Options Trading – 3 Powerful Indicators Must for Trading!

Options trading requires understanding of Momentum along with significant movement as per Bands like Keltner channel or Bollinger Bands®

Which are the Powerful Indicators to use for Options buying?

Nifty post showing sharp rise on upside is now moving in a range with Option prices not moving in any direction.

Nifty 21000 Call Options 28^th December 2023

Nifty 21000 call options month end expiry 15 minutes chart is shown above that has three powerful indicators – Volume profile, Keltner Channel and KST indicator.

Volume profile – This indicator helps to understand the area where major volume has taken place. We can see that 229 is the level where lot of activity has happened in this option price with value area low near 150 levels.

Keltner channel – shows the possible area of breakout. Prices are as of now whipsawing around the volume area within the bands. Now any break above 268 levels which is the upper end of the Keltner channel and confirm prices are also breakout from the volume profile area.

KST indicator -  this indicator is back to the 0 line indicating sideways action and we will get further confirmation once prices break above the recent high.

Thus all the indicators will get in sync once there is a clear break above 268 levels with immediate support near 200 on downside.

 In a nutshell, one can combine 3 powerful trading indicator to trade options directly.

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Trading KST indicator with Keltner Channel Breakout on Nifty

 Nifty and Bank Nifty touched lifetime high levels where Nifty is at a kissing distance from 21k mark.

Using momentum indicators along with breakout techniques that can help in capturing the entire up move is important.

Nifty 15 minutes chart:

In above chart of Nifty we can see two important indicators that are focused on prices and momentum.

Keltner channel – This indicator is different than that of Bollinger Bands®. Bollinger Bands uses standard deviation to the mean whereas Keltner channel is derived using Average True Range (ATR). Both of the indicators have different way of application.

In Keltner channel we can see that break above 19810 on 28^th November was the 1^st break above the upper band of Keltner.

KST momentum – Breakout on Keltner channel was also accompanied by KST momentum indicator. KST momentum indicator broke above 0 line and also the signal line thereby giving strong confirmation that momentum is picking on upside.

In entire up move prices have not moved below the lower Keltner channel and KST is now back to the 0 support area. This can be a pause before the resumption of trend but a classic signal can be expected when both these techniques again get synchronized.

In a nutshell, Keltner channel helps to understand if the size of candle is increasing which is suggesting a significant move and KST further provides confirmation of momentum. Price action above 20970 will result into another synchronous signal from these indicators.

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Gold at life time high what is next target?

Gold continued to move in a strong uptrend and recently made new life time high near 64063 levels. Gold is following its own independent Elliott wave pattern and Time Cycle.

Elliott wave helps us to navigate the trend of the market. It has worked out well especially if you know how to apply the Elliott wave along with the Time cycle.

Look at below the charts and detailed research on MCX Gold taken from our Monthly research report – “The Financial Waves Monthly Update”

Gold Weekly chart Anticipated as on 17^th November 2023

Gold Daily chart Anticipated as on 17^th November 2023

Gold daily chart with 51 Days Time cycle Anticipated as on 17th November 2023

Wave Analysis as on 17^th November

During the month of October Gold witnessed rally of more than 8%. The recent Israel-Hamas conflict and other global geopolitical tensions have increased uncertainty so investors are looking towards Gold as a security. So, as long as conflict persists, we can expect strong demand of Gold. Also, within a year Gold has surged more than 20%. During last year Diwali 2022 Gold was trading near 50200 levels. Currently it is trading near 60400 levels. So, we expect commodity to continue to shine in coming months.

MCX Gold Neo Wave perspective on Weekly chart: As per wave perspective, in the mid of 2016 primary wave (4) completed and since then the entire rise that we are witnessing is in form of primary wave (5) In the first quarter of 2022, intermediate wave 4 of primary wave (5) finished its course, wherein minor wave ii has completed on the downside and the recent up move that we are witnessing is in form of wave iii.

On the Weekly chart, Gold is following the multiyear channel really well. Whenever prices reversed from channel support then an upside rally was seen. Recently, after reversing from the lower end of the channel now prices have shown a good steep rally.

 

On the daily chart we have plotted 51 Day’s Time Cycle which has helped to determine crucial reversal areas. We can see in the above chart which clearly suggest that how cycle has worked out well for catching lows most of the time. Upcoming cycle is due on 29^th November. So, we expect some sideways action or some weakness in this commodity. After which we can expect a fresh buying which can lift the price higher towards 61500 levels.

In nutshell, medium term outlook for Gold looks positive. However, after a sharp rally of more than 8% since October, we can expect some profit booking. If prices manage to give a close above 61000 then we can expect a rise in this asset with the targets of 61500 followed by 62000. On the downside 59600 can act as a support.

