Finnifty moments for option trading 21/Nov/2024Finnifty moments for option trading 21/Nov/2024
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FINNIFTYG2021 trade ideas
Finnifty - Oct 8Morning session was trending and afternoon session was choppy today. We have a big consolidation zone now.
Buy above 23440 with the stop loss of 23400 for the targets 23480, 23520, 23560 and 23620.
Sell below 23360 with the stop loss of 23400 for the targets 23320, 23280, 23240, 23200 and 23160.
Check the live market updates.
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Note : This is my pre market analysis and my trading journal. Not a suggestion to buy or sell.
You are responsible for whatever you do.
FINNIFTY1! // level // 1dNifty Financial Services Index, you can follow this approach:
Support Levels
Recent Lows: Identify significant low points over the past few weeks or months. For example, if FINNIFTY recently dropped to around 18,500, that could be a support level.
Moving Averages: Check the 50-day and 200-day moving averages, which can act as dynamic support levels.
Previous Support Areas: Historical price levels where the index has bounced back can also indicate support.
Resistance Levels
Recent Highs: Determine the highest points in recent trading sessions. If FINNIFTY peaked at around 19,000, that might serve as a resistance level.
Trend Lines: Draw trend lines across recent highs to visualize potential resistance areas.
Psychological Levels: Round numbers, like 19,000 or 19,500, often act as resistance.
Example Analysis (Hypothetical)
Support Level: 18,500 (recent low)
Resistance Level: 19,000 (recent high)
Finnifty - Oct 1Price is consolidating after giving good fall. Sustaining above the current level is important to be bullish.
Buy above 24720 with the stop loss of 24680 for the targets 24760, 24800, 24840 and 24880.
Sell below 24640 with the stop loss of 24680 for the targets 24600, 24560, 24520, 24480 and 24400.
Check the live market updates.
Hit the like button to Rock !! Show some energy !!
Note : This is my pre market analysis and my trading journal. Not a suggestion to buy or sell.
You are responsible for whatever you do.
19Sep2024 - FIN NIFTY Predictiosn (next trading Day)Based on your provided FIN Nifty daily and 5-minute time frame charts, here is the specific analysis:
1. Support and Resistance Levels for Next Trading Day:
Support Levels:
24,200: Strong psychological and technical support.
24,100: A more conservative support level in case of a deeper correction.
Resistance Levels:
24,450: Immediate resistance based on today's high.
24,600: Potential resistance if the market remains bullish, as it approaches this round number.
2. Scenario for Next Trading Day:
9:15 - 10:30 Slight Gap Up or Flat Bullish start, likely pushing towards 24,450 resistance
10:30 - 12:30 Continuing Bullish Momentum Potential to breach 24,450, heading towards 24,600
12:30 - 2:30 Possible Pullback to Support Levels Range-bound or slight pullback near 24,300–24,350
2:30 - 3:30 End of Day Movement Depending on volume, a bullish rally to close near 24,450-24,500
3. Effective Options Buying Strategy:
Strikes for Next Trading Day:
Buy 24,300 CE if market opens flat or slight gap up, and if the bullish scenario plays out as expected.
Buy 24,200 PE if there is a sharp reversal around resistance levels (24,450).
Ideal Time to Enter:
For Call Options (CE), enter during the first hour if the market shows strength.
For Put Options (PE), enter around mid-day if a pullback is observed near resistance.
These levels and scenarios are purely based on the chart's technical structure. You can adjust your strategies based on live data to manage risk and optimize gains.
Disclaimer: Do Manager your Risk and Money management, Do not Forget to PUT STOP LOSS.
FINNIFTY1! (Nifty 50 Index) Looking good today FINNIFTY1! (Nifty 50 Index)
Support Levels:
Fibonacci Level: 16,500 (23.6% Fibonacci retracement of the 2022-2023 rally)
Trend Line: 16,400 (the lower end of the ascending trend channel)
Psychological Level: 16,300 (a significant round number)
Resistance Levels:
Fibonacci Level: 17,100 (61.8% Fibonacci retracement of the 2022-2023 rally)
Trend Line: 17,200 (the upper end of the ascending trend channel)
Psychological Level: 17,300 (another significant round number)
How do Indicators Work in Trading?Trading indicators are essential tools that help traders analyze market trends and make better decisions.
