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Support and Resistance

how to draw support & resistance Support: Draw a horizontal line along the most recent low or lows where price reversed or consolidated. This will mark the support zone. Resistance: Draw a horizontal line along the most recent high or highs where price reversed or faced rejection. This will mark the resistance zone Support and resistance can be found in all charting time periods; daily, weekly, and monthly. Traders also find support and resistance in smaller time frames like one-minute and five-minute charts. But the longer the time period, the more significant the support or resistance.
NSE:HDFCBANKEducation
by SkyTradingZone
3
RSI in trading The relative strength index (RSI) is a momentum indicator that measures recent price changes as it moves between 0 and 100. The RSI provides short-term buy and sell signals and is used to track the overbought and oversold levels of an asset. 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.
NSE:HDFCBANKEducation
by SkyTradingZone
3
Database in Trading part 2TLDR; ArticDB looks to be the best current option. CSV - Simplest, slowest, largest and no data types can lead to type errors when loading. SQL Database - typically transactional row store (OLTP), slow for analysis (OLAP), difficult to shard and parallelize workloads over clusters. While MongoDB proved the fastest to read and write end-of-day OHLC (Open, High, Low, Close) data — the SQL solutions were 1.5 × to 3 × slower — in terms of costs MongoDB was definitely the most expensive due to its commercial licensing costs.
NSE:M&MFINEducation
by SkyTradingZone
Option Chain in Trading An option chain is a detailed list of all available option contracts for a specific stock, including their strike prices and expiration dates. 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.
NSE:BANKNIFTYEducation
by SkyTradingZone
Nifty 50: Double Bottom Pattern & Price Channel InsightsNifty 50 Analysis - A Learning Opportunity Let’s break down what’s happening in the chart: 1. Double Bottom Pattern Do you see that "W" shape forming on the chart? That’s called a double bottom pattern. It’s one of the most reliable indicators that the market might reverse from a downtrend to an uptrend. This happens because the price tested a low point twice but couldn’t go lower, showing that buyers stepped in strongly. 2. Support Zone The highlighted area on the chart is a support zone. Think of it as a safety net where the price tends to stop falling because buyers jump in. This zone has shown its importance before, so it’s no surprise that the market reversed here again. 3. Price Channel Notice how the price is moving within that green channel? That’s an ascending price channel, which means the market is trending upwards in a structured way. The bottom line of the channel acts as support, while the top acts as resistance. It’s like a guide to understanding how the price might behave if the trend continues. 4. MACD Indicator At the bottom, you’ll see the MACD (Moving Average Convergence Divergence) indicator. It’s showing signs of momentum improving. The lines are coming closer together, and if they cross upwards, it confirms the trend shift. It’s like getting a green light for the bullish move. What Can We Learn From This? 1. Patterns Tell a Story The double bottom pattern tells us that buyers are stepping up, and sellers are losing strength. Learning to recognize this pattern early can give you a head start in understanding market trends. 2. Support Zones Matter Support zones are like battlefields where buyers and sellers fight for control. When the price bounces off a support zone, it shows that buyers are winning. These zones are great reference points for understanding market movements. 3. Channels Are Roadmaps Price channels give structure to the market. The price tends to respect the channel boundaries, so understanding these can help you anticipate where the price might head next. 4. Indicators Confirm Trends The MACD is like a second opinion—it helps confirm what the chart is already telling you. Watching for a crossover or changes in the histogram can give you confidence in your analysis. Why This Matters Understanding these patterns and indicators isn’t about predicting the future—it’s about reading what the market is telling us right now. It’s a way to build confidence in your ability to analyze charts and make informed decisions. Keep practicing, and soon, identifying patterns, channels, and key zones will become second nature! If you found this analysis insightful, don’t forget to hit like and follow for more such content! For related trading ideas and educational posts, check out our profile @TraderRahulPal Let’s learn and grow together!
NSE:NIFTYEducation
by TraderRahulPal
6
NSE Option Chain Significance of NSE Option Chain Offers a glance at the in-the-money (ITM) and out-the-money (OTM) options. It proves useful for assessing the depth and liquidity of specific strikes. It aids traders to find option premium against its corresponding maturity date and strike price. An 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.
NSE:NIFTYEducation
by SkyTradingZone
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. Trading options offers a number of benefits for an active trader: Options can offer high returns and do so over a short period, allowing you to multiply your money quickly if your wager is right. With options, it can cost less to get the same exposure to a stock's price movement than it does to buy the stock directly.
NSE:M&MFINEducation
by SkyTradingZone
Option and database trading 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. The most successful options strategy for consistent income generation is the covered call strategy. An investor sells call options against shares of a stock already owned in their portfolio with covered calls. This allows them to collect premium income while holding the underlying investment.
