Divergence Trading Divergence is when the price of an asset is moving in the opposite direction of a technical indicator, such as an oscillator, or is moving contrary to other data. Divergence warns that the current price trend may be weakening, and in some cases may lead to the price changing direction.
Trade!
PCR TradingThe Put Call Ratio (PCR) is a tool in the stock market to understand how investors feel about a stock or the market's future. It compares the number of put options to call options traded. More puts traded mean investors expect prices to fall (bearish). More calls traded mean investors expect prices to rise (bullish).
A PCR above 1 indicates that the put volume has exceeded the call volume. It indicates an increase in the bearish sentiment. A PCR below 1 indicates that the call volume exceeds the put volume. It signifies a bullish market ahead.
Option and Database TradingThe 80% Rule is a Market Profile concept and strategy. If the market opens (or moves outside of the value area ) and then moves back into the value area for two consecutive 30-min-bars, then the 80% rule states that there is a high probability of completely filling the value area.
The defining feature of day trading is that traders do not hold positions overnight; instead, they seek to profit from short-term price movements occurring during the trading session.It can be considered one of the most profitable trading methods available to investors.
Technical analysisThe MACD indicator (or oscillator) is one of the best indicators for identifying trends and reversals in the financial markets. The MACD strategy in its most basic form involves using the crossing of the smoothed out signal line over the MACD line as your entry or exit point for a trade.
The best MACD setting for day trading often uses a faster configuration, such as 3-10-16, to capture quick price movements. While the default 12-26-9 is popular, shorter settings can improve sensitivity to intraday trends. Optimal settings vary by strategy and asset volatility.
MACDIf MACD is above the signal line, the histogram will be above the MACD's baseline or zero line. If MACD is below its signal line, the histogram will be below the MACD's baseline. Traders use the MACD's histogram to identify peaks of bullish or bearish momentum, and to generate overbought/oversold trade signals.
The difference between the two lines is represented on the histogram. If the MACD were to be trading above the zero line, it would confirm an uptrend, below this and the indicator would be used to confirm a downtrend.
Data Trading in optionsOptions data captures information on options contracts, including pricing and trading volumes, useful for investment strategies. Discover our guide and top options data providers.
By analysing the information provided in the option chain, traders can identify potential trading opportunities and make informed decisions about buying or selling options contracts. Option chains are used by traders to analyse and evaluate the market's expectations of an asset's future price movements.
Database Trading Typically a trading dataset will provide information about trades that are made over the course of the day. This includes various different details about the trades, such as the bid, bid size and ask size. This information is known as quote data.
Results show that migration to a MongoDB database would be most beneficial in terms of cost, storage space, and throughput. In addition, organisations wishing to take advantage of autoscaling and the maintenance power of the cloud should opt for a cloud native solution.
SMC Trading with Professionals In conclusion, Smart Money Concepts (SMC) provides traders with a strategic framework that focuses on understanding the actions and motives of market makers, particularly institutions such as banks and hedge funds.
It compares favourably to other strategies, such as swing trading and scalping, although each are much more appropriate in a short term timeframe. If you are looking for the latest and greatest strategy traders are raving about, then SMC might be a great fit for you.
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, below 30, generate buy signals and indicate an oversold or undervalued condition. High RSI levels, above 70, generate sell signals and suggest that a security is overbought or overvalued. A reading of 50 denotes a neutral level or balance between bullish and bearish positions.
Crude Oil Futures: Key Levels and Scalp Trade StrategiesThe daily chart of Light Crude Oil Futures (NYMEX) indicates a long-term bearish trend, with key levels offering opportunities for short-term scalp trades.
Key Observations:
Downtrend Resistance: The yellow trendline starting from 2022 highs continues to cap upward movements.
Support Zone: $66.40 is a critical level where buyers repeatedly defend, creating a strong price floor.
Resistance Levels: $72.58, $77.20, and $84.20 serve as major hurdles for upward price action.
Volume: No significant volume spikes currently, but monitor closely for breakout confirmation.
Scalp Trading Opportunities:
1. Long Trade:
Entry: Near $66.40 support on a bounce.
Targets: $69.00 (nearest resistance) and $72.58.
