THE R.K Trader

OPTION CHAIN.  An option chain is a table that displays all available options contracts for a particular underlying asset (such as a stock, ETF, or index), for a given expiration date. It helps traders and investors analyze and choose which options to buy or sell. Key Components of an Option Chain: Calls and Puts : Call Options : The right to buy the underlying asset at a specific price. Put Options : The right to sell the underlying asset at a specific price. Strike Price : The price at which the underlying asset can be bought (call) or sold (put). Expiration Date : The date the option contract expires. After this date, the option becomes worthless if not exercised. Last Price : The most recent trade price of the option. Bid and Ask : Bid : The highest price a buyer is willing to pay. Ask : The lowest price a seller is asking. The difference is called the spread . Open Interest : The total number of outstanding (not yet closed or exer...

RSI indicator RSI stands for Relative Strength Index — it's a momentum oscillator used in technical analysis to measure the speed and change of price movements . 🔍 What is RSI? RSI helps traders identify overbought or oversold conditions in a market. It ranges from 0 to 100 . Default setting is 14 periods (usually days, but can be minutes, hours, etc.). 📈 How to Read RSI Above 70 : Market is considered overbought → potential for a price drop . Below 30 : Market is considered oversold → potential for a price rise . Between 30 and 70 : Neutral zone (no strong signals). 🧮 RSI Formula RSI is calculated using: ini Copy Edit RSI = 100 - ( 100 / ( 1 + RS)) Where RS (Relative Strength) is: ini Copy Edit RS = Average Gain over 14 periods / Average Loss over 14 periods 📊 Example: If over the last 14 days: Average gain = $1 Average loss = $0.50 Then: ini Copy Edit RS = 1 / 0.5 = 2 RSI = 100 - ( 100 / ( 1 + 2 )) = 66.67 ...

MACD. MACD stands for Moving Average Convergence Divergence — it's a popular momentum and trend-following indicator used in technical analysis of stock, forex, and crypto markets. 🔍 What is MACD? MACD is calculated by subtracting the 26-period Exponential Moving Average (EMA) from the 12-period EMA : java Copy Edit MACD Line = 12 EMA - 26 EMA A 9-period EMA of the MACD line is also plotted — this is called the Signal Line . 📊 Components of MACD MACD Line : Shows the difference between the 12-day and 26-day EMA. Signal Line : A 9-day EMA of the MACD line — used to generate buy/sell signals. Histogram : The difference between the MACD Line and the Signal Line. 📈 How to Use MACD MACD Crossover : Bullish signal : When the MACD line crosses above the signal line. Bearish signal : When the MACD line crosses below the signal line. Zero Line Cross : When MACD crosses above zero → possible upward trend. When MACD crosses below zero → ...