Optionclub

21:34

Optionclub

**Momentum trading** is a popular strategy that focuses on buying securities that are trending in a strong direction (either upward or downward) and selling when the momentum starts to fade. The key idea behind momentum trading is to capitalize on the continuation of existing trends, rather than trying to predict reversals. Let’s dive into what momentum trading is...

13:25

Optionclub

**Database Trading** refers to the practice of using databases and automated systems to analyze and trade financial markets, typically involving large amounts of data to make decisions. This method combines knowledge from both trading and database management, often leveraging historical data, real-time market information, and various quantitative models. 1....

21:25

Optionclub

Learning the stock market from the basics to advanced levels is an exciting journey that requires a clear understanding of fundamental principles, effective strategies, and continuous learning. 1. Basic Stock Market Concepts** **What is the Stock Market?** - The **stock market** is a platform where buying and selling of shares (stocks) of publicly listed...

18:28

Optionclub

#1. Basics of Options Trading** **What are Options?** - **Option**: A financial contract that gives the buyer the right (but not the obligation) to buy or sell an underlying asset (like stocks) at a specific price before a certain expiration date. - **Two Types of Options**: - **Call Option**: The right to buy an asset at a specific price (strike price). -...

21:27

Optionclub

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. bearish The Put-Call Ratio (PCR) is a useful indicator...

13:19

Optionclub

### What is RSI (Relative Strength Index)? The **Relative Strength Index (RSI)** is a **momentum oscillator** used in technical analysis to measure the **speed and change** of price movements. It was developed by **J. Welles Wilder** and is used to identify overbought and oversold conditions in the market. RSI helps traders assess the strength of a trend, spot...

22:50

Optionclub

### What is Divergence-Based Trading? **Divergence-based trading** is a trading strategy used to identify potential reversals in the market by analyzing the relationship between the price of an asset and a technical indicator, such as the **Relative Strength Index (RSI)**, **Moving Average Convergence Divergence (MACD)**, or **Stochastic Oscillator**. Divergence...

18:37

Optionclub

What is an Option Chain? An **Option Chain** is a list of all the available **options contracts** (both calls and puts) for a specific underlying asset, like a stock, index, or commodity. It provides detailed information about the various strike prices, expiration dates, and other vital data that traders use to make informed decisions. The **Option Chain** helps...

23:14

Optionclub

### What is PCR (Put-Call Ratio)? The **Put-Call Ratio (PCR)** is a popular market sentiment indicator used in options trading. It is calculated by dividing the total open interest (OI) of **puts** by the total open interest of **calls**. It helps traders understand whether the market sentiment is bullish, bearish, or neutral, based on the relative buying...

21:42

Optionclub

learn Fundamental Analysis from **basic to advanced**: --- ### **1. Basic Concepts of Fundamental Analysis** #### a. **What is Fundamental Analysis?** Fundamental analysis is the process of evaluating a company's financial health, industry position, and the overall economy to determine the true value of a stock or other financial asset. #### b. **Key Areas of...

13:19

Optionclub

The **Option Chain PCR (Put-Call Ratio)** is a ratio used by traders and analysts to gauge market sentiment and potential price direction. It is calculated by dividing the total open interest (OI) of **puts** by the total open interest of **calls** in a particular market or stock. ### Formula for PCR: \ ### What does PCR indicate? - **PCR > 1**: This suggests...

12:23

Optionclub

Price action in option trading refers to the analysis of recent price movements and historical data to identify patterns and trends that can inform trading decisions. This analysis can involve various technical indicators such as charts, trend lines, price bands, support and resistance levels, and more. Price action traders can follow the sequence of highs and...

21:51

Optionclub

The support and resistance (S&R) are specific price points on a chart expected to attract the maximum amount of either buying or selling. The support price is a price at which one can expect more buyers than sellers. Likewise, the resistance price is a price at which one can expect more sellers than buyers. Using Support and Resistance After a Breakout Old...

19:20

Optionclub

Some common advanced options trading strategies. are: Long Straddle and Strangle: Buying a call and put with the same expiration date and different strike prices. Iron Condor and Iron Butterfly: Combining a bear call spread and a bull put spread. Which strategy is best for option trading? The long straddle is the best strategy for option trading that consists of...

19:37

Optionclub

Here's how to make your first trade: Open and fund your live account. After careful analysis of the market, select your opportunity. 'Buy' if you think that market's price will rise, or 'sell' if you think it'll fall. Select your deal size, ie the number of CFD contracts. Take steps to manage your risk. The 5-3-1 strategy is especially helpful for new traders who...

15:40

Optionclub

The United Nations Comtrade database aggregates detailed global annual and monthly trade statistics by product and trading partner for use by governments, academia, research institutes, and enterprises. SQL remains a fundamental tool for querying and managing data. SQL's simplicity and power make it accessible to both beginners and experts. In trading systems,...

20:59

Optionclub

The ADX quantifies trend strength by measuring directional movement over a given time frame. It provides traders with specific numbers (from 0 to 100) that represent strong or weak price trends. Traders can simply refer to the numbers to quickly assess the strength of a trend. Key takeaways. Average directional index (ADX) is a short-term chart indicator. It can...

29:03

Optionclub

For instance, the algorithm would buy Microsoft (MSFT) shares if the current price is lower than the 20-day moving average and sell if the price exceeds the 20-day moving average. Algorithmic trading strategies can be as simple as this example, or they can be much more complex. So, is algo trading profitable? Yes, it is possible, but there's a price attached that...