The TrueTrend Blog
Clear, data-backed writing on Indian and global markets — option structure, market regime, open interest and the ideas behind the platform. No tips, just understanding.
The Debt-to-Equity Ratio Explained for Beginners
What the Debt-to-Equity ratio measures, why leverage cuts both ways, what counts as healthy versus risky, and why the safe level is always sector-relative.
Position Sizing Explained: How Much to Risk
How to size a position by the risk taken, why the 1% rule aids survival, and a clean worked example linking exit distance to quantity (illustrative).
Trading Psychology: Fear and Greed Explained Simply
Fear and greed drive most trading mistakes. See the emotional cycle, why it repeats, and why a calm, rule-based plan beats reacting to every move.
How to Read a Balance Sheet: A Beginner's Guide
A balance sheet shows what a company owns, owes and what's left for owners. Learn the accounting equation and how to spot financial health fast.
How US Markets Affect Indian Stocks: A Beginner's Guide
Why a night on Wall Street can nudge the Nifty at 9:15 - the overnight cue chain, the loose correlation, and which Indian sectors react most.
Put-Call Ratio (PCR) Explained: Sentiment and Its Limits
PCR = total put OI divided by call OI. Learn the calculation, the contrarian sentiment reading, and the caveats that make it unreliable as a signal.
Working Capital Explained: The Cash a Business Runs On
Working capital is the short-term cushion that keeps a business running between paying suppliers and getting paid. A plain-English guide with a worked example.
Futures Rollover Explained: Carrying a Position
Rollover closes an expiring futures contract and opens the next series. Learn the rollover percentage, roll cost, and what the data really tells you.
The Bull Call Spread Explained (Illustrative Example)
An illustrative, beginner-friendly guide to the bull call spread: buy a lower call, sell a higher call, for defined risk and defined reward — with the honest catch.
The Risk-Reward Ratio Explained for Beginners
What the risk-reward ratio means, why it decides whether a strategy survives, and the break-even win-rate behind every trade idea (illustrative).
ROE and ROCE Explained: Reading Business Quality
Return on Equity versus Return on Capital Employed: what each measures, how they differ, and what a gap between them signals about a company's quality.
EBITDA Explained Simply: Uses, Limits and Abuses
EBITDA in plain English: what earnings before interest, tax, depreciation and amortisation really measures, and the real costs it quietly leaves out.
Open Interest vs Volume: What's the Real Difference?
Volume counts contracts traded today; open interest counts contracts still open. See how each changes on a trade, with a simple worked example.
What Is Fundamental Analysis? A Complete Beginner's Guide
Fundamental analysis estimates what a business is truly worth. Learn intrinsic value, quantitative vs qualitative, and top-down vs bottom-up.
Margin and Leverage Explained for Beginners
Leverage magnifies gains AND losses. Learn how margin, leverage ratios, and margin calls really work, with a simple worked example.
The Protective Put Explained (Illustrative Example)
An illustrative, beginner-friendly guide to the protective put: own shares, buy a put as insurance, floor your loss, keep your upside — with the honest cost.
The Price-to-Book (P/B) Ratio Explained for Beginners
What the P/B ratio is, how price compares to book value per share, where it fits in fundamental analysis, and the limits every beginner should know.
How to Read an Option Chain: A Simple Beginner's Guide
An option chain is just a price list of strikes for one expiry. Learn the call, put, strike, LTP and OI columns and how to read a single row.
Relative Strength: A Stock vs the Index Explained
Relative strength measures a stock against the index, not against zero. How the RS line reveals leaders and laggards, and why it is not the RSI.
Futures vs Options: The Key Differences Explained
Futures are an obligation with symmetric risk; options are a right with capped buyer loss. A plain-English, illustrative comparison for beginners.
The Covered Call Explained (Illustrative Example)
A beginner-friendly, illustrative walk-through of the covered call: own shares, sell a call, collect premium, and accept a capped upside — with the honest catch.
Keltner Channels Explained (vs Bollinger Bands)
Keltner Channels use an EMA middle line with ATR-multiple bands. How they work, a worked example, and how they differ from Bollinger Bands.
Triangle Chart Patterns: Ascending, Descending, Symmetrical
Triangles are coiling consolidation patterns. Learn ascending, descending and symmetrical types, the breakout idea, a worked example, and the fakeout catch.
Morning Star and Evening Star Candlestick Patterns
The morning star and evening star are three-candle reversal patterns at bottoms and tops. How to read the small middle candle, with a worked example.
