option chain analysisTo 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.
Techincalanalysis
RSI basic to advanceAn 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.
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
POLICYBZR Long#POLICYBZR on a swing Trade.
Entry: 1700-1750
SL: 1620
Target: 1820/1940/2100/ 2225
Happy Trading!!!
The decline follows news that PB Fintech is reportedly planning a foray into the healthcare sector by launching its chain of hospitals, sparking investor scepticism and adding pressure to the stock.
MACD Trading #Technical AnalysisMACD measures the relationship between two EMAs to indicate momentum and potential trade reversals, while the RSI seeks out overbought and oversold conditions by evaluating recent price action. These indicators are often used together to give analysts a more complete technical picture.
The MACD is a technical indicator designed to help traders and investors identify and time potential buy and sell opportunities. The MACD displays moving averages and a histogram to identify trends and measure their momentum.
Management with PsychologyMastering trading psychology is a crucial component of achieving consistent success in the financial markets. By understanding and managing emotions, avoiding common pitfalls, and embracing individual strengths and weaknesses, traders can elevate their decision-making process.
The Psychological Support/Resistance indicator aims to provide the user with hypothetical support and resistance zones that are likely to provoke a strong reaction in price, either in both directions, providing good bouncing zones or significant movements once those levels are breached.
Video For New TradersTrading psychology is the emotional component of an investor's decision-making process, which may help explain why some decisions appear more rational than others. Trading psychology is characterized primarily by the influence of both greed and fear. Greed drives decisions that might be too risky.
The London session accounts for about 34% of the daily forex trading volume, making it the most active session. London is one of the world's financial hubs, with the largest financial institutions and banks engaging in huge trading activities in the city. These naturally impact the movements of world currencies.
Support and ResistanceTOP-10 Support and Resistance Indicators
Fibonacci Levels.
Support and Resistance Zones Indicator.
Linear Regression.
Margin Zones Indicator.
Trend Lines.
Fair Value Gaps.
Stacked Imbalance Indicator.
Psychological Levels.
The basic strategy is to buy at the support level and sell at the resistance level, recognizing that these are zones of potential demand and supply changes. How does resistance work?
Management and PsychologyTrading Psychology simply refers to the feelings and emotions of a trader experiences and the associated actions the trader takes as a result. Just like in any other aspect of life, understanding how our mind works can improve our ability to trade better, take more informed, rational decisions and calculated risk.
How do I master my trading psychology?
What is Trading Psychology? ...
1) Create a Trading Plan. ...
2) Take Regular Breaks. ...
3) Don't Quit Your Day Job. ...
4) Accept That You Will Lose. ...
5) Practice, Practice, Practice. ...
6) Use a Take Profit and a Stop Loss. ...
7) Backtest Your Trading Strategy.
More items...
Database Part 2Options 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.
Option trading is largely a skill requiring knowledge of market trends, strategies, and risk management techniques. While there is an element of uncertainty in the markets, successful traders rely on analysis, planning, and discipline rather than luck.
option TradingOption trading is largely a skill requiring knowledge of market trends, strategies, and risk management techniques. While there is an element of uncertainty in the markets, successful traders rely on analysis, planning, and discipline rather than luck.
If a person trades for excitement or social proofing reasons, rather than in a methodical way, they are likely trading in a gambling style. If a person trades only to win, they are likely gambling. Traders with a "must-win" attitude will often fail to recognize a losing trade and exit their positions.
Database option TradingOptions 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.
Options are highly sensitive to market volatility. Significant price swings can lead to substantial gains or losses. A trader might buy a put option expecting a stock to drop. If the stock instead surges in price due to unforeseen events, the value of the put option plummets.
Database TradingYou can get started trading options by opening an account, choosing to buy or sell puts or calls, and choosing an appropriate strike price and timeframe. Generally speaking, call buyers and put sellers profit when the underlying stock rises in value. Put buyers and call sellers profit when it falls.
Charles Dow occupies a huge place in the history of finance. He founded The Wall Street Journal – the benchmark by which all financial papers are measured – and, more importantly for our purpose, he created the Dow Jones Industrial Index. In doing so, Dow opened the door to technical analysis.
RSI Divergence 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.
Successful trades often occur when the RSI crosses above 30 (indicating a buy signal) or below 70 (indicating a sell signal). Adjusting the RSI period to 9 can make it more sensitive to price changes and be suitable for more active trading strategies.
Advanced Trading with StepsIf a person trades for excitement or social proofing reasons, rather than in a methodical way, they are likely trading in a gambling style. If a person trades only to win, they are likely gambling. Traders with a "must-win" attitude will often fail to recognize a losing trade and exit their positions.
Swing trading is a popular trading strategy designed to take advantage of price movements or 'swings' in the markets. Swing traders look to buy or sell an asset before its value makes its next substantial move, before closing their position for a profit.
Technical AnalysisTechnical 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.
Technical analysis is a strategy for predicting movement in the stock market, or other securities markets, that relies on information from short periods of time. For this reason, day traders or other short-term traders often use technical analysis.
Trading RoadmapOptions are highly sensitive to market volatility. Significant price swings can lead to substantial gains or losses. A trader might buy a put option expecting a stock to drop. If the stock instead surges in price due to unforeseen events, the value of the put option plummets.
Market Volatility: The futures and options markets are known for their high volatility, meaning prices can change rapidly and unpredictably. If you happen to be on the wrong side of one of these price swings, you can lose a tremendous amount of money in a very short amount of time.
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.
Advanced Swing TradingThe 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.
USD/CHF Poised for a Bullish Breakout: Path to Parity Bullish Scenario 🚀📈
1. Breakout Above the EMA (200) 🔺:
If the price closes above the 200-week EMA (0.9082), it could confirm a long-term bullish trend reversal.
A strong push may target key levels like 0.9500 and eventually 1.0000 (parity) 🎯, as shown by the projection arrow.
2. RSI Support 💪:
The RSI above 50 indicates that buyers are gaining momentum.
If RSI trends toward 70, it signals even stronger bullish momentum ✅📊.
3. Higher Highs and Higher Lows 📶:
The chart is forming higher highs and higher lows, a classic signal of an uptrend.
This pattern supports a move toward higher price levels 🚀.
🔥 Key Takeaway: A breakout above the EMA could spark a powerful rally, with parity (1.0000) as a major psychological target.
Database Option Trading Options are highly sensitive to market volatility. Significant price swings can lead to substantial gains or losses. A trader might buy a put option expecting a stock to drop. If the stock instead surges in price due to unforeseen events, the value of the put option plummets.
Call options give buyers the right, but not the obligation, to buy a stock for a fixed price, on or before some date. Buying call options on a stock can be more profitable — but also more risky in percentage-change terms — than buying that stock itself.
Technical Analysis 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.
What exactly are the two types of technical analysis? Chart patterns and technical (statistical) indicators are the two main types of technical analysis. Chart patterns are a subjective type of technical analysis in which technicians use certain patterns to indicate regions of support and resistance on a chart.
Option TradingOptions 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.