OptionsTrading

Combo Supertrend along with RSI Today we will be discussing how Combo SuperTrend along with RSI can help us trade accurate intraday trades with more efficiency. Supertrend Indicator - As the name suggests, ‘Supertrend’ is a trend-following indicator -  The indicator is easy to use and gives an accurate reading about an ongoing trend. - A ‘Supertrend’ also acts as a strong support or resistance and it also provides a trailing stop loss for the existing trade. In a ‘buy’ signal, any dip towards the indicator can also be used as a buying opportunity and vice versa - Works well in a trending market RSI  - The relative strength index (RSI) is a momentum indicator - Measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock Indicator Settings We will need three supertrend along with RSI 1. Supertrend(9,2) 2. Supertrend(10,3) 3. Supertrend(14,3) 4. RSI default 14 or 7 Candle Time Frame : 5 Min Long Entry Strategy -  RSI a...

VWAP combined with RSI and Super Trend Today we are going to play with very powerful indicators for intraday trading.  This combination is Very deadly for Intraday Trading and once you get hack of it you will be minting profits. What is the Volume Weighted Average Price (VWAP)? The volume weighted average price (VWAP) is a trading benchmark used by traders that gives the average price a security has traded at throughout the day, based on both volume and price. It is important because it provides traders with insight into both the trend and value of a security. The volume weighted average price (VWAP) appears as a single line on intraday charts (1 minute, 15 minute, and so on), similar to how a moving average looks. How to read VWAP? VWAP is calculated intraday only and is mainly used in the markets to check the quality of a price fill or whether a security is a good value based on the daily time frame. If price is above VWAP, it may be considered as a positive trend. When price is ...

Trading Strategy with MFI & Super Trend What is MFI? The Money Flow Index (MFI) is a typical oscillator (between 0 and 100) that uses price and volume for identifying overbought or oversold conditions in securities. As a momentum oscillator that incorporates volume, MFI works well to identify reversals and price extremes. The question will arise that how it is different from RSI? As the MFI incorporates both price and volume data, as opposed to just price it has been referred to as the volume-weighted RSI. The reason for this comparison is that MFI uses a similar formula to RSI. RSI uses the ratio of average gains to average losses, but the MFI incorporates a product of price and volume to calculate positive money flow and negative formula. How to read MFI Overbought and oversold levels can be used to identify price extremes. Typically, MFI above 80 is considered overbought and MFI below 20 is considered oversold. However, the levels may stay at extremes for extended periods in...

 Intraday With MACD & ADX Indicator Welcome everyone. Continuing our Trading strategies Series, this is our 3rd strategy for playing with the indicators for Day Trading. If you haven't seen the first two please don't miss out and check our blog. Today we will talk about combining the MACD and ADX indicators. MACD Basically the MACD uses the difference between two exponential moving averages to determine the direction of the trend and its momentum. Using this with the EMA of the MACD itself (the signal line), and we have a dependable indicator.   ADX The main aim of the ADX indicator is to measure the strength of the direction without any reference to direction. The trend is considered strong if the indicator reaches above the 25 line. On the contrary, if the indicator is below the 25 line, then the trend is weak or the market is not trending. The ADX signals over 30 demonstrate the strong trend to happen – it is definitely the best time to get into the trade. Trader...

Find trend and momentum combining Parabolic Sar & Stochastic Oscillator Today we will be learning swing trading using the Parabolic SAR as a trend indicator and Stochastic to confirm the momentum. The strategy is designed so one can enter in the direction of the main trend once it gains momentum in that direction. It’s a purely discretionary strategy which is best deployed on the hourly chart for signals. This is a short term strategy which is good for intraday trading as well as a swing trade with a 5-7 days horizon.   How to combine PSAR and Stochastic Oscillator The indicators deployed for this strategy are: 1. The Stochastic oscillator is set to the default parameters of 14 for the fast moving line (%K)(Green) and 3 for the slow moving line (%D)(Red).   For our strategy, along with the regular stochastic levels of overbought (80) and oversold (20), we will monitor the mid-point of the oscillator at 50. 2. The Parabolic SAR indicator for our strategy is ...

                                        Combination of   Bollinger Bands & RSI Today we will take two of the better-known technical indicators, namely Bollinger bands and Relative Strength Index (RSI), and go through the steps involved in developing a trading system. To begin with, let’s first take a closer look at each of the indicators that we have picked for our system. Bollinger Bands John Bollinger, creator of the Bollinger Bands defines Bollinger bands as ''a technical analysis tool, which is a type of trading band or envelope''. Bollinger Bands are volatility bands which are plotted above and below a central measure of price, using a statistical measure called standard deviation. They consist of three bands, which revolve around a simple moving average (SMA), with the default value of 20, of which it has been observed that 85% of the time, the p...