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.

Outlines

00:00

📊 Introduction to Nitin Ji's PCR-Based Trading Strategy

The video introduces Nitin Ji and his teachings related to trading strategies, particularly focusing on PCR (Put Call Ratio). Nitin Ji is well-known for his expertise, and the video begins with an overview of how PCR ratio works and when traders should make entries. It also touches on features like delivery scanners, support/resistance tools, and auto-generated calls in AutoTrendr software. The main topic discussed is how Nitin Ji transitions from an options seller to a buyer, decoding his PCR-based entry/exit strategy, VWAP (Volume Weighted Average Price), and how to find profitable trades using these techniques.

05:02

📈 Two Simple Rules for PCR-Based Trading

Nitin Ji elaborates on two core rules for his PCR strategy. The first rule is to check the PCR data after 11 AM, ensuring it is positive and above 1.35 before considering a call option. The second rule is to take entry around VWAP for better risk management. Nitin shares a real-world example using Bank Nifty, where he demonstrates a successful trade based on these rules, securing a significant rally. He also explains how VWAP levels can be plotted on futures charts and emphasizes the importance of using these levels for optimized entry points and stop-loss management.

10:02

📊 Live Trading Polls and Community Insights

Nitin Ji discusses a live poll conducted on the day of an RBI policy announcement, where 70% of traders made profits based on PCR data. The poll revealed that most traders successfully followed his strategy, showcasing the importance of using PCR data and VWAP levels for trading decisions. He highlights how traders can benefit from participating in these polls, sharing insights from his large community of traders. A detailed explanation of how PCR data can guide trade entries and exits, and the importance of analyzing VWAP during live market conditions is provided.

15:03

📅 Real-Time Trades and Telegram Channel Services

Nitin Ji provides examples of real-time trades shared through his paid Telegram channel, such as a successful put option trade during an RBI policy event. The discussion covers how regular calls are given to subscribers with detailed stop-loss and target recommendations, leading to profitable outcomes. He also highlights the learning opportunities in his premium Telegram channel, which includes live market mentoring and webinars. This section emphasizes the importance of learning both theoretical and practical aspects of trading while being a part of his community.

📚 Final Thoughts and Resources for Learning

The video concludes by encouraging viewers to join Nitin Ji's Telegram channel and take advantage of his webinars and live mentoring sessions. He highlights the various resources available, such as his Technofunda channel for equity traders and the Commodity Mantra channel for commodity traders. Nitin Ji also mentions the availability of software and tools that can aid in improving trading skills. Viewers are invited to share their city and experiences in the comments, with a final note of gratitude and hope that the viewers have gained valuable knowledge from the content.

Keywords

💡PCR Ratio

The PCR (Put-Call Ratio) is a key indicator used in options trading to measure market sentiment. In the video, the speaker mentions that a PCR value above 1 indicates a bullish trend, prompting a buy decision. The concept is central to the speaker’s trading strategy, as they use PCR data after 11 a.m. to make informed trading decisions.

💡VWAP

VWAP, or Volume-Weighted Average Price, is a trading benchmark that gives the average price a security has traded at throughout the day, based on both volume and price. In the video, the speaker advises taking trades around the VWAP to get better entry points and manage risk effectively. This is considered a key rule in their trading strategy, whether buying or selling options.

💡Bank Nifty

Bank Nifty refers to the stock index of leading banking sector companies in India, which is heavily traded in the options and futures market. The speaker uses Bank Nifty as an example to illustrate how the PCR and VWAP can be applied to make profitable trading decisions. They showcase a trade in Bank Nifty where a rally of 600 points was achieved using these indicators.

💡Call Option

A call option gives the buyer the right, but not the obligation, to buy an underlying asset at a specified price within a specific time period. The speaker frequently discusses buying call options based on PCR data and VWAP positioning. For example, when PCR is above 1.35 and the price is near or below VWAP, a call option is a good buy according to the strategy.

💡Put Option

A put option gives the holder the right to sell an underlying asset at a set price before a specified date. The speaker mentions using put options when the PCR data is negative, indicating a bearish trend. They highlight a specific example where traders made profits by buying put options after the Reserve Bank of India’s policy announcement when the PCR turned negative.

