It is a valuable tool for traders to analyze trends and predict potential market movements.

Many successful investors combine both approaches, allowing them to make well-informed decisions that consider both the financial health of a company and the behaviour of its stock price.

The indicators and measurements that technical analysts use to determine the trend are not crystal balls that perfectly predict the future. Under certain market conditions, these tools may not work. Also, a trend may suddenly change direction without warning. Thus, the technical investor must be aware of risks and protect against such occurrences causing losses.

It's crucial to remember that past performance does not guarantee future results, and real trading involves costs that need to be factored in for accurate risk management and profit analysis.

By observing volume patterns alongside price movements, traders and investors can gain valuable insights into market sentiment and the strength of prevailing trends. Volume confirmation serves as a crucial tool for making informed decisions and identifying potential trend reversals or continuations.

Understanding market phases is crucial for navigating the complexities of financial markets. By discerning accumulation, trending, and distribution phases, practitioners can make informed decisions, leveraging market dynamics to their advantage. Through a blend of technical analysis and market sentiment evaluation, participants can adapt to evolving market conditions and capitalize on emerging opportunities.

Contracts are crucial for trade activity, forming the backbone of markets. Understanding them is essential for prospective traders to ensure smooth and fair transactions.

Both strategies have their own benefits which depend on personal risk and investment horizon. In this article, we will explore them further.

Understanding the Greeks empowers you to make smarter moves and navigate the options market with confidence.

In technical terms, there are two main categories of price gaps: up gaps and down gaps. An up gap materializes when the lowest price aftermarket closure is higher than the highest price from the preceding trading day. Typically interpreted as bullish signals in technical analysis, up gaps indicate positive market sentiment. On the other hand, a down gap occurs when the highest price aftermarket closure is lower than the lowest price from the previous trading day. Down gaps are generally perceived as bearish indications, signalling negative market sentiment.

This article unlocks the secrets of open interest, revealing its power to gauge market sentiment and inform your trading decisions. Learn how strike prices and time to expiry influence open interest, and uncover valuable insights.

Mastering futures market analysis involves a blend of technical expertise, fundamental understanding, and the right set of tools. In this article, we will further explore it.

This article aims to demystify futures and options, providing a clear understanding of their function, risks, and benefits. 

In this article, we delve into the fascinating realm of derivatives, equipping you with the knowledge to navigate this intricate market with confidence.

Swing trading in stocks can be a profitable strategy, but it is important to consider your stock selection criteria and risk tolerance. In this article, we will further explore it.

In trading and investing strategies, swing trading carves a niche with its distinct advantages and disadvantages. This article explores swing trading and sheds light on its potential rewards and challenges. 

Learn how to identify trading opportunities, manage risk, and develop a winning trading strategy.

How to get started with technical analysis.

Learn everything you need to know about technical analysis, from the basics to advanced concepts.

By combining the insights gained from both back-testing and forward-testing, traders can create adaptable and profitable trading strategies.

CANSLIM was developed by William O’Neil, the founder of an American stock research firm “Investor’s Business Daily”. It is one of the finest techniques used by investors that has been able to generate multifold returns over a longer period.   

We have recommended trading ideas to our readers based on the cup pattern setup in our Flash News Investment weekly journal. Our readers have consistently benefitted from this trading strategy. Here are some examples of the trading setup that our clients have traded on!  

In this article, we shall help beginners to simplify the technical chart, which would make it easier to interpret any security.  

As a trader, it becomes of utmost importance to understand price patterns. It helps to know the psychology behind the demand and supply of the stock as well the strength of the stock.

Swing trading is arguably the most attractive trading style among traders. From newbies to professionals and baby boomers to millennials to Gen-Z, all have done swing trading at some point in their lives.

In the world of stock market, there are numerous trading setups that traders opt for. With the development of mathematical formulae and advanced trading software, traders, nowadays, are gifted with many technical indicators that provide futuristic trends & probabilities.

The aim should be to earn money with consistency, keeping the risk under check. 

