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Option and Database tradingTo 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. The put-call ratio measures trading volume using put options versus call options. Instead of the absolute value of the put-call ratio, the changes in its value indicate a change in overall market sentiment.
NSE:NIFTYEducation
by SkyTradingZone
How our MIND fools us?Mental Blind Spots in Trading: How to Overcome Them Trading is not just about strategies, indicators, and market analysis. The real battle often takes place in the mind. Even the most skilled traders can suffer from mental blind spots—cognitive biases and psychological weaknesses that lead to costly mistakes. In this article, we will explore the most common mental blind spots in trading and how to overcome them. 1. Confirmation Bias This is the tendency to seek out information that supports our existing beliefs while ignoring contradictory evidence. Traders often fall into this trap by only looking at indicators or news that align with their bias, leading to poor decision-making. Solution: Challenge your own assumptions by analyzing both bullish and bearish scenarios. Follow traders with different perspectives and keep a trading journal to track how bias affects your decisions. 2. Overconfidence Bias Overconfidence can make traders take excessive risks, believing they are better than they actually are. A few successful trades can create a false sense of invincibility, leading to reckless decision-making. Solution: Stay humble and let data guide your decisions. Set risk management rules and never risk more than a fixed percentage of your capital on a single trade. 3. Loss Aversion Many traders hate losing more than they love winning. This fear of loss often leads to holding onto losing trades for too long, hoping they will turn around, instead of cutting losses early. Solution: Accept losses as part of the game. Use stop-loss orders and develop a mindset that focuses on probabilities rather than emotions. 4. Recency Bias This occurs when traders give too much weight to recent events while ignoring the bigger picture. If a trader has just experienced a streak of losses, they may become overly cautious, missing good opportunities. On the other hand, after a winning streak, they may become overconfident. Solution: Stick to your trading plan and base your decisions on long-term patterns rather than short-term fluctuations. Reviewing historical performance can help maintain perspective. 5. Anchoring Bias Traders often fixate on a particular price level, such as the entry price, and refuse to accept new information that contradicts their original thesis. This can result in missed opportunities or holding onto bad trades. Solution: Be flexible in your approach. Market conditions change, and adapting to new data is crucial for long-term success. 6. Gambler’s Fallacy Many traders believe that after a series of losses, a win is "due" or that after a streak of wins, a loss must be around the corner. This flawed thinking can lead to irrational trade sizing and poor decision-making. Solution: Remember that each trade is independent of the last. Stick to a consistent strategy and risk management plan instead of making emotional adjustments. 7. Endowment Effect This bias occurs when traders overvalue the assets they own simply because they own them. It leads to irrational decision-making, such as refusing to sell a losing trade because of emotional attachment. Solution: Treat each trade objectively. Focus on technical and fundamental factors rather than personal attachment to a trade. Final Thoughts: Mental blind spots in trading can be dangerous if left unchecked. Recognizing these biases and actively working to minimize their impact can significantly improve your trading performance. Develop self-awareness, keep a trading journal, and continuously refine your approach. In the end, mastering the psychological aspect of trading is just as important as mastering technical and fundamental analysis.
NSE:NIFTYEducation
by keshevdugar
2
Advanced Technical ConceptOn the other hand, hidden divergence occurs when the price makes a lower low, but the RSI indicator makes a higher low, signaling a potential trend continuation. RSI Divergence occurs when the price movement and the RSI indicator move in opposite directions, signaling a potential reversal in the current trend. Divergence within RSI through price movements is a powerful indication that there will be reversals in the market. There are two types of divergences: bullish divergences and bearish divergences. 1. Bullish divergence
NSE:BANKNIFTYEducation
by SkyTradingZone
Video For Traders 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. 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:BANKNIFTYEducation
by SkyTradingZone
Advanced Patterns Trading Chart patterns are visual representations of price movements used in technical analysis to predict future market behavior, categorized as continuation, reversal, or bilateral, and can signal potential trend continuation, reversal, or volatility. Top Picks: The Most Successful, Profitable, and Reliable Chart Patterns Head and Shoulders Pattern. Double Tops and Double Bottom. Cup and Handle. Ascending/Descending Triangles. Bullish and Bearish Flags. Wedge Patterns (Rising/Falling Wedges) Triple Tops and Triple Bottoms. Symmetrical Triangles.
