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Showing posts from July, 2025

P/E Ratio analysis

  Here lets talk about some myths, some facts about P/E ratio (Price-to-Earnings ratio) which is one of the most important fundamental tool to invest in stocks. Investors track this to look out for which stock is overvalued or undervalued compared to its earnings. Formula of P/E ratio = Share Price ÷ Earnings Per Share (EPS). A higher P/E usually means the stock is expensive relative to its earnings. But this is something taught theoretically, when used in practical markets it can be different. 🚨 So what should an investor do when a Stock's P/E is Too High? Taking an eg, if a stock in a sector has a very high P/E (say above 100) like infrastructure or energy.This is a very overvalued stock for investors, but the same time smart investors start looking for other valuable stocks in the same sector. If any other company in the same sector has a strong fundamental values but lower P/E Ratio they might be better for investments at that time. If other companies in that industry have str...

Beta Analysis In stocks

In Stock Market Beginners must understand financial metrics that move the market prices. One such metric that often gets overlooked by new traders is Beta. If you're enrolled in a good Stock Market Course in Dehradun or are planning to join a Stock Market Training Institute in Dehradun , understanding Beta will give you a solid analytical edge. Lets discuss what is beta ? In very simple terms Beta measures a stock's volatility in relation to the broader market. For Indian investors, this broader market is often represented by the Nifty 50 index. Here's what different Beta values generally mean: Beta = 1: The stock moves in line with the Nifty 50. If Beta > 1, Stock reacts more strongly to Nifty 50 movement, Eg: if stocks beta is 1.5% and Nifty moves up 1% then the stock rises up by 1.5% If Beta < 1: The stock reacts less to market movements. Why is Beta compared with the Nifty 50? The Nifty 50 is a benchmark index comprising 50 of the largest, most actively traded I...

Elliott wave

  In charting techniques, a widely famous technique The Elliott Wave Theory helps you predict market both short term and long term in form of wave analysis. At MHV Education, Stock Market Classes includes this strategy in detail. If you're looking to dive deep into this powerful concept, it’s crucial to first understand what Elliott Wave Theory is, why it matters, and where you can learn it the right way. Elliott wave theory: Ralph Nelson Elliott developed this in the 1930s, which helps predict market waves which are driven by investor psychology. According to Elliott, market prices move in repetitive cycles—five waves in the direction of the trend (impulse waves), followed by three corrective waves in the opposite direction. Formed in every trend these waves can be observed in intraday charts as well as long-term cycles in stock market. Why Elliott Wave Theory Matters for Traders Many traders rely solely on price action or indicators, but Elliott Wave Theory adds a psychological...

How the Global Markets Impact the Indian Stock Market

The Indian stock market is highly influenced by the global market news, particularly from the United States . Investment market is interconnected, where every countries policy impacts the global markets in some or the other way. That is the reason why a trader or an investor should always stay updated with international news. Looking for the   Best Share Market Institute in Dehradun  here at  MHV EDUCATIONS  you will find all the answers you need. 1. How US Stock Market impacts India The US stock market, which is led by indices like the Dow Jones, NASDAQ, and S&P 500, reflects the overall economic conditions of the USA market, which is closely tracked by investors worldwide. Sharp movements in the these indices mostly leads to sharp moves in Indian indices like NIFTY and Sensex due to the increased demand created by buyers globally. 2. Dollar-Rupee Dynamics Global market movements often lead to fluctuations in the USD-INR exchange rate. A strong dollar generally...

Currency rates and its impact on Stock Market

  Lets discuss here how can Indian Rupee can change the price valuations of different stocks in different sectors. A weakening rupee against dollar has its own pros and cons for different businesses in india especially those tied to imports and exports. Export Sectors : Sectors like IT and Pharma, which earn highly through exports mostly USD often benefit when the rupee falls. Why? Because they get more rupees per dollar earned, increasing their revenue and profit margins. At MHV Education, the Stock Market Trading Course for Beginners covers all these topics in detail both theoretically and practically. Investors look for these sectors as IT giants and pharmaceutical exporters experience higher earnings without increasing output due to these currency movements. Import Dependent sectors: On the other side the sectors which are highly dependent on imports such as oil, aviation, chemicals, and fertilizers — take a hit. A weaker rupee makes raw materials costlier for them decreasing...

