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BULL VS BEAR (A.D.X)The average directional index (ADX) is a technical indicator used by traders to determine the strength of a financial security's price trend. It helps them reduce risk and increase profit potential by trading in the direction of a strong trend. Is ADX good for day trading? There are far too many fake breakouts that can leave traders trapped in a bad trade position. The ADX helps validate breakouts. That is, when the price breaks out with an ADX reading of above 25, it implies that momentum in the new direction can be sustained
NSE:BANKNIFTYEducation
by SkyTradingZone
GODFRYPHLP in pattern making..???Experts and professionals kindly share your views on the same Your views and suggestions will be really helpful in gaining knowledge Disclaimer - This is not a Stock recommendation. Investments in securities are subject to market risk. The value and return on investment may vary because of changes in interest rates, foreign exchange rates, or any other reason. It's an educational post for analyzing, learning & discussing general and generic information related to stocks, investments, and strategies.
NSE:GODFRYPHLP
by share_care_earn
WHAT IS OPTION GREEKS ?NSE:BANKNIFTY Introduction Option trading is an exciting process and almost every market participant has at least experienced the thrill of trading options, almost all the time with unsatisfactory results. To avoid such accidents an option trader seeks different tools to trade sucssessfully, The most important of tools are the Option Greeks and they are usually the first metric looked upon by option traders. What are Option Greeks? Options are derivatives of underlying assets ( curd is a derivative of milk, so the change in the quality of milk will result in a change in the quality of the curd derived ) similarly, Greeks are a way to measure the sensitivity of the price of the option to various factors. The price of the option premium does not always move in conjunction with the price of the underlying asset and it is important to understand the different factors that affect the change in the price of the premium. With the help of the option greeks, a trader will be able to measure the rate of change of different factors affecting the option premium. # You can check the option greeks by using zerodha option chain or any other trading platform What is DELTA? The first Greek is Delta, which quantifies how much an option's price is projected to fluctuate for every $1 that the underlying securities or index changes in price. For example,A Delta of 0.50 indicates that the option's price will fluctuate 50 point for every 100 point movement in the price of the underlying stock or index. #Delta for call option ranges between 0 to 1 and for put option ranges between -1 to 0. >ATM options have a delta of 0.5 >ITM option have a delta of close to 1 >OTM options have a delta of close to 0. Delta = Change in option premium/ Unit change in the price of the underlying asset. #The following example should help you understand this better – Nifty is currently trading at 16000 Option Strike = 15900 Call Option Premium = 150 Delta of the option = + 0.60 Nifty is expected to reach 16200 What is the likely option premium value at 16200 ? Well, this is fairly easy to calculate. We know the Delta of the option is 0.60, which means for every 1 point change in the underlying the premium is expected to change by 0.60 points. We are expecting the underlying to change by 200 points (16200 – 16000), hence the premium is supposed to increase by = 200*0.60 = 120 the new option premium is expected to trade around 150 + 120 = 270 What ia gamma? Gamma is used to measure the delta’s change relative to the changes in the price of the underlying asset. If the price of the underlying asset increases by 1point, the option’s delta will change by the gamma amount. The gamma value will also range between 0 and 1. Gamma = Change in an options delta / Unit change in the price of the underlying asset. What is Theta? The Theta or time decay factor is the rate at which an option loses value as time passes. Theta is expressed in points lost per day when all other conditions remain the same. theta is always shown as negative number because option value is depriciating as the time is passing. Theta is the biggest enemy of option buyer cause it reduces the favourable outcome of option buyer by depriciating the option price. for example,A Theta of -15 indicates that the option premium will lose -15 points for every day that passes by. if an option is trading at Rs.290/- with a theta of -15 then it will trade at Rs.275/- the following day when other factors remain constant. Theta = Change in an option premium / Change in time to expiry. This is the graph of how premium erodes as a time to expiry approaches. This is also called the ‘Time Decay’ graph. What is Vega ? It is intended to tell you how much an option’s price should move when the volatility of the underlying security or index increases or decreases. It is the change of an option premium for a given change (typically 1%) in the underlying volatility. 1. Vega measures how the implied volatility (IV) of a stock affects the price of the options on that stock. 2. Volatility is one of the most important factors affecting the value of options. 3.A drop in Vega will typically cause both calls and puts to lose value. 4. An increase in Vega will typically cause both calls and puts to gain value. Vega = Change in an option premium / Change in volatility. What can option Greeks do for you? 1.Help you measure the possibility that an option will expire in the money (Delta). 2.Estimate how much the Delta will change when the stock price changes (Gamma). 3.Get a feel for how much value your option might lose each day as it approaches expiration (Theta). 4.Understand how sensitive an option might be to large price swings in the underlying stock (Vega). “With the help of Greeks, an options trader can make more analyzed decisions about which options to trade, which strike price to trade and when to trade. Since there are a variety of market factors that can affect the price of an option in some way, assuming all other factors remain unchanged, we can use Greeks and determine the impact of each factor when its value changes.” I Hope you found this helpful. Please like and comment. Happy Trading!
