Option Chain part 2 An option chain lists all option contracts, including put and call option for given security. However, several traders focus on net change,' 'bid,' 'last price,' and 'ask,' columns to assess current market conditions. Option chain is also called the option matrix.
How does an option chain work? An option chain displays available call and put options for a specific underlying asset, with their strike prices, premiums, and open interest. It provides a snapshot of market sentiment and potential price movements.
Community ideas
Price action trading In simple words, ' Price Action Trading is a trading technique in which a trader reads the market and makes subjective trading decisions based on the price movements, rather than relying on technical indicators or other factors.
Price action strategies can be highly profitable when applied correctly. Many traders, both beginners and experienced traders, prefer this method because it simplifies decision-making by focusing on price behavior rather than relying on technical indicators, often providing conflicting price action signals.
Option Chain in trading An option chain lists all option contracts, including put and call option for given security. However, several traders focus on net change,' 'bid,' 'last price,' and 'ask,' columns to assess current market conditions. Option chain is also called the option matrix.
How does an option chain work? An option chain displays available call and put options for a specific underlying asset, with their strike prices, premiums, and open interest. It provides a snapshot of market sentiment and potential price movements.
Gold trading strategy January 10, NF newsWhere will the gold trading strategy go for the first NONFARM news of the year ???
⚫ Gold Prices Stable with Growth Prospects
Spot gold holds steady at $2,670.16 per ounce, expected to rise over 1% this week, marking its best week since November 2024.
⚫ Focus on Nonfarm Data
December 2024 Nonfarm report is projected to show an increase of 160,000 jobs, lower than the 227,000 gain in November, which may impact the Fed's interest rate policy.
⚫ Factors Supporting Gold
Increased demand for safe-haven assets amid economic uncertainties.
President-elect Trump’s policies, expected to raise inflation through tariffs and protectionist measures.
⚫ Fed Policy Outlook
Kansas Fed President Esther George opposes further rate cuts, citing the U.S. economy's recovery and inflation remaining above the 2% target.
The market is now awaiting the official U.S. jobs report for more clarity on the Fed's policy trajectory.
At the latest Fed meeting, policymakers agreed that inflation is likely to continue slowing this year but noted persistent risks of price pressures due to potential impacts from President-elect Donald Trump’s policies, according to meeting minutes.
Mr. Trump will assume office on January 20, 2025. The proposed tariffs and protectionist policies are expected to drive up inflation.
Gold is viewed as a hedge against inflation, but high interest rates reduce the appeal of non-yielding assets.
Fundamental Analysis
The news continues to support gold's growth outlook. Despite the strong performance of the USD (DXY), gold has shown resilience, maintaining its upward trend.
Technical Analysis
In recent days, gold has been stable within upward trend channels, signaling sustainable momentum in the current price range. Observing the candlestick patterns reveals that buyers are strongly dominating, pushing the price towards critical resistance levels.
Today’s Nonfarm Payrolls report is particularly crucial as the first significant economic data release of the year. Global investors are expected to closely watch this report, as it could significantly influence market movements for the month or even longer. Price fluctuations are likely to be substantial, with anticipated ranges of 40-50 points compared to previous Nonfarm reports. Stay cautious.
Trading Strategy for Asian/European Sessions
BUY SCALP: 2662 - 2660
SL: 2656
TP: 2668 - 2672 - 2676 - 2680
BUY ZONE: 2646 - 2644
SL: 2640
TP: 2650 - 2654 - 2660 - ????
SELL SCALP: 2678 - 2680
SL: 2683
TP: 2674 - 2670 - 2668
SELL SCALP: 2690 - 2692
SL: 2696
TP: 2684 - 2682 - 2680 - 2676
SELL ZONE: 2704 - 2706
SL: 2710
TP: 2700 - 2696 - 2692 - 2888
As mentioned, today is expected to see significant volatility due to the critical Nonfarm report and Friday's weekly candle close. Stay cautious, follow your TP/SL strictly, and manage your account carefully.
GOOD LUCK!
Nifty - Expiry day analysis Jan 9I have applied TPO(time price opportunity) profile in the chart. Important levels can be POC, VAL and VAH.
We had two side movement today. 23700 zone will act as trend deciding level tomorrow.
