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RSI part 2 The relative strength index (RSI) is a momentum indicator used in technical analysis. RSI measures the speed and magnitude of a security's recent price changes to detect overbought or oversold conditions in the price of that security. The RSI is displayed as an oscillator (a line graph) on a scale of zero to 100. The best RSI settings are typically a 14-period timeframe with 70 as the overbought level and 30 as the oversold level. These settings can be adjusted based on specific trading strategies.
BSE:SENSEXEducation
by SkyTradingZone
PCR Trading Option A Advance Guide 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. One way to calculate PCR is by dividing the number of open interest in a Put contract by the number of open interest in Call option at the same strike price and expiry date on any given day. It can also be calculated by dividing put trading volume by call trading volume on a given day.
NSE:BANKNIFTY1!Education
by SkyTradingZone
3
ADX Trading 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. Many traders consider the ADX to be the ultimate trend gauge because it is so reliable. ADX quantifies trend strength by measuring the degree of directional movement in price. ADX calculations are based on a moving average of price range expansion or contraction over a given period. The default setting is 14 periods, although other settings can be used. ADX can be used with any financial security, including stocks, exchange-traded funds, and futures. The average directional index, known as ADX, is a technical tool used by traders to gauge trend strength. Trading with the trend is considered a fundamental trading practice that reduces risk and increases profit potential. ADX calculations use a moving average of price range expansion or contraction. ADX is less useful when prices enter a trading range. While ADX is a lagging indicator, it is considered reliable.
NSE:BANKNIFTYEducation
by SkyTradingZone
3
Strength Index (RSI) IndicatorThe relative strength index (RSI) is a momentum indicator used in technical analysis. RSI measures the speed and magnitude of a security's recent price changes to detect overbought or oversold conditions in the price of that security. The RSI is helpful for market participants in identifying trends. In a strong uptrend, the RSI typically stays between 40 and 90, with the 40-50 range acting as support. In a strong downtrend, the RSI ranges from 10 to 60, with the 50-60 range serving as resistance.
BSE:SENSEXEducation
by SkyTradingZone
3
professional trading mindsetThey are disciplined in their trading and can view the market objectively, regardless of how current market action is affecting their account balance. They don't give in to being excessively excited about winning trades or excessively despairing about losing trades. Stick to Your Discipline. ... Lose the Crowd. ... Engage Your Trading Plan. ... Don't Cut Corners. ... Avoid the Obvious. ... Don't Break Your Rules. ... Avoid Market Gurus. ... Use Your Intuition.
NSE:NIFTYEducation
by SkyTradingZone
3
MACDIf MACD is above the signal line, the histogram will be above the MACD's baseline or zero line. If MACD is below its signal line, the histogram will be below the MACD's baseline. Traders use the MACD's histogram to identify peaks of bullish or bearish momentum, and to generate overbought/oversold trade signals. The difference between the two lines is represented on the histogram. If the MACD were to be trading above the zero line, it would confirm an uptrend, below this and the indicator would be used to confirm a downtrend.
NSE:BAJFINANCEEducation
by SkyTradingZone
Option chainAn options chain displays all available option contracts for a security, organized by expiration date and strike price. Options chains typically show each contract's bid price, ask price, volume, open interest, and implied volatility (IV). Option chains also allows traders with the option to select the best expiration date for their options trading. The option's expiration date is the day it will stop being tradeable. Traders may use the option chain to identify the expiry date that provides the optimal balance of risk and return for their transaction.
NSE:BANKNIFTYEducation
by SkyTradingZone
Advanced Technical TradingWhat Is Price Action? Price action is the movement of a security's price plotted over time. Price action forms the basis for all technical analyses of a stock, commodity, or other asset charts. Many short-term traders rely exclusively on price action and the formations and trends extrapolated from it to make trading decisions. Technical analysis as a practice is a derivative of price action since it uses past prices in calculations that can then be used to inform trading decisions. Key Takeaways Price action generally refers to the changes of a security's price over time. Different looks can be applied to a chart to make trends in price action more obvious for traders. This is especially true when analyzing data covering different time periods. Technical analysis formations and chart patterns are derived from price action. Technical analysis tools like moving averages are also calculated from price action and projected into the future to inform trades. Though many use price action to forecast future prices, prior price action does not guarantee future results.
NSE:BANKNIFTYEducation
by SkyTradingZone
Trading Medicine 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. Is option trading profitable? Options trading is a risky endeavor but can be profitable if done correctly. There is no guarantee that any particular trading strategy will be consistently successful, but a few methods have proven to be effective more often than not.
NSE:BANKNIFTYEducation
by SkyTradingZone
PCR Part - 1What is PCR in share market? A Put-Call Ratio is a technical indicator used in derivative markets. It gauges market sentiment by comparing the open interest or trading volume of put options to call options. A high ratio generally suggests a bearish outlook, while a low ratio indicates a bullish sentiment. A PCR value below 1 is indicative of the fact that more Call options are being purchased relative to the Put options which signals that investors are anticipating a bullish outlook for the markets ahead.
NSE:BANKNIFTYEducation
by SkyTradingZone
MACD TRADING / Technical AnalysisMoving 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 MACD indicator (or oscillator) is a very popular indicator among traders around the world for identifying trends and reversals. It was invented around 1977 by Gerald Appel, who was looking for a quality indicator that could immediately be interpreted.
NSE:BANKNIFTYEducation
by SkyTradingZone
DATABASE TRADING WITH OPTION CHAINOption chain data is the complete picture pertaining to option strikes of a particular stock or index in a single frame. In the Option chain frame, the strike price is at the center and all data pertaining to calls and puts on the same strike are presented next to each other. Traders use an options chain to choose the specific option contracts that best align with their trading strategy. They can select options with the desired strike prices and expiration dates based on their market outlook. Options chains are crucial for assessing and managing risk.
