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Only one indicator is enough to trade.Yes. ! Super trend. If we know how and where to use this indicator, you are sure about getting very good trade. It ensures 1. Low risk 2. High returns and at times real big trend So how to use it? 1. Prefer larger time frame to avoid noise. I use weekly. 2. Once super trend is green wait for pullback towards super-trend. 3. When supertrend acts as support/resistance and price reverses from nr super trend make entry. (I would wait for break of earlier week high nr super trend) 4. SL is close below super trend. (weekly close for weekly chart) 5. Try to exit far from super-trend to book profit. (Target around 15% possible on weekly) Opposite is true for shorting in down trend....! All these charts are from Nifty50 stocks Note: I am re-publishing this post as earlier post was on Nestleindia which got split and chart is not getting updated.
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NSE:MARUTIEducation
by yndesai
8
HOW-TO use blackcat1402 L3 Emotion LineI. Overview The Emotion Line is an innovative technical indicator that captures market sentiment by analyzing price dynamics. It calculates the average of opening, high, low, and closing prices over the past three days and combines the concepts of Dynamic Moving Average (DMA) and Exponential Moving Average (EMA) to generate a value reflecting market sentiment. Implemented in Pine Script on the TradingView platform, the Emotion Line provides users with an intuitive tool for market sentiment analysis. II. Calculation Method Ray: Compute the average of the past three days' prices, i.e., (2 * C + H + L) / 4, where C is the closing price, H is the highest price, and L is the lowest price. Then, take the Simple Moving Average (SMA) of this average over 3 days with a smoothing factor of 2. CL (Close Line): Assign the value of Ray to CL, which serves as the basis for further calculations. DIR1 (Directional Change): Calculate the absolute difference between CL and the CL of the previous two days, indicating the magnitude of price movement. VIR1 (Volume in Range): Compute the sum of the absolute differences between CL and the previous day's CL over the past two days, measuring the accumulation of price fluctuations. ER1 (Efficiency Ratio): The ratio of DIR1 to VIR1, measuring the efficiency of price movement. CS1 (Cumulative Strength): Apply a weighted process to ER1 to obtain CS1. CQ1 (Cumulative Quotient): The square of CS1, further strengthening the cumulative effect of price movement. AMA5 (Adjusted Moving Average): Calculate the Dynamic Moving Average (DMA) of CL with the dynamic factor CQ1, then apply a 2-day Exponential Moving Average (EMA) to the result. Cost: Calculate the 7-day Simple Moving Average (SMA) of AMA5. CLX (Composite Line): Compute the average of AMA5 and Cost to obtain CLX. Emotion Line: Calculate the proportion of CLX increasing continuously for N days, with N defaulting to 7 days. Multiply the result by 100 to get the Emotion Line value. MA_emotionLine (Moving Average Emotion Line): Compute the M-day moving average of the Emotion Line, with M defaulting to 6 days. III. Market Logic By analyzing the cumulative effect and efficiency of price movement, the Emotion Line attempts to reveal the strength of market sentiment. When the Emotion Line rises, it indicates a positive market sentiment, and investors may have an optimistic attitude towards the stock; a falling Emotion Line may signal a weakening market sentiment. The absolute value and trend changes of the Emotion Line can provide investors with references for buying, holding, or selling. IV. Usage Attention Signal: When the Emotion Line exceeds 20%, the market sentiment may begin to be positive, and investors should pay attention to related stocks. Entry Signal: When the Emotion Line exceeds 40%, the market sentiment is relatively strong, and investors may consider entering the market. Reduce Position Signal: When the Emotion Line exceeds 80%, the market may be overly optimistic, and investors should consider reducing their positions to avoid risk. Exit Signal: When the Emotion Line breaks below its M-day moving average, it may signal a shift in market sentiment, and investors should consider exiting the market. V. Notes The Emotion Line is an auxiliary tool, and investors should make comprehensive judgments based on other technical analysis and fundamental analysis. Market sentiment is influenced by various factors, and the Emotion Line may have lag, so investors should use it cautiously. Investors should adjust the parameters of the Emotion Line according to their risk tolerance and investment strategy. VI. Conclusion The Emotion Line is an intuitive indicator that reflects market sentiment through quantitative methods, providing a new perspective for investors to observe market dynamics. However, no technical indicator is foolproof, and investors should remain cautious when using it, combining their personal experience and market conditions to make decisions. Through the TradingView platform, investors can easily add the Emotion Line indicator to their charts to assist in their trading decision-making process.
