My self invented trading technique for Intra day trading
Dear All to share
I wish to share some valuable information about the "CONSOLIDATION" and its significance in fixing a trade.
WHAT IS CONSOLIDATION
The proper meaning of the noun consolidation as per dictionary is
“the action or process of making something stronger or more solid”
The meaning of consolidation in share market is
“Consolidation is the term for a stock or security that is neither continuing nor reversing a larger price trend. Consolidated stocks typically trade within limited price ranges and offer relatively few trading opportunities until another pattern emerges”
As per Business-Standard.com
“Consolidation is a phase when a stock or an index trades within a range. The trend is said to be sideways and may vary depending on the circumstance. Once this range is broken, it may lead to bigger moves, but until the range is intact, the movement cannot be clearly predicted”
The consolidation process is vital in trading derivatives and Futures. It helps to predict the movement of derivatives / futures.
But here we use this consolidation technique to fix the key resistance and support levels for present day trading.
While trading in the stock market or commodity market always remember the saying pronounced by the learned and successful trading experts “HISTORY REPEATS”.
This is the key basic we use in the present day trading. We are going to make our decisions in the present day by having a reference of consolidation happened in the previous sessions.
Consolidation happened in the previous sessions provide us a very valid information for the current session trade fixing. Normally the conservative theory says the break out happens after the consolidation, but it will be hard to predict the movement after the consolidation happened in the current session. It simply means that the past days consolidation helps us to take present day decisions and the present day consolidation helps us to take future day decisions.
I wish to share some valuable information about the "CONSOLIDATION" and its significance in fixing a trade.
WHAT IS CONSOLIDATION
The proper meaning of the noun consolidation as per dictionary is
“the action or process of making something stronger or more solid”
The meaning of consolidation in share market is
“Consolidation is the term for a stock or security that is neither continuing nor reversing a larger price trend. Consolidated stocks typically trade within limited price ranges and offer relatively few trading opportunities until another pattern emerges”
As per Business-Standard.com
“Consolidation is a phase when a stock or an index trades within a range. The trend is said to be sideways and may vary depending on the circumstance. Once this range is broken, it may lead to bigger moves, but until the range is intact, the movement cannot be clearly predicted”
The consolidation process is vital in trading derivatives and Futures. It helps to predict the movement of derivatives / futures.
But here we use this consolidation technique to fix the key resistance and support levels for present day trading.
While trading in the stock market or commodity market always remember the saying pronounced by the learned and successful trading experts “HISTORY REPEATS”.
This is the key basic we use in the present day trading. We are going to make our decisions in the present day by having a reference of consolidation happened in the previous sessions.
Consolidation happened in the previous sessions provide us a very valid information for the current session trade fixing. Normally the conservative theory says the break out happens after the consolidation, but it will be hard to predict the movement after the consolidation happened in the current session. It simply means that the past days consolidation helps us to take present day decisions and the present day consolidation helps us to take future day decisions.
Comment:
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