Community ideas
Three day setupSimilar price action. Did not go to day low. Sometimes you need to have patience and be willing totake profits when it doesn't go all the way
Three day cycleDay 1 monday, day 2 Tuesday, Free Cash Wednesday.
Expands the range on day 3. New york open pushes price above vwap band for reversal back to day low.
Simple repeatable price action. Scale it up with confidence. It's a winnable game
Something say the picture.....My personal view is that, according to my S&R chart, if Break MKT can move either side...
ADXThe ADX identifies a strong trend when the ADX is over 25 and a weak trend when the ADX is below 20. Crossovers of the -DI and +DI lines can be used to generate trade signals. For example, if the +DI line crosses above the -DI line and the ADX is above 20, or ideally above 25, then that is a potential signal to buy.
The ADX identifies a strong trend when the ADX is over 25 and a weak trend when the ADX is below 20. Crossovers of the -DI and +DI lines can be used to generate trade signals. For example, if the +DI line crosses above the -DI line and the ADX is above 20, or ideally above 25, then that is a potential signal to buy.
The Symmetrical Triangle: Real Success Rates + Breakout.The Symmetrical Triangle: Real Success Rates + Breakout.
The symmetrical triangle is an important chart pattern in technical analysis, deserving special attention from professional traders.
This formation is characterized by a convergence of prices between two trendlines, one descending and the other ascending, creating a consolidation zone where indecision between buyers and sellers is palpable.
Statistical Analysis
Empirical data reveals that the success rate of the symmetrical triangle for a trend continuation is approximately 54%. This percentage, although higher than 50%, underlines the importance of a cautious approach and rigorous risk management in using this pattern.
Breakout Point
The breakout of the symmetrical triangle usually occurs when the price has traveled approximately 75% of the distance to the apex. This point is crucial for traders, as it often represents the moment when volatility increases and a new trend can be established.
Risks and False Exits
It is essential to note that the symmetrical triangle has a relatively high rate of false exits. Statistics indicate that approximately 13% of cases in a bear market can result in a false exit to the bottom. This phenomenon underlines the need for additional confirmation before entering a position.
Strategy of use
To effectively exploit the symmetrical triangle, professional traders must:
-Identify the formation accurately.
-Wait for the breakout near the point of convergence of the trendlines.
-Confirm the breakout with other technical indicators or an increase in volume.
-Put in place strict risk management to protect against false exits.
In conclusion, the symmetrical triangle, although being a valuable tool in the trader's arsenal, requires a methodical approach and a thorough understanding of its characteristics to be used effectively in a trading strategy.
What is Price Action ? Beginners Guide in Easy Steps Part -2In our previous discussion, we delved into the fundamental techniques of reading a price chart with key price action strategies. This time, we're set to expand our understanding even further. By the end of this article, you'll have a fresh perspective on analyzing charts and interpreting price movements, empowering you with deeper insights and more confident trading decisions.
1. Identify the direction of trend with the help of price action candlesticks
a.)Strong Uptrend:
Green candlesticks moving upwards continuously.
Indicates strong buying pressure with no selling pressure.
b.)Uptrend with Deep Retracement:
Green candlesticks with some pullbacks.
Sellers present, causing temporary price dips.
c.)Indecisive Market:
Alternating red and green candlesticks.
No clear market direction, prices moving up and down without strong conviction.
d.)Tight Range Before Breakout:
Small red and green candlesticks within a tight range.
Usually occurs before a significant breakout.
e.)Weak Uptrend with Choppy Price Action:
Alternating red and green candlesticks, choppy pattern.
Indicates weak buying pressure and strong selling presence.
f.)Healthy Uptrend:
Green candlesticks with few red ones.
Strong buying pressure with minimal selling, indicating a solid upward trend.
2. Importance of Wicks and the closing of candle
Wick and a Doji Candle: Indicates early signs of buyers attempting to stop the price decline,
If you observe closely there is a wick in previous candle also, on the break of high of the candle price hit trendline resistance and fallen again.
Second Wick at the Same Zone: Sellers tried to push the price down again, but buyers stopped it, forming a bullish pin bar. First wick formed a demand zone but the second wick confirmed
of buyers activity.
After Some Fight, Buyers Win: Buyers managed to push the price up From the range, kicking out the sellers.
More Lower Wicks: Indicates both buyers and sellers are active, but buyers are gradually winning, which is bullish.
Lower Wick Shows Demand: After a downturn, the lower wick signals demand coming in.
Inside Bar with Bigger Upper Wick: Shows bearish bias. The break of the low led to the continuation of the fall.
NOTE: Wicks are an early indication of demand or supply presence, but the location of formation will be more important.It would help if you determined whether it's in an uptrend, downtrend, or range.
