Database in trading SQL remains a fundamental tool for querying and managing data. SQL's simplicity and power make it accessible to both beginners and experts. In trading systems, SQL enables efficient data retrieval and manipulation. Users can write SQL queries to analyze market trends and execute trading strategies.
Postgres is an open-source production-ready database with lots of use cases. Mongo is a NoSQL alternative that can sometimes be much faster than SQL databases. Arctic is built upon Mongo to make it even more helpful for those who work with market data, as Arctic supports pandas dataframes and NumPy arrays by default.
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Option chain part 1Nifty option chain is considered to be the best advance warning system of sharp moves or break outs in the index.
More specifically, high open interest in call options signifies a bullish sentiment, while high open interest in put options suggests a bearish sentiment. Open interest is tracked separately for call and put options.
LTP (Last Traded Price) – is the last traded price or premium price of an option. CHNG – is the net change in LTP.
PCR in Trading 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.
A high PCR indicates a bearish sentiment, as more traders buy puts, expecting the market to decline. Similarly, a low PCR suggests a bullish sentiment, with more traders buying calls in anticipation of a market rise.
PCR > 1: When the PCR is greater than 1, it suggests that there are more open put contracts than call contracts, indicating a bearish sentiment. Traders and investors anticipate the underlying asset's price to fall. PCR = 1: When the PCR is close to 1, it implies a balanced sentiment in the market.
Database in Trading Trading data is a sub-category of financial market data. It provides real-time information about stock and market prices as well as historical trends for assets such as equities, fixed-income products, currencies and derivatives.
Results show that migration to a MongoDB database would be most beneficial in terms of cost, storage space, and throughput. In addition, organisations wishing to take advantage of autoscaling and the maintenance power of the cloud should opt for a cloud native solution
How to draw support & resistance To identify support or resistance, you have to look back at the chart to find a significant pause in a price decline or rise. Then look forward to see whether a price halts or reverses as it approaches that level.
he Fibonacci indicator consists of Fibonacci retracement levels, which are 23.6%, 38.2%, 50%, 61.8% and 78.6% which are drawn between two price levels and can be used to indicate support and resistance in the market.
RSI Divergence Trading RSI divergence is fairly reliable, especially when used alongside other technical indicators for confirmation. However, like all technical tools, it's not foolproof and should be used as part of a broader strategy that includes risk management.
A bullish divergence occurs when the price of a security is moving downwards along with making lower lows while the RSI indicator is making higher lows. These movements indicate an increasing bullish momentum where traders can enter a long position when the security shows signs of upward reversal.
Examples of bullish RSI divergence: Example 1: Stock price falls to a new low, but RSI forms a higher low. Example 2: Forex pair decreases in value, but RSI shows increasing troughs. Example 3: Cryptocurrency drops, but RSI indicates an upward momentum shift
Lecture For Option Trader If you think the stock price will move up: buy a call option, sell a put option. If you think the stock price will stay stable: sell a call option or sell a put option. If you think the stock price will go down: buy a put option, sell a call option
Derivatives - Options & Futures: Interactive Brokers.
Practical Guide to Trading: Interactive Brokers.
Trading Strategies in Emerging Markets: Indian School of Business.
Pricing Options with Mathematical Models: Caltech.
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
Advance database trading Stock exchanges and data vendors are great sources for institutions. Retain traders can use broker APIs as it's more economical. As a trader, you must be quick and analytical, and good-quality data is the way to go
Paper trading, also known as virtual trading or simulated trading, is a practice that allows beginners and experienced traders alike to simulate the process of buying and selling financial assets, such as stocks, without using real money.
RSI trading RSI readings below 30 signal buy opportunities, indicating the asset is undervalued. Conversely, RSI readings above 70 signal sell opportunities, suggesting the asset is overvalued. A value of 50 signifies a balance between bullish and bearish positions or a neutral stance
In the chart below, RSI is the blue line in the section below the S&P 500 price. Low RSI levels, typically below 30 (red line), indicate oversold conditions—generating a potential buy signal. Conversely, high RSI levels, typically above 70 (green line), indicate overbought conditions—generating a potential sell signal.
