Proximal and Distal lines are important components of any Supply and Demand zone. One needs to plot two horizontal lines to mark Supply and Demand Zones. To know How to draw these lines, you need to understand Supply and Demand Zone formations.
Proximity means nearest to the current price, while distal means farthest from the current price.
What is the need...
-> Definition of Reversal patterns :-
Reversal patterns mean the formation of candlesticks which indicate the end of the existing trend (uptrend or downtrend). When such formation appears in a downtrend, it indicates a bullish reversal or end of selling spree and onset of buying spell. Conversely, when a trend reversal pattern forms in an uptrend, it warns...
In the above chart, I have a drawn a closing price resistance line in blue indicating a highest candle close on the chart, now the price action needs to close above that previous resistance to indicate further upside movement in the stock therefore we need to wait for the daily price closing in order to determine and confirm the further movement.
In this chart,...
Unlike conventional Price Action Analysis, which relies on countless chart patterns, Supply Demand Strategy focuses only on four high-probability price formations. Rally Base Drop (RBD) is one of the four price formations which lay the foundation of the Supply Demand Trading Strategy.
Rally Base Drop Pattern
RBD is a reversal price pattern, which one can...
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...
Hi
Its been a while since my last post. In this post I have represented selective candlestick reversal patterns.
In a candlestick, "body" represents the distance between candle OPEN and CLOSING price. Whereas "wicks" represent the entire range of the candle from TOP to the BOTTOM.
In most of these patterns only bodies are important. There are no conditions for...
Pattern name: Bearish Engulfing
Pattern Type : Bearish Reversal
No. of Candles : 02
How to Identify it ?
1)There must be a preceding Uptrend.
2)A short Green candle followed by a long Red candle.
3)The Red candle should opens higher & closes lower than the Green candle.
4)The Green candle should be completely engulfed by the Red candle.
Psychology...
A bullish Yo Sen candlestick is represented by a single candlestick with a full body and short or non-existent wicks, indicating an upward trend and a potential buying opportunity. The following chart illustrates the appearance of a bullish Yo Sen candlestick.
Keeping it documented for future use.
This is pure educational post, and this post is not for analysing further movement.
Many viewers think why I am analysing Nifty on 15 min candlestick, well actually I analyze in multiple TF. If you're a nifty trader, then you need to realize the importance of even 5 min candlestick. One strong 5 min candlestick can be of 50/60 points of nifty. Imagine this one...
Conditions of a Perfect Shooting Star:
. Body is short.
. The height of the candlestick (the difference between high and low price) is tall enough and it's more than the Daily ATR(264). The taller the Candlestick is, the stronger the Shooting Star .
. The upper shadow (also known as upper wick or tail is the distance between the high price and the close or...
Auropharma – 831 to 750 What a crack!
Risky Traders – get ready to lose 4-5 points and gain 50+ points – closing statement in the video idea – “Once bitten twice shy” as of 4th Dec 2018.
If the stock moves in line as you expected giving us an exact entry as well to be precise 825-827 zone when it closed overnight at 821 levels has to be dream come true...
Investing in the stock market can be both exciting and overwhelming. There are so many stocks and strategies are there that make it hard to decide where to invest. That’s where technical analysis comes in. It’s the study of market data to find patterns, trends, and potential opportunities.
To get started with technical analysis, you need to first understand...
Patterns in Candlestick Charts
Candlestick charts are an excellent way of understanding the investor sentiment and the relationship between demand and supply, bears and bulls, greed and fear, etc. Traders must remember that while an individual candle provides sufficient information, patterns can be determined only by comparing one candle with its preceding and...
Hello Traders, in this post I will be talking about our entry signal which we will use in our strategy.
Most of us already know about candlestick pattern but we don’t apply in proper manner. Firstly, we should use candlestick pattern in Support and Resistance or Trendlines that’s where it provides good entry point. Secondly, size of candle is important compared...
Marked on the chart are identified Hanging Man candlestick pattern, we'll wait for confirmed weekly closing below same & step-in for opportunities.
if you have any queries regarding above idea or any other stock feel free to D'M
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I have based my analysis on Stan Weinstein's framework on Weekly chart where price structure, 30 weekly MA, volume and relative strength (not RSI) play a role in analysing the trend.
Personally, I like stocks near ATH because it tells me that prior resistance has been broken. It is important for me to select stocks that have strong relative strength against a...