By using historical price data and various mathematical formulas, these indicators provide insights into market conditions and potential future movements.
Whether you are tracking moving averages, measuring volatility with Bollinger Bands, or assessing momentum with the RSI, each of these indicators has its own advantages.
This article provides an overview of how trading indicators work and effective ways to use them for making trading decisions.
What Are Trading Indicators?
Trading indicators are tools used by traders to make informed decisions when analyzing and interpreting financial market data.
They are mathematical calculations based on historical price, volume, or open interest data, and they generate visual signals or patterns on trading charts.
These indicators can reveal trends, momentum, volatility, and market strength, assisting traders in predicting future price movements.
Commonly used types include moving averages that display the average price over a specific period of time and Relative Strength Index (RSI) that assesses how quickly and dramatically prices change.
Through comprehending and applying these indicators, traders can improve their market analysis and trading strategies.
How Do Indicators Work?
The truth is that trading indicators don't actually 'work' in the sense of predicting future prices. Instead, they reflect the market's psychology, showing how current prices compare to past ones, which can guide traders. When combined with candlestick patterns, these tools can help shape your technical analysis strategy.
For instance, indicators can suggest where to place a stop-loss order to minimize risk when closing a trade.
Using trading indicators is particularly valuable if you want to keep emotions out of your trading decisions or avoid being influenced by others' opinions.
Types of Trading Indicators
Traders use various types of trading indicators to analyze market trends and make informed decisions. Here are some of the most popular trading indicators:
1. Trend Indicators
Trend indicators help traders to recognize the intensity and direction of trends in a market. This helps them know whether a particular asset is in an uptrend, a downtrend, or moving sideways.
Common examples include Moving Averages (MA) and Moving Average Convergence Divergence (MACD). Moving Averages smooth out price data over a specified period, making it easier to spot the trend direction. MACD, on the other hand, shows the relationship between two moving averages, signaling potential trend changes.
These indicators are crucial for traders to align their strategies with the prevailing market direction and optimize their entry and exit points.
2. Momentum Indicators
Momentum indicators measure the speed or velocity of price movements to identify overbought or oversold conditions. They help traders gauge the strength of a price trend and anticipate potential reversals.
Examples of these indicators are: the Relative Strength Index (RSI) and the Stochastic Oscillator.
The RSI measures the size of recent gains versus recent losses to show if an asset is overbought or oversold. The Stochastic Oscillator compares a closing price to its price range over a specific period, also identifying overbought or oversold levels.
These indicators are essential for traders to assess market momentum and make informed trading decisions.
3. Volatility Indicators
Volatility indicators measure the rate of price fluctuations over a given period, helping traders understand market conditions.
Common examples are Bollinger Bands and Average True Range (ATR).
Bollinger Bands consist of a middle band (simple moving average) and two outer bands (standard deviations), indicating volatility levels and potential price reversals.
ATR gauges market volatility by averaging the true range over a set period. The true range includes the highest minus the lowest price of the current period, the absolute difference between the current high and the previous close, and the absolute difference between the current low and the previous close.
These indicators help in assessing market risk and potential price movements.
4. Volume Indicators
Volume indicators analyze trading activity to confirm price movements' strengths or weaknesses. By examining the volume of trades, these indicators reveal whether market participants support a price trend.
Common examples include On-Balance Volume (OBV) and the Volume Oscillator. OBV tracks buying and selling pressure by adding the volume on days when prices go up and subtracting it on days when prices go down. The Volume Oscillator compares two moving averages of volume to gauge trend strength.
These indicators help traders identify potential trend reversals, validate price movements, and make more informed trading decisions based on the activity behind price changes.
Conclusion
Trading indicators are powerful tools that can significantly improve your trading strategy. By providing valuable insights into market trends and conditions, they help traders make more informed decisions.
