Modified Call Butterfly is a four-legged strategy where one lot of Call close to current underlying level is bought against that two lots of higher strike calls are sold and one more lot of Call is bought but closer to the call sold strike
Recent formation of Inverse Head & Shoulders classical pattern will give a breakout by trading only above Rs 113, suggests buying in the stock for higher targets of Rs 148.
We recommend buying Sudarshan Chemical Industries Limited (SUDARSCHEM) around Rs 370 levels with a stop loss of Rs 335 on closing basis for higher targets of Rs 425.
All of these bases have strict requirements and particular specifications. Yet, all of them will show the same signs of institutional support and buying
Options have been more recognised as investors' choice than traders', especially in more developed markets where Options have been available as instruments of trade for more decades
Investors who try to time the market may be indulging in an exercise that may be only mildly rewarding at best, and futile at worst.
Unless we are closer to the stop loss than the entry level, go ahead and take another trade with a higher strike short call. Chances are that the next move may come after a brief pause.
Situations like these where there is strong consensus seem to have been built against the range breakouts, trading against the tide for that minor possibility of a very big move becomes very difficult
Considering the ongoing consolidation, we recommend traders to initiate Nifty modified Call Butterfly amid lack of movement and any positive move will be profitable
The Pattern forms a megaphone like an appearance with higher highs and higher lows that widens over time.
A cup and handle is considered a bullish continuation pattern and it is used to identify buying opportunities.
Let's commemorate Buffett's 89th birthday revisiting the lessons, tips and rules he gave us over the years:
Decent volume participation while giving breakout in Maruti also gives support to this bull thesis
There are numerous day traders who dabble the market with the hope of making money by trying to cash in on the market’s unpredictable behaviour.
We recommend buying United Spirits (McDowell) above Rs 600-604 levels with a stop loss of Rs 554 for higher targets of Rs 676.
The speed and accuracy of an algorithmic trading system is beyond human. It draws the decisive line between a good trade and a bad trade.
An investment not made in bonds, stocks, and cash is considered an alternative investment. These are not for the risk averse or the unsophisticated investor.
Exhaustion gaps are quickly filled as prices reverse their trend
Jyoti Budhia trades options in a way that is rarely seen among options traders.
Mistakes are plentiful during a market downtrend. Avoid these common ones, and you will be able to keep your hard-earned cash intact.
It is prudent to book out of trading strategies favoring preceding direction and be ready with low risk reversal strategies like Bull Call/ Bear Put Spreads involving higher Calls/ Lower Puts.
A rounding top is a chart pattern which is identified by price movements that when graphed form the shape of an upside down "U"
The Diamond Bottom formation occurs after a downward price movement or a downtrend. The upward breakout is a short-term bullish reversal pattern, while the downward breakout is a short-term bearish continuation pattern
Like all technical indicators, it is important to use the AO in conjunction with other technical analysis tools.
The confirmations of these patterns occurring are more relevant on a weekly scale than a daily scale