Technical trading involves reviewing charts and making decisions based on patterns and indicators. These patterns are particular shapes that candlesticks form on a chart, and can give you information about where the price is likely to go next. Indicators are additions or overlays on the chart that provide extra information through mathematical calculations on price
The science of trend allows you to build systematic rules to play these repeating formations and avoid the chase: Forget the news, remember the chart. You’re not smart enough to know how news will affect price. The chart already knows the news is coming. Buy at support, sell at resistance. Everyone sees the same thing
Options can: Control large blocks of stocks with call options that are going up with a small amount of capital. Short stocks with put options so you don’t have to find shares to borrow or use margin to sell short. Sell options short to other traders. Buy a hedge using put options to protect your
How to Use them Managing risk through controlling shares with less capital. Putting the odds in your favour. Making Bets on volatility or price inside a specific time frame. Insuring Long term Stock Holding Major Losses. How not to use options Gambling. Going all In one trade. Trade before you know the risk. Trading With
Option Greeks measure the sensitivity of the option pricing represented by Delta, Gamma ,Theta , Vega and Rho. Delta measures the sensitivity of the option value to a given small change in the price of the underlying asset.Delta is amount an option price expected to move based on $1move up on the underlying stock. Delta
Intrinsic Value for call option is underlying stock price minus strike price. Intrinsic Value = Underlying Stock Price – strike price Intrinsic Value for put Option is strike price minus underlying stock price. Intrinsic Value = strike Price – Underlying stock price Option Premium is Intrinsic Value plus ( addition) Time Value. Option Premium =
Call Option : In the money, spot price is greater than strike price which mean cash flow is positive. At the Money,Spot price is equal to the strike price which mean cash flow is zero. out of the Money, Strike price is greater than the spot price which mean cash flow is negative. Put Option
Three rules for Buyer Option buyer gets the right to buy and sell . Option Buyer pays the premium . Maximum profit is unlimited, Maximum loss is upto premium paid. Three rules for Seller ( Writer ) Option Seller has obligation. Option Seller gets the premium. Maximum Profit is upto premium received, where as maximum
Options An Option is a contract which gives the right, but not an obligation, to buy or sell the underlying at a stated date and at a stated price. While a buyer of an option pays the premium and buys the right to exercise his option, the writer of an option is the one who
Candles Chart are stock charts used in charting and study of chart patterns in technical analysis. Also called as Candlesticks or Candlestick charts, they dramatically illustrate supply and demand concepts defined by classical technical analysis theories. Candlestick patterns not only display the absolute values of the open, high, low, and closing price for a given