SkyTradingZone

23:38

SkyTradingZone

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. However, no PCR can be considered ideal, but usually, a...

13:33

SkyTradingZone

Technical analysis is a trading strategy used by investors to identify new investment possibilities. To anticipate future price movements of stocks or other assets, for example, past price and volume data is studied and shown on graphic charts, where trends, patterns, and technical indicators can be identified. ​Technical trading is a broader style that is not...

13:58

SkyTradingZone

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. Rupeezy, Upstox, and Zerodha offer the best option trading apps in the market...

19:45

SkyTradingZone

The Moving Average Convergence/Divergence indicator is a momentum oscillator primarily used to trade trends. Although it is an oscillator, it is not typically used to identify over bought or oversold conditions. It appears on the chart as two lines which oscillate without boundaries. Traders often use MACD with longer-term moving averages like the 50-day or...

22:30

SkyTradingZone

The most reliable source for identifying support and resistance levels is historical prices, making them invaluable to traders. The key is to familiarise yourself with past patterns – sometimes from very recent activity – so you can recognise them if they appear again. Simply mark visible highs and lows on your chart; the higher highs and lower highs will serve...

11:21

SkyTradingZone

The relative strength index (RSI) is a momentum indicator used in technical analysis. RSI measures the speed and magnitude of a security's recent price changes to detect overbought or oversold conditions in the price of that security. When the RSI crosses above 70, it suggests that the asset may be overbought. This means that a price correction or pullback could...

07:42

SkyTradingZone

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. Or as it's conveniently named, 1 Long put closer to the money, 1 short put further from the money, and 2...

09:09

SkyTradingZone

The relative strength index (RSI) is a momentum indicator used in technical analysis. RSI measures the speed and magnitude of a security's recent price changes to detect overbought or oversold conditions in the price of that security. The RSI is helpful for market participants in identifying trends. In a strong uptrend, the RSI typically stays between 40 and 90,...

08:39

SkyTradingZone

An option chain lists all option contracts, including put and call option for given security. However, several traders focus on net change,' 'bid,' 'last price,' and 'ask,' columns to assess current market conditions. Option chain is also called the option matrix. How does an option chain work? An option chain displays available call and put options for a...

10:25

SkyTradingZone

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. ADX below 20: Non-trending or consolidating. ADX crosses above 20: A new trend may...

08:08

SkyTradingZone

If you buy an options contract, it grants you the right but not the obligation to buy or sell an underlying asset at a set price on or before a certain date. A call option gives the holder the right to buy a stock, and a put option gives the holder the right to sell a stock. Now, the burning question on everyone's mind – how long does it take to learn options...

10:59

SkyTradingZone

Technical trading is the practice of using price-based trading strategies to make short-term trades. It relies heavily on technical analysis, which uses past and current data to identify trends in the market. ​Technical trading is a broader style that is not necessarily limited to trading. Generally, a technician uses historical patterns of trading data to...

07:56

SkyTradingZone

The seller (or writer) of options accepts the obligation to buy or sell should the purchaser exercise their right. U.S. investors can trade options on a wide range of financial products—from individual stocks or stock exchange-traded funds (ETFs) to indexes, foreign currencies and more The process for how to learn stock options trading is quite simple. You need...

09:09

SkyTradingZone

RSI: Used to determine overbought/oversold conditions. ADX: Measures trend strength. Keltner Channels: Provides dynamic support/resistance levels and helps identify breakouts The average directional index (ADX) is a technical indicator used by traders to determine the strength of a financial security's price trend. It helps them reduce risk and increase profit...

08:17

SkyTradingZone

An 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.2 What is Implied Volatility (IV)? Implied Volatility (IV) uses an option...

10:51

SkyTradingZone

A 7-period RSI with settings of 10 and 90 works best. The tighter timeframe and thresholds help spot immediate trading opportunities. With settings of 10 and 90 a scalper can: Enter long positions when RSI dips below 1 It can signal when to buy and sell. Traditionally, an RSI reading of 70 or above indicates an overbought condition. A reading of 30 or below...

07:46

SkyTradingZone

An option chain lists all option contracts, including put and call option for given security. However, several traders focus on net change,' 'bid,' 'last price,' and 'ask,' columns to assess current market conditions. Option chain is also called the option matrix. What is Implied Volatility (IV)? Implied Volatility (IV) uses an option price to determine and...

09:06

SkyTradingZone

Technical analysis is a trading strategy used by investors to identify new investment possibilities. To anticipate future price movements of stocks or other assets, for example, past price and volume data is studied and shown on graphic charts, where trends, patterns, and technical indicators can be identified. ​Technical trading is a broader style that is not...