Stop-Loss: Below $65.90.
Why? Buyers consistently hold this level, making it ideal for quick upward moves.
2. Short Trade:
Entry: Near $72.58 resistance after a rejection.
Targets: $69.00 and $66.40.
Stop-Loss: Above $73.50.
Why? Sellers dominate this zone, offering quick pullback opportunities.
Key Points to Watch:
Bearish Breakout: A high-volume breakdown below $66.40 could send prices to $60 or lower.
Bullish Reversal: Breaking the yellow trendline and $77.20 resistance could spark a rally toward $84.20.
Volume Confirmation: Significant volume spikes near key levels (support or resistance) often confirm a breakout or rejection.
NIFTY... KEEP INVESTING...Guys... I am sharing my view on the Elliot waves in Nifty.
The bullish pattern is intact.
We are currently in the 3rd primary wave. Of the five intermediate waves in the primary wave 3, nifty is right now in wave (4) correction.
A quick and rapid wave (5) is likely to start at the end of wave 4. Though Nifty is at 200 EMA right now, I feel the strong support zone is around 22700 levels.
I won't be surprised if Nifty can fall around 800 points from here.
Keep investing in parts and add more when Nifty goes below 23000.
The market is always right..! Trade with appropriate stop-loss.
Titan Investment/Trading strategy for the week starting 11/11/24Titan appears to have found a support level and may have bottomed out, presenting a favorable buying opportunity. Here are the suggested entry and target levels:
Buy Setup
Buy Above: 3,200
Targets: 3,270, 3,350, 3,410
Rationale: If Titan surpasses the 3,200 mark, it could signal a recovery and upward momentum. Achieving the first target at 3,270 may lead to further gains, reaching subsequent targets as market sentiment turns positive.
No sell call has been provided, as Titan appears to be at a strong support level, indicating limited downside potential.
Disclaimer
I am not SEBI Registered. This analysis is intended solely for informational purposes and should not be considered as financial advice. Please conduct your own research or consult a professional before executing any trades. Trading in financial markets carries significant risk, and past performance does not guarantee future results.
ADVANCED OPTION TRADING Nifty option chain is considered to be the best advance warning system of sharp moves or break outs in the index.
An option chain will consist of both call and put options, along with other details. Option chain trades are more informed, as investors can compare different contracts. It can help investors view the strike price, bid price, ask price, volume, and other details for available contracts.
OPTION DATABASE TRADING 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.
Nifty option chain is considered to be the best advance warning system of sharp moves or break outs in the index.
Option's 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.
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.
Professional Trading MindsetOne of the most important psychological characteristics of winning traders is the ability to accept (1) risk and (2) the fact that you may well be wrong more often than you are right in initiating trades. Winning traders understand that trade management is actually a more important skill than market analysis.
How to trade professionally?
Start with a clear and concise plan with proven strategies and then leverage the 20 rules that follow.
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.
Technical Class 1 #SMC1In finance, technical analysis is an analysis methodology for analysing and forecasting the direction of prices through the study of past market data, primarily price and volume.
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.
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.
An option chain is a valuable tool for traders who want to make informed decisions about their investments. It provides information on the strike price, expiration date, and the price of each option.
Silver DivergenceDivergence and Gold/Silver Ratio
Gold and silver are thought to move together, and often they do. There are periods where the Gold Trust (GLD) and Silver Trust (SLV) move in opposite directions and periods where one metal outperforms the other.
Gold is currently outperforming silver. Such discrepancies occur and are monitored by the gold/silver ratio. The gold/silver ratio shows how many ounces of silver it takes to buy an ounce of gold. Since 1975, the average is near 60; right now it stands near 80 ($1,187 divided by $14.99).
While gold outperformance, or silver's underperformance relative to gold, was very noticeable in early 2016, this has actually been going on for a long time. The outperformance has become even more pronounced since 2016. To start 2016, gold traded at $1,069 and silver at $13.80 -- the gold/silver ratio of 77.5. As of Oct. 2018, it's at 80. Gold prices have risen relative to silver prices quite steadily for years. This is mainly due to silver price weakness since peaking near $50 in 2011 (when silver outperformed gold).