PCR in trading The Put-Call Ratio (PCR) is a popular technical indicator used by investors to assess market sentiment. It is calculated by dividing the volume or open interest of put options by call options over a specific time period. A higher PCR suggests bearish sentiment, while a lower PCR indicates bullish sentiment.
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.
Support
Technical trading Technical analysis is a trading strategy used by investors to identify new investment possibilities. To anticipate future price movements of stocks or other assets, for example, past price and volume data is studied and shown on graphic charts, where trends, patterns, and technical indicators can be identified.
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.
Option and Database trading 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.
Rupeezy, Upstox, and Zerodha offer the best option trading apps in the market because their innovative trading platform allows traders to seamlessly analyze and trade in the market.
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.
RSI and Database in Trading 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.
When the RSI crosses above 70, it suggests that the asset may be overbought. This means that a price correction or pullback could be imminent. ...
Learn Option in 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.
Or as it's conveniently named, 1 Long put closer to the money, 1 short put further from the money, and 2 more short puts even further from the money. Preferably, as far away as possible while maintaining a net credit for the trade.
RSI in trading 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 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.
Adx part 1The ADX quantifies trend strength by measuring directional movement over a given time frame. It provides traders with specific numbers (from 0 to 100) that represent strong or weak price trends. Traders can simply refer to the numbers to quickly assess the strength of a trend.
ADX below 20: Non-trending or consolidating.
ADX crosses above 20: A new trend may emerge.
ADX crosses 25: Confirmation of the trend.
ADX above 40: Strong trend.
ADX crosses 50: Extremely strong trend.
ADX crosses 70: A rare occasion.
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.
Learn option trading with us The seller (or writer) of options accepts the obligation to buy or sell should the purchaser exercise their right. U.S. investors can trade options on a wide range of financial products—from individual stocks or stock exchange-traded funds (ETFs) to indexes, foreign currencies and more
The process for how to learn stock options trading is quite simple. You need to immerse yourself in educational resources, and then put what you've learned to practice. But – what we recommend is to practice with paper trading before you actually spend real money on options.
Advanced RSI IndicatorA 7-period RSI with settings of 10 and 90 works best. The tighter timeframe and thresholds help spot immediate trading opportunities. With settings of 10 and 90 a scalper can: Enter long positions when RSI dips below 1
It can signal when to buy and sell. Traditionally, an RSI reading of 70 or above indicates an overbought condition. A reading of 30 or below indicates an oversold condition. The RSI is one of the most popular technical indicators, and it is generally available on most trading platforms offered by online stock brokers.
Technical trading Technical analysis is a trading strategy used by investors to identify new investment possibilities. To anticipate future price movements of stocks or other assets, for example, past price and volume data is studied and shown on graphic charts, where trends, patterns, and technical indicators can be identified.
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.
Technical Trading Technical analysis is a trading strategy used by investors to identify new investment possibilities. To anticipate future price movements of stocks or other assets, for example, past price and volume data is studied and shown on graphic charts, where trends, patterns, and technical indicators can be identified.
There is virtually no limit to the profit potential of technical analysis. Profitability within the discipline largely depends on the trader's expertise, adherence to tried and tested strategies, and the amount of risk undertaken and capital employed by the trader.
Technical AnalysisWhether you're scalping forex or investing in stocks, you can make use of technical analysis to find and plan trades. It can also provide an excellent method of determining your entry and exit points for a position. As we've seen in earlier courses, a market rarely moves in a straight line.
average true range (ATR)
Moving average convergence/divergence (MACD)
Fibonacci retracements.
Relative strength index (RSI)
Pivot point.
Stochastic.
Parabolic SAR.
Trading databaseTrading data is a sub-category of financial market data. It provides real-time information about stock and market prices as well as historical trends for assets such as equities, fixed-income products, currencies and derivatives.
SQL remains a fundamental tool for querying and managing data. SQL's simplicity and power make it accessible to both beginners and experts. In trading systems, SQL enables efficient data retrieval and manipulation. Users can write SQL queries to analyze market trends and execute trading strategies.
Parquet - Original first choice and most often the best choice for projects for all of the reasons discussed here. Best compression (roughly 3x smaller than HDF5 and 10x smaller than CSV), Best read time (when using multi cores) and best compatibility with different systems
RSI divergence indicatorAn RSI divergence occurs when the indicator and price begin to reach different levels, indicating a change in momentum that precedes a change in price direction. For example, a bullish divergence occurs when the security makes a lower low but the indicator forms a higher low.