Education
by blackcat1402
Perfect 10 Points for Perfect Bitcoin (BTC) / Altcoin Crypto # 10 Points Strategy to Master Crypto:- (More the points confirmation more may be the accuracy). 1. Market Cycle - Know the Bigger Picture - Establish a Bias - Its Bullish or Bearish. 2. Market Cap Dominance Percentage chart - Interest Increasing in Bitcoin or Altcoin. 3. Open Interest - Total Buyer & Seller Increasing or Decreasing. 4. Long/Short Ratio - Dominance of Buyers or Sellers. 5. Strong and Weak Crypto - Strong Crypto for Buying & Weak Crypto for Selling. 6. Bitcoin Follower Coins & Independent Coins - Against or along Bitcoin. 7. Order Block - Big players entry in the market along with volume and price correlation to know Breakout or Rejection. 8. Price Imbalance Candle - Long Bullish or Bearish candle for entry. 9. Importance of Fibonnaci Level. 10. Risk Management & Chart Time frame - Importance of Stoploss and Risk Reward along with Chart Timeframe. (How many points do you follow in your entry ? 0 out of 10 ? or 1 out of 10 ? ..... or 10 out of 10 ? ) =========================================================================================================================================== LETS LEARN ABOUT A FEW BASICS OF CRYPTO FIRST:- # What is a BITCOIN ? Bitcoin is a decentralised digital currency, often referred to as cryptocurrency. It operates on a technology called blockchain, which is a distributed ledger that records all transactions across a network of computers. Created in 2009 using the pseudonym Satoshi Nakamoto, Bitcoin allows peer-to-peer transactions without the need for a central authority. It's known for its limited supply of 21 million coins and the process of mining, where powerful computers solve complex mathematical problems to validate transactions and add them to the blockchain. # What are Altcoins ? Any cryptocurrency other than Bitcoin is called Altcoin. These coins aim to offer variations or improvements on Bitcoin's features or provide different use cases. Each altcoin typically has its unique blockchain and may introduce innovations such as smart contracts, faster transaction times, or enhanced privacy features. Investors and users may choose altcoins based on specific functionalities or characteristics they find appealing beyond what Bitcoin offers. Some examples of altcoins include Ethereum, Ripple, Litecoin, Cardano etc. # Few differences between Bitcoin & Altcoins :- * Origin and Popularity: - Bitcoin was the first cryptocurrency, created in 2009 by Satoshi Nakamoto, and remains the most well-known and widely used. - Altcoins are any cryptocurrencies other than Bitcoin and were introduced later to address perceived limitations or offer additional features. * Blockchain Technology: - Bitcoin operates on its blockchain, a decentralized ledger recording all transactions. - Altcoins have their own blockchains, each with unique features. Some may use different consensus mechanisms, governance models, or focus on specific functionalities like smart contracts. * Purpose and Use Cases: - Bitcoin is primarily designed as a digital currency for peer-to-peer transactions and as a store of value. - Altcoins often have diverse purposes, including smart contracts (Ethereum), faster transactions (Litecoin), cross-border payments (Ripple), and various other applications depending on the specific altcoin. * Mining Algorithms: - Bitcoin uses the SHA-256 mining algorithm, requiring significant computational power. - Altcoins may use different mining algorithms, such as Scrypt (Litecoin) or Ethash (Ethereum), providing alternatives to Bitcoin's proof-of-work mechanism. * Supply Limits: - Bitcoin has a capped supply of 21 million coins, creating scarcity. - Altcoins may have different maximum supplies, and some may not have a capped limit. * Community and Development: - Bitcoin has a large and active community, with ongoing development focused on security and scalability. - Altcoins vary in community size and development activity, depending on factors like use case and popularity. =========================================================================================================================================== LETS DISCUSS EACH POINT IN DETAIL:- 1. Market Cycle - Know the Bigger Picture - Establish a Bias - Its Bullish or Bearish. A "market cycle" refers to the recurring stages of price movements that financial markets, including stocks, cryptocurrencies, and commodities, go through over time. These cycles are driven by a combination of various factors, including economic conditions, investor sentiment, and market participants' behavior. The typical market cycle consists of four main phases: * Accumulation Phase: In this phase institutional investors start accumulating positions. Prices are often at their lowest. * Bullish Phase: In this phase buying pressure increases & prices start to rise. Improving sentiment attract more investors leading to an uptrend. * Distribution Phase: In this phase early investors and institutions begin to take profits, leading to a slowing of the upward momentum. Prices might consolidate or experience slight corrections. * Bearish Phase: In this phase selling pressure increases & prices start to fall. Understanding market cycles can help traders and investors to establish a Bearish or Bullish Bias by recognising the broader context of market conditions. Analysing market cycles is an important aspect of both technical and fundamental analysis. So if the Market Cycle indicates a Bearish Phase, it means Bearish Bias is established, you may find sharp fall and big red candles, Shorting Crypto may give quick & huge profits and vice versa for Bullish Phase. Inshort during Bearish Phase focus on Shorting crypto and in Bullish Phase focus on making Long Positions in Crypto. Remember - "Trend is your friend". Point 1 Conditions: -Accumulation Phase & Distribution phase - wait for Breakout or Breakdown for confirmation (No entry - May get trapped). -Bullish Phase - Long Entry may fetch good return. -Bearish Phase - Short Entry may fetch good return. 2. Market Cap Dominance Percentage chart - Interest Increasing in Bitcoin or Altcoin. "Market Cap Dominance Percentage Chart" shows percentage of a specific cryptocurrency compared to total cryptocurrency market capitalization. Like Bitcoin's market capitalization is $1 trillion & total cryptocurrency market capitalization is $2 trillion, So Bitcoin's market cap dominance percentage would be 50% (1 trillion/2 trillion x 100). With this chart relative strength of a particular cryptocurrency can be seen in the broader market. Changes in market cap dominance can indicate shifts in investor sentiment and preferences among different cryptocurrencies. It's important to note that a declining dominance percentage for a major cryptocurrency might suggest increased interest in alternative cryptocurrencies (altcoins). while a rising dominance percentage may indicate a stronger focus on the leading cryptocurrency in the market. So if BITCOIN dominance % decline it means interest in Altcoins is increasing. Shorting Bitcoin and focusing on Altcoins may give good profits and vice versa for BITCOIN dominance % increasing. Point 2 Conditions: -Percentage Chart shows Interest in Bitcoin Increasing - Long Entry in Bitcoin or Altcoins which follow Bitcoin may fetch good return. -Percentage Chart shows Interest in Bitcoin decreasing - Short Entry in Bitcoin or Altcoins which follow Bitcoin may fetch good return. 