💡AutoRender Software

AutoRender is a software tool referenced in the video that generates trading signals and automatically scans for support and resistance levels. The speaker talks about how the software helps traders by providing real-time data, including PCR values and VWAP levels, making it easier for them to follow the trading strategy discussed in the video.

💡Stop Loss

A stop loss is a risk management tool used in trading to limit losses by selling a security when it reaches a predetermined price. The speaker emphasizes that entering trades near VWAP not only provides a good entry price but also allows traders to place a smaller stop loss, reducing risk. The lower stop loss improves the risk-to-reward ratio of the trade.

💡Risk to Reward Ratio

The risk to reward ratio is a measure that compares the potential risk of a trade to its potential reward. The speaker stresses that trading near VWAP improves the risk to reward ratio by minimizing the stop loss while maximizing the potential profit. This concept is crucial in the strategy shared, as it enhances the probability of profitable trades.

💡Reserve Bank of India (RBI) Policy

The Reserve Bank of India (RBI) Policy refers to the financial and regulatory policies announced by India's central bank, which can have a significant impact on market movements. The speaker discusses how traders successfully used the PCR-based strategy during an RBI policy announcement, where a large number of traders profited from put options due to negative PCR data.

💡Trading Polls

Trading polls refer to the surveys conducted among traders to gather their views and experiences on trading strategies. In the video, the speaker mentions conducting polls with thousands of traders to gauge the effectiveness of using PCR data in making profitable trades. The results consistently show that a majority of traders who followed PCR-based strategies made profits.

Highlights

Nitin discusses his PCR-based strategy for options trading, focusing on entries after 11 AM when PCR is greater than 1.

Nitin emphasizes the importance of using the volume-weighted average price (VWAP) for entries in options trading.

He explains that VWAP provides an optimal entry point with better risk-to-reward ratio and smaller stop losses.

Nitin highlights the effectiveness of combining PCR data with VWAP for accurate market entries and exits.

He demonstrates how traders can plot VWAP on futures charts to identify profitable entry points.

The strategy involves checking PCR data after 11 AM and waiting for the price to approach VWAP for better opportunities.

Nitin shows examples of successful trades using his strategy, including a rally of 600 points in Bank Nifty.

He explains the difference between spot price and futures price when using VWAP for trading.

Nitin advises traders to be patient and wait for market bounces around VWAP for safer entries.

He mentions that using PCR and VWAP together significantly increases the probability of winning trades.

Nitin shares live polling results showing that 70% of traders who followed the PCR strategy made a profit.

He conducts a live poll demonstrating how traders have successfully traded based on PCR data and VWAP.

Nitin discusses how PCR data can predict market direction and timing for options trades.

He mentions using the Paid Telegram channel to provide regular call and trade recommendations to subscribers.

Nitin wraps up by encouraging viewers to use the AutoTrendr software and join the Telegram channel for live mentoring and trading signals.

Transcripts

So, hello everyone, welcome back to your channel.

Well, Nitin ji, you have taught a lot of things to people.

You have seen different videos with Nitin ji on this

channel.

How does PCR ratio work? When should we trade?

Apart from PCR, there are so many things in the auto-render

software.

We tried to understand different things.

Even now, there are a lot of things in this software for

people to understand.

Because in this, there is a delivery scanner, near support

resistance, below support resistance, and in commodities,

in auto-render, automatically calls are generated, signals

are generated.

All these features are still left for people to understand.

But now, there is one more important thing that was left

for me.

You said that when you become an option buyer from an

option seller, then what is your strategy in buying? Just

by looking at PCR, you can take the entry.

When to take the entry and when you have to exit, what will

be your target? All these things are still left for people

to understand. So, whatever I am asking, I am asking on

behalf of the audience.

So, now you decode your strategy in this video.

Tell people how they have to follow your strategy.

The PCR based strategy that I follow, I use two very simple

methods.

Simple rule number one is what is the data of PCR?

And normally, we see what is the data of PCR after 11

o'clock or after that.