Future contracts and its valuation

Index Futures or stock future are financial instruments on which traders speculate or hedge on price movements. But have you ever wondered why futures and spot prices converge on expiry? The answer lies in something called the carry cost. Lets discuss about future contracts : An agreement to buy or sell an asset at a predetermined price at a future date. It is widely used in derivative market by speculators to gain on stocks. indices and commodities. What Is Carry Cost? Carry cost refers to the cost of holding a position until the expiry date. It includes: Financing cost (interest if borrowed capital is used) Storage cost (for physical commodities) Dividends foregone (if trading futures instead of holding stocks) These costs (or sometimes benefits) are factored into the pricing of futures. That means futures mostly trade at a premium or discount to the current (spot) price depending on the carry cost. Why Do Futures Match Spot Price on Expiry? On the expiry date, the futures contract ...

Options Hedging

  Options trading name is directly co-related to quick profits, very high risk, and low probability bets by most people.But this is not what it is actually best for, Option selling and Hedging is what makes options market profitable. This strategy is not about gambling, but about discipline, risk management, and understanding market behavior. MHV Education's Stock Market Courses cover these hedging strategies in detail and with practical execution by beginners in live markets. Option selling or Option writers are traders that are involved in selling option contracts to buyers and collecting the premium. The seller of these contract profits if the option expires worthless i.e zero, which happens if the market stays within a certain range or consolidates. For example, if you sell a NIFTY 23000 Call Option at ₹100, and the index stays below 23000 at expiry, you keep the full premium as profit. But it is not that simple, highly risky as it comes with unlimited losses if markets move...

IV and Implied Volatility

Two terms that confuse beginners and yet hold massive importance are VIX and Implied Volatility which assist a trader in interpreting the price pattern and fundamentals of any security. MHV Education offers Best Stock Market Course in Dehradun which helps you in mastering these concepts. VIX in detail : The VIX is known as the Volatility Index or the Fear Gauge which measures the market's expectations of volatility over the next 30 days. It is derived from options prices on the Nifty (in India) or S&P 500 (in the US). High VIX shows high volatility and High Fear Low VIX shows Stable volatility A rise in VIX signals panic in the market and is often followed by Bearish market. ⚙️ What is Implied Volatility (IV)? Implied Volatility is the market’s forecast of a likely movement in a stock or index. It tells a trader how much the market expects the asset to move not necessarily which direction. High IV: Expensive options, bigger expected moves Low IV: Cheaper options, smaller expe...

Stock Market Courses in Dehradun

  If you looking for trading knowledge, MHV EDUCATION offers you Best Share Market Courses in Dehradun , Whether you are beginning this journey or already in advance level best courses define your future. Dehradun has become a hub for Stock Market Education with institutes offering variety of trading courses. Building a foundation of technical analysis is what our courses offer, covering theoretical concepts and then there application in live market is what makes MHV EDUCATION the Best Stock Market Institute in Dehradun . 1. Intraday Trading Courses in Dehradun Mentoring students and preparing them for Intraday Trading, by helping them to learn how to make quick trading decisions with high precision and accuracy. This Course in Dehradun will train you with : Candlestick charts and technical indicator or tools How to manage risk High frequency trading and price action Live Share Market Trading using strategies learnt 2. Technical Analysis Course Technical analysis is analyzing the ...

Time Frames in Technical Analysis

Any Technical Analysis course must guide you how to use the right chart time frames with different trading setups. Whether you’re a day trader or a long-term investor, selecting the correct time frame defines if you are entering the markets as an investor or a trader. Beginner ? Enrolling in the Best Stock Market Course in Dehradun or a Trading Course in Dehradun will help you create a strong foundation to read charts effectively. What Are Chart Time Frames? Chart time frames represent the interval of time each candlestick or bar on a chart covers.A 5 min chart time frame forms a candle after every 5 mins giving the high,low,close,open in those 5 mins while a daily chart shows price changes for the entire day. Let’s discuss more about these time frames : 1. Scalping: Very small Time Frames (1-Minute to 5-Minute Charts) Scalpers tend to take multiple quick trades during the day with an objective to profit from small price fluctuations during the day. They use 1-minute to 5-minute ch...

Candlestick Patterns for Trading

  Some Candlestick patterns are most used by intraday traders and scalpers to predict small market swings, among which are the Three White Soldiers, Three Black Crows, and the Doji Pattern. These patterns reflect market psychology and momentum shifts. At MHV Education our Stock Market Course in Dehradun dive deep into strategies with practical execution which guides you in this investment journey. Three White Soldiers Pattern This candlestick pattern gives trader a buy signal and is a trend reversal signal. It appears after a downtrend and consists of three consecutive big green candles that are progressive in nature and generally close higher than each other. It shows : Change in trend from bearish to bullish. Strong buyers entry 🔻 What Are the Three Black Crows? The opposite of Three White Soldiers, the Three Black Crows pattern consists of three consecutive long-bodied red (or black) candles that close lower each day. This pattern typically forms after an uptrend and suggests ...