3. Open Interest - Total Buyer & Seller Increasing or Decreasing. "Open interest" is a term used in the context of futures and options trading. It is to measure the total number of open contracts at any given time. - Increasing Open Interest means New contracts are created. - Decreasing Open Interest means contracts are closed. High open interest is often associated with increased market activity and liquidity, while low open interest may suggest a lack of interest or declining market participation. Open interest is one of many factors to read market trends and sentiment. Analysing Open interest with price and volume can give insight into market moves. More Open interest simply means more interest in crypto. But which side is the interest - can be seen with the help of Long/Short Ratio. So if Bitcoin or Altcoin Open Interest is increasing - You may think of entering and making position in this liquid market. If Open Interest is decreasing - you may avoid the dull market. For Eg:- on 1 Day Graph BTC Future Open Interest on 21 Jan is 75000 BTC Future Open Interest on 22 Jan is 72000 It indicates that 7000 Open Interest are decreased. now these 7000 Open Interest are of Long or Short, this can be identified with Long/Short Ratio. Point 3 Conditions: - More Open Interest - Look for Entry in Crypto - Due to liquidity moves may be good. - Less Open Interest - Avoid Entry in Crypto - Less liquidity may lead to Dull Market. 4. Long/Short Ratio - Dominance of Buyers or Sellers. The "long-short ratio" is a measure used to assess the sentiment of market participants. - Long Positions: Traders who expect the price to rise take long positions, buying the asset with the intention of selling it later at a higher price. - Short Positions: Traders who expect a decline in the price take short positions. They borrow the asset, sell it at the current market price, and aim to buy it back later at a lower price. The long-short ratio is calculated as the total number of long positions divided by the total number of short positions. The resulting ratio can provide insights into market sentiment. - Long-Heavy Ratio (Greater than 1.8): Indicates a higher proportion of traders are taking long positions, suggesting bullish sentiment. - Short-Heavy Ratio (Less than 1.8): Indicates a higher proportion of traders are taking short positions, suggesting bearish sentiment. So in bitcoin if its Short-Heavy Ratio & is Greater than 1.8. It may be good opportunity to Short Bitcoin and vice versa for Long-Heavy Ratio (Greater than 1.8). Point 4 Conditions: -Long-Heavy Ratio in Bitcoin (Greater than 1.8) - Long Entry in Bitcoin or Altcoins which follow Bitcoin may fetch good return. -Short-Heavy Ratio in Bitcoin (Greater than 1.8) - Short Entry in Bitcoin or Altcoins which follow Bitcoin may fetch good return. 5. Strong and Weak Crypto - Strong Crypto for Buying & Weak Crypto for Selling. There are various kind of Altcoins. some are weak and some are strong. Coins which falls sharply in Bearish Market are generally Weak Coins and Coins which doesnt fall or fall little only in bearsish Market are generally Strong Coins. Point 5 Conditions: - Long Entry in Strong Altcoins during a Bull phase may fetch good return. - Short Entry in Weak Altcoins during a Bear phase may fetch good return. 6. Bitcoin Follower Coins & Independent Coins - Against or along Bitcoin. There are altcoins which follow bitcoin and there are altcoins which moves against the bitcoin. which means when you see bitcoin chart rising a few altcoins rise with bitcoin and a few can be seen falling when bitcoin is rising. In similar way you can see a few altcoins falling with bitcoin falling and a few can be seen rising when bitcoin is falling. this can be a good hint in selecting the right altcoin to enter in correlation with Bitcoin. For eg: and are weak Altcoins, vice versa is also true. Point 6 Conditions: - If overall Bias is Bearish, But Bitcoin is rising, we may short Altcoin which moves against the bitcoin or are independent - it may fetch good return. - If overall Bias is Bearish, and Bitcoin is falling, we may short Altcoin which follow bitcoin - it may fetch good return. - If overall Bias is Bullish, But Bitcoin is falling, we may Long Altcoin which moves against the bitcoin or are independent - it may fetch good return. - If overall Bias is Bullish, and Bitcoin is rising, we may Long Altcoin which follow bitcoin - it may fetch good return. 7. Order Block - Big players entry in the market along with volume and price correlation to know Breakout or Rejection. Its a part of Technical analysis (Price Action). "Order Block" refers to a price zone on a chart where large buying or selling activity occurred. These zones as areas of strong supply or demand. - Area with significant buying orders is a potential support zone or Bullish order block. - Area with substantial selling orders is a potential resistance zone or Bearish order block. Crypto Traders may use order blocks as part of their analysis to identify key levels for potential reversals or continuation of price trends. Generally on a smaller timeframe Order Blocks are weak so these order blocks are used for Breakout or Breakdown trades along with volume for confirmation, On higher timeframe they act as supply and demand zones. Volume and price - Volume correlation with price to know Breakout or Rejection. Decreasing volume with an increasing price - is a potential weakening of trend. Increasing volume with an increasing price - is a potential strengthing of trend. * Rising price without strong supporting volume may indicate a lack of confirmation for the upward movement. In healthy trends, increasing volume typically accompanies rising prices, signaling strong market UpTrend. * Decreasing volume during a price increase might be a signal that buyers are becoming interested in the current upward move. This as a warning sign of a potential trend reversal. * Price is breaking above a Resistance level with decreasing volume - suggest that breakout might lack the strength needed for a sustained upward move. * Decreasing volume indicate a period of market indecision or consolidation, where buyers and sellers are in equilibrium. This may precede a more significant move in either direction. Example 1 - Like on Lower timeframe if price is rising and face resistance near a bearish order block but volume on buying side is more it may give a breakout and this may be a good entry for long posn. Example 2 - But on Higher timeframe if price is rising and face resistance near a bearish order block but volume on buying side is less it may not give a breakout and this may be good entry for Short posn. So Order Block and volume correlation is equally important to analyse entry point. Volume increasing indicates a trend strength is increasing and volume decreasing means a trend strength is decreasing. Point 7 