So, rule number one is that you have to see the data of PCR

after 11 o'clock.

If it is positive, then its value is greater than 1.

For example, I am showing you the data of Bank Nifty.

And the values of PCR, as I said, the timing should be

after 11 o'clock.

And after 11 o'clock, you see that the value of PCR is 2.6.

That is, it is greater than 1.

So, I have to buy it.

So, it is simple that I got the trend.

Now, when do we have to take the entry?

This is rule number two, which is the most important.

And entry, normally, we do entry around the volume weighted

average.

What is the volume weighted average price?

The market opens at 9 in the morning, 9.15.

And whatever volume happened in the market till 11, what is

its average price? So, in AutoTrendr, you can see its

average price here.

The average price at that time is about 45,333.

And this is your VWAP.

There are two prices.

You see above, this is VWAP.

Volume weighted average price.

And this is the price.

And the price has gone below the volume weighted average

price.

There is no problem even if it is below.

I am getting cheaper below.

That's what I am saying.

It is good if it is below.

It is good, I am getting cheaper.

So, if I see this at 11 o'clock, that PCR is greater than

1.35.

Means it is above 1.35.

So, I will take the call option.

And when I will take the call option is very important.

This is VWAP.

If I get the market around VWAP or below it, then I will

take the call option here.

Now, you see, I got this at 11.15.

Around 45,300, the bank is Nifty.

So, if I take the call option here, then where did the

market close?

It is 45,900.

Means there is a rally of 600 points.

Means if you buy the call option, then you have a

three-fold call option.

So, in this way, basically you have to see the PCR till 11

o'clock.

And you have to sit in search of the opportunity that when

Nifty or Bank Nifty comes around VWAP.

And this VWAP can be plotted on the futures chart.

Many people complain here that they put VWAP on the chart.

So, VWAP will not be on the spot chart.

You will go to indicators, you will get VWAP, you can plot

VWAP.

And you can see the value of VWAP here.

And VWAP is basically a volume-weighted average price.

And it is not on the spot because the spot does not trade.

Nifty trades in the future.

And the trading will have a volume-weighted average.

That's why it is on the spot.

And the levels of VWAP and the levels of price, what are

these futures levels?

These are the levels of the futures.

These are the levels of both the futures.

It is important to explain this to people.

So, if the price has not come on the spot.

So, the levels are written here looking at the price of the

future.

If you are looking at the price of the spot, then you will

understand that the price will increase.

And what is the benefit of taking VWAP? That you are taking

it at a level in the market where your stop loss is also

small.

And the risk to reward ratio will be better.

Will you show the chart once?

Yes, I will show it to you through the charts.

So, Mr. Pushkar, you are seeing this graph.

This is the blue line, this is VWAP.

And this is the tick-by-tick chart of Nifty Futures.

If you see the candlestick, then you can also put it on the

candlestick.

You can also use the line chart in your chart.

That is easy.

Some people follow the line chart, some people follow the

candlestick chart.

So, here the PCR was negative and it came around VWAP.

And we got a very good selling from there.

So, this was opportunity 1.

And then we got a bounce back in the market again.

And then it came around VWAP.

And then it started to reverse and we got the next selling.

So, many times we make a mistake in the entry.

That after selling, we try to enter at this level.

Whenever the market bounces on VWAP, then our stop loss

triggers.

That's why we should try to enter.

If you are trading on PCR data, then if your entry is

around VWAP, then your winning probability increases a lot.

And this is the scenario if PCR is negative, and you are

getting entry around VWAP, then for the downside.

And it will reverse upwards.

Like Bank Nifty was positive.

So, what will happen in Bank Nifty, if the price comes to

VWAP, then the opposite price will come down and bounce

back upwards from VWAP.

Absolutely right.

So, by using VWAP like this, there are only two simple

rules.

One is to look at the PCR data, and after that, you have to

take the entry around VWAP.

And by following these two rules, you can make a profit in

this.

In fact, what I am saying,

I have at least 10,000 traders with me, who are trading

live.

If you want, you can also see their poll.

You can also know their view, how they are making a profit

on the basis of this data.

In fact, RBI's policy was just announced.

