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Support and Resistance

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.
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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.
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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.
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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
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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.
BSE:SENSEXEducation
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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.
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OPTION TRADING When you trade options, you're essentially placing a bet on if a stock will decrease, increase or remain the same in value; how much it will deviate from its current price; and in what time those changes will occur. Based on those parameters, you can choose to enter into a contract to buy or sell a company's stock. 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.
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DATABASE TRADING Trading data providers supply real-time and historical information relating to stocks and securities traded on various global financial exchanges. Opah Labs. Based in USA. Delivering deep proprietary industry data across a broad range of sectors to create cutting-edge insights. Stock exchanges and data vendors are great sources for institutions. Retain traders can use broker APIs as it's more economical. As a trader, you must be quick and analytical, and good-quality data is the way to go
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PROFESSIONAL TRADAER ( point of view )A professional trader is someone who buys and sells securities frequently for short-term benefits. An investor generally buys and sells securities for long term capital gains and dividends. What is a professional trader? A professional trader is a person who works in finance and engaged in investing as a business or in a full-time role rather than occasionally or as a hobby. They may work for themselves, at a trading company, at a wealth management firm or as a freelance trader for individual clients. The estimated total pay for a Trader is ₹13,41,500 per year, with an average salary of ₹8,41,500 per year. This number represents the median, which is the midpoint of the ranges from our proprietary Total Pay Estimate model and based on salaries collected from our users.
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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.
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Divergence in Trading What is Divergence? Divergence is when the asset price moves in the direction opposite to what a technical indicator indicates. When a stock is diverging, it signals weaker price trends and the beginning of a reversal Seeing divergence increases profitability by alerting a trader to protect profits. Technical traders generally use divergence when the price moves in the opposite direction of a technical indicator. Strong divergence is the most reliable type of divergence, often signaling a significant reversal. It occurs when the price makes a new high or low, but the indicator fails to do so, indicating weakening momentum.
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Lecture for option trader Derivatives - Options & Futures: Interactive Brokers. Practical Guide to Trading: Interactive Brokers. Trading Strategies in Emerging Markets: Indian School of Business. Financial Engineering and Risk Management: Columbia University. If you think the stock price will move up: buy a call option, sell a put option. If you think the stock price will stay stable: sell a call option or sell a put option. If you think the stock price will go down: buy a put option, sell a call option.
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Database information for traderCandlestick charts are perhaps the most widely used among active traders. In some ways, candlestick charts blend the benefits of line and bar charts as they convey both time and impact value. Each candlestick represents a specific timeframe and displays opening, closing, high, and low prices. Price Data: Real-time and historical prices of stocks, commodities, and currencies. Volume Data: Details on traded quantities within specific timeframes. Order Book Data: Insights into buy and sell orders at different price levels. Market Timestamps: Precise timing of trades and market events.
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Option chain and full knowledge about 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. Options trading is a type of financial trading that allows investors to buy or sell the right to purchase or sell an underlying asset at a fixed price, at a future date. Options trading operates on the basis that the buyer has the option to exercise the contract but is not under any obligation to do so
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Technical concepts in trading Technical analysis is a means of examining and predicting price movements in the financial markets, by using historical price charts and market statistics. It is based on the idea that if a trader can identify previous market patterns, they can form a fairly accurate prediction of future price trajectories. The 3 5 7 rule is a risk management strategy in trading that emphasizes limiting risk on each individual trade to 3% of the trading capital, keeping overall exposure to 5% across all trades, and ensuring that winning trades yield at least 7% more profit than losing trades
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Few Important Information about tranding Few Important Information about tranding Trading refers to the process of buying and selling financial assets, including stocks, bonds, currencies, and commodities. Trading is done with the explicit goal of making profits from price changes in the short term. Trading involves the buying and selling of financial assets, such as stocks, to earn profits based on the price fluctuations of these assets. There are different types of trading, and traders use various strategies, techniques, and tools to decide when to buy or sell different assets
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PCR Trading Option A Advance Guide 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. One way to calculate PCR is by dividing the number of open interest in a Put contract by the number of open interest in Call option at the same strike price and expiry date on any given day. It can also be calculated by dividing put trading volume by call trading volume on a given day.
