**** Educational Post:
ASCENDING CHANNEL
An ascending channel is the price action contained between upward sloping parallel lines. Higher highs and higher lows characterize this price pattern. Technical analysts construct an ascending channel by drawing a lower trend line that connects the swing lows, and an upper channel line that joins the swing highs.
The...
A rising wedge is a bearish pattern when it appears at the top of a mature uptrend. It signifies that a potential top might be in the offing. The duration (short/medium/long term) of the top depends upon the timeframe on which it appears.
Preconditions
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> A strong mature (multi-day/week)trend in the background
> Wave HH1 to be extremely smaller...
****Educational Post:
Head and Shoulder pattern
Head and shoulders is a chart pattern in which a large peak has a slightly smaller peak on either side of it. Traders look at head and shoulders patterns to predict a bullish-to-bearish reversal.
Typically, the first and third peak will be smaller than the second, but they will all fall back to the same level of...
Gold's Golden Rule Of 89%
Golden history of last 50 years have shown that Gold has give big move whenever there is a minimum 89% move from bottom. Chart is self explanatory. There are three successful incident of min 89% move and two unsuccessful incident of less than 89% move.
Successful Incidents
1. 1970 - 1972
2. 1976 - 1978
3. 1999 - 2005
Unsuccessful...
Hello Traders!
This is a learning analysis for 'How we can capture momentum & ride huge rallies in stocks.'
I've taken the example of HFCL. As per the chart you can the current bullish candle closes above the green line (6ma). Whenever this happens near any support of demand zone or any moving averages stocks become bullish.
In this stock it is bouncing back from...
What is a BEAR-TRAP?
--> BEAR-TRAP is a condition in the market where the Price gives a Breakdown below a Potential Support zone but quickly Reverses back above the Support without giving a follow up bearish candle.
Why a BEAR-TRAP occurs?
--> Big Players who are bullish on a specific stock would be wanting to buy a big quantity of shares at the...
Market Phases -Stock prices may appear random, but there are repeating price cycles, which are predominantly driven by the market participation. Below are the four types of market phases that occur.
Phase 1: Accumulation - The accumulation phase is a stage of consolidation. There is no clear trend, and the stock is usually trading in a range. It's a span of...
STRUCTURE
--> ASCENDING TRIANGLE is a type of consolidation pattern formed after an Uptrend ( Markup Phase).
--> ASCENDING TRIANGLE is a triangular pattern with a flat horizontal Resistance on the top and a Trendline that connects atleast two Higher Low swings from the bottom to the top of the Triangle.
--> ASCENDING TRIANGLE is considered to be a ...
When price break any well defined boundary above 200 DMA then high probability price continue the trend .
Always near well defined boundary a reversal candlestick act as trend reversal .
Continuation Inverted Head & Shoulder Chart pattern act as a continuation of #trend .
But a small concern for me is the distance between Price and 200DMA .
Introduction:
Price trends do not usually reverse on a dime. uptrend and downtrend are typically separated by a transitional period or trading range, and trading range formation signal trading opportunities for traders.
The trading range separating rising and falling price trends discussed here
is a pattern known as a rectangle.
This post will cover these...
PitchFORK + PitchFAn is very acuurate When it comes to find the point of reversal.
In this chart one can easily find the point of reversal just by looking at important levels of pitchfork.
If pitch fork is drawn accurately it will definitely help you in your intraday/positional trading.
Draw pitchfor at daily time frame and then use it in your trading either...
Foreword:
Support and resistance levels are a critical part of trend analysis because they are used to make specific trading decisions. The fact that these levels flip roles between support and resistance can be used to determine the range of a market, trade reversals, bounces, or breakouts. These levels exist due to the influx of buyers and sellers at key...
