In a series of 5 continuous candles, if the first three candles make increasing high and then 2 decreasing highs, then the
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Nano Course On Python For Trading
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Module 3
In this post, I will attempt to teach you how to write an algorithm in python to automatically find support and resistance. We shall use the data we downloaded in module 2.
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In a series of 5 continuous candles, if the first three candles make increasing high and then 2 decreasing highs, then the
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mpl_finance is the new module here. We will use its candlestick_ohlc function.
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We will use data from 1 Jan 2021 to 30 June 2021.
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Again remember the definition of fractals, we shall leave the first two candles and the last 2 candles as we
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s = 2 * np.mean(df['High'] - df['Low'])
Using this number, we will reject the current price level if there is already another price level within the range +- s. For this, we defined a function isFarFromLevel
I have shared the entire code on colab and added references for you to look into.
D: these won't help you become profitable but this will teach you how quant traders think &
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More from Finance
Ok here is the explanation. Grab a cup of coffee and read on. If you have not read/noticed this, you will see intraday options movement in a new light.
Say we have two options, one 50 delta ATM options and another 30 delta OTM option. Normally for a 100 point move, the ATM option will move 50 points and the OTM option will move 30 points. But in a high volatile environment, the OTM option will also move nearly 50 points
To understand why this happens, first understand why an ATM option is 50 delta. An ATM option has the probability of 50% of expiring as ITM. The price just has to close a rupee above the strike for the CE to be ITM and vice versa for PEs
Now think of a highly volatile day like today. If someone is asked where the BNF will close for the day or expiry, no one can answer. BNF can close freakin anywhere, That makes every option of an equal probability of being ITM. So all options have a 50% probability of being ITM
Hence, when a huge volatile move starts, all OTM options behave like ATM options. This phenomenon was first observed in the Black Monday crash of 1987 at Wall Street, which also gave rise to the volatility skew/smirk
In a high IV environment or when the market is very volatile
— Subhadip Nandy (@SubhadipNandy16) January 21, 2022
" OTM options will behave like ATM options", one will get almost the same delta movement
Say we have two options, one 50 delta ATM options and another 30 delta OTM option. Normally for a 100 point move, the ATM option will move 50 points and the OTM option will move 30 points. But in a high volatile environment, the OTM option will also move nearly 50 points
To understand why this happens, first understand why an ATM option is 50 delta. An ATM option has the probability of 50% of expiring as ITM. The price just has to close a rupee above the strike for the CE to be ITM and vice versa for PEs
Now think of a highly volatile day like today. If someone is asked where the BNF will close for the day or expiry, no one can answer. BNF can close freakin anywhere, That makes every option of an equal probability of being ITM. So all options have a 50% probability of being ITM
Hence, when a huge volatile move starts, all OTM options behave like ATM options. This phenomenon was first observed in the Black Monday crash of 1987 at Wall Street, which also gave rise to the volatility skew/smirk
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Please add your own.
2/ The Magic Question: "What would need to be true for you
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โGun to the headโwhat would you decide now?โ
โFast forward 6 months after your sabbatical--how would you decide: what criteria is most important to you?โ
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โPutting aside a list of pros/cons, whatโs the *one* reason youโre doing this?โ โWhy is that the most important reason?โ
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โWhat does success look like in a world where you pick that path?โ
5/ When listening, after empathizing, and wanting to help them make their own decisions without imposing your world view:
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Please add your own.
2/ The Magic Question: "What would need to be true for you
1/\u201cWhat would need to be true for you to\u2026.X\u201d
— Erik Torenberg (@eriktorenberg) December 4, 2018
Why is this the most powerful question you can ask when attempting to reach an agreement with another human being or organization?
A thread, co-written by @deanmbrody: https://t.co/Yo6jHbSit9
3/ On evaluating where someoneโs head is at regarding a topic they are being wishy-washy about or delaying.
โGun to the headโwhat would you decide now?โ
โFast forward 6 months after your sabbatical--how would you decide: what criteria is most important to you?โ
4/ Other Qโs re: decisions:
โPutting aside a list of pros/cons, whatโs the *one* reason youโre doing this?โ โWhy is that the most important reason?โ
โWhatโs end-game here?โ
โWhat does success look like in a world where you pick that path?โ
5/ When listening, after empathizing, and wanting to help them make their own decisions without imposing your world view:
โWhat would the best version of yourself doโ?