While it's important to understand their limitations, combining different indicators and customizing them to your trading style can lead to better results.
Finnifty - Aug 27Price is consolidating after giving good up move. Sustaining above the current level is important to be bullish.
Buy above 23420 with the stop loss of 23380 for the targets 23460, 23500, 23540 and 23580.
Sell below 22340 with the stop loss of 23380 for the targets 23300, 23260, 23220, 23180 and 22140.
Check the live market updates.
Hit the like button to Rock !! Show some energy !!
Note : This is my pre market analysis and my trading journal. Not a suggestion to buy or sell.
You are responsible for whatever you do.
Finnifty - Aug 20Movement was choppy today. 22900 acted as support so far. Patterns seen in chart are channel formation which can be taken as bull flag also.
Buy above 23020 with the stop loss of 22980 for the targets 23060, 23120, 23180 and 23240.
Sell below 22880 with the stop loss of 22920 for the targets 22840, 22800, 22760, 22720 and 22680.
Check the live market updates.
Hit the like button to Rock !! Show some energy !!
Note : This is my pre market analysis and my trading journal. Not a suggestion to buy or sell.
You are responsible for whatever you do.
FINNIFTY - EXPIRY TRADE 20 AUGFinnifty expected to give breakout about 23060 (future levels)
Expiry could give good upmove...
Track 20 Aug - 22900 call buy on dip tomorrow ... target open
expecting 23240/23360 to test
Finnifty - Aug 13Price is moving inside a channel and now it is at the lower trend line of the channel(support). And 23000 is an important zone.
Buy above 23080 with the stop loss of 23030 for the targets 23120, 23160, 23220 and 23280.
Sell below 22980 with the stop loss of 23020 for the targets 22940, 22900, 22860, 22830 and 22780.
Check the live market updates.
Hit the like button to Rock !! Show some energy !!
Note : This is my pre market analysis and my trading journal. Not a suggestion to buy or sell.
You are responsible for whatever you do.
FINNIFTY - Day Trading Levels.NSE:FINNIFTY1!
Disclaimer:
Candlestick charts are a tool for understanding market trends, but they do not guarantee future market behaviour. So, This is only for educational purposes only.
Finnifty - Aug 9Price was falling and has formed bearish pennant/triangle pattern. 22800 zone is important to decide the trend direction.
Buy above 22920 with the stop loss of 22880 for the targets 22960, 23000, 23080 and 23120.
Sell below 22820 with the stop loss of 22860 for the targets 22780, 22720, 22660, 22600 and 22520.
Check the live market updates.
Hit the like button to Rock !! Show some energy !!
Note : This is my pre market analysis and my trading journal. Not a suggestion to buy or sell.
You are responsible for whatever you do.
Finnifty - July 30We had trending move in morning and choppy session in afternoon today. And price is at support now.
Buy above 23320 with the stop loss of 23280 for the targets 23360, 23400, 23440 and 23480.
Sell below 23240 with the stop loss of 23280 for the targets 23200, 23160, 23120 and 23080.
Check the live market updates.
Hit the like button to Rock !! Show some energy !!
Note : This is my pre market analysis and my trading journal. Not a suggestion to buy or sell.
You are responsible for whatever you do.
FinniftyPrice faced resistance at 23720 and unable to break it today. Also price is trying to break the trend line to move up.
Buy above 23660 with the stop loss of 23610 for the targets 23700, 23740, 23790, 23820 and 23880.
Sell below 23560 with the stop loss of 23600 for the targets 23520, 23480, 23420 and 23360.
Check the live market updates.
Hit the like button to Rock !! Show some energy !!
Note : This is my pre market analysis and my trading journal. Not a suggestion to buy or sell.
You are responsible for whatever you do.
Important Points To Trade on Budget dayImportant Points To Trade on Budget day:-
1. For option buyers, only trade in Finnifty because tomorrow is Finnifty’s weekly expiry and premiums will be lower than others, resulting in lower risk.
