Namaste - My Learning of Trading in Nifty

[bikashkumar11]

Crwn bhai to discuss it further... all rhetoric about the market movement boils down to understand one thing and only one thing... Market force...i.e. demand and supply... what creates demand and supply. at support D>S and Resistance S>D.


In the meanwhile what I am looking is that somewhere in this forum (sir) Raunak ( He does not like SIr as suffix; though I truly feel that it should be in prefix as he has earned it with his selfless attitude) had mentioned about making decision following the practical rule of probability that is what by and large all the successful traders practice and master it. I need your and other great's input on this;If we are able understand traders thought process of creating (resistance and support) will that make us better off.

 

[crown]

Crwn bhai to discuss it further... all rhetoric about the market movement boils down to understand on thing and only one thing... Market force...i.e. demand and supply... what creates demand and supply. at support D>S and Resistance S>D.

yes Bikash bhai
And, that is why I am looking to find the technical meaning of Resistance.

Like, in historical charts, it will be very easy to draw the support and resistance lines. But in real market, it is not so easy.

For example, price of a share is going up and up. Taking small breathers occasionally. Now, when these breathers will be converted into the supply, can be easily traced in historical charts. But in actually trading, you can only know about it when it has actually started giving you a reasonable loss, equaling most of your good trades. If by some means/understanding/tools, we can identify the difference and similarity in all the breathers, it will be fairly easy to prejudge, which breather is most likely to be converted into supply zone of a specific script.
And, that will be the level of resistance, before it actually takes place.

 

[crown]

The current Put call analysis indicate
Nifty is very likely to cross 6000
and 5900 has just become a good support level

 

[bikashkumar11]

yes Bikash bhai
And, that is why I am looking to find the technical meaning of Resistance.

Like, in historical charts, it will be very easy to draw the support and resistance lines. But in real market, it is not so easy.

For example, price of a share is going up and up. Taking small breathers occasionally. Now, when these breathers will be converted into the supply, can be easily traced in historical charts. But in actually trading, you can only know about it when it has actually started giving you a reasonable loss, equaling most of your good trades. If by some means/understanding/tools, we can identify the difference and similarity in all the breathers, it will be fairly easy to prejudge, which breather is most likely to be converted into supply zone of a specific script.
And, that will be the level of resistance, before it actually takes place.

THOUGHT PROCESS OF TRADERS

CREATION OF SUPPLY( FORMING OF RESISTANCE)-
1 The day when we book profit
2 when traders wanted to liquidate their position
3 when the traders are reaching the expiry period.or week
4 when we want to square off the position when we dont want to take the trade home.

to pre-emptive such move.. what are the tools one should master.

 

[crown]

THOUGHT PROCESS OF TRADERS

CREATION OF SUPPLY( FORMING OF RESISTANCE)-
1 The day when we book profit
2 when traders wanted to liquidate their position
3 when the traders are reaching the expiry period.or week
4 when we want to square off the position when we dont want to take the trade home.

to pre-emptive such move.. what are the tools one should master.

Thanks Bikash bhai
But this is theoretical aspect
I am trying to find, how to find it in charts purely on technical basis, so that a filter or signal can be made.
Because, there are more than 1000 scripts and it is not possible to analyse each script daily.
Having a technical logic behind it will make it easy to figure out the scripts to be analysed for taking an entry.

 

[crown]

Thanks Bikash bhai
But this is theoretical aspect
I am trying to find, how to find it in charts purely on technical basis, so that a filter or signal can be made.
Because, there are more than 1000 scripts and it is not possible to analyse each script daily.
Having a technical logic behind it will make it easy to figure out the scripts to be analysed for taking an entry.

keep aside the volume for some time
Now, we have three different types of indicators available.

1.Trend Indicators like moving averages
2.Momentum indicators like stochastic
and
3. Volatility indicator.

This Volatility Indicator is yet to be studied by me. I am confused which one to choose.

 

[crown]

no one can play volatality its volatality that plays with trader
when volatality down and stock moving down means bears are tired of selling time to jump and vice versa my thinking but I am senior only by age so better wait for views of intelligent people

I have this on volatility from Praveen bhai

 

[bikashkumar11]

good morning Crown Bhai

all set to go this gonna be very exciting week.

 

[rajputz]

If you are looking to trade volatility, try searching for selling options...i m still learning it...for volatility trading, option selling is best, but you should know how to trade them. it is not a one day game. takes hell lot of experience...AW sir to be contacted for that purpose...master of options...or linkon sir...

as of me NEVER GO FOR NAKED BUY OR SELL IN CALL OR PUT OPTIONS. SELLING IS STILL SAFER TO SOME EXTENT, BUT DANGEROUS THOUGH. BUYING IS EVEN RISKIER.

We can predict the direction of the stock or index, but we cant really tell when they will start jumping or falling. And timedecay in this period kills. So avoid naked buy and sell of calls and puts.

 

[crown]

If you are looking to trade volatility, try searching for selling options...i m still learning it...for volatility trading, option selling is best, but you should know how to trade them. it is not a one day game. takes hell lot of experience...AW sir to be contacted for that purpose...master of options...or linkon sir...

as of me NEVER GO FOR NAKED BUY OR SELL IN CALL OR PUT OPTIONS. SELLING IS STILL SAFER TO SOME EXTENT, BUT DANGEROUS THOUGH. BUYING IS EVEN RISKIER.

We can predict the direction of the stock or index, but we cant really tell when they will start jumping or falling. And timedecay in this period kills. So avoid naked buy and sell of calls and puts.

Thanks Rajput bhai

But I am looking to know and understand

1. what is volatility? (though I have some little basic understanding, but would like to know/understand it better)

2. Which are the various volatility indicators and which one are the best?

Presently, I am miles away from derivatives and will only enter when I will get the answers of my two questions.

Thanks bhai