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Why To Draw Before You Trade ?Hello fellow traders and respected members of the trading community, In a fast paced market dominated by automation and algorithms, we often forget the value of simply picking up a tool and drawing on our charts. Let’s revisit why this fundamental habit still holds the power to sharpen our edge and elevate our decision-making. Why We Should Draw and Trade? Turning Charts Into Clarity Introduction-: In an age of auto-generated indicators, black-box algorithms, and AI-driven signals, many traders are drifting away from one of the most fundamental trading tools: manual chart drawing. But what if the very act of drawing is not just an old habit—but a powerful trading edge? This publication explores why actively drawing on charts and trading based on visual context can elevate your market understanding and execution like nothing else. 1. What Does It Mean to “Draw and Trade? Drawing isn’t just technical analysis it’s interactive thinking. When you draw, you're mapping the structure of the market using tools like Trendlines Support & Resistance zones Chart Patterns (Head & Shoulders, Flags, Triangles, etc.) Supply & Demand levels Gaps, Fibonacci levels, and more Once the chart is marked, you’re no longer entering trades blindly you’re entering with context, clarity, and confidence. 2. The Psychology Behind Drawing Manual drawing engages your focus, discipline, and decision-making. You don’t just predict, you process and It forces you to slow down helping reduce impulsive trades. Drawing anchors your emotions and keeps you mindful. The act of drawing becomes a psychological filter—helping you trade from structure, not stress. 3. Why It Beats Indicator Only Trading? Indicators are reactive. Drawing is proactive. Here’s the difference: Indicators show what already happened Drawing lets you prepare for what could happen You learn to-: Anticipate breakouts, fakeouts, and reversals, Understand market structure and Develop your own strategy not depend on someone else's signal. In short you become the strategist, not just a follower. 4. The “Chart Time” Advantage Just like pilots need flight hours, traders need chart hours. Drawing charts manually gives you those hours. You start to see patterns that repeat and notice behavior shifts before they show on indicators. Build a visual memory of how the market moves and It’s this visual experience that separates analysts from traders. 5. Real-World Edge: Case Studies Wyckoff Distribution: Mapping the structure—BC, AR, ST, UT, LPSY—helps anticipate smart money exits. Gap Zones: Marking an old breakaway gap can help predict future rejection or support Demand Zones + Fib Confluence: Drawing reveals high-probability reversal zones most indicators miss Each drawing becomes a trade-ready story with logic and risk control. 6. From Drawing to Discipline Drawing is not just prep it’s planning. You trade with a clear plan and pre-identified entry/exit zones this reduced emotional interference and It becomes your personal visual rulebook. No noise no randomness just structure driven action. 7. Final Thoughts: The Trader’s Mind vs. The Machine Yes, AI and indicators are useful. But your most powerful edge? Your mind. Your eyes. Your experience sharpened through drawing. If you want to evolve from a reactive trader to a consistent performer, here’s the golden rule: Stop watching. Start drawing. Trade what you see, not what you hope. I hope you will like this post, Thanks for giving your valuable time for reading. Regards- Amit.
NSE:NIFTYEducation
by AMIT-RAJAN
18
The Nuances of Trading : How to draw lines on chart (Examples)Let's Learn the Trading Together... I have started a new series of trading called #LNT (Learn the Nuances of Trading) where you are going to learn All the things which is going to help you to be a good trader.. (#TNT program) Learning in Video : In This Video I have teach you how to draw Lines (Examples) .. It is going to very helpful if you participate the challenges so that we can build a very good trading community.. It is my attempt to teach you the trading.. Hope you will like. Disclaimer : It is my personal view as a trader and for educational purpose only. Equity market involves risk. Please consult your financial adviser before taking any decision.
NSE:TCSEducation
by SthitaprajnaYogi
5
Learn the Nuances of Trading : How to draw lines on chart Let's Learn the Trading Together... I have started a new series of trading called #LNT (Learn the Nuances of Trading) where you are going to learn All the things which is going to help you to be a good trader.. Learning in Video : In This Video I have teach you how to draw Lines in different way .. It is going to very helpful if you participate the challenges so that we can build a very good trading community.. It is my attempt to teach you the trading.. Hope you will like. Disclaimer : It is my personal view as a trader and for educational purpose only. Equity market involves risk . Please consult your financial adviser before taking any decision.
