About Auto-Support/Resistance…
This article discusses the need for Auto-Support/Resistance and why it makes it incredibly easy for all those traders who want to use Support/Resistance strategies in their trading.
Category: Technical Analysis
Webinar: Support/Resistance Trading Strategies
A quick recap about the webinar we had today (23rdJan’16). The webinar was about Support/Resistance trading strategies that could help traders to achieve a better success rate.
How to use Pivot Points in Intraday Trading
Pivot Points are theoretical support and resistance levels based on the previous day’s open, high, low and close values: PP,R1,R2,R3,S1,S2,S3. PP is the Pivot Point, R1,R2,R3 are resistance levels, and S1,S2 and S3 are support levels. They are only valid as support and resistance levels for intraday trading. Pivot Levels can be calculated based on […]
How to use Open Interest in Future/Option trading
Open Interest is the third most important indicator after price and volume. It is defined as is the number of contracts outstanding at the end of a day. Open Interest is very important for any Future and Option Trader.
A Brief Introduction to Futures
Futures and Options are also called derivatives because their prices depend on some underlying entity. In case of the NSE Futures and Options, the underlying entity is usually the stock or index. This post is a beginner guide for those who are trading in equities but want to venture into Futures.
Using Multiple indicators to reduce false signals
In a previous post, we had explained about the two main type of technical indicators: oscillators and trending indicators, giving an example of an oscillator (RSI) and a trending indicator (EMA) and shown the reader how the Buy/Sell signals occur in each. Each of the indicators have there pros and cons, but which one is […]
Importance of setting Stop Losses
Many times I have heard statements from traders who say something like, “I bought XYZ stock with the intention of day trading, but because it turned it into a loss, I converted it into delivery (i.e. a short-term to long-term investment).” This kind of strategy is a recipe for disaster for any portfolio and let […]
Importance of Trend in Technical Analysis
Trend is one of the most important concepts to understand in Technical Analysis and this post explains why. Trend is defined in Technical Analysis as the direction of the market and can be of three types: uptrend, downtrend and sideways trend. If the direction of the market is upward, the market is said to be […]
About Oscillating and Trending Indicators
Often times, I find traders use technical indicators and follow their Buy/Sell signals blindly, without really understanding how that indicator is to be used. One of the first thing you have to know when you use an indicator is to know what category it falls in. The majority of indicators out there are either the […]
Do you really need tick by tick data?
I have found that many traders are looking for tick-by-tick data in their Technical Analysis software without really understanding why they require it, hence this blog post.