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Showing posts from April, 2024

Understand IV in option trading

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  Understand IV in option trading   How much IV is good for options? IVP of 0 to 20 is regarded as extremely low IV, 20 to 40 is low, and here, traders look for buying options. IVP above 80 is regarded as extremely high IV, and traders typically look for selling options. Importance of Implied Volatility in Options Trading Implied Volatility is one of the important factors which affect the prices of options. Having a clear idea about Implied Volatility will help you to earn a good reward from your option trades. Today we will take a look at what Implied Volatility is and how you can use it to your advantage. Option premium: All of us know that when we trade options we are actually trading the option premium, and are actually betting on how the option premium will move in the future. There are 5 factors which determine what the option will be. These are: Price of the underlying asset:  This is the actual price of the underlying in the spot market. When the underlying asset is traded in t

Understanding Gann Theory in Stock Market for 90 % Accuracy

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 Hello  friends lets understand below topic  this this theory can give you 90 % accuracy  Understanding Gann Theory in Stock Market' Gann theory was a concept developed by William D. Gann in the 1900s. He was a successful trader and believed that stock prices change with an angle. An asset can move in different angles. He noticed that price changes were related to natural geometric shapes and predicted future price movements in relation to time. This is why Gann theory is also called the "Gann Angle theory" Gann trading strategy can still be used and, if applied correctly, can predict the movement of an asset up to 90% accuracy. W. D. Gann believed that the market follows a natural time cycle. His theory was based upon natural geometric shapes and ancient mathematics. Gann theory states that the patterns and angles of an asset on the market can be used as a predictor for the price's future movements. What are Gann Angles? W.D. Gann developed several unique techniques

Importance of Moving Averages for Intraday

 Hello friends lets understand moving averages   Intraday trading is so much more than just placing buy and sell orders within the same day’s trading session. While you may resort to unorganized or unplanned trades as a beginner, there are specific strategies and indicators that can help you become a more successful intraday trader over time.    Technical analysis, in particular, is both necessary and useful for intraday traders who wish to capitalize on ultra-short-term price fluctuations. In simple terms, this strategy makes use of past price and volume patterns to predict future market movements. One of the most powerful tools used in technical analysis is the intraday moving average.  In this article, we’ll discuss what a moving average is, learn more about the different types of moving averages and explore the best intraday moving averages.  What is a Moving Average?  A moving average (MA) is an indicator used in technical analysis. It gives you a constantly updated average stock