Bank nifty option chain analysis can be done by advance technical analysis

Bank nifty option chain analysis can be done by advance technical analysis

Here in this article we will discuss about index Options chain analysis. Is it really helpful or much hyped? Is there any other easy ways rather than option chain analysis? As chain analysis in trading is partially effective can we use advance technical analysis in deriving trend much before?

How to do option chain analysis? How to know advance technical analysis is effective or option chain analysis is effective? We will discuss where we can get free and accurate nifty bank trend before market open to trade in option and also you can test which one is effective, technical analysis or chain analysis? Is option chain analysis better for intraday or positional?

In many article and YouTube videos you might have seen that people are showing about option chain and using it to find trend. But before using this method you should cross check and use in paper trade to know accuracy. If you are doing in bank nifty option then trader should use option chain to choose only strike price having higher volume. In intraday you can’t derive trend from chain analysis where as it is effective in case of positional trading. For positional trading you can find support and resistance in chain analysis. But for intraday you need to do technical analysis. If you are trading in Bank nifty option then you can learn here how Bank nifty option chain is used with technical analysis to find trend for the whole day much before market open. So if you think that trend is impossible to find before market open then you should check free Bank nifty today trend for one free month to know how is it possible. Know trend, unique support and resistance before market open. This is free to use and posted daily @8.45 am. After learning advance technical analysis anybody can become independent in trading. Always remember after getting trend you can make strategy but general trader run behind strategy and lose money. General trader loses money and gives it to technical trader, so choose what you want to become, a general trader or technical trader?

Option chain is an easy tool for beginner to understand option strike price and open interest. This comprises “At the money”, in the money” and “out of money” contract. Here price of contracts you can find and according to the technical pattern traders should choose contract to trade. General traders watch the high volume in strike price and change in open interest to choose contract but how this can show you the trend effectively, think practically.

Rather than this just think practically if you can know technical trend after doing advance technical analysis then this would be easier for you. So use our free technical trend of Bank nifty today trend here to find trend for the whole day and then choose strike price by using chain analysis. Here also find unique support and resistance which you can’t find anywhere else.

Check it. You can know how trend can be derived much before market open and it is possible. In case of trend is clear and there is a chance of big movement in single direction then using Bank nifty option chain choose out of money or at the money contract to get good profit. Using advance technical analysis if you find that swing market or range market is possible then choose at the money and wait for perfect pattern like “BOD”, “SOR” and “BN” pattern and enter for small points and use hit and run strategy.

At the money moves parallel with market and it is easy to trade in intraday. But in case of range or sideways move the premium and time value decreases sharply. So it is very important to identify range market much before which is only possible through advance technical analysis. In case of unidirectional move like in BN pattern, use out of money option strike price as premium jumps sharply due to short covering and fresh buying. Also here BN pattern is a part of technical analysis which signals sudden trend change much before so that you can get total points as big profit.