How to calculate stock weightage on index. #What is Stock weightage on an index ?
--> Stock weightage on an index is the relative importance of a particular stock in the index. It is calculated by dividing the market capitalization of the stock by the total market capitalization of all the stocks in the index.
-->The weightage of a stock in an index is important because it determines how much the stock will move the index when its price changes. A stock with a higher weightage will have a greater impact on the index's movement than a stock with a lower weightage.
How the stock weightage on an index is calculated ?
-->There are two main methods for calculating stock weightage on an index:
Market capitalization-weighted index: This is the most common method. The weightage of a stock in a market capitalization-weighted index is determined by its market capitalization. This means that the larger the market capitalization of a stock, the higher its weightage in the index. This is the most reliable and popular method to calculate stock weightage on an index.
Price-weighted index: In a price-weighted index, the weightage of a stock is determined by its price. This means that the higher the price of a stock, the higher its weightage in the index.
-->as an example, the stock weightage in Nifty Bank, like in any other index, is calculated using a free-float market capitalization-based method. Here's a simple explanation of how it's done:
Market Capitalization: The market capitalization of a company is the total market value of all its outstanding shares. It is calculated by multiplying the company's share price by the total number of outstanding shares.
Free-Float Market Capitalization : Free-float market capitalization considers only the portion of a company's shares that are available for trading in the open market. It excludes shares held by promoters, governments, and other strategic investors that may not be readily available for trading.
Weightage Calculation: To calculate the weightage of a stock in Nifty Bank, you take its free-float market capitalization and divide it by the sum of the free-float market capitalization of all the stocks in the index.
-->For example:
Let's say Nifty Bank comprises three stocks with the following free-float market capitalization:
Bank A: Rs. 50,000 crore
Bank B: Rs. 30,000 crore
Bank C: Rs. 20,000 crore
Total free-float market capitalization of Nifty Bank = Rs. 50,000 crore + Rs. 30,000 crore + Rs. 20,000 crore = Rs. 100,000 crore
-->Now, to calculate the weightage of each stock:
Bank A weightage = (Rs. 50,000 crore / Rs. 100,000 crore) * 100 = 50%
Bank B weightage = (Rs. 30,000 crore / Rs. 100,000 crore) * 100 = 30%
Bank C weightage = (Rs. 20,000 crore / Rs. 100,000 crore) * 100 = 20%
--> The stock weightage in Nifty Bank will be adjusted periodically based on the changes in the free-float market capitalization of the constituent stocks. As stock prices change in the market, the weightage of individual stocks in the index will also change to reflect their current market value.
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Basics of Elliot Waves.Hello Traders!
1. Today, we will discuss the basic market movement structure, elliotically . A recent comment on one of my ideas published pointed (indirectly) towards the need for a basic understanding of Elliot Waves for the general trading public.
2. The market moves in consistent impulsive and corrective structures . Waves 1, 2, 3, 4, and 5 together form the 1st Impulsive structure of the market. Waves A, B, and C together form the next Corrective structure of the market.
What is an Impulsive Structure ? These are patterns that occur in the direction of the trend. A movement consisting of 5 smaller cycle waves and following certain set rules/guidelines set by Elliot; Wave 2 never retraces more than 100%, Wave 3 is never the shortest, & Wave 4 does not enter the price territory of Wave 1. The 3rd rule is at times compromised and that should be up for discussion some other day. More rules exist but are not required for the basic understanding of the markets.
What is a Corrective Structure ? We will put this very vaguely. Whatever is not impulsive, is corrective, in laymen's terms.
3. Let's address the Impulsive structure .
Waves 1, 3, and 5 are impulsive waves within the impulsive structure. Waves 2 and 4 of this impulsive structure stand to be corrective. Waves 1, 3, and 5 consist of 5 waves each. Waves 2 and 4 consist of 3 waves each.
4. Now we'll address the next Corrective structure . Wave A and C of this structure are impulsive whereas Wave B is of corrective nature.