Hammer, Inverted Hammer and Engulfing pattern

  Price action in the stock market is a famous method used by Intraday traders specifically scalpers. Candlestick patterns assist these scalpers in predicting short term market moves to earn profits in trading. Among the most reliable and widely used are the Hammer, Inverted Hammer, and Engulfing patterns. Learning Technical Analysis and spotting these pattern correctly is a must, to increase probability of winning trades. 🛠️ What is the Hammer Candlestick? The Hammer is a bullish reversal pattern that typically appears after a downtrend. Consisting of a small read body at the top with a long lower shadow giving a buy signal to the analyst. It appears after a downtrend with a long lower shadow(almost 2 times the body) and little or no shadow at all. NOTE : Trend is reversing and buyers are gaining control. 🔄 Inverted Hammer An Inverted Hammer also forms after a downtrend but has a small body at the bottom and a long upper shadow. This shows that buyers tried to push the price u...

Chart patterns In technical analysis

  Technical Analysis is the widely used method by traders to predict future price movements. Apart from indicators, Technical analysts use chart patterns with the logic of HISTORY REPEATS ITSELF.Among these recognized and reliable chart patterns are the Rounded Top and Rounded Bottom patterns. These patterns gives traders signal of trend reversals with high probability. If you are just beginning your trading journey and looking to sharpen your trading skills, these patterns will create a strong foundation for you in trading and investing too. Want to enroll in the Best Stock Market Trading Course in Dehradun , MHV Education brings you with courses that best suit your needs. What is a Rounded Top Pattern? A Rounded Top is a bearish reversal pattern that typically forms after a sustained uptrend. Appearing like a U on the chart it indicates a shift from bullish to bearish market trend. As the name suggests, prices rise slowly, reach a peak, and then start to decline in a curved fa...

Macro-economic elements in stock market

  If you are new to trading and looking to upgrade your trading strategy, understanding Macro economic elements is essential. This is what we teach at MHV Education, which offers the Best Stock Market Course in Dehradun , with real-world case studies and hands-on analysis. Macro-economic factors include analysis of global economic factors that influence investor behavior and stock prices. Micro level factors involve reading a companies earning reports solely. Macro level is more of whole industry analysis. These include: Inflation Rates Interest Rates GDP Growth Unemployment Data Fiscal and Monetary Policy Global Events Exchange Rates PMI & Consumer Confidence 🔍 Key Macro Factors and Their Stock Market Impact 1. Interest Rates A rise in interest rates by Central banks makes borrowing becomes costlier, reducing corporate profits and consumer spending. Growth sectors often dip as a result. 2. Inflation A rise in inflation decreases the purchasing power of consumers and increase...

Fibonacci in Share Market Trading

  Fibonacci Indicator: A Tool that Guides you with Numbers If you are entering into the world of  Intraday  or  Positional Trading , you will love using this tool Fibonacci retracement. But what is it really, and how can it be your secret weapon in the stock market? In this blog, we will explore how the Fibonacci indicator works, and why it is considered an effective tool for  Intraday Traders,  and how learning it through a well framed  Stock Market Trading Course in Dehradun  can help you in this financial investment journey. Fibonacci Indicator and what are its key elements ? Fibonacci indicator is a tool in technical analysis that uses Fibonacci sequence to identify major support and resistance levels in the stock market. Traders use this tool on charts to predict how much an ongoing trend might correct or retrace before continuing its major trend again. There are retracement levels that intraday and swing traders look out for, Like 23.6%, 38....

KNOW SURE THING(KST)

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  The Know Sure Thing (KST) indicator in Technical Analysis is a momentum based oscillator to identify overbought and oversold zone. It was Founded by Martin Pring and its key element is Rate Of Change of 4 different time frames, making it more volatile to price trends. KST properties : ROC periods: 10, 15, 20, and 30 Smoothing periods: 10, 10, 10, and 15 Signal line: 9-period simple moving average (SMA) of the KST Trading using KST ? Bullish Signal: KST crosses above its signal line → Buy KST is rising above zero → Strong uptrend Bearish Signal: KST crosses below its signal line → Sell KST is falling below zero → Strong downtrend Overbought/Oversold Conditions: Extreme high values suggest overbought conditions (possible reversal down). Extreme low values suggest the security is oversold and reversal is coming very soon ✅ Capturing short-term & long-term trend making it a useful tool for both traders and investors ✅ Eliminates noise by averaging different ROC values ✅ Effective...