In this session we talked about
1. Basics of Option Selling
2. Directional Vs Non Directional
3. Straddle and Strangle Backtest
4. Benefits of Automated

UNDERSTANDING CHART PATTERNS IN REAL CHARTS!

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@kuttrapali26 @AmitabhJha3

Swing Trading Strategy
That can help you generate Monthly Income !
A thread 🧵
Using RS , MACD , 21 EMA and Price Action
All Concepts with charts Explained !

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UNDERSTANDING MACD
Moving average convergence divergence (MACD) is a trend-following momentum indicator that shows the relationship between two moving averages of stock.
It is calculated by subtracting the 26-period exponential moving average (EMA) from the 12-period EMA.
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The result of that calculation is the MACD line. A nine-day EMA of the MACD called the "signal line," is then plotted on top of the MACD line, which can function as a trigger for buy and sell signals.
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Traders may buy the security when the MACD crosses above its signal line and sell—or short—the security when the MACD crosses below the signal line.
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UNDERSTANDING RELATIVE STREGTH
1.Relative strength is a strategy used in momentum investing and in identifying value stocks.
2. It focuses on investing in stocks or other investments that have performed well relative to the market as a whole or to a relevant benchmark.
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How to Avoid Big Losses In trading ?

1. Avoid Stocks Below 200 ema
2. Sell Stocks in Stage 4 Down Trend
3. Dont Trade Stocks that are moving in Circuits
4. Avoid News based Trading

A thread With examples🧵

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A Study Shows that 90% of the winning Stocks stay above 200 ema before a big Advancing Phase

1. Simply Not Holding or Buying Stocks below 200 ema Saves a lot of time and Money.
2. You can looses opportunity Cost if you buy stocks below 200 ema.
3. TimeFrame: Daily 200 ema

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B. Sell Stocks in Stage 4 Down Trend

1. Stocks Exhibiting this are in complete Bear Grip
2. The 30 week ema acts as reference for stage analysis
3. These Stocks can be short sold on pullback to 30wema
4. Happens after Topping Phase
5. TimeFrame : Weekly , 30 Week Ema

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C. Dont Trade Stocks that are moving in Circuits

1. Mostly these stocks are Speculatve and Operator Driven.
2. You never know what is the top of the trend and may get Stuck with Huge Losses

Example : TTML , Alok , Ruchi etc
This is Pyramid Structure and news driven also
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D. Avoid News based Trading
1. Whenever a postive News comes in Market People Jump in Buying the Stocks without thinking .
2. Most of the the times the news is factored in or gets factored after heavy buying
3. Good News can also be bad

Example : PnbBousing , AdaniPower
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How to Draw
Support , Resistance and Trendlines ?
A Foundation of Stock Market !

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What is Support and Resistance ?

⏫Support is an area for price , where it halts due to demand of the stock at that price .

⏬Resistance is an area for price ,where it halts due to Supply of the stock at that price .
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How to Draw S/R ?

You can use Any time frame for Drawing S/R and it works on all time frames .

Whenever the Price Reverses from an area for more than 2 times that area can be called as S/R .

You can use Line Tool Or Rectangle tool to plot this on charts .

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Types of Support Resistance
1. Horizontal
2. Moving Averages
3. Trendline
4. Psychological Numbers (100 , 200 etc)

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Reversal of Polarity .

Whenever Resistance Breaks , it tends to act as support and Whenever support breaks it tends to act as resistance

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Here comes the 3rd and final part of the long weekend 'Beginners' Pathway" series.

In this we'll see Open Interest basics and Option Chain Analysis.

There are two types of Options, Call Option & Put Option.

This graphics show when to buy and when to sell options.

The first thing that we need to know is the moneyness i.e. whether an Option is At the money (ATM), In the money (ITM) or Out of the Money (OTM).

The strike closest to the market price is At The Money.

I have tried to explain OTM & ITM in a very simplistic & easy manner.

Option chain of Nifty can be seen here

Try to explain Nifty future trade here

𝙎𝙝𝙖𝙧𝙞𝙣𝙜 𝙢𝙮 𝙬𝙞𝙨𝙙𝙤𝙢 𝑾𝒐𝒏'𝒕 𝒃𝒆 𝒔𝒖𝒓𝒑𝒓𝒊𝒔𝒆𝒅 𝒊𝒇 𝒕𝒐𝒎𝒐𝒓𝒓𝒐𝒘 𝒖 𝒓𝒆𝒂𝒅 𝒕𝒉𝒆 𝒔𝒂𝒎𝒆 𝒔𝒕𝒖𝒇𝒇 𝒊𝒏 50𝒌 𝒘𝒐𝒓𝒌𝒔𝒉𝒐𝒑 𝒐𝒓 𝒔𝒐𝒎𝒆𝒐𝒏𝒆 𝒎𝒂𝒏𝒂𝒈𝒊𝒏𝒈 𝒚𝒐𝒖𝒓 𝒎𝒐𝒏𝒆𝒚 𝒘𝒊𝒕𝒉 𝒔𝒂𝒎𝒆 𝒍𝒐𝒈𝒊𝒄
Simple and effective way 2 make Money

Idea 1:- Use pivot level like 14800 in case of nifty and sell 14800straddle monthly expiry (365+335) exit if nifty closes on daily basis below S1 or above R1

After closing below S1 if it closes above S1 next day or any day enter the same position again vice versa for R1

Idea2:- Use R1 and S1 corresponding strikes multiple
Incase of R1 15337 take 15300ce
N in case of S1 14221 use 14200pe
Sell both and hold till expiry or exit if nifty closes below S1 or above R1 around closing
If the same bounces above S1 and falls below R1 re-enfer same strikes

Use same criteria for nifty, usdinr and banknifty

(This is must)Use this margin rule for 1lot banknifty pair keep 4Lax margin
For nifty one lot keep 3Lax
For usdinr 100lots keep 4Lax

I bet you if you do this on consistent basis your ROI will be more than 70% on yearly basis.

Couldn't explain easier than this

Criticisms are most welcomed.