MFI Indicator : How to use Money Flow Index (MFI)

Money Flow Index (MFI) is an oscillator that uses price and volume to quantify buying and selling pressure. It uses a formula similar to RSI and hence it is also called as volume-weighted RSI. The formula uses the typical price of a stock and its volume to calculate the positive money flow and negative money flow, and then uses the accumulated positive and negative money flows over the period of the indicator to calculate the Money Flow Index.

Continue reading

Harmonic Patterns – An Introduction to Harmonic Trading

Harmonic Patterns take geometric price patterns to the next level by utilizing Fibonacci numbers to define precise turning points. Unlike other more common trading methods, harmonic trading attempts to predict future movements. By identifying PR Zones, one can even get precise targets and stop-losses.

Continue reading

Bank Nifty Option Trading Strategy for profiting in a Bear Market

In our previous post, we had seen that a Bear Market has started. So the question is how does one make money in a Bear Market where most of the stocks are heading down. In this post, we will look at two Bank Nifty Option Trading Strategies using Auto-Support/Resistance, Auto-Supply/Demand Zones and Auto-Trendlines, one based on CALLs and another based on PUTs.

Continue reading

Volume Traded vs Volume Delivery

Being a Technical Analyst, one has to understand the importance of trading volume. Volume plays a very integral role in Technical Analysis as it helps us to confirm trends and patterns.

Consider volumes as means to gain insights into how other participants perceive the market. Volume is among the most basic and effective concepts to understand when trading stocks. The more active the share, higher would be its volume.

Continue reading