Full Price Action Course in this thread 🧵

This course is worth 50k

Collaborated with @AdityaTodmal

1/ How to read Candlestick:

Green/Blue candle indicates buyers candle & red candle indicates sellers candle

2/ 24 candlestick patterns explained

3/ Price Action (PA) trading:

PA helps to predict market movements by spotting patterns or ‘signals’ in the price movements of an underlying market.

Learn different price action strategies

4/ How to plot Support &

Option trading is tough but here’s what can make it easier for you

8 option strategies that you can use in any market (sold as a ₹ 50,000 course !)

1/ Bullish: Put Spread (Vertical Spread)

This means shorting a near OTM Put Options and buying far OTM Put Options to hedge.

Let's consider, I am bullish on Nifty (Spot: 17900).

So I will short 17800 PE and buy 17600 PE as hedge.

Payoff and other details is attached below.

2/ Bullish: Put Spread (Cross Calendar Spread)

It means shorting a near ATM put of current expiry and buying OTM put option of next expiry to reduce margin.

Let's consider, I am bullish on Nifty (Spot: 17900).

So I will short 17800 PE (22/09) and buy 17600 PE (29/09).

If you are unsure of the view then cross calendar spread can be used as profit is good in between the range.

Decay in the far OTM option for next expiry will be less than current expiry options so that will be again a benefit.

3/ Bearish: Call Spread (Vertical Spread)

This means shorting a near OTM Call Options and buying far OTM Call Options to hedge.

Let's consider, I am Bearish on Nifty (Spot: 17900).

So I will short 18000 CE and buy 18200 CE as hedge.

Payoff and other details is attached below.

A thread on Price action and how to identify stocks showing strong price action.

For me price action is when you answer the What,When,Why,How and Where of price movement of any underlying.

Its a language you use to communicate with the underlying.

Key Parameters thread

1/n

Short term price action is judged when the underlying is crossing precious day high or low. Why last day action is important?Because there are enough short term traders who act at these levels,especially if that day had lots of activities showcased by volume and delivery.

2/n

Monthly high, low, close are again important as the stocks are typically evaluated on monthly basis for mid term performance. Operator building large positions will react when market breaches these critical levels.

3/n

Just like monthly, 52 week i.e yearly data is also critical as a symbolic performance of an underlying for long term actions.

4/n

VWAP literally helps you to judge the behavior of operator. Typically that the price at which operator has build positions. If you combine VWAP with closing, you will be able to judge the probable demand and supply zone of any underlying.

5/n

@sourabhsiso19 Thanks for Sharing @sourabhsiso19 sir, @buzz_chronicles

@buzz_chronicles @buzz_chronicles save

Undisputed champion 🏆 in option selling and undoubtedly India's best trader @Mitesh_Engr Sir

Lessons on how to trade in such difficult times from the Indian Options Conclave 3.0 by Jainam Broking Ltd

Time for a🧵

Collaborated with @AdityaTodmal

How to trade in options during high volatility i.e. India vix>22-23 ?

In the current scenario, option sellers who are deploying strangles are unable to make money

E.g.: If a trader is selling a strangle of Rs. 100 each leg then during a fast momentum on either side, one leg becomes 80 & the other one Rs. 200
So overall, the strangle seller is at a loss

Strangles & Straddles are easy to manage in low vix

During high vix, find reversals

Mitesh Sir follows 3min TF in Bank nifty futures chart

Specimen:

In a down trending market people are tempted to sell CE & avoid selling PE's, however it would be disastrous to hold those CE's till expiry

Trailing is the answer during high VIX, as the momentum is faster on both sides

Check past few days charts on 3min TF for more clarity