Volume Profile Explained: Volume by Price
Volume Profile shows how much traded at each price, not over time. Learn the Point of Control, value area, a worked example, and its honest limits.
VWAP Explained: Volume Weighted Average Price
A beginner guide to VWAP: what volume weighted average price is, how it is calculated, why institutions benchmark against it, and where it falls short.
Implied Volatility Explained for Beginners: IV vs Realised
Implied volatility is the market's expected swing baked into option prices. Learn IV vs realised volatility and how IV becomes an expected move, in plain English.
Multi-Timeframe Analysis Explained for Beginners
Reading the same market across monthly, weekly, daily and intraday lenses. How top-down timeframe alignment works, with a simple worked example.
Parabolic SAR Explained: The Trailing Dots
Parabolic SAR plots trailing dots that stop and reverse when a trend ends. Learn how its acceleration works, a worked example, and why ranges break it.
Divergence: When Price and Momentum Disagree
Divergence is when price and a momentum oscillator like RSI disagree. Learn regular vs hidden divergence and why it hints a trend may be tiring.
Intrinsic Value and Time Value of Options Explained
Every option premium splits into intrinsic value and time value. Learn to calculate each, why out-of-money options are all time value, and how time decay works.
Fibonacci Retracement Explained Simply
A plain-English guide to Fibonacci retracement: where the 38.2, 50 and 61.8 percent levels come from, how to draw them, and the self-fulfilling caveat.
Option Vega: Sensitivity to Volatility, Explained Simply
Vega is an option's sensitivity to the volatility weather: how a change in implied volatility moves the premium. A plain-English beginner guide with a worked example.
MACD Explained: The Convergence-Divergence Indicator
MACD made simple: the MACD line, signal line, histogram, the crossovers traders watch, a worked example, and the double lag and whipsaw that limit it.
Golden Cross and Death Cross Explained for Beginners
A golden cross is the 50-day moving average crossing above the 200-day; a death cross is the reverse. Here is what they mean, with charts and the catch.
ADX Explained: How to Measure Trend Strength
The ADX measures how strong a trend is on a 0 to 100 scale, not its direction. Learn how +DI and minus DI add direction, with a simple worked example.
Heikin-Ashi Candles Explained for Beginners
Heikin-Ashi candles smooth normal candlesticks with averages to make trends easier to see. Learn how they differ and the lag tradeoff they carry.
Option Premium: What You Pay and Why It Moves
An option premium splits into intrinsic value plus time value. Learn what each part means, what drives premiums, and why time value decays.
ATR Explained: Measuring Market Volatility
A beginner guide to ATR: what True Range is, how ATR measures typical movement, an illustrative stop-distance example, and its honest limits.
Option Theta: Time Decay Explained for Beginners
Theta is the melting ice cube of options: how much premium bleeds away each day. Learn why time decay accelerates near expiry, with a clear worked example.
RSI Explained: The Relative Strength Index
What the RSI momentum indicator measures, the 70/30 overbought and oversold lines, divergence, and the lag and whipsaw that limit it.
Pivot Points Explained for Intraday Levels
Pivot points are reference levels built from yesterday's high, low and close. Learn the pivot, R1/S1, and how intraday traders read the ladder.
The Supertrend Indicator Explained for Beginners
Supertrend draws one line that flips below or above price to show the trend. Learn how its ATR band works, a worked example, and the whipsaw catch.
Demat and Trading Accounts Explained for Beginners
Why do you need two accounts to invest? Learn how a demat account holds your shares while a trading account places orders, and how money and shares flow between them.
Hammer and Shooting Star Candlesticks Explained
Hammers and shooting stars are long-wick candles that show a rejected move. What each looks like, where they appear, and why their location decides their meaning.
What Is Volatility? Why Prices Swing, Up and Down
Volatility measures how big price swings are, not their direction. Learn calm vs wild regimes, why volatility clusters, and why high volatility is not a crash.
Market Order vs Limit Order: The Difference
A market order chases speed; a limit order chases price. Learn how each fills, what slippage is, and the trade-off between them, with simple examples.
Stock Splits and Bonus Shares Explained Simply
More shares, lower price, same value. Learn how stock splits and bonus issues work, why total value stays unchanged, and why companies do it.
Options Explained: Calls and Puts for Beginners
An option is the right, not the obligation, to buy (call) or sell (put) at a fixed price. Learn premium, strike, breakeven and the honest risks.
Option Gamma Explained: The Acceleration Behind Delta
Gamma is an option's acceleration: the rate of change of delta. Learn why it peaks at-the-money and spikes near expiry, in plain English with a worked example.