Buy above 23720 with the stop loss of 23680 for the targets 23760, 23800, 23860 and 23890.
Sell below 23640 with the stop loss of 23680 for the targets 23600, 23560, 23520 and 23480.
Do you own analysis before taking any trade.
BANKNIFTY Levels for January 9, 2025
BANKNIFTY Levels for Today
Here are the today's BANKNIFTY Levels for intraday. Based on market movement, these levels can act as support, resistance or both.
Please consider these levels only if there is movement in index and 15m candle sustains at the given levels.
The SL (Stop loss) for each BUY trade should be the previous RED candle below the given level. Similarly, the SL (Stop loss) for each SELL trade should be the previous GREEN candle above the given level.
Note: This idea and these levels are only for learning and educational purpose.
Your likes /boosts gives us motivation for continued leaning and sharing ideas.
DON'T Repeat the same mistake AGAINWhy Do People Lose All Their Money in Bear Markets?
Bear markets are a natural phase of the market cycle, yet they leave many traders and investors with empty pockets and crushed spirits. While bull markets are often forgiving, bear markets expose every weakness in a trader's strategy, psychology, and risk management. Let’s explore the primary reasons why people lose all their money in bear markets—and how you can avoid being one of them.
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1. Over-Leverage: The Silent Killer
In a bull market, leverage feels like a magic wand that amplifies gains. But in a bear market, it becomes a double-edged sword. The sharp declines and volatile swings wipe out positions faster than traders can react. Many fail to respect the power of compounding losses and find themselves caught in margin calls.
Lesson: If you can’t trade without leverage, you’re not ready to trade with it. Lower your position size and respect volatility.
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2. Refusing to Accept Losses
A common mistake is holding onto losing positions, hoping the market will "come back." This approach might work during a bull market, but in a bear market, prices can continue falling for months—or years. The refusal to cut losses often turns small, manageable losses into catastrophic ones.
Lesson: Pros take losses; amateurs let them grow. Set stop-loss levels and stick to them.
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3. Emotional Trading
Fear and greed are magnified in a bear market. Panic selling, revenge trading after a loss, or impulsively jumping into trades out of frustration often lead to poor decisions. Emotional trading is a sure path to ruin.
Lesson:Bear markets require a calm mind. Create a trading plan and execute it systematically, without letting emotions take over.
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4. Lack of Risk Management
Bear markets punish traders who don't respect risk. Many traders bet too much of their portfolio on a single trade or fail to diversify. When the market moves against them, they’re left with nothing to fall back on.
Lesson: Follow the golden rule: Never risk more than 1-2% of your capital on a single trade. Survival is the key to success.
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5. Trying to Predict the Bottom
"Buy the dip" is a popular mantra, but in a bear market, dips often keep dipping. Trying to time the exact bottom can lead to repeated losses as prices continue to decline. This approach often exhausts both capital and confidence.
Lesson: Focus on following the trend rather than fighting it. Wait for clear signs of reversal before committing capital.
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6. Overconfidence from Bull Markets
In a bull market, almost everyone makes money. This success can create a false sense of skill, leading traders to underestimate the risks of a bear market. Overconfidence often results in poor decision-making and excessive risk-taking.
Lesson:The skills required to succeed in bear markets are different. Humility and adaptability are crucial.
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7. Ignoring the Macro Picture
Bear markets often coincide with larger economic challenges, such as rising interest rates, geopolitical tensions, or declining corporate earnings. Traders who ignore these factors often misjudge the market’s trajectory and fail to adjust their strategies.
Lesson:Stay informed about macroeconomic trends. Use them to align your trades with the broader market conditions.
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How to Survive and Thrive in Bear Markets
Bear markets aren’t just a test of strategy; they’re a test of discipline, patience, and resilience. Here’s how you can emerge stronger:
- Prioritize Capital Preservation: Your first goal is to survive. Avoid unnecessary risks and focus on protecting your portfolio.
- Educate Yourself: Bear markets offer valuable lessons. Learn from your mistakes and refine your strategy.
- Embrace Flexibility:Be willing to short the market or stay on the sidelines when conditions are unfavorable.
- Think Long-Term: For investors, bear markets are an opportunity to accumulate quality assets at a discount.