Conditions: - Lower Timeframe - Price rising & Near Bearish Order block (Supply zone) Facing Resistance - But Volume is more (Strong trend) - Likely Bull Breakout point - Long Position may fetch good results. - Lower Timeframe - Price rising & Near Bearish Order block (Supply zone) Facing Resistance - But Volume is Less (Weak trend) - Not Likely a Bull Breakout point - Long Position may Trap you so wait for confirmation or no trade. - Lower Timeframe - Price falling & Near Bullish Order block (Demand zone) Getting Support - But Volume is more (Strong trend) - Likely Bear Breakout point - Short Position may fetch good results. - Lower Timeframe - Price falling & Near Bullish Order block (Demand zone) Getting Support - But Volume is Less (Weak trend) - Not Likely a Bear Breakout point - Short Position may Trap you so wait for confirmation or no trade. - Higher Timeframe - Price rising & Near Bearish Order block (Supply zone) Facing Resistance - But Volume is more (Strong trend) - Avoid a Long/Short Position - it may Trap you so wait for confirmation or no trade. - Higher Timeframe - Price rising & Near Bearish Order block (Supply zone) Facing Resistance - But Volume is Less (Weak trend) - Likely a Bear Reversal point - Short Position may fetch good results. - Higher Timeframe - Price falling & Near Bullish Order block (Demand zone) Getting Support - But Volume is more (Strong trend) - Avoid a Long/Short Position - it may Trap you so wait for confirmation or no trade. - Higher Timeframe - Price falling & Near Bullish Order block (Demand zone) Getting Support - But Volume is Less (Weak trend) - Likely a Bull Reversal point - Long Position may fetch good results. 8. Price Imbalance Candle - Long Bullish or Bearish candle for entry. "Price Imbalance Candle" refers to a specific type of candles on a chart that suggests an imbalance between buying and selling pressure in the market. This is a candle with a relatively long body and small or no wicks, indicating a strong directional move. Bullish price imbalance candle may have a long bullish body- Indicating strong buying pressure and weak selling pressur in that time frame. Bearish price imbalance candle may have a long bearish body- Indicating strong selling pressure and weak buying pressure in that time frame. Generally its accuracy is more on higher timeframes. Point 8 Conditions: - When big Bullish candle is seen - mark its 50% level - let price retrace to this 50% level for Bull entry - Stoploss may be Slightly below this Candles Low. - When big Bearish candle is seen - mark its 50% level - let price retrace to this 50% level for Bear entry - Stoploss may be Slightly above this Candles High. 9. Importance of Fibonnaci Level: Its a vast topic to cover in itself. I am covering it in short here. In future i may post a detailed study on this topic. Fibonacci trading is a technical analysis approach that involves using Fibonacci retracement and extension levels to identify potential areas of support and resistance in financial markets. This method is based on the Fibonacci sequence, a mathematical concept where each number is the sum of the two preceding ones (e.g., 0, 1, 1, 2, 3, 5, 8, 13, ...). Fibonacci can be drawn on chart using fib from tradingview tools - its in many forms like fib channel, fib time zone, fib spiral, fib wedge etc. There are various fib indicators also available on the tradingview. Point 9 Conditions: Fibonacci trading is done in two ways: * Fibonacci Retracement Levels:Reversal zones in Bearish or Bullish trend. - Traders draw horizontal lines on a price chart at key Fibonacci levels, such as 23.6%, 38.2%, 50%, 61.8%, and 78.6%. - These levels represent potential retracement zones where a price might reverse temporarily before continuing in the primary trend. - Traders use Fibonacci retracement to identify potential entry points in the direction of the overall trend. * Fibonacci Extension Levels: Targets in Bearish or Bullish trend. - Extension levels are used to identify potential price targets in the direction of the prevailing trend. - Common extension levels include 127.2%, 161.8%, and 261.8%. - Traders may use these levels to set profit targets or to identify where a trend might encounter significant resistance. 10. Risk Management & Chart Time frame - Importance of Stoploss and Risk Reward along with Chart Timeframe. Again its a vast topic to cover in itself and a very important topic also. I am covering it in short here. In future i may post a detailed study on how risk may be managed in any trade. - Portfolio Diversification: Spread your investments across different cryptocurrencies to reduce the impact of poor performance in one asset on your overall portfolio. - Position Sizing:nDetermine the amount of capital to allocate to each trade based on your risk tolerance. Avoid putting all your funds into a single trade. - Stop-Loss Orders: Set predetermined price levels at which you will automatically sell to limit potential losses. This helps prevent significant downturns in your portfolio. - Risk-Reward Ratio: Establish a clear risk-reward ratio before entering a trade. Ensure the potential reward justifies the risk taken. This helps in making more informed decisions. - Research and Analysis: Stay informed about market trends, news, and fundamental analysis. - Use of Technical Analysis: Indicators and charts may be used to identify potential entry and exit points. This can help in predicting market movements and adjusting your strategy accordingly. - Limit Leverage: Be cautious with leverage, as it can amplify both gains and losses. High leverage increases the risk of liquidation and significant portfolio fluctuations. As a beginner maint Zero leverage. - Regular Review and Adjust: Periodically reassess your portfolio and trading strategy. Market conditions change, and adjusting your approach can help adapt to new trends and risks. - Stay Disciplined: Stick to your predefined trading plan and avoid impulsive decisions. Emotional reactions can lead to poor choices and increased risks. - Remember, Risks can't be zero. there's no foolproof strategy, but combining these risk management techniques may help mitigate potential losses in crypto trading. Chart Timeframe:- On 5 Min and 15 Min timeframe - Scalping Trades - for Breakout & Breakdown trades. On 4 Hour timeframe - Swing Trade - for Supply (Bearish OrderBlock) & demand (Bullish OrderBlock) trades. =========================================================================================================================================== NOW LETS TAKE AN EXAMPLE TO COMBINE ALL ABOVE 10 POINTS:- (More the points confirmation - More the accuracy) Point 1. Market Cycle shows Bullish Phase = So My Bias is Bullish (Long). Point 2. Market Cap Dominance Percentage chart Shows Interest is Increasing in Bitcoin = So Bitcoin or Altcoin which follow Bitcoin are my pick. Point 3. Open Interest Shows Total Open Interests Increasing, means Liquidity increasing = So right time to Enter in crypto market for me. Point 4. Long/Short Ratio shows Dominance of Buyers = So i will look for an opportunities in Long Position. Point 5. Strong Crypto for Buying = So i will choose Bitcoin