NSE:BANKNIFTYEducation
by SkyTradingZone
Advanced Swing Trading Strategy with Pcr Part-1So, an average put-call ratio of 0.7 for equities is considered a good basis for evaluating sentiment. In general: A rising put-call ratio, or a ratio greater than 0.7 or exceeding 1, means that equity traders are buying more puts than calls. It suggests that bearish sentiment is building in the market. The 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.
NSE:BANKNIFTYEducation
by SkyTradingZone
Divergence Trading With ProfessionalsDivergence in an uptrend occurs when price makes a higher high but the indicator does not. In a downtrend, divergence occurs when price makes a lower low, but the indicator does not. When divergence is spotted, there is a higher probability of a price retracement. Divergence signals tend to be more accurate on the longer time frames. You get fewer false signals. This means fewer trades but if you structure your trade well, then your profit potential can be huge. Divergences on shorter time frames will occur more frequently but are less reliable.
NSE:BANKNIFTYEducation
by SkyTradingZone
Advanced Swing Trading Strategy with Pcr Part-2The 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. So, an average put-call ratio of 0.7 for equities is considered a good basis for evaluating sentiment. In general: A rising put-call ratio, or a ratio greater than 0.7 or exceeding 1, means that equity traders are buying more puts than calls. It suggests that bearish sentiment is building in the market.
NSE:BANKNIFTYEducation
by SkyTradingZone
2
All Financial MarketIn India, there exists broadly two types of Financial Markets which are further classified : Money Market is a market that deals with short-term funds. The capital market is a market that deals with long-sighted funds. Lenders and borrowers can trade funds through the financial system. Different types of financial markets include stock markets, bond markets, forex markets, and commodities markets. Stock markets facilitate the buying and selling of company shares, while bond markets deal with debt securities. Forex markets enable currency exchange, and commodities markets trade physical goods.29 Aug 2024
NSE:BANKNIFTYEducation
by SkyTradingZone
Trading with Professionals Identifying the trend. This is the first step in technical analysis for traders because trading strategies can either follow the trend or go against the trend. ... Drawing support and resistance levels. ... Establishing entry and exit points. ... Position sizing and risk management. 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.
NSE:BANKNIFTYEducation
by SkyTradingZone
VWAP Pulse Breakout — A Clean Intraday Strategy Using VWAP, ADX If you’re an intraday trader looking for clear, powerful setups without overcomplication, this strategy is for you. VWAP Pulse Breakout is a simple yet highly effective intraday system that aligns: • Price structure (VWAP) • Trend strength (ADX) • Momentum timing (Stochastic RSI) It’s designed for beginners and pros alike, and works brilliantly on XAUUSD, US30, BTCUSD, Nifty/Bank Nifty, and more. ⸻ Strategy Rules Buy Setup (Long): 1. Price closes above the VWAP line 2. ADX > 20 3. **Stochastic RSI crosses above 20 from oversold Stop Loss: Below VWAP or recent swing low Take Profit: 1:1.5 or 1:2 RR or when Stoch RSI reaches overbought (>80) ⸻ Sell Setup (Short): 1. Price rejects VWAP from below 2. ADX > 20 3. **Stochastic RSI crosses below 80 from overbought Stop Loss: Above VWAP or recent swing high Take Profit: 1:1.5 or 1:2 RR or when Stoch RSI reaches oversold (<20) ⸻ Chart Setup Guide (Beginner-Friendly) 1. Timeframe • Use 5-minute or 15-minute charts ⸻ 2. Indicators to Add (a) VWAP – Volume Weighted Average Price What it is: VWAP shows the average price of the asset during the day, weighted by volume. It is used by institutional traders to define fair value. How to add it: • Go to Indicators → Search “VWAP” • Choose the one labeled “VWAP” (Built-in) Important: If you see 3 lines (blue center + green bands), you’re using a VWAP with deviation bands. Only use the central line for this strategy. Ignore or hide the upper/lower bands. How to trade it: • If price closes above VWAP, and ADX + Stoch RSI confirm → Buy • If price rejects VWAP from below, and ADX + Stoch RSI confirm → Sell Common mistakes: • Using a custom VWAP with confusing bands • Trading every touch — wait for confirmed breakouts or rejections Pro Tip: Best entries occur