Wise Investing

Hello friends lets understand beta in finance & investing world  What is Beta in Finance? The beta (β) of an investment security (i.e., a stock) is a measurement of its volatility of returns relative to the entire market. It is used as a measure of risk and is an integral part of the Capital Asset Pricing Model A company with a higher beta has greater risk and also greater expected return's The beta coefficient can be interpreted as follows: β =1 exactly as volatile as the market β >1 more volatile than the market β <1>0 less volatile than the market β =0 uncorrelated to the market β <0 negatively correlated to the market Examples of Beta High β  – A company with a β that’s greater than 1 is more volatile than the market. For example, a high-risk technology company with a β of 1.75 would have returned 175% of what the market returned in a given period (typically measured weekly). Low β  – A company with a β that’s lower than 1 is less volatile than th...

Hello friends this is most Uncommon pattern for traders  Lets understand how to enter trade  A mitigation block is a buy or sell zone in the smart money concept that forms after a failure swing.  A failure swing occurs when the market fails to surpass a previous peak in an uptrend or a previous trough in a downtrend.  This pattern indicates a loss of momentum and a potential reversal.   Mitigation blocks are identified by observing specific price action patterns, including: a new higher high, a swing low, a failed new higher high, and a new lower low that breaks below the second low.   A bullish mitigation block is a result of a failed collection of sell-side liquidity on previous lows. This pushes the price up to collect buy-side liquidity on the nearest previous high, thus forming a higher high Lets find this set up in below image  Different types of mitigation blocks and breaker blocks Bearish mitigation block and bullish mitigation block ...

Hello  friends   Fist know what does it mean  Price action traders focus only on the past price history provided by a chart, ignoring other elements, including technical indicators, news or outside forces. Some important characteristics of price action trading are trading according to the prevailing trends and identifying repeated chart patterns. Price action trading helps traders establish flexible trading frameworks and doesn't require tracking the news continuously. Price action trading can be time-consuming because it involves manual charting and extensive data analysis. Moreover, the strategies are subjective and different traders may use them differently. Some of the notable price action trading strategies include the Inside Bar Pattern, Pin Bar Pattern, and Fake Pattern. Defining Price Action Before comprehending price action trading, it is essential to know what price action is in trading. The fundamental change in the price of financial assets is known as pr...

  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 a...

 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...

 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 ...