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Final Thoughts
Bear markets are inevitable, but losing all your money in them isn’t. The traders and investors who survive—and thrive—are those who respect risk, control their emotions, and adapt to changing conditions. Remember, the goal isn’t to win every trade but to stay in the game long enough to capitalize on the next bull run.
What’s your experience with bear markets? Let’s discuss in the comments below.
FOLLOW ME for more such content ahead....Till then
HAPPY TRADING :)
Nifty 50: Breakdown in Channel with Key Support Levels AheadHello guy's i hope you all will be doing good in your life and your trading as well. Today i have brough an analysis on Nifty 50 Index as it is showing signs of weakness after a confirmed breakdown in the descending channel. This breakdown has significant implications for the short-term trend, indicating that bearish momentum could dominate unless strong support levels hold. Let’s break this down further:
Breakdown in the Channel:
The price has decisively broken below the lower boundary of the descending channel, indicating bearish sentiment.
This suggests that sellers are in control, and any recovery attempts might face strong resistance at higher levels.
Resistance Zone at 24,056.25:
The zone near 24,056.25 acts as a key resistance. This level marks the upper limit where selling pressure could resume if there’s a pullback.
Traders should watch this level closely, as a failure to break above it will reinforce the bearish outlook.
Next Immediate Support at 23,257.90:
The level 23,257.90 represents the next critical support. Buyers may attempt to defend this zone to prevent further downside.
A breach of this support could lead to an accelerated sell-off.
Lower Support at 22,158.75:
If the selling pressure continues, the price could head toward the 22,158.75 level, which is a significant area of interest.
This zone aligns with the lower projections and could act as a strong base for a potential reversal.
Volume Observation:
The volume spike during the breakdown adds weight to the bearish case. Sustained high volume on declines would confirm the continuation of the downtrend.
Bearish Projection:
Based on the price structure, a breakdown typically leads to a retest of prior support levels. In this case, the index could test levels closer to 22,158.75 if the bearish momentum persists.
The descending pattern further supports the possibility of a continuation in the downtrend.
Outcome: Traders should remain cautious as the short-term bias remains bearish. Monitoring the 23,257.90 support is crucial, as a breakdown below this level could open the door for further downside. On the flip side, any recovery attempts would need to overcome the 24,056.25 resistance zone to change the narrative.
Key Takeaways:
Watch 23,257.90 for support and 24,056.25 for resistance.
Below 23,257.90, the next target is likely 22,158.75.
A sustained move back into the channel would invalidate the bearish setup.
Disclaimer: This post is for educational purposes and not financial advice. Always do your research and manage your risk.
Don’t forget to like and follow for more trading ideas like this. Check out my profile @TraderRahulPal for other detailed insights into technical and fundamental setups. Let’s grow together!
NIFTY MATHEMATICAL LEVELSThese Levels are based on purely mathematical calculations.
Validity of levels are upto expiry of current week.
How to use these levels :-
* Mark these levels on your chart.
* Safe players Can use 15 min Time Frame
* Risky Traders Can use 5 min. Time Frame
* When Candle give Breakout / Breakdown to any level we have to enter with High/Low of that breaking candle.
* Targets will be another level marked on chart
* Stop Loss will be Low/High of that Breaking Candle.
* Trail your SL with every candle.
* Avoid Big Candles as SL will be high then.
* This is one of the Best Risk Reward Setup.
For Educational purpose only
C2C. Trading in a BOX. Potential Stage 2 candidate.C2C Advanced System. A recently listed IPO, broke out of IPO high and after a continuous bull run now consolidating and forming a base. Watch for base breakout. It looks good positionally.
🟢Entry: 926.5( Preferably wait for a day close)
Enter with 30% and wait for a retest.
🟢SL 779(Day Closing Basis)
🟢Target: 1146+
🟢RR: 1:1.5
⚠️ The broader market is bearish. The probability of breakouts failing will increase. If you are a beginner do not trade, or trade very lightly. Position sizing is really important.
BUY TODAY SELL TOMORROW for 5% DON’T HAVE TIME TO MANAGE YOUR TRADES?