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ADX 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. Many traders consider the ADX to be the ultimate trend gauge because it is so reliable. ADX quantifies trend strength by measuring the degree of directional movement in price. ADX calculations are based on a moving average of price range expansion or contraction over a given period. The default setting is 14 periods, although other settings can be used. ADX can be used with any financial security, including stocks, exchange-traded funds, and futures. The average directional index, known as ADX, is a technical tool used by traders to gauge trend strength. Trading with the trend is considered a fundamental trading practice that reduces risk and increases profit potential. ADX calculations use a moving average of price range expansion or contraction. ADX is less useful when prices enter a trading range. While ADX is a lagging indicator, it is considered reliable.
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Strength Index (RSI) IndicatorThe 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.
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professional trading mindsetThey are disciplined in their trading and can view the market objectively, regardless of how current market action is affecting their account balance. They don't give in to being excessively excited about winning trades or excessively despairing about losing trades. Stick to Your Discipline. ... Lose the Crowd. ... Engage Your Trading Plan. ... Don't Cut Corners. ... Avoid the Obvious. ... Don't Break Your Rules. ... Avoid Market Gurus. ... Use Your Intuition.
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Concept Of Support and Resistance & Roles ExchangeDefination Of Support and Resistance levels-: The support and resistance (S&R) are specific price points on a chart expected to attract the maximum amount of either buying or selling. The support price is a price at which one can expect more buyers than sellers. Likewise, the resistance price is a price at which one can expect more sellers than buyers. Particular defination-: Resistance As the name suggests, resistance is something which stops the price from rising further. The resistance level is a price point on the chart where traders expect maximum supply (in terms of selling) for the stock/index. The resistance level is always above the current market price. The likelihood of the price rising to the resistance level, consolidating, absorbing all the supply, and declining is high. The resistance is one of the critical technical analysis tools which market participants look at in a rising market. The resistance often acts as a trigger to sell. Support understanding the support level should be quite simple and intuitive. As the name suggests, support is something that prevents the price from falling further. The support level is a price point on the chart where the trader expects maximum demand (in terms of buying) coming into the stock/index. Whenever the price falls to the support line, it is likely to bounce back. The support level is always below the current market price. Reliability of S&R The support and resistance lines are only indicative of a possible reversal of prices. They by no means should be taken for ascertain. Like anything else in technical analysis, one should weigh the possibility of an event occurring (based on patterns) in terms of probability. Key takeaways from this chapter 1-S&R are price points on the chart 2-Support is a price point below the current market price that indicate buying interest. 3-Resistance is a price point above the current market price that indicate selling interest. 4-To identify S&R, place a horizontal line in such a way that it connects at least 3 price action zones, well-spaced in time. The more number of price action zones (well spaced in time) the horizontal line connects, the stronger is S&R 5-S&R can be used to identify targets for the trade. For a long trade, look for the immediate resistance level as the target. For a short trade, look for the immediate support level as the target. 6-Lastly, comply with the checklist for optimal trading results How support and resistance changes their roles-: If the price falls below a support level, that level will become resistance. If the price rises above a resistance level, it will often become support. As the price moves past a level of support or resistance, it is thought that supply and demand has shifted, causing the breached level to reverse its role. Examples by Snapshots-: Support become Resistance Resistance become Support Conclusion Technical analysis is one approach of attempting to determine the future price of a security or market. Some investors may use fundamental analysis and technical analysis together; they’ll use fundamental analysis to determine what to buy and technical analysis to determine when to buy. Don’t forget that technical analysis is not an exact science and it is subject to interpretation. If you continue your study of technical analysis, you’ll likely hear someone say it is more of an art than a science. As with any discipline, it takes work and dedication to become adept at it. Best Regards- Amit rajan
NSE:NIFTYEducation
by AMIT-RAJAN
13
How to use 30 Min High & Low First Candle by HSBHow to use 30 Min High & Low First Candle by HSB This Indicator is designed to trade breakouts within a custom trading session. When the price crosses above the session's high line, it enters a long position with a stop loss at the session's low line. The script also provides options to customize the appearance of the chart, including displaying session lines and extending them if desired. Before using this script for live trading, make sure to thoroughly backtest it and consider any modifications or improvements based on your specific trading requirements and risk tolerance.
NSE:BANKBARODAEducation
by harvinderSBrar
1