or Fundamentally Strong Altcoin which dip less in bear Market. Point 6. Bitcoin Follower Coins = So Bitcoin or Altcoin which follow Bitcoin are my pick. Point 7. Order Block with volume and price correlation = So i will look for Demand Zone means Bullish Order Block for entry near support. Point 8. Price Imbalance Long Bullish Candle = So near that support zone i will look for a Price Imbalance Long Bullish Candle, i will mark its 50% level for entry. Point 9. Fibonnaci Levels for entry and exit = If this support and 50% imbalance candle mark is near Fib Retracement Levels it gives further confirmation of bull entry. Point 10. Risk Management & Chart Time frame = Now i may book Profit or Loss, keeping above risk management points in mind. =========================================================================================================================================== Notes:- Adding a few good indicators along with above 10 Points May further increase the accuracy. It's important to note that above points are just an idea of a comprehensive crypto trading strategy. Successful trading typically involves combining multiple indicators, risk management techniques, and a thorough understanding of market conditions. Like other many Strategies in the Market, Above Strategy also is not a holy grail. It can only assist you in building a good strategy for yourself. You can only succeed with proper position sizing, risk management and following correct trading Psychology (No overtrade, No greed, No revenge trade etc). ABOVE SHARED EXPLANATION AND STRATEGY IS FOR EDUCATIONAL PURPOSE ONLY. YOU MAY PAPER TRADE TO GAIN CONFIDENCE AND BUILD FURTHER ON THESE. This is for educational purpose only. Please consult your financial advisor before investing. we are not SEBI registered. Hope you like it Happy trading :-)
BITSTAMP:BTCUSDEducation
by MasterTrader1949X
3
Stock Selection Based on Relative StrengthHello, Here i will be talking about the process for picking up the stocks based upon the Relative Strength. As this is known to everyone but only few are getting benefitted by applying it in real trading. Most of the gains are made with the stocks having greater RSI. If RSI having > 75 those are the ones which create maximum wealth in Short time. Now, Question comes at what time frame it will apply and this depend upon the individual trading style. It works well on Daily, Weekly, and Monthly TF. The higher the timeframe the better the reward. This can be combined with the Price and Volume, It Can do wonder in your trading Journey. Screener for Stock Selection in Trading View:- - Go to Stock Screener Tab at bottom in the Tradingview. - Go to Filters - Symbol Type - Common Stock - Select New 52 Week High - Select Relative Strength Index (14) >=75 The above will filter out stocks on Daily Timeframe. You can add more filters according to your requirements and make your stock list more refine such as All Time High, New 6 Months high etc. and Make a list and look for opportunity. As i am a Price Sction trader i mix this with Price and Volume and ride the momentum. Few examples - Cupid, Glaxo You can try it and submit your feedback to me. Also, Tell me if you find something else which can be useful to the community. Together we can help eachother in Learing and excel in profession. Remember: I am a Price Action Trader and use Price and Volume together with different Timeframes, including RSI, and market conditions. To get best result always wait for confirmation. Focus on Risk Management and Position sizing. Treat trading like a business and it will pay you like a business…..!! Hope this post is helpful to community Thanks RastogiG
Editors' picks
NSE:GLAXOEducation
by RastogiG
10
Rahul's Road to Recovery: Battling Overtrading"Rahul's Redemption: Overcoming the Pitfalls of Overtrading" Once upon a time, in the bustling city of Mumbai, there lived a man named Rahul. Passionate about trading, Rahul was determined to make a fortune in the stock market. However, as the saying goes, "Too much of a good thing can be bad," Rahul found himself entangled in the web of overtrading. Rahul's journey began with zeal and promise, but his desire for quick gains led him down a perilous path. He succumbed to the allure of constant market action, making trades impulsively and without a solid strategy. The euphoria of potential profits clouded his judgment, and soon, the losses began to accumulate. In the depths of despair, Rahul realized he needed help. He turned to a mentor, an experienced trader named Aman, who empathized with his predicament. Aman had walked a similar path in his early days and understood the challenges Rahul faced. The Turning Point: Aman became Rahul's guiding light. He emphasized the importance of discipline and the dangers of overtrading. Together, they analyzed Rahul's past mistakes, identifying the triggers that led to impulsive decisions. Problem and Solution for Overtrading: - Problem: Overtrading occurs when a trader executes excessive transactions, often driven by emotions or the need to be constantly active in the market. - Solution: 1. Establish a Trading Plan: Define clear entry and exit points, risk tolerance, and profit targets before entering a trade. 2. Set Realistic Goals: Avoid the temptation of unrealistic profit expectations. Focus on consistent, sustainable growth. 3. Use Stop-Loss Orders: Implementing stop-loss orders helps limit potential losses and prevents emotional decision-making. 4. Regularly Review Trades: Analyze past trades to identify patterns and learn from mistakes. Keep a trading journal for self-reflection. With Aman's guidance, Rahul began to put these solutions into practice. He committed to sticking to his trading plan, embracing patience, and avoiding the impulsive urge to trade excessively. The Moral of the Story: Rahul's journey teaches us that setbacks are a part of the trading game, but learning from mistakes and seeking guidance can lead to redemption. The moral of the story is that discipline, a well-defined strategy, and mentorship are invaluable tools for overcoming the pitfalls of overtrading. As days turned into weeks and weeks into months, Rahul's efforts bore fruit. His trading approach became more disciplined, and he started to see consistent profits. The story of Rahul's redemption serves as an inspiration for every trader navigating the turbulent waters of the stock market. Remember, in the world of trading, it's not about the frequency of trades; it's about making the right trades at the right time.
Editors' picks
BSE:SENSEXEducation
by iamrk7
3
ICICIPRULI - Hindsight AnalysisA Higher High Higher Low structure on price action is considered as an uptrend. - In the weekly chart, identify the first break of Higher High after a Lower High. - Wait for Higher High retest and enter somewhere close to it. - Cannot expect a stock to test the exact same value. - Set SL as previous HL or in cases where there are other lows close by, choose the lowest one. - Calculate the possible loss assuming the stock hits SL - If you are OK with the calculated loss, enter. - Trail the SL at every new Higher Low. - Wait for breakdown of a Higher Low OR Target.