- Take BTST trades at 3:25 pm every day
- Try to exit by taking 4-7% profit of each trade
- SL can also be maintained as closing below the low of the breakout candle
Now, why do I prefer BTST over swing trades? The primary reason is that I have observed that 90% of the stocks give most of the movement in just 1-2 days and the rest of the time they either consolidate or fall
Trendline Support in RKFORGE
BUY TODAY SELL TOMORROW for 5%
NIFTY | DIRT CHEAP | BUY NIFTY is trading at considerably low PE and expect to reach 24000-25000 within Feb
There's no reason why it should keep going down. Remember
Rupee is devalued , so exporting companies will report better margins ( Software, chem, agri etc)
It's been hammered to match expiry rates (I believe) and now it might shoot up anytime. Nobody when when, but as per chart patterns and technical indicators, it will be super fast and quick, giving no room to enter fresh positions
Time to buy NIFTY for a considerably safe and sure return.
I am bulk buying now, holding timeline till budget or Feb
Summarizing this week Gold Call .Gold call took rejection from Demand Zone reached Supply Zone . gave 1200 points target
Rejection from Supply booked 300 points as Indian market was about to close and there was gap on chart filled hence booked .
Took buy call on Break out of supply zone . CMP 78627 +375 running.
Gold Call buy 76800 target 78000 1200 points
Sell 77900 target 77600 gap filling . and close the call
Buy 78250 High 78793 CMP 78600 .
BANKNIFTY MTHEMATICAL LEVELSThese Levels are based on purely mathematical calculations.
Validity of levels are upto Thursday of next Week.
How to use these levels :-
* Mark these levels on your chart.
* Safe players Can use 15 min Time Frame
* Risky Traders Can use 5 min. Time Frame
* When Candle give Breakout / Breakdown to any level we have to enter with High/Low of that breaking candle.
* Targets will be another level marked on chart
* Stop Loss will be Low/High of that Breaking Candle.
* Trail your SL with every candle.
* Avoid Big Candles as SL will be high then.
* This is one of the Best Risk Reward Setup.
For Educational purpose only
Bitcoin will go downStrategy 1: Short from Supply H4 Zone (With 2 Entries)
Short Setup:
Entry 1: 96,500 USDT (First Supply H4 zone)
Entry 2: 99,200 USDT (Second Supply zone near the psychological level of 100k)
Stop Loss (SL): 100,500 USDT (Placed above the strong Supply zone and psychological level)
Take Profit (TP):
TP1: 93,000 USDT (Nearest support level)
TP2: 91,200 USDT (Close to the Demand Zone)
TP3: 89,800 USDT (Main Demand Zone)
Risk Management:
Split the position into two parts, each with 50% risk.
Entry 1 at 96,500 USDT
Entry 2 at 99,200 USDT
Risk-to-Reward Ratio (R:R): ~1:3 or better, depending on your take profit targets.
🟢 Strategy 2: Long from Demand Zone (Adjusted Stop Loss)
Long Setup:
Entry: 89,800 - 91,000 USDT (Strong Demand Zone)
Stop Loss (SL): 90,200 USDT
Take Profit (TP):
TP1: 93,000 USDT
TP2: 96,500 USDT (Supply H4 Zone)
TP3: 98,000 USDT
Please leave a comment to let me know you've been following. Good luck.
Time to get CAUTIOUS !!BANKNIFTY can be seen closing below 50000 mark which had been an important support and psychological level, also the major trend line as well demand zone has been broken with formation like inverted head and shoulders structure hence FRIDAY could really be an important day to decide further rally. If managed to close above 50000 then we may see some respite and recover else major selling is expected of more than 3000++ points in coming trading sessions so plan your trades accordingly.
NIFTY Levels for January 9, 2025NIFTY Levels for January 9, 2025
NIFTY Levels for Today
Here are the today's NIFTY Levels for intraday. Based on market movement, these levels can act as support, resistance or both.
Please consider these levels only if there is movement in index and 15m candle sustains at the given levels.
The SL (Stop loss) for each BUY trade should be the previous RED candle below the given level. Similarly, the SL (Stop loss) for each SELL trade should be the previous GREEN candle above the given level.
Note: This idea and these levels are only for learning and educational purpose.
Your likes /boosts gives us motivation for continued leaning and sharing ideas.