What is a ratio Chart: Ratio charts play a significant role in technical analysis, offering valuable insights to traders and investors. These charts display the relative performance between two assets or indices by comparing their price movements. By dividing the price of one security by another, ratio charts provide a visual representation of their...
Selecting the right time frame for technical analysis is a crucial decision for any technical analyst. In the Indian market, the trading session lasts for 375 minutes, starting from 9:15 AM and ending at 3:30 PM. While many traders commonly use the 30-minute, 1-hour, and 2-hour time frames, these intervals often result in incomplete candles, which can distort the...
Pattern Identification on any Timeframe! Importance of the Factor of Safety in Projected Target To avoid the Losses! How to identify Patterns and Project the Target on the chart! I have selected NVDA weekly chart for Technical Analysis. Here the Head and Shoulder pattern formed on the Top. We can see the previous trend of NVDA was an Uptrend so the...
MCX:GOLD1! In past, we have discussed how to know the quality of a trend and how to know a chart pattern's extrinsic nature according to the market phase. If you haven't read that then I want you to read that before to have a better understanding of this idea. Let's get started!! How to determine the trend or consolidation through the wave cycles and degrees. ...
in this video I mark the valid pullbacks that are really important for marking market structure follow for more educational content
“ if you stick strictly to the rule, and always watch when price is squared by time, or when time and price come together, you will be able to forecast the important changes in trend with greater accuracy”. - Gann I was preparing a presentation in Gann Square of 9 and while looking into the details of Gann Angles, I had a severe headache. Gann's cryptic...
A Bollinger Band is a technical analysis tool defined by a set of trendlines plotted two standard deviations (positively and negatively) away from a simple moving average (SMA) of a security's price, but which can be adjusted to user preferences. Bollinger Bands are a highly popular technique. Many traders believe the closer the prices move to the upper band, the...
Here I am doing study on the monthly chart of Take Solutions on the basis of chart because I saw it stirred up so much in last 10-15 years delivered multiple returns to investors from both the scales Negative and Positive. BEFORE TURNING MILTI BAGGER As you can see on chart stock was listed in the year of 2007 august at the price of 88 and went up to 135 gained...
Conversely, if you change this to a higher setting, 30 periods, for example, then the indicator will be less sensitive to price movements. This will result in smoother wider bands that price will reach and break through less often. This will offer less trading opportunities, but the signals will be more reliable.
If you change this to a lower setting, 10 periods for example, then the indicator will be more sensitive to price movements. This will result in choppy and narrower bands that price will reach and break through more often. This will offer more trading opportunities, but the signals will be less reliable.
You can also use the distance between the bands to indicate how volatile the price of an asset is. If the distance between the bands is large, this indicates high volatility. Conversely, if the distance between the bands is small, this indicates low volatility.
If price reaches the upper band, this means it is relatively high and the asset could be overbought. You could look to sell an overbought asset on the assumption that its price will fall towards moving average. Conversely, if price reaches the lower band, this means it is relatively low and the asset could be oversold. You could look to buy an oversold asset on...
If price reaches the upper band, this means it is relatively high and the asset could be overbought. You could look to sell an overbought asset on the assumption that its price will fall towards moving average. Conversely, if price reaches the lower band, this means it is relatively low and the asset could be oversold. You could look to buy an oversold asset on...
It is important to remember that just because price may reach the outer bands does not always mean it will reverse. Always look for further confirmation from another indicator, or by using candlestick analysis.
Three main lines make up the Bollinger Bands indicator. The first of these, the central band, is a simple moving average. The second and third, the upper and lower bands, represent levels at which price is relatively high or low, compared to this moving average.
The Bollinger Bands Indicator is an oscillating indicator. Traders use it to measure the volatility of a market. The Bollinger Bands can help you to identify points at which the price of an asset is high or low relative to its recent average. This can in turn help you to predict when the price might rise or fall to its average level.
How to use Moving Averages effectively. Every indicator has its own way and formula so it is better to understand your indicator and use accordingly.
When it comes to investing, trading can be a highly lucrative and exciting way to potentially earn profits. However, it's not without its challenges. One of the biggest challenges for traders is avoiding common mistakes that can lead to significant financial losses. In this article, we'll discuss the most common mistakes traders make and provide actionable tips on...