The Put Call Ratio (PCR) is a tool in the stock market to understand how investors feel about a stock or the market's future. It compares the number of put options to call options traded. More puts traded mean investors expect prices to fall (bearish). More calls traded mean investors expect prices to rise (bullish). A PCR above 1 indicates that the put volume...
The 80% Rule is a Market Profile concept and strategy. If the market opens (or moves outside of the value area ) and then moves back into the value area for two consecutive 30-min-bars, then the 80% rule states that there is a high probability of completely filling the value area. The defining feature of day trading is that traders do not hold positions...
The MACD indicator (or oscillator) is one of the best indicators for identifying trends and reversals in the financial markets. The MACD strategy in its most basic form involves using the crossing of the smoothed out signal line over the MACD line as your entry or exit point for a trade. The best MACD setting for day trading often uses a faster configuration,...
Moving 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 signal line is a nine-period EMA of the MACD line. A common strategy is to buy when the MACD line crosses above...
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.
The 3 5 7 rule is a risk management strategy in trading that emphasizes limiting risk on each individual trade to 3% of the trading capital, keeping overall exposure to 5% across all trades, and ensuring that winning trades yield at least 7% more profit than losing trades. What is a good setup for day trading? A good day trading setup includes a powerful computer...
If MACD is above the signal line, the histogram will be above the MACD's baseline or zero line. If MACD is below its signal line, the histogram will be below the MACD's baseline. Traders use the MACD's histogram to identify peaks of bullish or bearish momentum, and to generate overbought/oversold trade signals. The difference between the two lines is represented...
Options data captures information on options contracts, including pricing and trading volumes, useful for investment strategies. Discover our guide and top options data providers. By analysing the information provided in the option chain, traders can identify potential trading opportunities and make informed decisions about buying or selling options contracts....
An options chain displays all available option contracts for a security, organized by expiration date and strike price. Options chains typically show each contract's bid price, ask price, volume, open interest, and implied volatility (IV). Option chains also allows traders with the option to select the best expiration date for their options trading. The option's...
Typically a trading dataset will provide information about trades that are made over the course of the day. This includes various different details about the trades, such as the bid, bid size and ask size. This information is known as quote data. Results show that migration to a MongoDB database would be most beneficial in terms of cost, storage space, and...
In conclusion, Smart Money Concepts (SMC) provides traders with a strategic framework that focuses on understanding the actions and motives of market makers, particularly institutions such as banks and hedge funds. It compares favourably to other strategies, such as swing trading and scalping, although each are much more appropriate in a short term timeframe. If...
Common types of trading are intraday, positional, swing, long-term trading, scalping, and momentum trading. Trading involves exchanging goods or services. In stock trading, investors buy and sell stocks from companies within regulated markets overseen by Indian regulatory bodies. Master these skills and then you'll get a genuine shot at being a trading...
What Is Technical Analysis? Technical analysis is a method of evaluating statistical trends in trading activity, typically involving price movement and volume. It is used to identify trading and investment opportunities. Unlike fundamental analysis, which attempts to evaluate a security's value based on financial information such as sales and earnings, technical...
What Is Price Action? Price action is the movement of a security's price plotted over time. Price action forms the basis for all technical analyses of a stock, commodity, or other asset charts. Many short-term traders rely exclusively on price action and the formations and trends extrapolated from it to make trading decisions. Technical analysis as a practice is...
The best RSI settings are typically a 14-period timeframe with 70 as the overbought level and 30 as the oversold level. These settings can be adjusted based on specific trading strategies. Low RSI levels, below 30, generate buy signals and indicate an oversold or undervalued condition. High RSI levels, above 70, generate sell signals and suggest that a security...
#BHARTIARTL Resistance 1615. Watching above 1620 for upside movement... Support area 1580. Below 1600 ignoring upside momentum for intraday Support 1580. Watching below 1578 for downside movement... Resistance area 1610-1615 Above 1605 ignoring downside move for intraday Charts for Educational purposes only. Please follow strict stop loss and risk reward if you...
Oil India Ltd #OIL Resistance 530. Watching above 531 for upside movement... Support area 520. Below 525-520 ignoring upside momentum for intraday Support 520.Watching below 519 for downside movement... Resistance area 530 Above 525-530 ignoring downside move for intraday Charts for Educational purposes only. Please follow strict stop loss and risk reward if you...
Undervalued Stock of the Day Today's pick for a super undervalued stock is: 1.Tiger Logistics India Ltd. This stock is showing strong potential from a valuation perspective. If you're interested in undervalued opportunities, this might be one to keep on your radar! Feel free to share any thoughts or feedback if you're tracking this one.