What is the best RSI setting for divergence?
What is the best RSI setting for divergence? The default RSI setting is a 14-period, which works well for most traders. However, shorter settings (like 7) increase signal sensitivity, while longer settings (like 21) reduce noise and offer more reliable signals, especially for long-term trading.
Option chain in trading What is Implied Volatility (IV)? Implied Volatility (IV) uses an option price to determine and calculate what the current market is talking about, the future volatility of the option's underlying stock. Implied volatility is one of the six essential factors used in options pricing models.
The Nifty Option Chain provides a listing of all the available options contracts for the Nifty 50 Index; including the strike prices, expiry dates, and the corresponding premiums. The list shows all call and put options that are available against a specific underlying.
ADX: The Trend Strength IndicatorThe 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.
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.
From Novice to Pro: Navigating Support & Resistance Like a BossGreetings to all. I trust that you are all thriving in both your personal lives and trading endeavors. Today, I present educational content aimed at understanding the concepts of support and resistance in chart analysis.
Support and resistance are key concepts in technical analysis used to identify potential price levels where an asset's price might reverse, stall, or consolidate. They are often visualized on a price chart and are critical for traders making decisions about entry, exit, and stop-loss levels.
1. Support:
Definition: Support is a price level at which a downward trend may pause or reverse due to a concentration of buying interest.
Why it works: Traders perceive this level as a "bargain," increasing demand and preventing further price drops.
Visualization: On a chart, support levels often appear as a horizontal line or a sloping line below the current price where previous price action reversed or consolidated.
Breakthroughs: If the price breaks below a support level, it may indicate a continuation of the downtrend.
2. Resistance:
Definition: Resistance is a price level where an upward trend might pause or reverse due to selling pressure or profit-taking.
Why it works: Traders perceive this level as "expensive," reducing demand and increasing selling activity.
Visualization: On a chart, resistance levels are horizontal or sloping lines above the current price where the price struggled to move higher in the past.
Breakthroughs: If the price breaks above a resistance level, it may indicate the start of a new upward trend.
Common Characteristics of Support and Resistance:
Role Reversal: Once a support level is broken, it often becomes a new resistance level, and vice versa.
Psychological Levels: Round numbers (e.g., $50, $100) often act as strong support or resistance due to psychological significance.
Volume Confirmation : High trading volume near these levels reinforces their strength.
Types of Support and Resistance:
Horizontal Lines: Based on past price action.
Trendlines : Diagonal lines formed by connecting higher lows (support) or lower highs (resistance) in a trend.
Moving Averages: Dynamic levels that adjust with price movement, often acting as support or resistance.
Fibonacci Retracement: Levels based on mathematical ratios indicating potential reversal zones.
How to Use Support and Resistance:
Entry Points: Buy near support levels or after a breakout above resistance.
Exit Points: Sell near resistance levels or after a breakdown below support.
Risk Management: Place stop-loss orders just below support (for long positions) or above resistance (for short positions).
Today, I decided to share some educational content, as my previous posts have primarily focused on trade ideas. I hope that you all would find this educational material valuable and engaging. If you appreciate this type of content, I encourage you to show your support by liking this post and following me for more educational insights in the future.
Option Chain in Trading What is Implied Volatility (IV)? Implied Volatility (IV) uses an option price to determine and calculate what the current market is talking about, the future volatility of the option's underlying stock. Implied volatility is one of the six essential factors used in options pricing models
The Nifty Option Chain provides a listing of all the available options contracts for the Nifty 50 Index; including the strike prices, expiry dates, and the corresponding premiums. The list shows all call and put options that are available against a specific underlying
The most successful options strategy is one that has the highest probability of profit, taking into consideration the trader's market outlook. In a bull market, selling puts can be a profitable strategy due to the statistical edge of most puts expiring worthless
How to get profit by option chain in trading For long calls: If the underlying is above the strike price on expiration, the profit is the underlying price on expiry – strike price – premium paid per contract. If the underlying is at or below the strike price on expiration, the option has no value so your loss is the premium paid to buy the call option.
Options trading can be one of the most lucrative ways to trade in the financial markets. Traders only have to put up a relatively small amount of money to take advantage of the power of options to magnify their gains, allowing them to multiply their money many times, often in weeks or months.
What is Option Chain ?Options chain can be defined as the listing of all option contracts. It comes with two different sections: call and put. A call option means a contract that gives you the right but does not give you the obligation to buy an underlying asset at a particular price and within the option's expiration date.
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.






















