Divergeneces for trading with good stoploss

Divergences are best secret reversal indicator and continuation signals

Divergences can be a momentum traders best friend, it can tell you many useful things such as trend continuation or trend reversal. Unfortunately, for many beginning traders (and some advanced) they can be very hard to spot on a chart.

However there was an easier way to spot and use divergences in your strategy by using the indicator  designed by a user named LonesomeTheBlue on TradingView and is called Divergence For Many Indicators v4

How does it work?

The indicator checks for divergences between current and any of last 16 Pivot Points (configurable) for the oscillators on each candle. It then shows a shape on the candle indicating that there is … Read the rest

How to avoid losses in Options using open interest

How to avoid losses in Options using open interest

 

We have other articles where we exained open  interest clearly.  Today only we can cover how we can avoid losses in Options/Futures using Open interest.

 

  1. Mark high OI and Change in OI strike prices which acts like support and resistance.
  2. Make sure Futures OI is analyzed to see if money is flowing in on buy side or sell side with Change in OI.

 … Read the rest

Grandfather Father son Strategy vishal

Vishal Malkan sir recommended buying stocks of Monthly RSI greater than 60; Weekly RSI greater than 60; Daily RSI greater than 40.

Normally this setting for RSI – 14 period

1Quaterly > 60, 1monthly>60, 1weekly around 40 – 5 candles of weeks
1month >60, 1weekly > 60, 1daily around 40 – 5 candles of days
1weekly > 60, daily > 60, 1 hourly around 40 – 5 candles of hours
1daily > 60, 1 hourly >60, fifteen minutes around 40 – 5 candles of fifteen min candles

Similarly, Vishal Malkan recommended selling stocks that are trading below 40 RSI on monthly and weekly time frame and trading near 60 on daily time frame on Samco Securities show – The Right … Read the rest

A 5 min Quick scalping strategy to follow current trend

A 5 min Quick scalping strategy to follow current trend

Following the current trend with a quick scalping method Time frame 5 minutes 
Always follow the trend for better outcomes with this Scalping Trading Strategy. Traders adopt a variety of strategies in order to constantly beat the markets and profit, but scalping is one of the most profitable methods of trading. Scalping is a type of trading that entails executing a series of little winning deals in order to increase earnings by focusing on number rather than quality. Rather than undertaking a lot of detailed technical analysis, the primary aim of such methods is to use trading volumes.  There are a variety of such trading tactics, one of which was 
… Read the rest

Quick 1 min timeframe scalping strategy

Quick 1 min timeframe scalping strategy. It is Simple But Profitable(small profits)

Many of us heard of quick scalpers or jobbers who keep punching orders in live market. this setup here is similiar where 1 min Timeframe quick in and out of market is done at fixed points with minimum Risk Reward 1:2

Traders adopt a variety of strategies in order to constantly beat the markets and profit, but scalping is one of the most profitable methods of trading. Scalping is a type of trading that entails executing a series of little winning deals in order to increase earnings by focusing on number rather than quality. Rather than undertaking a lot of detailed technical analysis, the primary aim of such … Read the rest

Stop getting stopped out of trades by stoploss hunting with ATR

Stop getting stopped out of trades by stoploss hunting with ATR

There no worse feeling than setting a stop loss, entering a position, and having the market hit it before moving in your chosen direction. I’ve been there, and it is one of the most upsetting things that can happen in trading. In the long run, it will substantially impact your profitability and confidence in your plays. Here lets see to a better stop loss by taking one of the most important aspects of trading into account of volatility.

What is wrong with a fixed stop loss percentage or rough calculation?

Using a fixed stop loss like 10–20% for a asset is dangerous because volatility is different across different assets. … Read the rest

Trading with volume profile POC as support and resistance

Trading with volume profile POC as support and resistance

This method to find High Probability Support and Resistance Levels from volume.

The ideas of trading with support and resistance levels are very vastly used. chart patterns and predicting where price action is taking place and then taking them into which direction is very important. Favourable trades are best place where we have favourable Risk and reward ratios which is very easy at support and resistance.

How to do actually find a strong POC?

The first step on what we look for is a strong uptrend or downtrend that is with very good momentum. we can see one identified in the rectangle on the chart below. There is strong volume here … Read the rest

Participant wise daily data Open Interest- know where money is flowing

Index(Nifty/Banknifty/NiftyIT) Data OI Analysis as per participants below

First, Open Interest in Cumulative OI in futures is

in pdf is given here oi behaviour with coi futures

we are only intrested in days where there price movement up or down. Together with futures coi gives idea what is going to happen. 6 scenerious we can trade below…

  1. say futures coi is increase with price then long builtup is formed.
  2. price down with futures coi increase short builtup
  3. price up and coi down shortcovering postions
  4. price down and coi down long unwinding positions.
  5. no change is coi and price up then a quick upmove is posible
  6. no change in coi and price down then quick downmove is possible.

Index Futures participant

… Read the rest

Participant wise daily data Volume- know where money is flowing

Index(Nifty/Banknifty/NiftyIT) Data Volume Analysis as per participants below

Index Futures participant wise Volume data results

Futures is simple, if more long than bullish and if more net negative then bearish. Compare it to previous historic data…

Index Options partcipant wise Volume data results

Simple points: If FII are postions are

  1. positions are positive on Call side then bullish
  2. Positions are negative on Call side then bearish (Short side on Call)
  3. Positions are positive on Put side then bearish
  4. Positions are negative on Put side then bullish(short side on put)

If mixed signal is generated then compare bullish numbers to bearish numbers and see if there is any trend expected or not.

Stock Volume Data Analysis as per participants below

Stock

… Read the rest