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CYIENT

Identifying Set Ups - Price Action + MACD + EMAToggling between numerous stocks can be tiresome. Using a strategic method to identify potential set ups can save your time and deliver amazing results! In the above chart, I first noticed that the price was around its support. It can be confirmed by seeing the previous price swings that the support is well tested. Next I look at the MACD to confirm if the divergence between the Signal Line and MACD line is decreasing to make sure if it is the right time to enter or not. Usually these 2 steps take hardly a few seconds and I can form a preliminary idea about the position. Once these two points are confirmed, I move forward to confirm if the EMA 9,21 (which can been seen has worked out beautifully for this stock in the short time frames like 7-10 days) is actually looking bullish to enter right now. If the EMA is not already crossed, or about to cross, I can drop the share here. In this case, the EMA lines are very close and the chances of a bullish cross are good enough. Next, I confirm my hunch by looking at the Volume data and see if the increase is price will actually be sustained by smart money flow, or fall down by retail trading pressures. Increasing volume with price increase helps to get conviction for a long position. Finally, I check the RSI levels and I monitor them very closely to see if there is any Bullish or Hiden divergence and see how strong they might be. I also like to draw a vertical line at the key level from which RSI always bounces or retracts. Personally I prefer RSI levels between 50 and 60, after a recovery from 30-40. It just implies that the bulls are gaining control again and still leaves out plenty of room for entering a trade and making profits before it hits the overbought region. After I am satisfied with the Technicals, the last thing remains is to check if there are any major news, events or rumours about the share and the recent EPS growth of the share. This doesnt affect a lot in the short run, but doing due diligence never hurts. It is how I identified IEX, HUL and TCS just right before they shot up. Thanks for reading! Keep Learning :)
NSE:CYIENTEducation
by Aayush_Rungta
28
Trade with Conviction - Price Action + MACD + EMAIn the chart above, we can see that the trend resistance and support lines are well established, from where prices have bounced and retreated from on multiple occasions. After a decent recent pullback, we find the Exponential Moving Averages looking up again, almost ready for a Bull Cross. I personally prefer 9,21 Days EMI for trading in a short time frame of 7-10 days. It can be easily seen that on numerous attempts, price has kept these EMA levels. MACD and RSI play an important role to confirm the hunch from the preliminary screening off the Support & Resistance and EMA lines. I try to watch out for where the RSI levels are moving toward and the key levels from where it bounces. Personally I find the 50-60 region safer, after rising from a lower level, as it not just implies that bulls are back in control, but it also leaves decent room for upside movement and gain from the share. MACD helps to now time this entry right. If its clear that the divergence levels are reducing and the lines are closing in for a Bull Cross, I can form a decent opinion if I want to wait for the cross or enter while the divergence is still decreasing. Most of the time, I enter right before it is all set for a Bull cross. It helps me to get an early entry and close my position in a day or two if the MACD cross is rejected, this keeps the losses to a minimum. Finally, Volume surge serves to further strengthen the view that the increase in price is accompanied by smart money flowing in, and now you know that this price increase will have a sustained increase with momentum. EPS and Financial position of the company seem good, and that checks out all the major points for a long position. To summarise, watch out for EMA and Resistance Support levels to screen stocks preiminarily. Out of the selected bunch, review the RSI and MACD levels. Increasing Volume with Price increase always helps. Check the EPS growth at least, and set the targets and stop losses as per your risk appetite. Thanks for reading :)
NSE:CYIENTEducation
by Aayush_Rungta
6