3. Multiple Candle Rejection
A)Exhaustion Gap:
At one point, the chart shows a gap up, where the opening price equaled the high of the day. This indicates an exhaustion gap, suggesting potential for a larger correction. Despite this, only a single bar correction occurred initially, showing resilience.
B)Brutal Correction:
A sharp, one-bar correction is seen, followed by buyers trying to push the prices back up within the same candle. This indicates a strong fight between buyers and sellers.
C)Inside Bars and Tight Range:
The presence of multiple inside bars with tight ranges and prominent lower wicks signals consolidation and market indecision. This is a period where neither buyers nor sellers dominate, often preceding a significant move.
D)Break and Continuation:
Eventually, the price breaks and closes above the range of the inside bars. This breakout triggers a continuation of the uptrend, evidenced by the subsequent series of green candles and higher prices.
#Understanding Candlestick Wicks:
Wicks/Tails: These are crucial as they indicate early signs of demand or supply. In this chart, the lower wicks suggest that buyers are stepping in at lower prices, even during pullbacks, showing underlying strength.
4.Importance of Close Of Candle
If you wait for close of the Candle beyond support or resistance zone then it can help you take high-probability entries only and avoid fake breakouts.
Fake breakout means when the price breaks the support or resistance area but it failed to sustain beyond that area and quickly comes inside the range.
That's all for today's idea I hope you have gained good insights into how to read market direction with the help of candlesticks structure If you read market direction in consideration with the factors explained in Part 1 then the outcomes will be Great.
If this idea helped you learn something new hit the boost button and share with your friends,
Stay tuned new ideas in this series coming soon.
Keep Learning,
Happy Trading.
NSE:NIFTY
Database Option Trading #TradingviewOption chain data is the complete picture pertaining to option strikes of a particular stock or index in a single frame. In the Option chain frame, the strike price is at the centre and all data pertaining to calls and puts on the same strike are presented next to each other.
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).
Trading Medicine Part 21. Long call. In this option trading strategy, the trader buys a call — referred to as “going long” a call — and expects the stock price to exceed the strike price by expiration. The upside on this trade is uncapped and traders can earn many times their initial investment if the stock soars.
Options contracts are considered risky due to their complex nature, but investors who know how options work can reduce their risk. Various risk levels expose investors to loss of premiums, gains, and market value loss.
Trading Medicine 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.
Is option trading profitable? Options trading is a risky endeavor but can be profitable if done correctly. There is no guarantee that any particular trading strategy will be consistently successful, but a few methods have proven to be effective more often than not.
PCR Part - 1What is PCR in share market? A Put-Call Ratio is a technical indicator used in derivative markets. It gauges market sentiment by comparing the open interest or trading volume of put options to call options. A high ratio generally suggests a bearish outlook, while a low ratio indicates a bullish sentiment.
A PCR value below 1 is indicative of the fact that more Call options are being purchased relative to the Put options which signals that investors are anticipating a bullish outlook for the markets ahead.
Advanced Rsi Divergence TradingRSI Divergence occurs when the Relative Strength Index indicator starts reversing before price does. A bearish divergence consists of an overbought RSI reading, followed by lower high on RSI. At the same time, price must make a higher high on the second peak, where the RSI is lower.
If used correctly, RSI divergence can be profitable, providing early signals of trend reversals. However, it also carries risks, and traders should use it alongside other indicators and proper risk management strategies.
Option Data Trading– Option Chain Analysis can be used to find out the actual trend of the particular stock or index. Usually institutions and big funds sell options. By finding out which strike has more open interest, we can actually understand the support and resistance levels of a security (be it stocks or indices) for that expiry.
How to do option analysis? Option analysis involves studying various parameters like strike prices, premiums, implied volatility, open interest, and time decay. Combining this data with technical and fundamental analysis helps assess potential trade setups and risks.
Technical Analysis MACD HIstogram Key Takeaways
The moving average convergence divergence (MACD) is a popular momentum indicator that is used in technical analysis.
The MACD is calculated by comparing exponential moving averages in a security's price.
The MACD line is charted alongside a nine-day moving average of the MACD line, called the signal line, and a histogram representing the difference between these two curves.
Traders use the MACD histogram to anticipate changes in market momentum.
MACD analysis can still generate false price predictions. Experienced traders use additional metrics and fundamental analysis to support their forecasts.
This example should demonstrate how observing the MACD histogram can help anticipate changes in trends in both short-term and long-term price momentum. It is important for traders to learn to recognize these trends and not bet against them. Fighting a trend is a sure way to get pummeled.
MACD TRADING / Technical AnalysisMoving average convergence/divergence (MACD) is a technical indicator to help investors identify entry points for buying or selling. The MACD line is calculated by subtracting the 26-period exponential moving average (EMA) from the 12-period EMA.