NSE:ICICIPRULIEducation
by srini_charts
Prestige Estates: Hindsight AnalysisNote that not all trades would result in huge profits As per the setup, wait for candle close (since this analysis is on a weekly candle, it's Friday after 3:15PM) A Higher High Higher Low structure on price action is considered as an uptrend. - In the weekly chart, identify the first break of Higher High. - Wait for Higher High retest and enter somewhere close to it. - Cannot expect a stock to test the exact same value. - Set SL as previous HL or in cases where there are other lows close by, choose the lowest one. - Calculate the possible loss assuming the stock hits SL - If you are OK with the calculated loss, enter. - Trail the SL at every new Higher Low. - Wait for breakdown of a Higher Low OR Target
NSE:PRESTIGEEducation
by srini_charts
NMDC: Hindsight Analysis: Loss TradeA good example of a trade where we followed the rules but still hit the StopLoss. That's why "don't put all your eggs in one basket". NOTE: There can be other ways of entering an exiting. However, the idea of sharing the instructions is to understand that it should be possible to trade with fixed set of rules. Some trades make huge gains, some don't move much and fewer make losses as well. Not a "Holy Grail Technique" A Higher High Higher Low structure on price action is considered as an uptrend. - In the weekly chart, identify the first break of Higher High. - Wait for Higher High retest and enter somewhere close to it. - Cannot expect a stock to test the exact same value. - Set SL as previous HL or in cases where there are other lows close by, choose the lowest one. - Calculate the possible loss assuming the stock hits SL - If you are OK with the calculated loss, enter. - Trail the SL at every new Higher Low. - Wait for breakdown of a Higher Low OR Target
NSE:NMDCEducation
by srini_charts
Supply & Demand Part 1We will talk about ranges, Premium & Discount levels and trading them. I'm going to explain the basics of Supply & Demand simply. This is Part 1 of a 2-part series. We’re going to cover the concept of buying high & selling low, ranges, Premium & Discount zones and taking entries & exits based on what we learned. Buying high & selling low Before we get into the topics, let's quickly understand the concept of buying high and selling low. We'll be using this concept throughout this idea. Why is it good to buy low and sell high? Let's imagine that we're trying to buy & sell a pair of shoes. If you buy at the 0.25 level and price goes up to 0.75, you make a profit. But if you bought at 0.5 and price goes up to 0.75, you would make less profit. If you buy at 0.25 and price goes down to 0, you make a loss. But if you buy at 0.5, you make much more of a loss. In the examples above, we can see that buying low is beneficial because it reduces how much money we lose and at the same time increases how much we can earn. The same logic can be applied to a sell. If we sell high at 0.75, we have less money to lose if price goes to 1 AND at the same time, we have more money to gain if price goes down to 0.25. But if we sell at 0.5, we have more money to lose (if price goes up to 1) and less money to gain (if price goes down to 0.25) The point is that it’s best to sell high and buy low. Range Let’s talk about what a range is. A range is the area between the latest swing high and swing low. A new range is formed when structure is broken and confirmed. Let’s look at how structure is broken. (a bearish structure break) We have our swing high and swing low to the left of the chart. This is currently our range. Then, price pulls back up and closes below the swing low (it breaks structure to the downside). A structure break only happens when a candle’s close is below the last swing low. Always check this on the previous candle and not on the current realtime bar which is forming. The current realtime bar will repaint and we won’t be sure if the close of the candle will actually remain below the last swing low (until the candle has finished forming). Now that our break of structure happened, we have to confirm the new low which just formed. We confirm this low by waiting for price to come up again and close (and not just form a wick) inside the range we had. Now, we know that our new low is confirmed. Once our new low has been confirmed, we can draw our new range. The new range’s top will be the highest high (i.e. the high which caused that confirmed low). The new range’s bottom will be the confirmed low. Let’s look at how a bullish structure break is formed. We have our range to the left of the chart. then, price comes down and then closes above the range. Now, we have an unconfirmed high. To confirm this high, we wait for price to close back inside the range. Once that’s done, we have our new range. Premium & Discount zones To understand Premium and Discount zones, let’s use a fib. The fib is divided into 4 zones: 0%, 25%, 75%, 100% A premium zone is the upper 25% (75% - 100%) of the fib and a discount zone is the bottom 25% (25% - 0%) of the fib. The other area in the middle (25% - 75%) is fair pricing. Aim to buy when price reaches the Discount zone (buy low) and sell when price reaches the Premium zone (sell high). Combining ranges with zones Let’s look at a way we can use what we learned to take entries and exits. For a buy: look for a bullish structure break. Then wait for price to close inside the range (to confirm the bullish structure break). Now, we have a new range. Draw a fib on the new range. Wait for price to reach the Discount zone of that fib. A candle low should be within the discount zone. You can buy there. Exit when price reaches the bottom/top part of the premium zone. If price fails to go down to the Discount zone to give us an entry and instead reaches the Premium zone and goes even higher above the new range, that means that a new range formed and we have to wait for this new range to be confirmed. This new range’s top will be the high that was broken, and the bottom will be the low that caused the move up which broke the high. Wait for price to close inside this new range for it to be confirmed. Then we have to wait for our buy signal again. For a sell: look for a bearish structure break. Then wait for price to close inside the range (to confirm the bullish structure break. That is our new range. Draw a fib on the new range and wait for a candle high to reach within the Premium zone. Sell there. Exit when price reaches the bottom/top part of the Discount zone. If price fails to go up to the Premium zone to give us an entry and instead reaches the Discount zone and goes even lower below the new range, that means that a new range formed and we have to wait for this new range to be confirmed. Our new range’s bottom will be the low that was broken, and the top will be the high that caused the move that broke the low. Wait for price to close inside this new range for it to be confirmed. Then we have to wait for our sell signal again. I hope you find this useful!
Education
by SamaaraDas
Options: Buying vs. Selling - A Comprehensive GuideExploring the realm of options trading unveils two key players: Buyers and Sellers. Each wields unique strategies with its mix of risks and rewards. Let's break it down in simple terms. # Option Buyers: Riding on Possibilities Chances of Making Money (PoP): Buyers aim for good market moves, counting on accurate predictions within a specific time. Risk: For buyers, risks are limited. Losses only go as far as the premium paid. Time Pressure: Buyers fight against time. Being right means aligning predictions with a set timeframe. Volatility Impact: Buyers gain when things get more uncertain, making their options potentially more valuable. Market Moves Matter: Buyers thrive when the market goes up or down; they bet on a specific direction. Skill Needed: While simpler than selling, buyers need a good sense of market trends. # Option Sellers: Crafting Strategies with Care Chances of Making Money (PoP): Sellers prefer stable or slightly tricky markets, benefitting from time passing by. Risk Check: Sellers face unlimited risks if the market moves too much against them. Time on Their Side: Sellers like time passing; it works in their favor. Volatility Impact: Less drama is better for sellers; it makes their options lose less value. Direction Doesn’t Matter Much: Sellers can make money in quieter markets; they have more room to move. Skill Level: Selling needs more skill, involving clever strategies and calculations. # What Decides Success: A Mix of Factors Winning in the options game is about reading the market, knowing your risk appetite, and being smart with strategies. - Chances of Making Money: Buyers look for clear market trends, while sellers like it stable. - Risk Game: Buyers have limits on losses; sellers need to watch out for big market moves. - Time’s Effect: Buyers fight against time; sellers make time work for them. - Cost and Volatility: Buyers pay more, and gain from more drama. Sellers earn from premiums and like calm markets. Succeeding in options trading is about thinking smart, adapting to what the market gives, and keeping your skills sharp. Grateful for Your Support! 🌟 To our amazing 150+ followers, your enthusiasm fuels our journey! 🚀 Thank you for being part of our community, and decoding financial mysteries together. Here's to more insights and learning ahead.
