The range-bound movement usually occurs at the end of a large move as the bulls and the bears fight over the direction of the next move.
What is range bound market?
Whenever a stock or index is trading between support and resistance it is called Range bound. There is no strong move in either direction. Prices tend to ping back and forth near old highs and then fall to prior lows. The range-bound movement usually occurs at the end of a large move as the bulls and the bears fight over the direction of the next move.
How to identify range bound market?
Technical indicator:
FNO indicator:
What is the Best option strategy in Range bound market (as per Back-testing)?
And Exit or Hedge only when Break-Even (BE) of strategy hit (If upper level BE hit, with fall in the IV of call option and If lower BE hit with raise in IV of call option).
Remarks: A Range-Bound market is a period of price consolidation where the price action experiences sideways movement. And their are many ways to identify range bound market. But out of above indicator, the best indicator is "Strike Options PCR OI and IV Skew". Trader and investor are advised to do these complex option strategy after knowing their risk management through Derivative expert only.
Aug 08, 2022
Aug 08, 2022
Aug 08, 2022
Aug 08, 2022
Aug 08, 2022
Aug 08, 2022
Aug 08, 2022
Aug 08, 2022
Aug 08, 2022
Aug 08, 2022
Aug 08, 2022
Aug 08, 2022
Aug 08, 2022
Aug 08, 2022
Aug 08, 2022
The laws of the financial world are different from the physical world. You can have prolonged periods of time, when sanity takes a back seat and excesses happen.
R. Venkataraman Aug 20, 2021
Retail trading or day trading has exploded because of falling brokerage rates, democratization of information, higher transparency and mobile platforms.
R. Venkataraman Jun 15, 2021
My simple message for dear readers is, if you don’t have any desperate need for funds, then don’t do anything.
R. Venkataraman May 12, 2021
The blow up of a US hedge fund has resulted in WhatsApp university offering many courses on what went wrong with Bill Hwang and Archegos.
R. Venkataraman Apr 09, 2021
The expensive valuations have been sustained by strong rebound in corporate earnings which led to ~8% upgrade in FY22 Nifty EPS since October 2020.
R. Venkataraman Mar 26, 2021
We believe the interest rates are likely to have bottomed due to inflationary pressure, large government borrowings and normalizing credit growth. Hence rate sensitive sectors should be avoided in our view.
R. Venkataraman Feb 17, 2021
As markets make new highs, one gets more emails and messages, which highlight the accomplishments of traders who have found a formula for making money.
R. Venkataraman Jan 27, 2021
Data does not seem to convincingly prove that short periods of high returns are always followed by meagre returns. Only in 4 instances, we had negative returns in the subsequent year.
R. Venkataraman Jan 01, 2021
Since September end, Bankex is up 16% with large banks like ICICI Bank, Bandhan up 20-27%, Housing Finance Companies like Repco, LICHF, PNB Housing are up 50%-100% from their six-month lows.
R. Venkataraman Oct 13, 2020
Morgan Housel’s 'The Psychology of Money' explains in detail the role of human biases in investment decisions.
R. Venkataraman Sep 26, 2020
Per Order for ETF & Mutual Funds Brokerage
Per Order for Delivery, Intraday, F&O, Currency & Commodity