Stocks
Option chainAn option chain is a comprehensive list that shows you all available option contracts for a given stock. These are sorted by their expiration date, which is the last day you can trade or use the option, and strike price, which is the price at which you can buy (call) or sell (put) the stock.
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.
option trading 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.
When options are better. Options can be a better choice when you want to limit risk to a certain amount. Options can allow you to earn a stock-like return while investing less money, so they can be a way to limit your risk within certain bounds. Options can be a useful strategy when you're an advanced investor.
Option and database trading ow Options Trading Is Different.
Relative Strength Index (RSI)
Bollinger Bands.
Intraday Momentum Index (IMI)
Money Flow Index (MFI)
Put-Call Ratio (PCR) Indicator.
Open Interest (OI)
FAQs.
An option chain, sometimes referred to as an option matrix, is a fundamental tool in the world of options trading. It provides traders and investors with a comprehensive view of available options for a particular underlying asset, such as stocks, indices, or commodities.
ADX Advance ClassKey takeaways. Average directional index (ADX) is a short-term chart indicator. It can be used to help you evaluate the market or an investment's strength. ADX currently suggests the short-term momentum behind stocks may be strong, with a caveat.
The ADX provides the dominant decision-making criteria—allowing you to see whether there is a trend or not and how strong it may be. The RSI provides the secondary evidence—real-time analysis of whether that investment is in overbought or oversold territory.
Learn Option ChainTo study an option chain, focus on the current market price, displayed in the centre. Analyse the built-up data to understand market direction based on recent changes in open interest and price. ITM call options are typically highlighted in yellow, making it easier to distinguish them from other options.
Nifty option chain is considered to be the best advance warning system of sharp moves or break outs in the index.
MACD In Trading The Moving Average Convergence/Divergence indicator is a momentum oscillator primarily used to trade trends. Although it is an oscillator, it is not typically used to identify over bought or oversold conditions. It appears on the chart as two lines which oscillate without boundaries.
Traders often use MACD with longer-term moving averages like the 50-day or 200-day moving average. If the price is above these averages and MACD signals a buy, it reinforces the bullish trend. On the flip side, if the price is below the moving averages and MACD signals a sell, it indicates a strong bearish trend.
How to draw support and resistance The most reliable source for identifying support and resistance levels is historical prices, making them invaluable to traders. The key is to familiarise yourself with past patterns – sometimes from very recent activity – so you can recognise them if they appear again.
Simply mark visible highs and lows on your chart; the higher highs and lower highs will serve as resistance levels, whereas the lower lows and higher lows will serve as support levels. It is always recommended that these lines are marked on longer timeframes to have reliable support and resistance levels.
Option chain in tradingAn 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.
3 Amazing swing trading idea for 26 December MarketsI daily make educational content videos for swing / positional trading
Gulf oil trade idea: This idea is about a breakout trade that went sideways at the breakout point and is currently in a no-trading zone, pink zones tell you about what to do next
Axiscades trade idea: This idea is about the weekly time frame breakout, its at a strong resistance area of a hidden parallel channel, needs a strong closing for the same
Indigo trade idea: This idea is also a breakout idea on Daily time frame but needs to follow a set of market structure from here on and price action to give a nice trade activation
Technical trading for traderTechnical trading is the practice of using price-based trading strategies to make short-term trades. It relies heavily on technical analysis, which uses past and current data to identify trends in the market.
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.
2 Potential Swing trading stocks for 23 December MarketsI daily make educational content videos for swing / positional trading
Both are Potential swing trading ideas that are not active yet. I have explained the setup, pattern, and line-making behind them with a solid plan. Let's see if the plan gets activated.
2 Amazing swing trading idea for 20 December MarketsBoth are Breakout trading ideas. One has a nice volume cluster concept along with a nearby hidden line. The other seems like a sleek price action pattern on a weekly time frame but needs closing on Friday. Make your journals for the same, and let's observe the charts tomorrow.
2 Amazing swing trading idea for 19 December MarketsI daily make educational content videos for swing / positional trading
Analyzed Gravita and Technoe stocks based on counter-trendline breakout price action, mother candles, and pattern trading. Despite solid setups, I discussed risk management and why I chose not to enter. Perfect examples of amazing price action opportunities!
Technical analysis MACDMACD is a momentum indicator, which follows trends and belongs to the oscillator family of technical indicators. It permits you to: According to the relationship between two moving averages, determine the current trend direction (bullish or bearish) and forecast where the price is more likely to go.
The 12 represents a moving average of the previous 12 bars. The 26 represents a moving average of the previous 26 bars. The 9 represents a moving average of the difference between the two moving averages above.
Option And Database trading To study an option chain, focus on the current market price, displayed in the centre. Analyse the built-up data to understand market direction based on recent changes in open interest and price. ITM call options are typically highlighted in yellow, making it easier to distinguish them from other options.
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