BSE:SENSEXEducation
by iamrk7
The Jan to Dec of Technical Analysis - 1 strategy per month1. January - The Value at Play Before we start discussing the different technical chart patterns, we need to have some clarity on how buying and selling happens on stocks and options. Every trade has a buyer or seller. That means at a specific point in time, for a specific price there are 2 conflicting thoughts Someone who thinks the price is too cheap Someone who thinks the price is damn expensive The guy who thinks the stock/option is cheap is ready to buy and the guy who thinks it is expensive and it is a good time to sell. Just think, how is it that two people can have conflicting mindsets about the same instrument at the same time? I am 100% sure that both of them cannot be right, one of them is making a wrong decision. Over time - 5 minutes, 50 minutes, 5 hours, 50 hours, 5 days, 50 days, or 500 days - whatever the period be, that particular instrument will tick away from the quoted price - either move up or move down. This leads to the important question - what is the fair value? If you have an internal price gauging mechanism - you can quickly calculate if the price quoted is below or above the fair value. Wow, that looks exciting - can you give me the shortcut to calculate the fair price? Unfortunately, there is no holy grail that does it for you, over time you need to develop that tool or spreadsheet. Have you heard the saying, “Veterans are good stock pickers” - It is mainly because of their experience in the markets. They have developed the intuition to guess the fair value when they see the ticker tape without relying on a spreadsheet or calculator. The first rule is “Never buy anything at a premium and never sell anything at a discount”. This rule does not guarantee that you will not lose money - but it is a filter that weeds out poor decision-making. The question arises - how do I calculate the fair price of a stock or options strike? A good place to start would be to start reading “The Little Book of Valuation: How to Value a Company, Pick a Stock and Profit (Little Books. Big Profits) by Aswath Damodaran” - you can even finish the book in 2 straight hours. It gives some insights into valuation techniques. Most valuation methods available in the markets are part of “Fundamental Analysis”, you might ask me - “What does that have to do with Technical Analysis?”. My answer is everything. Technical Analysis is the process of guessing the future price by looking at the historical data. But what the stock/option has to do with the price today is mostly due to fundamental reasons. A mix of fundamental + technical study is much better than pure fundamental or pure technical analysis. These days lot of people have turned to options trading as a side gig to make some extra money. Someone would have told them, that it is easy to make money in options trading. The biggest mistake they make would be to short-sell a strike too cheap and buy a strike too pricey. Option premiums do not move in a linear pattern and are totally different from the valuation techniques used to gauge the underlying. If you are able to calculate the fair value of a particular strike with some level of accuracy - then you can avoid selling it cheap and buying it pricey. More often than not, not taking a trade would be the best trade there is. If something is way above your price level, choose not to buy. If way below, choose not to sell. Have faith that a better opportunity will come and gather the courage to skip the trade. There are 2 option types - CALLS and PUTS. The option strikes above the current trading price are called CALLS and the strikes below the price are called PUTS. The premiums of these far-away strikes are not that easy to calculate or guess, mainly because the prices are derived by a few factors like price movements, time, level of uncertainty & the interest rates in the markets. This makes options trading like a double-edged sword. You get it right - it will reward you more than you can imagine. You get it wrong - it will take away what you have and more. I think hard guessing the fair value of a particular strike of a stock or index is 10 times more complicated than assessing the intrinsic value of that index/stock. This means if you took 15mts to find out the fair value of say “PQR” stock, you might take 150+ minutes to assess the price of a strike say 2600 CE when PQR is trading at 2500. The challenge here is that, once you calculate the fair price - the goal post would have shifted. A change in time will affect the strike prices as “time” is a variable that contributes to its value - so it is a moving target. Now tell me, what would you call someone when they say “Options trading is easy”, “You can make 100000 in 1 month with just Rs1000 capital”, “100% guaranteed success in options trading…” etc. The next thing to know is the difference between trading and investing. Both are tools intended to make money but the main difference is the “time” component. Investing is usually done with no particular “time” value in mind whereas trading is done for a specific “time period”. That is why you hear people say, I have bought “XYZ” stock for the long term - Even if it appreciates in price say 10% in 10 days, the investor may not sell it. Partly because they do not want to miss out on further gains after selling. On the other hand, trading is done with a specific time frame in mind. The trader is only worried about the prices during that window. What happens after that is none of this botheration. The fear of missing out seldom affects the trader because they know their next opportunity will come if they keep looking. Time has more relevance & weightage than you can possibly imagine. In fact, price is relative to time and it is not the other way around. You can physically measure this concept in options trading wherein strikes go to zero value on the expiry date. The major index options have weekly expiry and the stock options have monthly expiry. So a particular strike will go from “X” value to “0” value in a week. Also important to note that during this lifecycle the strike could swing between X to 4X to 100X to 0.5X to 0.2X and end at 0 after the expiry. The prices of a strike are much more volatile than their underlying - this is the main reason options trading is a double-edged sword. Generally, people do not respect time. Most of them respect money more than time. The decisions they make are usually to save money even if it means to waste time. If you are into stock markets - that should change. Even though your purpose is to make money - you should give the due credit to the “time factor”. Let me explain with an example. A trader buys 100 qty of ABC at 1500 intending to sell it at 1600 once the results are out. If on the results day the prices drop to 1400 - that trader will say “Let me not book the loss, I will hold it for some more time for the prices to recover”. In this particular instance, the trader is not ready to book the loss but hoping that his money will recover. Most long-term investors are traders who forget to close their trades. A trader has to have a 180-degree opposite mindset of an investor because we are playing with limited resources. If your money is blocked on a particular trade for a period longer than your calculation - then it is 100% true that you will not be able to take another trade when there is an opportunity. No trader in the world has unlimited resources and unlimited leverage but all of them have got the exact same amount of time per day. If you know how to manage the time - the money will find a way. This comes to the final segment of this chapter - “Value at Play”. It means the amount of money adjusted for the time factor to the reward it brings in. You might be familiar with the word “Value at Risk” (VaR). Value at Play is something similar but not measured in the same way. .... to be continued...