 Gold Daily chart Happened as on 6^th December 2023

Prices moved precisely in sync of our expectations and as mentioned since it was an impulsive rise, we achieved our target of 62000 levels. Gold moved much beyond it and made a fresh record high of 64063. We have been able to capture movement of more than 7% in less than a month of span.

Currently we are witnessing some profit booking and we can expect short term correction towards 61900-61700 levels. After which, we can expect fresh leg on the upside with the targets of 64100 followed by 65000.  

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Bank Nifty at life time high, will it sustain?

Two important ingredients for predicting the market are Time and Price action. It is possible to Time the market and trade in the direction of trend.

Combining price action and Time both together is utmost important.

Banknifty path derived on 25^th November 2023 in weekly webinar

 

B   Banknifty path derived on 2^nd December 2023 in weekly webinar

 

Bank Nifty has been moving as per the wave analysis. The above charts of Bank Nifty shows the path that we derived much ahead on 25th November and 2^nd December in our weekly webinar with 1000s of participants. Bank Nifty moved exactly in the same fashion as can be seen in the below chart.

BankNifty path happened on 5th December 202

The magic was experienced exactly after anticipation as can be seen in the above chart. Prices made low near our cycle both the times and after which a sharp bounce on the upside was seen.

Bank Nifty Anticipated chart from Daily Equity Report dated on 30^th November 2023

The above chart is picked up from our Daily Equity report dated on 30^th November 2023 where we derived target for Bank Nifty as per Head and Shoulders pattern which was near 47200 levels. The target was achieved in today’s session which can be seen in the below chart.

Bank Nifty happened as on 5^th December 2023

Bank Nifty weekly chart path ahead

 

 

Currently last leg of Diametric pattern is ongoing on the above chart. As per guidelines wave g tends to equality of wave a. So medium term outlook remains positive. However, on the shorter time frame most of the indicators are overbought so possibility of profit booking cannot be ruled out. For now, one can use buy on dips approach to ride the trend as long as 45500 holds on the downside.

 Trishul (Become Master Wizard -BMW) Options Mantra + Elliott Waves +Neo Waves.

Options Mantra -OM (16-17 Dec 2023) and Sutra of Waves - SOW (20-21 Jan 2024). Learn 5 Options Mantras, Waves Sutra (Neo Waves), Catching Major Tops and Lows, Ichimoku Cloud and Keltner Channel.Both this modules is called BMW -Trishul , Limited seats only. Know More

Nifty lifetime high, Gann Target Achieved!

We derived path on Nifty and prices moved preciously as per path and achieved our target of 20521. Nifty has been following this Gann square of 9 levels prudently.

Gann Square of 9 is simplest way to identify Price action support and resistance area.

Nifty Daily chart Anticipated as on 4^th December 2023

Nifty Hourly chart Anticipated as on 4^th December 2023

 Anticipated as on 4^th December 2023

Nifty made fresh record high in Friday session at 20291.55. On the weekly chart, we can see that weekly trend is positive as price gave a close above previous week’s high. Also, daily trend is also positive. Unless we see a close below prior day’s low. Momentum is good in the market. KST is suggesting the same. 

On the hourly chart, prices are moving well on the upside within a classic upward sloping channel. Currently prices faced resistance of the channel. So, a decisive a breakout is awaited. Also, we have surpassed 19952 level of Gann decisively and now next target opens as per Gann is 20521 level. So overall trend is strong and positive. Every dip should be used as a buying opportunity until 19870 holds on the downside which is a vital support level.

Nifty made fresh record high in Friday’s session. For now, trend is positive. Use buy on dips method as momentum is extremely strong as long as important support holds on the downside which is at 19870 levels with the targets of 20521 (Next Gann level) followed by 20700 which is a target as per FLD. 

Happened: We have successfully anticipated this entire up move from 19952 to 20521, from one Gann level to another Gann level which we have been mentioning in our various past reports and on our social handles. The target was achieved in today’s session. So, one can create effective trade setups by combining Neo wave and Gann levels.

For now, overall outlook remains positive. One can continue to use buy on dips approach with the targets 20700 (which is a target as per FLD).

Trishul (Become Master Wizard -BMW) Options Mantra + Elliott Waves +Neo Waves.
Options Mantra -OM (16-17 Dec 2023) and Sutra of Waves - SOW (20-21 Jan 2024). Learn 5 Options Mantras, Waves Sutra (Neo Waves), Catching Major Tops and Lows, Ichimoku Cloud and Keltner Channel.Both this modules is called BMW -Trishul , Limited seats only. Know More