On that day, 70% traders made a profit on this data.

Can you show us?

This is from Thursday.

I did a poll on that day.

Now, we will do a live poll in front of you.

This is the PCR data negative from and after RBI policy.

That is, when RBI's policy was coming, and after that, the

PCR data was negative.

The data was negative on 8th February, 2024.

I asked two open questions, in which 6873 traders voted.

Question number 1,

I am trading puts with PCR data and profitable.

I am trading in calls against PCR data and losing.

Now, we will vote in front of you.

This is 6873.

We will vote from here.

Our cameraman will vote from there.

Yes, you can vote there.

You can vote as you wish.

So, if they have traded with PCR data, then one more vote

has increased.

Yes.

So, those who have followed PCR data and traded, that is,

70% traders followed PCR data and made a profit.

Let's do a few more polls in front of you.

Yes, let's do a few more polls.

I did a poll on Thursday.

Your puts must have increased many times.

Yes.

In fact, we traded puts that day.

21,800 put was around 39,000, which increased to 150,000 on

the same day. So, you give regular calls on your Paid

Telegram channel?

Yes, regular.

We gave this call on the day of RBI policy.

I will show you the screenshot.

So, these are the calls on our Paid Telegram channel.

The first was that we have to put 21,850 in the target

trade.

And when to take?

Closer to VWAP.

And when did we give it?

At 12.28 pm.

And the VWAP we just saw, it came to VWAP at around 1 pm

and we saw the selling price from there.

So, you gave this trade at 1 pm.

We gave it at 1.23 pm.

Buy Nifty next week.

21,800 put.

You bought it next week.

Yes, next week.

We have to buy it at 140, a stop loss of 110 and a target

of 190.

So, it went up to about 220, but we had a target of 190.

So, the target of 190 was achieved.

Yes, it was achieved.

So, we got around 50 rupees in one lot and we booked a

profit.

So, if someone wants regular trades from your Telegram,

they can join your premium channel.

Yes, they can join.

So, you will get the link to sir's Telegram channel in the

description and pinned comment.

If you want regular Nifty, how do you give Nifty and Bank

Nifty?

Mainly, the focus is on Nifty.

The focus is on Nifty and Bank Nifty.

And we also have many webinars in that.

We have monthly webinars, weekly webinars, we have webinars

for my team, we have webinars for the community, we have

webinars related to currency.

So, there is a lot of knowledge sharing there.

So, if you are in the premium Telegram channel, you get

live mentoring.

In the live market, you learn how to use data, how to trade.

So, theory and practical, both work in the live market.

If you want to join, as I said, you can take sir's paid

Telegram channel. And I am taking out the voting in front

of you.

Or you come to Zee Business.

Like this, we share.

PCR data negative, you can see this.

Now, PCR data negative, view negative, target puts.

Now, when to take?

This VWAP is here.

VWAP, you have to take the naked put of 21,900.

When will you take?

When VWAP comes close.

So, in this way, you keep guiding.

Don't hurry now.

Yes, don't hurry now.

So, like this.

And as you asked for voting, so I, see, the voting has come

here.

When is this?

This is Wednesday voting.

Now, I don't know what the output was.

PCR data negative, 7th February.

7th February.

Don't vote up now.

