PCR + Vwap Option Buying Strategy | Share Market Trading

Summary

In this video, Nitin ji explains his strategy for trading options using PCR (Put-Call Ratio) and VWAP (Volume Weighted Average Price). He provides clear guidelines for identifying trends and entry points after 11 AM based on PCR data. Nitin ji emphasizes the importance of using VWAP for better risk management, with real-time examples from Bank Nifty and Nifty trades. He also highlights how his paid Telegram channel offers live trade calls and mentorship to help traders make informed decisions. The video is designed to educate both novice and experienced traders.

Takeaways

• 😀 Nitin ji teaches various trading strategies on the channel, including the use of PCR (Put-Call Ratio) and VWAP (Volume Weighted Average Price).
• 📊 PCR data is crucial after 11 AM. If the value is greater than 1, it indicates a buying opportunity.
• 💼 VWAP helps traders enter the market around a calculated average price, with reduced risk and smaller stop losses.
• 📉 When PCR is greater than 1.35 and the market is near or below VWAP, it's a good time to buy call options.
• 📈 Nitin ji emphasizes using PCR and VWAP together to increase the probability of profitable trades, especially in Nifty and Bank Nifty futures.
• 💡 VWAP is not available on spot charts and should be plotted on futures charts due to trading volume.
• 📲 Nitin ji provides regular trade signals through his paid Telegram channel, helping traders take profitable positions.
• 🗣️ A large number of traders follow PCR data for trading decisions, with around 70% reporting profits on a recent trading day using PCR-based strategies.
• 📅 Regular polls and feedback from traders are conducted to track the effectiveness of the strategies, showing consistent profitability.
• 📺 Nitin ji offers educational resources, including playlists and webinars, to help both new and experienced traders master PCR and VWAP-based trading.

Q & A

What is the first rule of Nitin Ji's PCR-based strategy?

The first rule is to check the PCR (Put-Call Ratio) data after 11 AM. If the PCR value is greater than 1, it indicates a positive trend, and Nitin Ji will consider buying.

When does Nitin Ji recommend entering a trade based on his PCR strategy?

He recommends entering a trade around the VWAP (Volume Weighted Average Price). If the market is around or below the VWAP, it's considered a good entry point.

Why is VWAP important in this strategy?

VWAP represents the average price of the market based on volume. It helps traders identify a fair price to enter the market, ensuring better risk-to-reward ratios and smaller stop losses.

What happens if the PCR is greater than 1.35 after 11 AM?

If the PCR is above 1.35, Nitin Ji takes a call option, particularly if the price is around or below VWAP. This increases the chances of a profitable trade.

What does Nitin Ji say about taking a trade when the price is below VWAP?

Nitin Ji mentions that if the price is below VWAP, it is even better as you're buying at a cheaper rate, which could lead to better profitability.

What is the benefit of using VWAP in futures trading?

VWAP helps traders by providing a reliable entry point with a smaller stop loss and a higher probability of profit. It is especially useful for trading futures where volume data is available.

How does Nitin Ji use PCR and VWAP together to improve trade success?

He uses PCR to identify the market trend and VWAP to find the best entry point. This combination increases the likelihood of successful trades with higher winning probabilities.

What feedback did Nitin Ji receive from his Telegram group about the PCR strategy?

He mentioned that 70% of traders following his PCR strategy made a profit, based on a poll conducted in his group during an RBI policy announcement.

How does Nitin Ji recommend using VWAP when the PCR is negative?

If the PCR is negative, traders should look for the price to approach VWAP and then enter a sell trade. This strategy helps capitalize on market downturns.

What additional resources does Nitin Ji provide for learning his trading strategies?

Nitin Ji offers a premium Telegram channel where he shares regular calls on Nifty and Bank Nifty. He also conducts webinars and provides mentorship for traders.