Waves in the corrective structure are very interesting. Wave A can at times consist of 5 waves as well as 3, even though impulsive, and can also be a diagonal. Wave B can sometimes contain 5 waves, when in a form of a triangle, even though corrective. Wave C always has only 5 waves and can be a diagonal as well. The corrective waves are a whole lot more complicated and require a vigorous understanding of the structures.
5. Every wave structure is part of a larger wave structure on a larger timeframe. 5 impulsive, 3 corrective waves of the smallest cycle; which will form Waves 1 and 2 of a larger cycle. Then these two waves along with 3, 4, 5, and the next correction set, will form the 1st and 2nd waves of an even larger cycle. This is how our final wave structure (basic) would look like.
The world moves in harmony with progression and recession. And so do the markets. All they need is an observer. Be one.
Happy observing!
Profits,
Market's Mechanic.
ZEELEARN -- POSITIONAL -- MARCH 2022ZEE LEARN WEEKLY Chart shown technical indication bullish from current cmp 12.85
1.>Strong trend-line support seen at 12.12.85 level for potential 20.30 % target 17-80-20 level,
breakout above 20 can seen level 24-28
2> Support and resistance define on chart buy arrow marker
3> rsi seen OVERSOLD area where stock has tendency to bounce back .
BUY ZEE LEARN @ 12.85
TARGET - 16-18-20
STOP LOSS 9
** IDEA IS FOR EDUCATIONAL PURPOSE ** trade at own risk !
HAPPY TRADING !!
ZEE LEARN - INTRADAY SETUP-- 28/01/2022ZEE LEARN ..intraday setup as on 28/01/2022 ..Cause of sign of trend reversal seen after stock corrected from 20 sub level to around 14.50-15.50 level ..currently at Fibonacci retrenchment 50% from low to high and last few session trend reversal sign seen. on 15 min chart stock trending now at higher high and higher low channel . volume also seen increase last 2-3 trading sessions. SMA 20,50 bullish crossover can seen on chart.
it will good to buy short term - mid term for 20-30% upside but currently on intraday tomorrow can give good profit from current cmp 15.55
BUY ZEE LEARN @ 15.55
Target 1 - 16.00
Target 2- 16.50
stop loss 14.80
** THIS IDEA is for Educational purpose ..do own Analysis and take call at own risk .!!
HAPPY TRADING !!
BREAK OUT TRADE'S.BREAK OUT TRADES ARE VERY FRUITFUL IF YOU CAN FIND PERFECT SUPPORT/RESISTANCE AREA'S. IN THE CHART, I SHOWN PROPER SUPPORT AND RESISTANCE AREA'S ON THE CHART OF MUTHOOT FINANCE OF DAILY TIME FRAME. IF YOU LEARN TO FIND THESE IMPORTANT AND MOST IMPORTANTLY, AFTER FINDING OUT THESE ARES YOU WILL HAVE TO ENTER INTO THAT TRADE ON BREAK OUT PRICE SO THAT YOU CAN ENJOY THE BENEFITS OF THESE HUGE BREAK OUT OF DAILY TIME FRAME.
THIS POST IS JUST FOR EDUCATIONAL PURPOSE.
BREAK OUT IS HAPPENDED LONG AGO, POST IS PURELY FOR EDUCATIONAL PURPOSE.
Symmetrical Triangular PatternThis pattern provides a good success rate. Entire trade strategy is explained in the chart with markings of levels.
Note: This is the trade we have taken in past, and not a recommendation of future trades. This is just for knowledge sharing on technical analysis and chart patterns.
We are sharing the previous trades as Learn and Earn initiative for free learning for all. If you benefit from our material, please donate 1% of your profits for education of poor kids. We do not charge for any material online.
Breakout & Retest1. Spot the breakout
2. wait for the retest
3. find an indication (read: divergence) that suggests prices to fall (in this case)
4. enter a trade with proper risk managment
Stay safe, learn before you can take positions! Do not just blindly follow anyone.
"Be a student & not a follower!"