Tag Archives: stock market

Investment Strategy

San-Ku  – Three Gaps Up    As mentioned in Japanese candlestick analys is, the num ber three plays a very relevant part of the investment doctrine. Many of the  signals and formations consist of a group of three individual signals. It has becom e a  deeply rooted num ber for the Japanese investment com munity whether applied to Ca ndlestick analysis or not. This

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Profits With Candlesticks Analysis

How Do They Produce Profits With Candlesticks? Gaps (Ku) are called windows (Mado) in Japanese Candlestick analysis. A gap or window is one of the most misunderstood technical messages. Most investment experts advise not to buy after a gap. This is true only about ten percent of the time. The other 90% of the time, the gaps will reveal powerful high profit trades. Candlestick

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Money Making Candlestick

Money Making Candlestick Formations Candlestick Line   Hammer An important bottoming candle-stick line.  The hammer and the hanging man are both the same line, that is a small real body (white or black) at the top of the session’s range and a very long lower shadow with little or no upper shadow.  When this line appears during a downtrend it becomes a bullish hammer.  For

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Primary Functions

Again, although Bollinger Bands can help generate buy and sell signals, they are not designed to determine the future direction of a security. The bands were designed to augment other analysis techniques and indicators. By themselves, Bollinger Bands serve two primary functions:   To identify periods of high and low volatility To identify periods when prices are at extreme, and possibly unsustainable, levels.  

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Futures Stock Options Glossary

QUICK REFERENCE GLOSSARY ON FUTURES AND OPTIONS FUTURES TERMINOLOGY SPOT PRICE: The price at which an asset trades in the spot market. FUTURES PRICE: The price at which the futures contract trades in the futures market. CONTRACT CYCLE: The period over which a contract trades. The index futures contracts on the NSE have one month, two months and three months expiry cycles which expire on the last Thursday of the month. Thus a January expiration

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Stock Market Trading

ADVANTAGES AND BENEFITS OF COVERED CALL STRATEGY ‘The biggest advantage of covered call strategy is it increases and improves the odds of successful trading. Another biggest share tips benefit is that it can be implemented in two of the three possible stock movement scenarios. If the stock goes up, it’s profitable. Ifthe stock goes sideways, it’s profitable. The only case when it is not profitable is

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Traders And Investors

SOME STRATEGIES FOR WRITING COVERED CALLS STRATEGY 1       This is the strategy that works best in India since options of fundamentally strong stocks continue to have some time premium left till the last day. You should write at-the-money calls since these give the maximum premium inflow. It is critical, however, that once covered call writing is accepted as a strategy, nse india,  traders should write calls

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Stock Trading

WRITING COVERED CALLS  Writing (Selling) Call Options when you already own the underlying is called writing covered call options. It is against writing Naked options which can have unlimited risk. HOW WRITING COVERED CALL OPTION WORKS As discussed earlier a Call is the right to buy an underlying asset above a certain price, and before a certain date. Now only the liquid calls in

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Equity Index Options Premium Account

ACCOUNTING AT THETIMi OF PAYMENT/RECEIPT OF MARGIN Payments made or received by the seller/writer for the margin should be credited/debited to the bank account and the corresponding debit/credit for the same should also be made to “Equity Index option Margin Account” or to “Equity Stock Option Margin Account, free trading tips as the case may be. Sometimes, the client deposit a lump sum amount with the

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Market Wide Position

CLIENT LEVEL POSITION LIMITS The gross open position for each client, across all the derivative contracts on an underlying, should not exceed 1 % of the free float market capitalization (in terms of number of shares) or 5% of the open interest in all derivative contracts in the same underlying stock (in terms of number of shares) whichever is higher. MARKET WIDE POSITION LIMITS The market wide limit of open position (in terms of the number of underlying plus

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