.
Advanced Swing TradingThe Put-Call Ratio (PCR) is a popular technical indicator used by investors to assess market sentiment. It is calculated by dividing the volume or open interest of put options by call options over a specific time period. A higher PCR suggests bearish sentiment, while a lower PCR indicates bullish sentiment.
However, no PCR can be considered ideal, but usually, a PCR below 0.7 is typically viewed as a strong bullish sentiment while a PCR more than 1 is usually considered as a strong bearish sentiment.
Technical Analysis Technical analysis is a means of examining and predicting price movements in the financial markets, by using historical price charts and market statistics. It is based on the idea that if a trader can identify previous market patterns, they can form a fairly accurate prediction of future price trajectories.
What exactly are the two types of technical analysis? Chart patterns and technical (statistical) indicators are the two main types of technical analysis. Chart patterns are a subjective type of technical analysis in which technicians use certain patterns to indicate regions of support and resistance on a chart.
Option TradingOptions are a type of contract that gives the buyer the right to buy or sell a security at a specified price at some point in the future. An option holder is essentially paying a premium for the right to buy or sell the security within a certain time frame.
When options are better. Options can be a better choice when you want to limit risk to a certain amount. Options can allow you to earn a stock-like return while investing less money, so they can be a way to limit your risk within certain bounds. Options can be a useful strategy when you're an advanced investor.
TradingOne of the most effective ways of studying is to carve space out between sessions. If you break up your study load over several days, you'll retain information far more readily than if you crammed it into your head during one long session.
Day trading and swing trading are two very different approaches to short-term investing. If you're more interested in an exciting, higher-risk environment that requires greater attention, day trading is better for you. Otherwise, the slower, more methodical path of swing trading might be a better option.
Advanced Database TradingOptions trading is a type of financial trading that allows investors to buy or sell the right to purchase or sell an underlying asset at a fixed price, at a future date. Options trading operates on the basis that the buyer has the option to exercise the contract but is not under any obligation to do so.
Option trading is largely a skill requiring knowledge of market trends, strategies, and risk management techniques. While there is an element of uncertainty in the markets, successful traders rely on analysis, planning, and discipline rather than luck.18 Dec 2024
Advanced Swing Trading for Option TraderSwing traders analyze stock price patterns to anticipate when prices will rise, allowing them to buy low, and when prices will fall, enabling them to sell high. The goal of swing trading is to make money by buying a stock or option at a low price and selling it later at a higher price.
The 1% rule restricts Day Traders' risk to no more than 1% of their total account value on any given trade. Trading large positions with close stop-losses or small positions with stop-losses far from the entry price allows traders to risk 1% of their account, but it also involves the risk of daily volatility.
Important Video for Trader'sTake regular breaks when you are reading or studying. Reading for short periods of time of about 20-30 minutes should be enough to really focus on the text and take in as much as possible. 7. Read in a positive environment that is comfortable and free of distractions as this will help improve your concentration.
The 60-60-50 RSI strategy is a trading strategy that generates buy/sell signals by analysing the RSI across multiple timeframes. This course will teach you the logic of the 60-60-50 strategy and how to apply it.
Divergence Trading An RSI divergence occurs when the indicator and price begin to reach different levels, indicating a change in momentum that precedes a change in price direction. For example, a bullish divergence occurs when the security makes a lower low but the indicator forms a higher low.
What is the best RSI setting for divergence? The default RSI setting is a 14-period, which works well for most traders. However, shorter settings (like 7) increase signal sensitivity, while longer settings (like 21) reduce noise and offer more reliable signals, especially for long-term trading.
PCR (Put Call Ratio) Trading The Put-Call Ratio (PCR) is a popular technical indicator used by investors to assess market sentiment. It is calculated by dividing the volume or open interest of put options by call options over a specific time period. A higher PCR suggests bearish sentiment, while a lower PCR indicates bullish sentiment.
Here PCR is computed by dividing the put trading volume by the call trading volume on a specific day. Here, Put volume indicates the total put options initiated over a specific time-frame. Conversely, Call volume indicates the total call options initiated over a specific time-frame.
Trading MistakesIt is a high-stakes game where many are lured by the promise of quick riches but ultimately face harsh realities. One of the harsh realities of trading is the “Rule of 90,” which suggests that 90% of new traders lose 90% of their starting capital within 90 days of their first trade.
The 5-3-1 strategy is especially helpful for new traders who may be overwhelmed by the dozens of currency pairs available and the 24-7 nature of the market. The numbers five, three, and one stand for: Five currency pairs to learn and trade. Three strategies to become an expert on and use with your trades.