NSE:HDFCBANKEducation
by SkyTradingZone
how to drow support and resistance Open a price chart. The first step is to identify the instrument you want to analyze. ... Find the significant highs and lows. Look for the significant turning points or swing highs and lows. ... Draw the support and resistance lines. ... Check for validity. To identify S&R, place a horizontal line to connect at least three price action zones, well-spaced in time. The more price action zones (well spaced in time) the horizontal line associates, the stronger is S&R. S&R can be used to identify targets for the trade.
NSE:BANKNIFTYEducation
by SkyTradingZone
database trading 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. The United Nations Commodity Trade Statistics Database (UN Comtrade) contains detailed imports and exports statistics reported by statistical authorities of close to 200 countries or areas. It concerns annual trade data from 1962 to the most recent year.
NSE:M&MFINEducation
by SkyTradingZone
PCR Part 1PCR is based on three simple steps required for any DNA synthesis reaction: (1) denaturation of the template into single strands; (2) annealing of primers to each original strand for new strand synthesis; and (3) extension of the new DNA strands from the primers. Assembly PCR – longer DNA fragments are aplified by using overlapping primers. Asymmetric PCR – only one strand of the target DNA is amplified. In situ PCR – PCR that takes place in cells, or in fixed tissue on a slide.
NSE:HDFCBANKEducation
by SkyTradingZone
ADX in trading The average directional index (ADX) is a technical indicator used by traders to determine the strength of a financial security's price trend. It helps them reduce risk and increase profit potential by trading in the direction of a strong trend. There are far too many fake breakouts that can leave traders trapped in a bad trade position. The ADX helps validate breakouts. That is, when the price breaks out with an ADX reading of above 25, it implies that momentum in the new direction can be sustained.
NSE:HDFCBANKEducation
by SkyTradingZone
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.
NSE:BANKNIFTYEducation
by SkyTradingZone
Technical and option trading Imagine you are trading futures. You agree to buy or sell an asset at a specified price in the future. Options, on the other hand, grant you the right (but not the obligation) to buy or sell an asset at a certain price in the future. Leverage allows you to engage in these markets with less initial capital. Relative Strength Index (RSI) Bollinger Bands. Intraday Momentum Index (IMI) Money Flow Index (MFI) Put-Call Ratio (PCR) Indicator. Open Interest (OI) FAQs. The Bottom Line.
NSE:BANKNIFTYEducation
by SkyTradingZone
Option trading 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. You don't need a considerable sum of money to become an options trader. You can start small with a capital of less than Rs 2 lakhs too. However, as you start small, you need to be a careful trader so that you can cut down on the possibility of losses and enhance the return potential of your trades.
NSE:HDFCBANKEducation
by SkyTradingZone
Learn technical trading Open a demat account. ... Understand stock quotes. ... Bids and asks. ... Fundamental and technical knowledge of stock. ... Learn to stop the loss. ... Ask an expert. ... Start with safer stocks. Start by reading foundational books and taking reputable courses to build a solid theoretical understanding of technical analysis, Set realistic goals, maintain emotional discipline, and continually refine strategies through learning and practical experience.
NSE:NIFTYEducation
by SkyTradingZone
Relative Strength Index (RSI) IndicatorThe best RSI settings are typically a 14-period timeframe with 70 as the overbought level and 30 as the oversold level. These settings can be adjusted based on specific trading strategies. Low RSI levels, typically below 30 (red line), indicate oversold conditions—generating a potential buy signal. Conversely, high RSI levels, typically above 70 (green line), indicate overbought conditions—generating a potential sell signal. Helps identify trend direction: RSI can help traders identify the direction of the trend. If the RSI is above 50, it indicates a bullish trend, while a reading below 50 indicates a bearish trend. By identifying the trend direction, traders can make better decisions on whether to buy or sell.
NSE:BANKNIFTYEducation
by SkyTradingZone
Option chain Option chains provide specific data related to options contracts, including strike prices, expiration dates, implied volatility, and open interest. Traders use this data to construct options strategies, manage risk, and profit from price movements in the underlying asset. NSE's online Real time Data Feed. NSE's real time data is provided in various levels (level 1, level 2, level 3 and tick by tick) across segments such as Capital Market, Futures & Options, Currency Derivative and Wholesale Debt Market. Nifty option chain is considered to be the best advance warning system of sharp moves or break outs in the index.
NSE:BANKNIFTYEducation
by SkyTradingZone
technical lecture class 2Technical 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.
NSE:BANKNIFTYEducation
by SkyTradingZone