From March 2020 to October 2021, Nifty roared like never before! Bulls led Nifty from 7,511 to 18,604, a wild run of almost 150 per cent in a matter of 19 months.

This is because the entire concept of trading options and selecting the right strategies depends upon the concept of volatility & pricing.   

Do you or your friends also face the dilemma of which strike price to choose? In this article, we will try to decode as to which strike price should be the best one to choose. 

Many traders use normal support levels defined by a demand zone to set up stop losses. However, in this method, many traders ignore the speed of volatility.

Volatility is a double-edged sword that traders can’t live without. Volatility works both ways: it’s not all about downside risk. Traders rely on volatility to generate swift profits

As the adage goes ‘A picture is worth a thousand words’, it is no different for a price action trader.

During these volatile scenarios in the global markets, it is always difficult to make profits during gap-ups and gap-downs. Most of the action is factored in during huge gap-ups and thus, considerable gains are off-table for the traders.

India VIX is a perfect index that is used to measure the volatility in the market. Investors, traders, hedgers as well as speculators keep a close watch on India VIX to understand the volatility of the Indian market and make forecasts of the market for a specific period. 

Want to know how is the closing price calculated with the help of the weighted average price? Let me explain it to you with the help of an example:

According to an estimate, over 90 per cent of the day traders lose money in the stock market! Do you know why? Why do only one per cent manage to make profits while the rest face losses? It’s because, in order to make quick money, they often tend to fall prey to predatory smart money!  

It is assumed that the periods of low volatility are followed by a period of high volatility. One must note that the periods of low volatility provide investors with stocks that are in the consolidation range and in a neutral setup.

Darvas Box is one of the oldest and the widely-used technical indicators among chartists. The indicator has a unique approach towards understanding the nature of the trend.

During swing trading or positional trading, it is of utmost importance to predefine the target as well as stop-loss levels. The price objective is nothing but an analyst projection of a security’s future price. 

The purpose of the weekly and monthly charts is to compress the price action in such a way that the time horizon can be greatly expanded and much longer time periods can be studied.   

In a transition phase to stage-2, the stock price is above 150-DMA and 200-DMAs. The 150-DMA is above the 200-DMA while the latter has turned up. 

It is also the best indicator to find out the swing highs & lows. It is an advanced derivative market mood or a sentiment indicator that gives clues well before other indicators. It provides clues to traders about the market tops before it turns.  

When the price is being pushed up to the higher end of the range, sellers are letting it to run-up, to see how far the price can move. If it inches higher, it would fetch more profits for the sellers when they sell into it. Hence, as the price is approaching the upper end of the range, it tends to accelerate.

Many options traders do not look at Greeks, as very few resources are available to track them. It’s not usually preferred as it is difficult to understand them and build a proper strategy.  

So, is buying the dip a wrong strategy? Not at all, but this strategy needs to be followed with a slightly more targetted approach. 

‘Time is money’ is an age-old adage that can be precisely applied to options trading. Out of all Greek phrases, this is the most easily understandable, and anyone can easily calculate Theta (time value). At expiration, options have no time value. If one understands this time value theory, it is easy to build an expiration strategy. 

Dow Theory categorises three movements in the financial markets, which is known as the primary, secondary, and daily movements.  

According to history, the market trend only about 30 per cent of the time and the remaining 70 per cent moves in a range. Use this historical fact as an advantage and apply short straddles for profitable trading. You can adjust the short straddle into strangle at a later stage by exiting the profitable position and hedge the loss-making option. 

Now, let’s know why is it important for a trader to know about an upcoming reversal? Firstly, if a trader is already holding a position on a trend, he/she would want to exit it before the reversal. Secondly, reversal is a time when a new trend emerges. If one reads it correctly and spots it at the right moment, he/she will get an opportunity to join the trade early and gain more.  

For those who are new to trading and are not familiar with the term 'quantity freeze', we would like to explain it to you in a simple manner. The concept of quantity freeze has been introduced by the stock exchange in order to regulate the flow of orders within a certain specified quantity.

Why is the bearish engulfing pattern considered the most prominent reversal candlestick pattern? Read onto know more about the psychology behind this.