Friday, February 26, 2021

Option Trading Neo Wave Two Stage Confirmation 20210226

 

How to Trade Options by using Neo Wave 2 stage confirmation technique and why it is time to be alert AGAIN! 

 #Mentorship on Technical Analysis 13th March 2021 https://www.wavesstrategy.com/mentorship-form/ By Ashish Kyal, Authors, CMT, Founder of Ashish Kyal Trading Gurukul Contact +919920422202 

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Wednesday, February 24, 2021

3 Simple Techniques Option Trading Mastery!

 

Option Trading can result into a classic strategy for any trader who understands the nature of the instrument. One way of understanding it is to see various Greeks like Theta, Gamma, Vega and much more. Another way is to simply look at the Option charts and apply simply concepts.

Below chart is of Nifty 14600 PE Feb Expiry 15 minutes chart

Nifty,Index,Technical Analysis

3 Simple Techniques: In above chart we can see 3 different important factors.

1. Ichimoku Cloud – This is a simple Technical analysis tool which is plotted along with prices. The red highlighted area is known as cloud. As long as prices are sustaining below the cloud the trend remains on downside. Move towards the cloud can provide opportunity to short for the down move as long as prices stay below the cloud. Post 22nd February we can see a push above the cloud but there was no clear higher highs and higher lows on bigger timeframe that suggested that the opportunity will still be on short side.

2. Average True Range (ATR) – This indicator helps to understand the volatility and on an average basis how much the option prices are moving during the 15 minutes time frame. This is again an important indicator that can help to setup stoploss for the positions. This method is very objective way of risk management which we discuss in much detail in our Mentorship program.

3. Kijun Sen (Base line) and Tenkan Sen (Conversion line) – In addition to cloud there are two more lines red line (base line) and blue line (conversion line). We are not going to get into details of plotting these lines but aim is to understand the application. When the blue line crosses below the red line this can be used as a signaling system for pulling the trigger. This acts like moving average crossover but it is plotted in a different way.

Above method clearly suggest 3 Simple but Powerful ways of Option writing without having to bother to look at the Greeks or spot prices.

Subscribe to the Intraday / Positional calls on Nifty, Bank Nifty, Stocks Futures and Options and get free research report along with it. Get access here

Mentorship starting in March 2021 will focus on such simple yet powerful ways of objective trading the Futures and Options which is the secret known by a few institutional traders. Our mission is to equip the traders with such tools for effective trading without the jargons and complexity. Time is Now to act and take the actions to Become a Wonderful Trader. Simply fill the form here for more details

Monday, February 22, 2021

Bank Nifty Volume Profile – Insight into Institutional Traders

Volume Profile can provide vital information on how Institutional and Big Traders are creating positions.

Below is futures chart of Bank Nifty Futures that gives outlook on major volume activity. The volumes seen in the zone of 35900 – 36200 has been the highest. This Volume at Price indicates if Bank Nifty fails to move quickly above 36200 than weak hands can be in real trouble.

Bank Nifty Futures chart

Technical Analysis, Bank Nifty , Index

Looking at the above Bank Nifty chart one can see the biggest volume profile is in the zone of 36200 – 35900 levels. As soon as this profile was broken on downside by prices there was a minor retest on upside post which the selling pressure intensified. Despite of all the euphoria and super bullish sentiments prevailing some major activity has taken place in the highlighted zone.

Volume Profile alone is not the only way for taking signals but gives the important context to the market. Next support as per this method is now near 34600 levels. A breach below this level can result into severe declines as there are very less change of hands till 31200 levels.

In short, for positivity to emerge back in Bank Nifty we have to see move back above 36200 levels with important support lying near 34600 on downside. Break below 34600 on Bank Nifty Fut will result into bigger declines.

This is simple way of understanding what the big players are doing in the market and this when combined with Candlestick techniques and Time cycles can simply give the “Aha moment” that one has been searching all the while.

Trade with me – 3 months of Mentorship starts in March 2021 – “Life transformation” is what most of our existing mentees have been calling the program. Capture the big trends using simple ways of understanding institution activities which had been available only to a limited few so far. Take this leap for the lifetime investment. For more details register here:

Friday, February 19, 2021

How to Use Volume Profile for Stock Selection? by Ashish Kyal

 

Volume Profile is a powerful #Technicalanalysis method that can help for stock selection and understanding if anything major is happening behind the scenes. 

 Join every Friday@4 webinar with Ashish Kyal Trading Gurukul. 

Trade with an Edge. 3 Months of Mentorship starts in March 2021 - https://www.wavesstrategy.com/mentorship/ Contact +919920422202

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For more query contact on +91 9920422202 write us on helpdesk@wavesstrategy.com

Thursday, February 18, 2021

Volume Profile Trade Setups on Stocks

 

Volume Profile is an important Technical analysis tool that can be used to identify if there is any major activity happening in the stock by big players or institutional traders.

This is simple but powerful method that can enhance the accuracy of trading giving all together a different insight and conviction for taking a trade.

There are different shapes to Volume profile named “D Shaped”, “P Shaped”, “b Shaped

Below is an example of a stock showing “P Shape” Volume profile on Adani Green

Adani Green Daily chart:

Technical Analysis, Adani Green, Trading, Stock Market

Adani Green Volume profile along with VWAP (Volume Weighted Average Price) is shown in the above chart.

We can see a “P shaped” profile that indicates that after a steep run on the upside there had been consolidation and pause in the uptrend and probably re-accumulation by big players. The level with the highest volume profile (grey shaded area on right side of the chart) is shown with a red line. This level is 1080. There is price acceptance above this profile zone and also the VWAP had been in this area.

Basis of this simple concept of volume profile one can make out zone of strong support and resistance where the volume profile is highest and if price acceptance above that zone hints towards bullish sign. However, one can further combine this along with Ichimoku cloud and other intraday techniques to enhance the conviction for trading.

Adani Green buy call was given in Momentum stocks and we have been able to capture the move on upside. Post breaking above 1080 the stock touched high of 1126 thereby providing a 46 points movement sufficient enough for partial profit booking levels in that zone area.

In short, Volume profile is a powerful tool that can be adopted by traders to get a peek into what are big players or institutional traders are upto and then ride the trend in that direction. Adani Green worked out well so far as the partial profits are booked and the stop is trailed to cost thereby ensuring the risk is mitigated.

Do remember not every stock will behave the way we expect. There will be adverse movement and if someone claims to be 100% accurate simply understand they are faking it. If one can manage risk prudently then reward will automatically follow.

Get access to Momentum Calls with stocks having potential to trend strongly higher and the risk reward is good based on multiple methods as shown above. Get access here

Learn the science of Trading – Mentorship on Technical Analysis starts in March 2021. Are you in for the ride to learn different methods of Trading, Setups right from Intraday to Positional, Stock Selection for riding the trends either up or down? If Yes, you cannot miss this opportunity to get in the March batch. Simply call or whatsapp on +919920422202 or fill the form here