NSE:BANKNIFTYEducation
by SkyTradingZone
2
Beginner to Advanced Trading Every successful investor has one thing in common, they read as many investment books as they can. Trading in the share market requires a basic knowledge of all the aspects that can influence the prices of shares, and it can be gathered by reading books regularly. Skills #1 and #2 – Research and Analysis. ... Skill #3 – Adapting Your Market Analysis to Changing Market Conditions. ... Skill #4 – Staying in the Game. ... Skills #5 and #6 – Discipline and Patience. ... Bonus Skill #7 – Record Keeping. ... In the End.
NSE:BANKNIFTYEducation
by SkyTradingZone
4
Banknifty Professional Trading Setup Here are some things to know about the MACD histogram and divergences: Divergence A divergence occurs when the price action and momentum are not acting together. For example, if the price is making lower highs, but the histogram is making higher lows, this is a divergence. Types of divergences There are two types of divergences: peak-trough and slant. Bullish divergence A bullish divergence occurs when the MACD forms two rising lows that correspond to two falling lows in the price. Bearish divergence A bearish divergence occurs when the MACD forms two falling highs that correspond to two rising highs in the price. Histogram bars The length of the histogram bars indicate the relationship between the two moving averages. When the moving averages are moving away from each other, the bars are longer, and when they are getting closer, the bars are shorter. MACD The MACD is a momentum indicator that shows the relationship between two moving averages of prices. It's calculated by taking the difference between a 26-day and 12-day exponential moving average.
NSE:BANKNIFTYEducation
by SkyTradingZone
1
How to Draw Support and Resistance Like a Pro! Support and Resistance are one of the most important aspects of technical analysis but often I see traders doing it wrongly. How to Draw Support and Resistance: Imagine you have a chart filled with SR like the one below. Do you know which levels to pay attention to? When you’re about to start, how to plot support and resistance lines? It’s filled with nothing but lines and it doesn’t seem to make much meaning of the chart at all. nah My approach to drawing Support and Resistance uses either 1 line or 2 lines. It is much cleaner and immediately tells you which area of the chart to pay attention to. I use a single line when price respect a level almost to the pip and i use 2 lines when price bounces off an area. I highlight only the key Support and Resistance of a chart meaning the obvious swing highs and lows. The intermediate SR i will not draw any lines so as to maintain my focus on the key areas. Besides, with enough screen time you can easily identify those intermediate Support and Resistance without any lines. real world… You must keep in mind of the R.S.M. formula. These three things stands for: Reaction Setup Management Now take notes because this is important… Reaction Here’s the truth: Drawing support and resistance lines aren’t the holy grail.
NSE:BANKNIFTYEducation
by EmpireCrown
Trade using Pitchfork and PitchFanPitchFORK + PitchFAn is very acuurate When it comes to find the point of reversal. In this chart one can easily find the point of reversal just by looking at important levels of pitchfork. If pitch fork is drawn accurately it will definitely help you in your intraday/positional trading. Draw pitchfor at daily time frame and then use it in your trading either on hourly/30min/15min/5min it will give you amazing results. good luck guys....
NSE:NIFTYEducation
by Abhi_The_Chart_Reader
Trading Style - Types Of Traders - What Type Of Trader Are You?Scalping Scalping is a very rapid trading style. Scalpers often make trades within just a few seconds of each other, and often in opposite directions (i.e., they are long one minute, but short the next). Scalping is best suited to active traders that can make immediate decisions and act on those decisions without hesitation. Impatient people often make the best scalpers because they expect their trades to become profitable immediately, and will exit the trade promptly if it goes against them. Being a successful scalper requires focus and concentration. So, it is not a suitable trading style for people who are easily distracted or who often find themselves daydreaming, so if you've been thinking about something else while reading this, then scalping is not for you. Day Trading Day trading as a style is more suitable for traders that prefer starting and completing a task on the same day. For example, if you were painting your kitchen, and you would not go to bed until the kitchen was finished, even if that meant staying up until 3:00 AM. Many day traders would not consider making swing or position trades because they would not be able to sleep at night knowing that they had an active trade that could be affected by price movements during the night (such as those that cause opening gaps). Swing Trading Swing trading is compatible with people that have the patience to wait for a trade, but once they have entered a trade, they want it to become profitable quite quickly. Swing traders almost always hold their trades overnight, so it is not suitable for people that would be nervous holding a trade while they were away from their computer. Swing trading generally requires a larger stop loss than day trading, so the ability to keep calm when a trade is against you is a necessity. Position Trading Position trading is the longest term trading of all and often has trades that last for several years. Therefore, position trading is only suitable for the most patient and least excitable traders. Position trading targets are often several thousand ticks, so if your heart starts beating fast when a trade is 25 ticks in profit, position trading is probably not suitable for you. Position trading also requires the ability to ignore popular opinion because a single position trade will often hold through both bull and bear markets. For example, a long position trade may need to be held through an entire year when the general public is convinced that the economy is in a recession. If other people easily sway you, then position trading is going to be difficult for you. Being Faithful to Your Trading Style Choosing a trading style requires the flexibility to know when a trading style is not working for you, but also requires the consistency to stick with the right trading style even when it is not performing optimally. One of the biggest mistakes that new traders often make is to change trading styles (and trading systems) at the first sign of trouble. Constantly changing your trading style or trading system is a sure way to catch every losing streak. Once you are comfortable with a particular trading style, remain faithful to it, and it will reward you for your loyalty in the long run.
CRYPTOCAP:BTCEducation
by THELEGENDSINGH
6