The MACD indicator (or oscillator) is a very popular indicator among traders around the world for identifying trends and reversals. It was invented around 1977 by Gerald Appel, who was looking for a quality indicator that could immediately be interpreted.
Data Trading Part -1 It proves useful for assessing the depth and liquidity of specific strikes. It aids traders to find option premium against its corresponding maturity date and strike price. Option chain serves as a warning against breakouts or sharp moves in the index.
How It Works: A long straddle options strategy involves simultaneously buying a call option and a put option on the same underlying asset with the same strike price and expiration date. This strategy becomes profitable when the stock significantly shifts in one direction or another.
DATABASE TRADING WITH OPTION CHAINOption chain data is the complete picture pertaining to option strikes of a particular stock or index in a single frame. In the Option chain frame, the strike price is at the center and all data pertaining to calls and puts on the same strike are presented next to each other.
Traders use an options chain to choose the specific option contracts that best align with their trading strategy. They can select options with the desired strike prices and expiration dates based on their market outlook. Options chains are crucial for assessing and managing risk.
WHY DO TRADERS FAIL?Why Most Traders Fail: Common Psychological Traps
Many beginner traders enter the market with a lot of enthusiasm but often leave disheartened after experiencing losses. One of the main reasons for this is not a lack of technical skills or strategy, but rather the inability to manage the psychological aspects of trading. Let’s dive into some of the most common psychological traps and how you can avoid them to become a more successful trader.
1. Fear of Missing Out (FOMO): FOMO is a powerful emotion in trading. It happens when you see a stock or asset rapidly rising, and you feel the urge to jump in late just because everyone else is. This often leads to entering trades at poor levels, where the risk of reversal is high.
Why It’s Dangerous: You end up making emotional decisions, ignoring your strategy.
How to Avoid It: Stick to your plan and predefined entry/exit points. Remind yourself that opportunities in the market are endless; chasing a missed trade could lead to a bad decision.
2. Revenge Trading: This occurs after a loss, where you try to win back the money immediately by placing irrational trades. Instead of accepting a loss, traders emotionally double down, hoping to recover quickly, often resulting in even bigger losses.
Why It’s Dangerous: Trading becomes emotional rather than strategic, leading to a cycle of poor decisions.
How to Avoid It: Accept that losses are a part of the game. Take a break after a significant loss to clear your mind, and only return when you can trade objectively again.
3. Overconfidence After a Win: After a string of successful trades, traders may feel invincible and start to ignore their risk management rules. They increase their position size without realizing that the market can turn at any moment.
Why It’s Dangerous: Overconfidence leads to taking on more risk than you can afford, which can wipe out profits or even lead to significant losses.
How to Avoid It: Stick to your trading plan regardless of recent success. Don’t increase position sizes without a valid reason and proper risk management in place.
4. Greed – Holding On for Too Long: Sometimes, traders hold on to winning trades far too long, hoping for even bigger profits. Instead of taking profits at their target, they let greed take over and end up losing a significant portion of their gains when the market reverses.
Why It’s Dangerous: Greed blinds traders to the signals that it's time to exit.
How to Avoid It: Set clear profit targets and stick to them. Use trailing stop-losses to lock in profits while allowing for potential additional gains.
5. Not Accepting Losses – Holding on to Losing Trades: Many traders struggle with cutting their losses because it feels like admitting defeat. They hold on to losing trades for far too long, hoping the market will turn in their favor, which often results in deeper losses.
Why It’s Dangerous: Holding onto losing trades can drain your capital and emotional reserves.
How to Avoid It: Have a strict stop-loss in place for every trade. Accept that small losses are part of trading and necessary for long-term success.
Conclusion: In trading, your mindset and emotions can be as critical as your technical analysis or strategy. By recognizing these common psychological traps—FOMO, revenge trading, overconfidence, greed, and refusing to accept losses—you can manage your emotions better and make more objective trading decisions. Always remember: successful trading is not just about big wins; it’s about consistency, discipline, and emotional control.
What psychological traps have you experienced in your trading journey? Share your experiences in the comments below and let’s learn together!
MILLIONAIRE TRADER'S advice"One Conversation Changed Everything"
Recently, I had the privilege of speaking with a millionaire stock trader (NOT THE YOUTUBER MILLIONAIRE TRADER), and the insight I gained was both simple and profound:
HE SAID ONE LINE
"Pros take losses. Everyone else loses."
This statement hit me hard. It’s a reminder that in both trading and life, it's not about avoiding failure—it's about managing it. The most successful people don't win by never losing; they win by knowing when to take a loss and move forward.
It’s a lesson that goes beyond the markets. Whether in business or personal growth, knowing how to cut your losses is the key to long-term success.
Would love to hear your thoughts on this powerful lesson! 👇
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