TVC:SPXEducation
by viswaram
Understanding Impact of Bond Yield Differential on EquitiesOver the past decade the interest rate differential between US and India has been constantly going down. This has largely been due to stronger fiscal position of India and also gradual weakening of US Public Finances. This has led to the Rupee becoming more stable against the Greenback, thereby reducing the rate of inflation in India. Further, this has resulted in rising of equity markets over the last decade, and more importantly, the same setup is likely to stay or become better over the next two decades. Hence long term retail investors in India can benefit from this by placing algo based orders to buy Index ETFs on dips and reduce their cost of buying and stay invested over the long term thereby getting benefit of power of compounding. --------------------- Trading View Script:
Editors' picks
TVC:IN10YEducation
by MBIPL
7
Nifty2015-16 vs 2021-23Price has a habit of repeating historical pattern, as patterns are nothing but psychology of thousands of traders watching same charts. Nifty currently is showing very similar price pattern on daily timeframe which it developed in 2015-16, where previously it made a top and then was facing a resistance on falling trendline and sort of made triple/multiple tops. It finally broke out of it by making a double bottom on daily charts and then started another upmove. This upmove got fizzled out and made a rounding top pattern, and potentially those who were active that time would have faced similar dilemma which traders are currently facing that if this rounding top sort of formation breakdown then what are downside target. That didn't happened and Nifty made another double bottom around Dec 2016 and post which it rallied and rest is history where dream run of Nifty started and it went on to make a new high until 2020, when Covid crash came. Similarly, in current chart of 2021-23 session (as of today), Nifty has shown similar price pattern of facing resistance at a falling trendline then breaking out of it via a double bottom formation and making a new high. Post which it has now corrected and is sort of making another rounding top. Will Nifty survive the swing lows around 16750 or will it break and invite fresh aggressive shorts to trap them and then run away - only time will tell that, but these are just observations with an anticipations that potentially this correction will also get over very soon and we are may be near to bottom formation and then start a fresh up move. There is no trade recommendation here and these are just observations for learning purpose Nifty 2015-16 Nifty 2021-23
Editors' picks
NSE:NIFTYEducation
by aktradelearning
29
How to compare relative performance between stocks and indices ?You can compare the relative performance by using the compare option on charts. The compare function tool is used to compare the market movements of two or more different symbols simultaneously. Popular use for a comparison chart is comparing two companies within the same sector. Click on the 'Compare or Add symbol button' (displayed as plus sign) on the toolbar along the top of the chart, search and add the indices/stock which you would like to compare. You will see a representation of the percentage comparison from the beginning price point to the current price. To delete the comparison line right-click on it and click on ‘Remove’. This example is comparison chart of Nifty Bank and Nifty PSU Bank. After 13 years approx i.e. November, 2010 - December, 2023: Nifty Bank - 263% Positive Nifty PSU Bank - 6% Positive I hope this little information on comparing indices/stocks is useful. Please feel free to write any additional information in the comments section below. Thanks and happy learning/trading. Disclaimer: This is for demonstration and educational purpose only. This is not buying or selling recommendations. I am not SEBI registered. Please consult your financial advisor before taking any trade.
NSE:CNXPSUBANKEducation
by MandeepSinghKohli
4
Options Decoded: Intrinsic Value, Moneyness RevealedCracking the Code: Understanding Intrinsic Value and Moneyness in Options Trading Welcome to the journey of unraveling the mysteries of options trading. Today, we'll demystify two crucial concepts: Intrinsic Value and Moneyness. Let's dive in. # Moneyness in a Nutshell In options trading, Moneyness is the magic word that describes the relationship between the option's strike price and the current price of the underlying asset. It's like deciphering the secret code to assess an option's potential profitability. At-the-Money (ATM) Options: An option is ATM when its strike price closely aligns with the current market price of the asset. No profits or losses just yet. Example: If a stock is at ₹1,000, an ATM call and put option would both have a strike price of ₹1,000. In-the-Money (ITM) Options: ITM options have a strike price favorable for profits if exercised immediately. They come with a higher premium. Example: With the stock at ₹1,000, a call option with a ₹950 strike is ITM, and a put option with a ₹1,050 strike is also ITM. Out-of-the-Money (OTM) Options: OTM options have a strike price unfavorable for immediate profits. They have a lower premium. Example: If the stock is at ₹1,000, a call option with a ₹1,050 strike is OTM, and a put option with a ₹950 strike is OTM. Moneyness is a dynamic concept. An option that's ATM now can become ITM or OTM as the underlying asset's price moves. # Demystifying Intrinsic Value Now, let's spotlight Intrinsic Value, the hidden treasure within an option. Intrinsic Value is the real, tangible value an option holds. For Call Options: - Intrinsic Value = Spot Price - Call Option Strike Price Scenario 1: If Bank Nifty is at ₹40,000 and the call option strike is ₹39,000, - Intrinsic Value = ₹1,000 (Profitable) Scenario 2: Call option strike at ₹40,500, - Intrinsic Value = ₹0 (Non-Negative) Scenario 3: Call option strike at ₹41,500, - Intrinsic Value = ₹0 (Non-Negative) For Put Options: - Intrinsic Value = Put Option Strike Price - Spot Price Scenario 4: Put option strike at ₹41,000, - Intrinsic Value = ₹1,000 (Profitable) Scenario 5: Put option strike at ₹39,500, - Intrinsic Value = ₹500 (Profitable) Scenario 6: Put option strike at ₹38,000, - Intrinsic Value = ₹0 (Non-Negative) Remember, Intrinsic Value can't go negative. It represents the concrete worth of the option based on the current market conditions. Mastering these concepts is like wielding a powerful sword in the options trading arena. Stay tuned for more insights into the fascinating world of financial possibilities! Also Thank You for the Love! 🌟 Dear followers, your enthusiasm and support have propelled us to 100 followers! 🎉 Your engagement and love for our content keep us motivated.
BSE:SENSEXEducation
by iamrk7
3
Trading Gyan 👑👑🤑💸💸💸💸💸 ​Technical trading is a broader style that is not necessarily limited to trading. Generally, a technician uses historical patterns of trading data to predict what might happen to stocks in the future. This is the same method practiced by economists and meteorologists: looking to the past for insight into the future. NOTE #We Are Not Promote Anything #This channel Purpose to share market ideas. Thanks for Watching🙏
NSE:BANKNIFTYEducation
by Optionclub
2