2. Don’t take any trades before 12:00 PM, as mornings on Budget days usually have low volatility due to uncertainty.
3. The Finance Minister’s speech typically starts between 11:30 AM and 12:30 PM.
4. For option buyers, the 12:30 PM 15-minute candle is important.
5. On Budget days after 1:00 PM, when momentum starts, the 15-minute lows and highs usually stay protected, so you can trail your Stoploss on the 15-minute candle.
6. If you take a position in option buying after 1:00 PM, do not hold your trade if any 15-minute candle’s low or high breaks after a directional move. There is a high chance of reversal when this happens.
7. Expect trade reversals between 1:00 PM and 2:00 PM.
Important Points To Trade on Budget dayImportant Points To Trade on Budget day:-
1. For option buyers, only trade in Finnifty because tomorrow is Finnifty’s weekly expiry and premiums will be lower than others, resulting in lower risk.
2. Don’t take any trades before 12:00 PM, as mornings on Budget days usually have low volatility due to uncertainty.
3. The Finance Minister’s speech typically starts between 11:30 AM and 12:30 PM.
4. For option buyers, the 12:30 PM 15-minute candle is important.
5. On Budget days after 1:00 PM, when momentum starts, the 15-minute lows and highs usually stay protected, so you can trail your Stoploss on the 15-minute candle.
6. If you take a position in option buying after 1:00 PM, do not hold your trade if any 15-minute candle’s low or high breaks after a directional move. There is a high chance of reversal when this happens.
7. Expect trade reversals between 1:00 PM and 2:00 PM.
What Time Frame Should You Trade?What Time Frame Should You Trade?
When it comes to trading in the financial markets, choosing the right time frame can significantly impact your success.
A time frame simply means how long you analyze the price movements of a stock or currency before making a trade.
Some traders prefer to analyze prices every minute, while others prefer to watch them over days or weeks. Each time frame has its advantages and challenges.
In this article, we'll explore different time frames—like short-term, medium-term, and long-term—and help you decide which one might work best for you.
What is the Time Frame in Trading?
Time frames in trading refer to the specific duration over which price data is aggregated and displayed on a chart. Each time frame represents a different perspective of market movements and is crucial for making trading decisions.
Traders can choose from various time frames such as short-term (like minutes or hours), medium-term (like days or weeks), and long-term (like months or years), depending on their trading strategy, goals, and preferred level of activity in the markets.
The time frame selected significantly influences trading strategies, risk management approaches, and the types of opportunities traders can identify and act upon.
Choosing A Time Frame
In trading, your success depends on choosing the right time frame that fits how you like to trade. There are different methods and strategies for different time frames, so picking the right one is really important.
1. Short-Term Time Frames
Typically, in trading, short-term time frames refer to charts where one candlestick or bar represents a relatively brief period such as minute(s) or hour(s).
These time frames are mostly used by traders for quick analysis and decision-making. Some examples include:
1 minute chart: Every candlestick symbolizes one minute during which trade took place. It is very short term, used for intraday trading, to capture quick movements of the price.
5-minute chart: Each candlestick shows the activity of 5 minutes. This is slightly broader than a 1-minute chart but still focuses on intraday trading.
15-minute chart: Each of these candles represents 15 minutes of trading activity. Traders use this timeframe to identify short term trends and patterns within single-session trades.
These short-term periods are useful for market participants who are actively watching the market and making decisions based on the prices that move only within that day itself.
2. Medium-Term Time Frames
Medium-term time frames typically refer to charts or time intervals in technical analysis that range from several weeks to several months.
These time frames are commonly used by traders and analysts to analyze trends, patterns, and price movements that occur over a span longer than short-term (intraday to a few days) but shorter than long-term (years).
Here are some common examples of medium-term time frames:
4-Hourly Charts (4H): Each candlestick or bar represents price action over a 4-hour period. Traders often use these charts to identify shorter-term trends within a medium-term context.
Daily Charts: Each candlestick or bar represents price action over one trading day. Daily charts are widely used to analyze medium-term trends and key levels.
