Divergence Based Trading Divergence occurs when an asset's price and a technical indicator move in opposite directions, indicating a possible change in trend momentum. Traders use bullish or bearish divergence to anticipate reversals.
Wave Analysis
Intraday Trading Class part 7Purchasing and selling securities listed in a stock exchange on the same day is known as intraday trading. The primary purpose of transacting in this method is to realise capital gains on purchased securities as well as minimise risks by keeping money invested for an extended period.
MACD( Moving Average Convergence Divergence)MACD, short for Moving Average Convergence Divergence, is a technical indicator used in finance to analyze the momentum and trend direction of an asset's price. It's a popular tool for identifying potential buy and sell signals.
More About RSI RSI is a tool that aids traders in capturing market momentum by measuring the fluctuation in prices. Traders rely on RSI to spot oversold and overbought markets and determine the right time to enter a trade. RSI helps traders identify whether a stock is either overbought or oversold.
Option Chain Analysis An option chain is a comprehensive listing of all available options contracts for a specific underlying asset, like a stock, index, or commodity, organized by strike prices and expiration dates. It's essentially a table that provides detailed information about call and put options for that asset, including strike prices, expiration dates, premiums, open interest, volume, implied volatility, and last traded price.
Candlestick Pattern part 2Candlestick patterns are a visual representation of price movement in financial markets, used in technical analysis to identify potential trend reversals or continuations. These patterns are formed by the opening, closing, high, and low prices of a financial instrument over a specific period. They are like signals on a chart that can help traders make informed decisions about buying or selling.
Learn Institutional Level Trading part 6An institutional trading strategy is the buying and selling of financial assets, such as stocks, commodities, currencies, futures, and options by institutions like banks, credit unions, pension funds, hedge funds, mutual funds, and REITs.
Institutional Trading Strategies part 5Institutional traders incorporate strategies that emphasize both long-term value and diversification in their trading practices. They leverage significant amounts of capital to build portfolios diversified across multiple assets, which helps reduce risk while seeking improved market prices.
Technical Concept A "technical concept" refers to a specialized idea, principle, or methodology within a particular technical field, like engineering, computer science, or a specific industry. These concepts often involve complex systems, processes, or technologies and may require specific knowledge and terminology. They are frequently used as elements within larger systems or to explain more complex ideas.
Database Trading part 3Trading 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. Trading data also includes information about trades historically and over the course of a trading day, such as the latest bid, asking price and time of the last trade
MACD Trading part 2MACD full form: Moving Average Convergence Divergence and is one of the most widely used momentum indicators in technical analysis. Gerald Appel was the creator of this indicator at the end of the 1970s. By computing the distinction between two time period intervals, which are a compilation of historical time series, this indicator is used to define momentum and its directional resilience. MACD uses moving averages of two distinct time intervals (most commonly historical closing prices of securities), and a momentum oscillator line is calculated by deducting the two moving averages, which is also known as 'divergence.'
Candlestick patterns part 1Candlestick patterns are graphical representations of price movements over a specific time period, used in financial technical analysis to identify potential trend reversals or continuations. Each candlestick shows the opening, closing, high, and low prices of a financial asset. Corporate Finance Institute explains that by observing these patterns, traders can gain insights into the market sentiment and potential future price movements.
PCR Trading Strategy The Put-Call Ratio (PCR) is a valuable tool for traders to gauge market sentiment and potentially identify opportunities. It's calculated by dividing the total open interest of put options by the total open interest of call options. A higher PCR (above 1) suggests bearish sentiment, while a lower PCR (below 1) indicates bullish sentiment.
Learn Institutional Trading part 4Institutional trading involves large-scale buying and selling of financial instruments, such as stocks, bonds, currencies, and commodities, executed by major organizations like mutual funds, pension funds, insurance firms, and banks.
Learn Institutional Trading part 3Institutional trading involves the buying and selling of securities (like stocks, bonds, and derivatives) by large financial institutions on behalf of their clients or for their own accounts. These institutions, including mutual funds, hedge funds, pension funds, and banks, often have significant capital and require specialized tools and strategies for executing large-scale trades.
Divergence In trading, divergence refers to a scenario where the price of an asset and a technical indicator move in opposite directions, potentially indicating a change in trend momentum. It's a discrepancy between what the price action suggests and what a technical indicator is showing. This discrepancy can signal a possible trend reversal, making it a valuable tool for traders to identify potential entry or exit points.
MACD ( Moving Average Convergence/Divergence) 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.
Option and Database Trading In financial terms, options trading involves buying and selling contracts that give the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price within a set timeframe. This contrasts with database trading, which refers to the manipulation and utilization of data within databases for various purposes, such as querying, updating, and analyzing information.
Advanced Options Trading Advanced options trading ventures beyond basic buying and selling of calls and puts. It involves useful combinations of options contracts to achieve specific trading goals.
Class for Advanced Intradat Trading part 7Best Intraday Trading Tips for Beginners
Choose Highly Liquid Stocks. ...
Trade in Stocks with Moderate Volatility. ...
Set Realistic Profit and Loss Targets. ...
Use Stop-Loss Orders to Limit Risks. ...
Avoid Overtrading. ...
Focus on a Few Select Stocks. ...
Monitor Market Trends and News Updates. ...
Time Your Entry and Exit Points Wisely.
Advanced Trading part 2The first step should be to approach trading as a business: draft a business plan, create a budget, determine the necessary tools, and determine the markets and strategies you'll trade. Organize and keep on file all important documents: trading plans, brokerage statements, trading journals, and other resources.
Advanced Trading part 1Advanced trading encompasses sophisticated strategies, tools, and techniques used by experienced traders to navigate financial markets effectively. It often involves a deeper understanding of market dynamics, technical analysis, and the use of advanced instruments like options and futures. Traders who embrace advanced trading seek to improve their performance and potentially increase profits by leveraging a broader range of tools and strategies.
Database Trading **Database trading**, often referred to as **algorithmic trading** or **quantitative trading**, involves using large sets of structured data to make trading decisions and execute trades automatically. It relies heavily on databases to store, process, and analyze market data (historical prices, volumes, order books, etc.) and other relevant information (like economic indicators, news, etc.). The goal is to identify patterns, trends, or anomalies that can be leveraged for profitable trading strategies.
