How to ride on a swing trade?
One good strategy in price action is to use 21 EMA and ride on swing trades for short or long terms. 21-day EMA can be called as the Goldilocks of all moving averages. 5,8,13 can be too tight and 50,100,200 are too loose for looking at moving averages, hence 21 EMA can be considered as a powerful average.
In this strategy 21 EMA LOW...
Indicator Free Analysis with Fibonacci Ratio Integration:
The above is a daily chart of Alkyl Amine, a quality monopoly stock with clear cut competitive edge in its respective industry. We can observe that a previous resistance was present at 4000 levels which was broken with big bullish harami green candles accompanied with volume. A basic rule of chart analysis...
What Is Quadruple Witching?
Quadruple witching refers to a date on which stock index futures, stock index options, stock options, and single stock futures expire simultaneously. This happens in the US market but since the US market affects the markets worldwide, hence it becomes an important event for all other markets too.
Highlights:
• Quadruple witching...
The above chart is that of a Weekly Timeframe. Here we can see that a Rounding Bottom is formed at the top of Reliance when it is trading at all time high.
Why a Rounding Bottom is formed?
A rounding bottom marks a struggle between buying demand and selling pressure that is almost equal. In the first part of the formation, the sellers overpower the buyers...
Here are a few setups that I use in my day to day trading. They work well in all the timeframes and in all types of markets.
I am only showing bullish scenarios due to space constraint but one may also look for bearish scenarios which work in the same manner. Like Down trendline or Downward sloping channel; downward sloping MA; breakdown of a range; and price...
For the purpose of demonstrating how one can identify a trend change using Support - Resistance and Price Action, I have taken the daily chart of IEX. I had also identified and posted about it before the recent rally.
The first step is to establish a clear support and resistance line. In case of a breakout, I like to keep my target at around the same price...
One can use this indicator for sell trade in downtrend market. In downtrend one can sell when CCI reading is above +100 to +150. This is trading technique when market is in downtrend and we may use SELL ON RISE STRATEGY. After selling we should place stop loss above latest high price. For conservative traders they can sell when CCI start going down below +100 reading.
The above chart is the daily chart of Bharat Electronics . Here we can observe that the stock has formed a Cup and Handle Pattern. Now I shall elaborate in detail on how to trade the Cup and Handle Pattern with appropriate Trading strategy and Psychology.
In the above chart, we can observe a stiff resistance at 160 levels for the stock. Hence it needs to be...
The analysis is on how to create a low risk high reward trade with RSI being a key indicator,together with previous broken resistance line now acting as a support.
If the price slope of the stock is negative (bearish) and the RSI slope is positive (bullish) it is an indication (RSI BULLISH DIVERGENCE) of the reversal in the price of the stock.With the previous...
The stock has been trading in the range for past 200+ days and has started to show the signs of strength and these are:
1. A quick bounce from the support taking out the short term resistance of 1070.
2. Volumes have stated to increase showing the bullish sentiment among buyers.
3. The gap between 21-day and 50-day EMA has been reducing.
Why this time the...
