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Support and Resistance '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. 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?
NSE:BANKNIFTYEducation
by Optionclub
TECHNICAL ANALYSIS is DEAD...The Golden Days of Technical Analysis Are Behind Us—But Not for the Reasons You Think Technical analysis (TA) has been the backbone of trading for decades. Patterns, indicators, and price action strategies have helped traders navigate the markets, and they continue to do so. But here’s the problem—many traders don’t realize that TA isn’t failing them; their own biases and psychological blind spots are. The Ego Trap: Seeing What You Want to See In Thinking, Fast and Slow, Daniel Kahneman explores how our brain is wired to recognize patterns, even when they don’t exist. This leads to confirmation bias, where traders see a breakout forming because they want it to happen—not because it’s actually happening. For example, a trader spots an "inverse head and shoulders" pattern and immediately assumes the market is about to reverse. If the trade works, they credit their skill. If it fails, they blame the market. Rarely do they consider that their emotions, rather than TA itself, dictated their trade decision. This is where System 1 thinking (fast, intuitive, emotional) takes over. Instead of logically assessing risk and trade probabilities, traders rush in based on gut feelings. System 2 thinking (slow, rational, calculated) is what separates professionals from amateurs. Technical Analysis Works—If You Do TA hasn’t lost its edge. It works just as well as it always has. The issue is that most traders don’t use it properly. Instead of treating it as a tool for probabilities, they use it as a crystal ball, expecting certainty where there is none. A moving average crossover, a Fibonacci retracement, or a support zone isn’t a magic button—it’s a trigger for decision-making, nothing more. The real edge comes from: ✅ Context – Understanding market conditions, volume, and liquidity. ✅ Risk Management – No pattern works 100% of the time, but managing risk ensures long-term survival. ✅ Discipline – Sticking to a system without letting emotions take over. The Real Issue Isn’t TA—It’s You The reason many traders feel TA "doesn’t work" is because they don’t apply it correctly. They cherry-pick winning trades and ignore the losers, reinforcing their ego rather than refining their strategy. Instead of blaming the market, successful traders: Understand liquidity zones – Big players don’t trade based on MACD crossovers; they hunt liquidity where retail stops are placed. Combine TA with patience – The best setups take time. Rushing into trades out of fear of missing out (FOMO) is a losing game. Master psychology – A perfect setup means nothing if emotions cause you to exit too early or take unnecessary risks. Final Thoughts Technical analysis isn’t the problem. It never was. The real issue is how traders use it—often as a way to enforce their own ego, rather than as a tool for making high-probability decisions. The golden days of TA aren’t gone—it’s just that only those who master their psychology, risk, and strategy will truly make it work like a charm.
NSE:NIFTYEducation
by keshevdugar
6
TradingOne of the most effective ways of studying is to carve space out between sessions. If you break up your study load over several days, you'll retain information far more readily than if you crammed it into your head during one long session. Day trading and swing trading are two very different approaches to short-term investing. If you're more interested in an exciting, higher-risk environment that requires greater attention, day trading is better for you. Otherwise, the slower, more methodical path of swing trading might be a better option.
NSE:HDFCBANKEducation
by SkyTradingZone
3
Advanced Database TradingOptions 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. 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.18 Dec 2024
NSE:NIFTYEducation
by SkyTradingZone
3
Important Video for Trader'sTake regular breaks when you are reading or studying. Reading for short periods of time of about 20-30 minutes should be enough to really focus on the text and take in as much as possible. 7. Read in a positive environment that is comfortable and free of distractions as this will help improve your concentration. The 60-60-50 RSI strategy is a trading strategy that generates buy/sell signals by analysing the RSI across multiple timeframes. This course will teach you the logic of the 60-60-50 strategy and how to apply it.
NSE:NIFTYEducation
by SkyTradingZone
3
Divergence Trading An 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? 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.
NSE:RELIANCEEducation
by SkyTradingZone
3
Trading Management and PsychologyTrading psychology refers to the mental state and emotions of a trader that determines the success or failure of a trade. It represents the aspects of a trader's behavior and characteristics that influence the actions they take when trading securities. A professional trader knows that in trading it's 10% and the rest 90% is psychology. If you mastered the psychology in trading then you have almost cracked the code of trading. Psychology is a big factor in trading, it can make or break the trader from the market.
NSE:BANKNIFTYEducation
by SkyTradingZone
3
PCR 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. Let's delve into the concept of put/call ratio, which is derived by dividing the put trading volume by the call trading volume. A put/call ratio of 0.74 indicates that for every 100 calls purchased, 74 puts were also acquired.
