Hi all, today we are going to study about basics and usage of technical analysis. I have prepared this wholesome post so that you guys are able to understand what technical analysis is all about. I have shortened the sentences to readable points, hence, don't mind the grammar.
After studying this post the student should be able to...
Relative strength index is a classic technical indicator .
It is frequently applied to spot a market reversal.
RSI divergence is considered to be a quite reliable signal of a coming trend violation and change .
Though newbie traders think that the application of the divergence is quite complicated, in...
PSU banks have been underperformers, however I can see a turnaround in this sector. A very beautiful VCP pattern is in formation and with a breakout of the horizontal line we may see some good rally in PSU banking stocks.
Now, what to do after knowing this? How to look for stocks in this sector which may give good returns?
My analysis is based on the Monthly chart. The monthly chart is considered ideal for long term investors and gives a directional perspective of the stock price.
The stock is forming a double bottom pattern. Typically, a double bottom is formed after a single rounding bottom pattern is formed and is often an early sign of a potential reversal. According to...
The stock is about to breakout from a big resistance from December 2015. The price tried to cross the resistance several times but was unable to do so. This time the volume has been rising as seen in the chart so there seems to be a very possible chance of a breakout.
Note - This is not a recommendation, it is just for education purposes. Trade at your own risk.
Sharing a mistake I made and how I corrected it.
On Weekly chart, I saw a nice rounding botton pattern and stock close to ATH with a BO candle of 26 July 2021. I also saw volume expansion on that day as well as expansion since the candle of 18 January 2021.
I went long at approx. 270.
Although RSI was above 60, what I failed to see was RSI High was flat. And...
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...
NAVIN FLUORINE - A beautiful triangle pattern breakout.
A symmetrical triangle had formed between the support and resistance trendlines. A minimum of 2 peaks and 2 troughs are needed for a triangle formation.
A bullish breakout occurs when the resistance line is broken upwards by a green candle closing above the line. This is also confirmed by good volumes of...
Fixed Range Volume Profile: helps to construct a significant Supply & Demand zones over a specific period of time. Either it belongs to shorter time frame (15m-4H) or secular time frames (1D-1M)
Note: The whole explanation is in Structured manner. Read carefully and Enjoy.
Type of FR Volume Profiles patterns.
1. P Type
2. D Type
3. b Type
1. P Type...
Chances banknifty will trade in between range of 35000 to 35500 levels. In case breakout of this range will give strong points move in breakout direction.Weakness possible if banknifty trading below 34950 level. Upside rally possible if banknifty trading above 35500 level.
If you are struggling with the identification of accurate trading entries,
you definitely should try confluence zones .
Note: there are hundreds of variations of confluence elements.
In this example, we will discuss trend lines and Fibonacci.
❗️To identify a confluence zone, the price must follow a trend line
GAPS are areas on the chart where no trading activity took place. In an uptrend, for example, When the opening price is higher than the highest price of a previous day, leaving a blank space on the chart, it will be called a GAP-Up opening. Likewise, in a GAP-DOWN situation, the opening price will be lower than the previous day's lowest traded price. Now we will...