Weekly Charts:Each candlestick or bar represents price action over one week. These charts are useful for identifying trends and significant support/resistance levels over several months.
2-Week or Monthly Charts: Some traders might consider these as longer medium-term time frames, where each candlestick or bar represents price action over 2 weeks or a month. These are useful for identifying broader trends and major support/resistance levels over several months.
Medium-term time frames are valuable because they provide a balance between capturing significant market movements and avoiding the noise that shorter-term time frames can sometimes exhibit.
They are particularly useful for swing traders and investors who aim to capitalize on trends that unfold over weeks to months.
3. Long-Term Trading
Long-term time frames in trading typically refer to charts or analyses conducted over extended periods, such as several months to years.
They are used by investors and traders to identify broader trends and make decisions based on long-term market movements rather than short-term fluctuations.
Long-term time frames are valuable for understanding the overall direction of a financial instrument or market, filtering out noise that may be prevalent in shorter time frames.
This approach is often associated with strategies like long-term investing or trend following, where decisions are based on fundamental factors or significant technical patterns that unfold over longer periods.
Choosing the Right Time Frame to Trade
The choice of time frame for trading depends on your trading style, risk tolerance, and time commitment.
Short-term time frames like minutes to hours are suitable for day traders who make quick decisions based on real-time data.
Medium-term time frames, such as a few days to weeks, are ideal for swing traders who take advantage of price patterns and trends.
Long-term time frames, spanning weeks to months or even years, are preferred by position traders or investors who rely more on fundamental analysis.
It’s important to choose a time frame that aligns with your trading strategy and personal circumstances.
Conclusion
Choosing the right time frame for trading is very important. It directly impacts how you analyze markets, make decisions, and manage risks. Whether you prefer short-term action or a longer-term view, aligning your time frame with your trading strategy is key to success.
Remember, consistency and adaptation to market conditions are essential. Experimentation and learning from experience will help you find the time frame that best suits your goals and style.
FINNIFTY FUT ExpiryHi just sharing a view of Finnifty Futures, as we got expiry today and tomorrow is a holiday so both Banknifty & Finnifty has weekly expiry today. As per Option chain open interest its showing huge writing at 23700 to 23750 on Calls for now, needed to check later when a level is taken off either side. Support resistance trendlines marked, Channel marked, this is Just a View Not a Reco...
Please do check Gamma of an Option before you initiate a trade, as Gamma blast can happen today but not sure.
Please consult your financial advisor before you initiate a trade. Please don't make a trade on my views as these are my personal views and sharing for education purpose only.
Finnifty - July 16Price was moving in a range for the past two days and was choppy. Unless price gains strength, the movement will be in the range.
Buy above 23780 with the stop loss of 23740 for the targets 23820, 23860, 23900 and 23960.
Sell below 23680 with the stop loss of 23720 for the targets 23640, 23600, 23560 and 23520.
Check the live market updates.
Hit the like button to Rock !! Show some energy !!
Note : This is my pre market analysis and my trading journal. Not a suggestion to buy or sell.
You are responsible for whatever you do.
Are You Using RSI Indicator the Right Way?Have you ever wondered how traders predict whether a stock is about to rise or fall? One tool they use is called the Relative Strength Index, or RSI.
It's like a weather forecast for stocks, helping traders see if a stock is 'overbought' or 'oversold.' However, using RSI isn’t only about being familiar with these words, it’s about using them correctly.
This article will look at what RSI is, the mistakes people commonly make when using it, and how it can be used properly for making informed decisions in the share market.
What is the RSI Indicator?
Developed by J. Welles Wilder Jr., The Relative Strength Index (RSI) is a widely-used momentum oscillator in technical analysis that assesses the speed and change of price movements.
It oscillates between 0 and 100 as a line graph, reflecting recent gains versus losses over a defined period (usually 14 days).
This comparison helps traders determine whether an asset is overbought or oversold, signaling potential reversal points or confirming trends.
Traders use RSI to identify potential reversal points, confirm trends, and assess the strength of price movements. It's a valuable tool for making informed trading decisions based on market momentum.