We will call you in the morning. PCR data negative on 7th

Feb

My view is bearish and negative today

My view is bullish and positive today

My view is bearish and negative today

My view is bullish and positive today

My view is bearish and negative today

My view is bullish and positive today

My view is bearish and negative today

My view is bullish and positive today

My view is bearish and negative today

My view is bearish and negative today

My view is bearish and negative today

My view is bearish and negative today

My view is bearish and negative today

My view is bearish and negative today

My view is bearish and negative today

My view is bearish and negative today

My view is bearish and negative today

My view is bearish and negative today

My view is bearish and negative today

My view is bearish and negative today

My view is bearish and negative today

My view is bearish and negative today

My view is bearish and negative today

My view is bearish and negative today

My view is bearish and negative today

My view is bearish and negative today

My view is bearish and negative today

Look at the data, the market fell very fast

Look at the data, the market fell very fast

Look at the data, the market fell very fast

Look at the data, the market fell very fast

Look at the data, the market fell very fast

Look at the data, the market fell very fast

Look at the data, the market fell very fast

Look at the data, the market fell very fast

Look at the data, the market fell very fast

Look at the data, the market fell very fast

Look at the data, the market fell very fast

Look at the data, the market fell very fast

Look at the data, the market fell very fast

Look at the data, the market fell very fast

Look at the data, the market fell very fast

Look at the data, the market fell very fast

Look at the data, the market fell very fast

Look at the data, the market fell very fast

Look at the data, the market fell very fast

Look at the data, the market fell very fast

Look at the data, the market fell very fast

Look at the data, the market fell very fast

Look at the data, the market fell very fast

Look at the data, the market fell very fast

Look at the data, the market fell very fast

Look at the data, the market fell very fast

Look at the data, the market fell very fast

Look at the data, the market fell very fast

This is very simple

Now let's come to the voting

This is Tuesday's voting

PCR data positive from opening

Nifty future rallied and closed up by 200 points on 6th

We just voted for 8 then 7

You took this at the market closing Yes, at 3.32 pm

Till now we have voted 5, 9, 6, 1

The question is PCR was positive, hence I was trading calls

and profitable

Bullish with PCR, profit

Bullish with PCR, profit

PCR was positive I was trading against PCR

I was trading against PCR data and was in loss

Let's vote 67% people were with PCR 67% people were with

PCR and the people who were against it were in loss and the

people who were against it were in loss

The vote increased from 1 vote

The vote increased from 1 vote

In this way, in this channel this is historical vote

You can do one month, two months, three months daily voting

You get a public fair opinion

You get a public fair opinion

Let's see one more vote

PCR data positive 11.30 pm CMP spot 21, 930

What is the view of the market Bullish with positivity It

is important here whether people are following or not

There are 9, 9, 3, 9 votes There are 9, 9, 3, 9 votes a

vote will increase and suppose I do against, view bearish,

against, now you see 80% of the people are getting a clear

view that what should I do, I got a vote, so you get

clarity in your mind that

how I have to trade, how to do it, how not to do it, you

can see some people's feedback, based on PCR data today

showing cover loss of 8000, booked profit, so your

butterfly strategy is very profitable, absolutely right, if

there is PCR data, then the

profit is possible, it is easy to learn, so many people's

feedback is also coming, who are making profit on this, so

we do voting every day, you can see in previous votes, and

average, my experience of voting in last 3 months, we are

able to make profit

average 65-70% times, and PCR and VWAP are 2 concepts, as

you can see in the picture, if you go with

PCR and VWAP, you become professional, you are trading with

learning, so I hope, it is not just about this video, Nitin

ji has given a lot of time, spent a lot of time, to make a

good learning co-ordinate for you, we have already made a

playlist for you,

in which you can watch everything, that Nitin ji has told

you, step by step, if you are watching this video for the

first time, so at the end, you will get a link on end

screen and I button, in which you can watch the complete

playlist, so how you will

get PCR data, how you will get all the auto-render

features, simply link is in the description and pinned

comment, you can go and get sir's software, in fact, the

calls that sir gives in his telegram group, if you want

calls in nifty bank nifty, and if

you trade in nifty bank nifty, then definitely you can take

the benefit of telegram group, links are in the description

and pinned comment, so if you are new in the stock market,

I hope you are learning, and as sir talked about telegram

group, this nifty

bank nifty is beneficial for those who trade, if you want

equity calls in stocks, then sir has a technofunda channel

of SMC, and commodity mantra for those who trade in nifty

bank nifty, so definitely you will get learning, research,

and you can take

the benefit of it, we will meet you in the next video, till

then share this video, you can give your love and like,

which cities of India are you watching this video, you can

also write the name of your city in the comment, see you in

the next video,

till the time you go self made, and thank you so very much

once again Nitin ji, thank you Puskar ji, thank you very

much, I felt very good by creating content with you, and

very informative

content, hope all the viewers will get the benefit, thank

you very much, thank you so very much, and Jai Hind.