NSE:BANKNIFTYEducation
by SANJAYPATIDAR_
28
#NIFTY 1DTechnical Analysis of #NIFTY based on harmonic xabcd pattern & on support and resistance . 18925 is the very strong resistance & all time high for #NIFTY on daily time frame we should buy above 18925 and previous level candle closing for the target of 19500 and for 20000. #NIFTY 1st support 18400 & 2nd support 18150,we should sell below when 18400 level break's for the target of 18150 & for 18000. All the information shared in this chart is provided for strictly educational purposes only. This chart is sharing information are based on the theory of technical analysis . This is not an offer to buy or sell stocks, futures , options, commodity, forex, interests or any other trading security. Back test yourself before jump into live market consult your financial adviser and use proper risk management.
NSE:NIFTY
by YASH-CHITKARA
Control emotions during tradeIt is very important to control your emotions during trading, human emotions are a big hurdle in trading, you can not maintain discipline if you can not having control on your emotions. Without discipline you can make money in market but you can't retain it. Here is 5 things you can adopt to improve your trading skill and control emotions. SET ALERTS : we use to watch market continuously and during watch we see so many trades which we should not take, it disturb our trade filtration and also affect out trading phycology, we should wait for our levels and what our set strategy giving trade not to enter early or fake trades, you should set alert according to your levels,chart pattern,breakout or breakdown, any of your trading strategy you are using, there is no need to watch screen constantly in this free time you can also paly any indoor game to keep you mind refreshing and active, once your price alert hit come up on screen then you can go with your trade. VOLATILE HOUR : some time we find trades in sideways or less movementing market and it face us stop loss, no movement or very small target, it's better to took any trade in volatile hours so that trade can exactly work according to your strategy try to avoid trades which are generating in less market movement. Generally Indian market movement is 9:15 to 9:30 very volatile 9:30 to 10:00 volatile market 10:00 to 11:30 stable market 12:00 to 2:00 correction/stable/new/global market 2:30 to 3:00 volatile 3:00 to 3:30 last volatility NEVER WATCH YOUR PROFIT & LOSS DURING TRADE : when we see running profit loss in dmat it automatically affect psychology of trade and we start convening our self for exit, same side in profit and and loss also some time we more think to hold that trade either to exit. we should took trade and either to see p&L we should watch only price and exactly exit according to our strategy do not exit too early do not exit too late if you took that trade according to your pattern, technical any strategy then you should also exit according to that strategy. watching price in compare of P&L helps a lot for long run. STOP AFTER THREE CONSECUTIVE WINS OR LOSSES : it is very important to stop at a point every day in trading, if you did 3 trades either continuously wining trade or loosing trade, at this point you should stop your trading for the day. market is not for one day it will open again next day with same things. do not excited in profit and also in loss, if it was bad day not a problem close your terminal come again next day with fresh mind do not influence your fresh trade with old one . TAKE BREAKS : taking break in trading is very important to keep your mind happy active and fresh every time, as just we do keep our personal and professional life separate, do not mass up one with other. take your self out on weekend do not think about your regular profit and loss take proper break that you need.
NSE:NIFTYEducation
by ProfitPicks
3
Vakrangee Technical Analysis .Hello friends , Today i have the technical chart Of Vakrangee . Friends as you can see here that it is making Head and Shoulder chart pattern which means it can go down but if you see closely that it can also break and can go up . Because it is also in a symmetrical triangle type chart pattern so it can give you a breakout and can go up or it can go up from here Because as it can go up from Neck line . Its Neck line you can take is at 25.90 rs and its target i have shown in the picture is at 17.60 rs but don't be panic because if you have taken position of short selling because what is the rule of Head and Shoulder that if it give you a break out and you have sold it then you have to sell but it can come to trend line one time and if it comes to the trend line and go up than it over this trend line which i have made than you can close your position but remember that i am not telling you to buy or sell from here i have just given you idea so you can take position whatever you have taken your decision but from my opinion it can be range bound on my lower trend line but remember if it breaks the rangebound for anywhere up or down you have to see if the volume should be up from the other volume where it has given break out . Thank You . If you like this Idea and this Analysis just please like this idea and leave a comment i will surely try to improve it or if you have any doubt related to this you can write in the comment. Bye Bye .
NSE:VAKRANGEE
by MAYANKTECHRESEARCHING