Advanced Option Trading with Professionals Let's review each part of the professional trader's mind to understand where you want to be, ideally as you develop as an online trader.
Discipline and Consistency. ...
Emotional Control. ...
Continuous Learning. ...
Fundamental Analysis. ...
Technical Analysis. ...
Sentiment Analysis. ...
Goal Setting. ...
Risk Management.
When options are better. Options can be a better choice when you want to limit risk to a certain amount. Options can allow you to earn a stock-like return while investing less money, so they can be a way to limit your risk within certain bounds. Options can be a useful strategy when you're an advanced investor.
Database and Option TradingOptions data captures information on options contracts, including pricing and trading volumes, useful for investment strategies. Discover our guide and top options data providers.
Simply put, when Open Interest increases, it means more money is moving into the futures contract, and when open interest drops, it means money is moving out of the contract. One can draw inference from this example.
HDFC stock Buy Sell or Hold ? HDFC Bank Stock: Is It Better to Buy Before or After the Union Budget
Support and Resistance Levels for HDFC Bank Stock
Support Level:
The major support for HDFC Bank is around ₹1550.
Until the Union Budget 2025, the market and HDFC Bank stock may show some upward momentum.
For now, you can consider buying the stock with ₹1600 as a support level.
Resistance Level:
The major resistance is at ₹1770.
There is a possibility of reaching this target near the resistance level.
If a weekly candle closes above ₹1770, the stock could gain further momentum.
Post the Union Budget, if HDFC Bank holds above the major support, the stock can be held for the long term. Keep a close watch on HDFC Bank and track these critical levels.
Why Buy Before the Budget?
Chance to Gain Early: Stocks often go up before the budget due to positive market sentiment.
Why Buy After the Budget?
Better Deals: If the stock price drops after the budget, you can buy at a lower price.
#HDFCBank #StockMarket #SupportResistance #UnionBudget2025 #InvestmentTips
Selling Dominates Nifty Bank: Technical Outlook for Key Stocks◉ Nifty Bank Technical Outlook NSE:BANKNIFTY
● The index has broken below its trendline support and is currently testing its immediate support zone between 48,300 and 48,600.
● If selling pressure persists, the index may plummet another 5% to find support around the 46,000 level.
◉ Key Constituents' Technical Standings
Let's dive into the technical analysis of the top Bank Nifty constituents to gauge their current standings and potential future movements.
1. HDFC Bank (Weightage - 28.11%) NSE:HDFCBANK
● As the leading component, HDFC Bank is poised to exert downward pressure on the overall index.
● The stock has broken below its trendline support and has been falling continuously for the last 6 trading sessions.
● Support level is expected somewhere between 1,600 - 1,610 level which is around 3.4% below from the current level.
2. ICICI Bank (Weightage - 24.98%) NSE:ICICIBANK
● The stock has also fallen below its trendline support and is currently hovering just above its immediate support zone.
● If this support is breached, a significant correction could drive the price down to around 1,150.
3. Kotak Mahindra Bank (Weightage - 8.80%) NSE:KOTAKBANK
● The stock has been consolidating within a range for almost 4 years.
● Recent chart patterns suggest the price may test its support zone again, around 7.7% below the current level.
4. Axis Bank (Weightage - 8.54%) NSE:AXISBANK
● Axis Bank's chart shows a bearish pattern, similar to HDFC Bank's, and is likely to experience a fall of around 6%.
5. State Bank of India (Weightage - 8.45%) NSE:SBIN
● The stock is currently positioned just above its immediate support level, suggesting a strong potential for a rebound from this point.
Hdfc Bank cmp 1656.75 by Weekly Chart viewHdfc Bank cmp 1656.75 by Weekly Chart view
- Price Band 1725 to 1775 Resistance Zone
- Stock has been trading majorly in a price range of 1360 to 1725
- The Stock made an ATH 1880 in December 2024 to sustain just briefly
- The stock has once again broken down to be back within the trading range
- Volumes are gradually falling post the ATH and below average traded quantity
Option and database trading Options data captures information on options contracts, including pricing and trading volumes, useful for investment strategies. Discover our guide and top options data providers.
Options are a type of contract that gives the buyer the right to buy or sell a security at a specified price at some point in the future. An option holder is essentially paying a premium for the right to buy or sell the security within a certain time frame.
HDFC Bank Update Traders are wondering how much further HDFC Bank can fall. Here's a potential reversal zone to watch:
📍 16,650 - 16,620
This level could act as a liquidity trap for sellers, sparking a short-term reversal.
⚠️ Stay cautious & trade wisely.
#HDFCBank #StockMarket #TradingTips #TechnicalAnalysis #ReversalZone #LiquidityTrap #IntradayTrading