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Hi Anuj,
ReplyDeleteCould you throw some light on methods used to calculate the SAR, Low risk entry & Target?
Regards.
Hi r m ,
ReplyDeleteyou can check this earlier post
http://financeandtradingmadeeasy.blogspot.com/2010/01/how-do-i-calculate-sar.html
Let me know if you have more queries ...I dont give much importance to low risk entry and target...just use those level to see what's the stock/index momentum during the day..levels are NOT recommendations for profit booking or entry....but can be use for that as well ...very often you will see targets not reaching thats because as SAR moves daily in direction of trend thus moving target...
If stock is ending between SAR and low risk entry ...position should be reduced...overnight reversal risk increases at that point (just my opinion)...SAR is the only thing I watch with complete focus
Cheers
This SAR may be very useful for selling pair of options (to be covered with NF at predetermined levels). Now I'll get busy finding the level on other side. :)
ReplyDeleteThank you!
@rm
ReplyDeleteOK ..if you find some new strategy do share it here...although I dont trade in options ,I find them very interesting...even EW can be very useful in Oprions...try that as well
I am trying to refine the option selling strategy suggested by hansraj456 on icharts forum.
ReplyDeletehttp://www.icharts.in/forum/future-und-option-hedging-strategy-t2173,postorder,desc,start,210.html
I don't understand EW, even though Ilango's levels are almost perfect. They can surely be used for option trading - thanks for the idea.
ReplyDelete@rm
ReplyDeleteok I will check that strategy..Will see if I can help you in refining it
EW looks complicated..but I like the psychological aspects it is based upon..
http://en.wikipedia.org/wiki/Elliott_wave_principle
Check the above link..cheers