Common Misuses of RSI
Traders often misuse the RSI in several ways:
Over Reliance on extreme RSI levels: Traders often fall into the trap of buying or selling solely based on RSI reaching extreme levels, such as above 70 (overbought) or below 30 (oversold).
This can lead to premature trading decisions without considering other factors like market trends or fundamental analysis.
Ignoring divergence signals: RSI divergence occurs when the price trend and RSI trend move in opposite directions.
Traders sometimes overlook these signals, which can indicate potential reversals or continuations in price movements.
Misinterpretation in Sideways Markets: One limitation of the RSI indicator is that it can generate false signals in ranging or sideways markets.
This means that during periods when prices are not trending strongly in one direction, the RSI may give misleading indications of overbought or oversold conditions
Using RSI in isolation without confirmation: RSI should ideally be used in conjunction with other technical indicators or analysis methods.
Depending solely on RSI readings without confirming signals from other indicators or price action can result in unreliable trading decisions.
These misuses highlight the importance of understanding RSI within the broader context of technical analysis and using it as part of a comprehensive trading strategy rather than as a standalone tool.
Best Practices for Using RSI Effectively
Using the Relative Strength Index (RSI) effectively involves several best practices:
1. Understanding Overbought and Oversold Levels
RSI ranges from 0 to 100. A reading above 70 suggests the market is overbought, possibly signaling a sell opportunity.
On the other hand, if the reading falls below 30, it indicates oversold conditions, suggesting a potential opportunity to buy. Confirmation with price trends means aligning RSI signals with the direction of the market.
These levels help traders gauge when a market might be reaching extremes, aiding in decision-making for entering or exiting trades.
2. Divergence Analysis
Divergence analysis with RSI compares its movements to price trends. Bullish divergence happens when prices make lower lows while the RSI makes higher lows, suggesting a potential uptrend.
A bearish divergence occurs when prices make higher highs while the RSI makes lower highs, indicating a potential downtrend.
These divergences can signal shifts in momentum and potential opportunities for traders to consider reversals in market direction.
3. Use in Conjunction with Other Indicators
Using RSI with other indicators means combining its signals with those of different tools like moving averages or trendlines.
This approach helps confirm trading signals, providing more robust insights into market trends and potential reversals.
For instance, if the RSI signals oversold conditions but a moving average confirms a downtrend, it suggests a stronger sell signal.
This method reduces reliance on RSI alone and enhances decision-making by considering multiple aspects of market behavior simultaneously.
4. Timeframe Consideration
Adjust the timeframe of RSI based on your trading goals. Short-term traders often use a 14-day RSI for quick market movements.
Long-term investors might prefer a 50-day RSI to capture broader trends and filter out short-term fluctuations.
Choosing the right time frame aligns RSI signals with your trading horizon, helping you make more informed decisions.
5. Risk Management
Risk management with RSI involves using stop-loss orders to limit potential losses. Even though RSI signals can indicate buying or selling opportunities, they're not foolproof.
Setting a stop-loss helps safeguard against unexpected market movements that could invalidate RSI signals, ensuring you exit trades before losses become significant.
This approach balances the potential benefits of RSI with protection against downside risks, supporting more disciplined and sustainable trading strategies.
Conclusion
Remember, using RSI wisely can greatly improve your trading success. By avoiding common mistakes and applying the tips discussed, you'll be better equipped to interpret market signals effectively.
Whether you're trading stocks or other assets, mastering RSI can make a big difference.
Finnifty - July 9Price is moving in a channel and 23600 is an important zone to decide the trend direction.
Buy above 23620 with the stop loss of 23580 for the targets 23660, 23700, 23740 and 23780.
Sell below 23540 with the stop loss of 23580 for the targets 23500, 23460, 23420 and 23380.
Check the live market updates.
Hit the like button to Rock !! Show some energy !!
Note : This is my pre market analysis and my trading journal. Not a suggestion to buy or sell.
You are responsible for whatever you do.