when price breaks VWAP after consolidation or rejects VWAP with strong wicks. ⸻ (b) ADX – Average Directional Index What it is: ADX measures trend strength, not direction. It helps you avoid flat markets and focus on trades with follow-through. How to add: • Search “ADX” → Add the built-in one • Keep default length = 14 How to use: • ADX < 15 = No trend → avoid • ADX > 20 = Trend beginning → okay to trade • ADX > 25–30 = Strong trend → ideal Common mistake: Trading without checking ADX → leads to choppy, low-momentum trades. Pro Tip: Ignore +DI and -DI — just watch the main ADX line. ⸻ (c) Stochastic RSI What it is: A fast momentum oscillator that tells you when price is overbought or oversold. It helps you time your entries perfectly. How to add: • Search “Stochastic RSI” → Use the built-in version • Settings: K: 3, D: 3, RSI Length: 14, Stoch Length: 14 How to trade it: • Crossing up from below 20 = Buy signal • Crossing down from above 80 = Sell signal (Only valid when VWAP + ADX confirm) Common mistake: Taking every cross as a signal without confluence. Pro Tip: Use Stoch RSI for entry precision, not trade direction. It’s the last confirmation, not the first. ⸻ 3. Optional: Add Session Breaks • Go to Chart Settings → Appearance → Enable “Session Breaks” • Helps you identify London, NY, and Asian sessions ⸻ Why This Strategy Works 1. VWAP = Institutional Anchor • Banks and funds use VWAP to measure fair value • Breaks or rejections near VWAP = high-signal zones • You’re reacting to real price flow, not guessing ⸻ 2. ADX = Momentum Filter • Keeps you out of slow, choppy markets • Only lets you trade when price is ready to run • Increases win rate dramatically ⸻ 3. Stochastic RSI = Entry Timing • Helps you enter after price and momentum align • Prevents early/late entries • Perfect tool for scalpers and intraday setups ⸻ 4. High Confluence = High Probability You’re only trading when: • VWAP confirms structure • ADX confirms trend • Stoch RSI confirms timing This triple alignment leads to: • Fewer but cleaner trades • High confidence, low stress • Excellent results when practiced consistently ⸻ 5. Works on Proven Intraday Assets • Gold (XAUUSD) and US30 = strong VWAP reactions • BTC/USD = great during NY/London overlap • Nifty / Bank Nifty = ideal in Indian market hours ⸻ So… does it really work? Yes — if you: • Wait for all 3 confirmations • Stick to proper SL & RR • Avoid news and choppy sessions • Practice discipline and trade clean setups
BITSTAMP:BTCUSDEducation
by FebinKaderKA
Support and Resistance Part -2What is the best support and resistance setting? Rules For Drawing Support and Resistance Use swing highs and swing lows in the market to your advantage. ... Don't worry if the highs and lows don't line up perfectly. ... Focus on the major (key) levels in the market. ... Stay within a six-month window. Tube resistance bands work great for almost any kind of exercise. They're the ultimate solution when it comes to anchored workouts to focus on isolation exercises, and they'll be useful in both upper and lower-body exercise.
NSE:NIFTYEducation
by SkyTradingZone
Advanced Technical Analysis 'Support' and 'resistance' are terms for two respective levels on a price chart that appear to limit the market's range of movement. The support level is where the price regularly stops falling and bounces back up, while the resistance level is where the price normally stops rising and dips back down. Support is a price point below the current market price that indicate buying interest. Resistance is a price point above the current market price that indicate selling interest. S&R can be used to identify targets for the trade. For a long trade, look for the immediate resistance level as the target.
NSE:BANKNIFTYEducation
by SkyTradingZone
Advanced Candlesticks Part -2Candlestick patterns provide insight into price action at a glance. While the basic candlestick patterns may provide some insight into what the market is thinking, these simpler patterns often generate false signals because they are so common. Below, we will look at more advanced candlestick patterns that offer a higher degree of reliability. The Tweezer Top candlestick pattern is a bearish reversal pattern that signals a potential shift from an uptrend to a downtrend, characterized by two consecutive candlesticks with nearly identical highs, suggesting buyers are losing control and sellers are gaining ground.
NSE:BANKNIFTYEducation
by SkyTradingZone
2