NSE:NIFTYEducation
by SkyTradingZone
3
Roadmap for a TraderA trading roadmap is essentially a strategic plan that guides your trading decisions. It encompasses your goals, risk management strategies, analysis methods, and decision-making processes. Think of it as a personalized guide that helps you make informed choices in the dynamic world of trading. By recognising specific patterns like the Cup and Handle or Double Bottom, traders can identify moments when the market is likely to make a significant move. These patterns signal potential price swings, providing traders with a roadmap for entering positions at the optimal time.
NSE:NIFTYEducation
by SkyTradingZone
3
Journey to become a profitable traderIt starts with an examination that tests trading proficiency and encourages risk management and discipline. Upon completing the examination, the trader will join a prop trading firm, receive a trading account and then grow that account by meeting fixed objectives and withdrawing their profit. The 1% rule demands that traders never risk more than 1% of their total account value on a single trade. In a $10,000 account, that doesn't mean you can only invest $100. It means you shouldn't lose more than $100 on a single trade.
NSE:BANKNIFTYEducation
by SkyTradingZone
Trading With Professional 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. A PCR at one (=1) suggests that investors are purchasing the same amount of put options as call options and signals a neutral trend going forward. No PCR is considered ideal, but a PCR below 0.7 is typically viewed as a strong bullish sentiment while a PCR above 1 is typically viewed as a strong bearish sentiment.
NSE:BANKNIFTYEducation
by SkyTradingZone
Database Part-5An option chain lists data on calls and puts, underlying prices, strike prices, expiration, and moneyness. Call option data is listed to the right of the table. Put option data is listed to the left of the table. Strike prices are listed on rows in the centre of the table. Avoid options with low liquidity; verify volume at specific strike prices. calls grant the right to buy, while puts grant the right to sell an asset before expiration. Utilise different strategies based on market conditions; explore various options trading approaches.
NSE:BANKNIFTYEducation
by Optionclub
Trading with the DataDefine Your Risk Tolerance and Goals: Before diving into options trading, assess your risk tolerance and establish clear trading objectives. Understand how much risk you’re willing to take on and what you aim to achieve. Diversify Your Options Strategies: Spread your risk by using various options strategies. Consider covered calls, protective puts, and other approaches to safeguard your investments. Set Entry and Exit Points: Determine specific levels at which you’ll enter and exit trades. Having clear guidelines helps you avoid emotional decisions during market fluctuations. Limit Maximum Risk Per Trade: When buying options, consider using debit spreads. These allow you to define your maximum risk upfront while still benefiting from potential gains.
NSE:BANKNIFTYEducation
by Optionclub
Lecture For Option Trader or Intraday TraderIntraday trading, also known as day trading, means buying and selling stocks on the same day to profit from price changes. Traders need to close their trades before the market closes. If not, the broker might automatically close them or turn them into regular trades. Yes, profits from intraday trading are considered business income and taxed according to your income tax slab. How is intraday trading taxed? Intraday trading profits are treated as short-term capital gains, added to taxable income, and taxed based on applicable slab rates.
NSE:HDFCBANKEducation
by SkyTradingZone
3
Advanced Option Trading with Professionals Let's review each part of the professional trader's mind to understand where you want to be, ideally as you develop as an online trader. Discipline and Consistency. ... Emotional Control. ... Continuous Learning. ... Fundamental Analysis. ... Technical Analysis. ... Sentiment Analysis. ... Goal Setting. ... Risk Management. 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.
NSE:BANKNIFTYEducation
by SkyTradingZone
3
Advanced 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. 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.
NSE:BANKNIFTYEducation
by SkyTradingZone
3
HOW I GOT TRAPPED IN GOLD JAN 22 2025In a strongly uptrending market, nearing its all-time high (ATH), I planned a high-probability buy setup. The trade was based on clear confirmation signals, with my take-profit (TP) placed strategically at the buy-side liquidity level. The expectation was that price action would attract sellers at the Fair Value Gap (FVG), facilitating a move upward to reach the liquidity zone and fill my TP. However, the market deviated from this anticipated behavior. Instead of filling the FVG on the 5-minute timeframe, price took resistance at the FVG, reversed downward, and ultimately hit my stop-loss (SL). This unexpected reaction highlights a situation where the price action did not align with the strong uptrend narrative. Despite the robust setup, the rejection at the FVG and failure to fill it resulted in a downside move, invalidating the trade.
OANDA:XAUUSDEducation
by priceactiongold1
Profitable Trading 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. The Rule of 90 is a grim statistic that serves as a sobering reminder of the difficulty of trading. According to this rule, 90% of novice traders will experience significant losses within their first 90 days of trading, ultimately wiping out 90% of their initial capital.
NSE:KOTAKBANKEducation
by SkyTradingZone
3