NSE:CNX500Education
by SthitaprajnaYogi
Not all lines are Trends: Post about proper Trendlines Introduction-: Trendlines are often the first tool traders learn and ironically, one of the most misused. Drawing a line between two swing points may look convincing, but that doesn’t make it meaningful. A right trendline is not just about connecting dots it’s about capturing the heartbeat of the market. In this post we will learn how to draw high quality trendlines that align with price structure, reflect momentum, and provide reliable trade signals. Whether we are scalper, swing trader, or positional analyst, mastering this skill will bring more clarity and confidence to your chart reading. 1-:What Is a Trendline Really ? A trendline isn't just a visual reference it’s a dynamic tool that reflects the direction and strength of a trend. Think of it as the price path of least resistance. a) Identify areas of value for entry b) Highlight potential reversal or breakout zones c) Keep your analysis structured and disciplined 2-: Anatomy of a Right Trendline a) Three Touches Minimum A trendline with just two points is a projection. Once it gets a third touch or more, it becomes validated a level that other traders are likely watching too. b) Wicks or Bodies Choose One, Use wicks when volatility is high or you're analyzing intraday charts and use bodies for cleaner structure in swing setups Mixing both can distort your view so choose one and stick to it per chart. c) Don’t Cut Through Candles, a forced line that slices through multiple candles is a biased line. Let the trendline hug swing points naturally without imposing your view on the market. d) Respect the Slope, steep trendlines often mark emotional moves that don’t last. Shallow trendlines suggest controlled trends better for swing trades. Avoid extremes a flat or vertical line is usually unreliable. 3-: Timeframe Relevance Always start with higher timeframes Daily or 4H to draw the main trendline. These longer-term lines attract more volume and institutional attention. Then shift to lower timeframes to refine your entries, keeping the higher-level structure in view. 4. Use Trendlines with Context for Better Accuracy, Trendlines become far more powerful when aligned with other tools, Some examples below. Horizontal support and resistance can confirm trendline levels Volume spikes can validate breakout or pullback setups Divergence in RSI or MACD can signal weakening trend strength Chart patterns like flags, triangles, or head-and-shoulders often form around key trendlines The more layers of confirmation, the better your odds. 5-: Using Trendlines for Trading Decisions a) Pullback Entry Wait for price to touch the trendline and show a strong reaction (engulfing, pin bar, etc.). These setups offer high R:R with clear invalidation. b) Break and Retest A clean break below or above the trendline, followed by a retest, often marks trend continuation or reversal. Wait for confirmation before entering. c) Logical Stop Placement Place your stop-loss just outside the trendline’s opposite side. This approach is more rational than random pip buffers or fixed risk. 6-: Trendlines That Trap Traders Not all breakouts are real. Sometimes price will breach a trendline just enough to trigger stops and then snap back so how to avoid the trap. Don’t trust every breakout Confirm with volume or candle structure Watch for failure-to-follow-through patterns Patience often reveals whether a move is genuine or manipulation. Conclusion The right trendline is not just a drawing it’s a tool that reflects the psychology of the market. It helps you trade what the market is showing, not what you hope to see. Don’t draw lines to fit your bias. Let price action speak, and draw lines that the market itself respects. Thanks for reading. If this added value, a like would be encouraging. Regards- Amit.
NSE:NIFTYEducation
by AMIT-RAJAN
13
The Market Speaks in the First Hour Learn to ListenDear TradingView Community and Fellow Traders, Wishing you all a focused and fulfilling trading journey. Each day in the market brings its own rhythm, and recognizing that early can make all the difference. In this piece, I’m sharing a concept that continues to shape my intraday approach, the First Hour Range. It’s a simple yet powerful framework that can offer clarity right from the start of the session. Let’s explore how the first 60 minutes can set the tone for the entire trading day. Body-: The first hour of the trading session is one of the most dynamic and information-rich periods of the day. It lays the groundwork for what often becomes the day’s dominant trend, volatility structure, and psychological narrative. Whether you're a scalper, momentum trader, or swing trader analyzing intraday flow, the first hour can act as your primary map. Understanding the First Hour Range-: The First Hour Range is defined by the highest and lowest prices achieved during the first 60 minutes after market open. These two levels create a clear boundary that reflects the initial battle between buyers and sellers, often influenced by overnight global cues, news events, gap openings, and institutional order flow. This range can be seen as a "price cage" a zone that either contains the price action for the rest of the session or is decisively broken to signal continuation or reversal. Why Is This Range So Important? High Volume and Volatility-: The opening hour is typically where the highest intraday volume occurs. This influx of participation leads to price discovery, as market participants react to overnight developments, pre-market news, and opening gaps. Reference for Support and Resistance-: The high of the first hour acts as early resistance. The low acts as intraday support. If price breaks above or below this range later in the session, it’s often accompanied by strong follow-through, especially when confirmed with volume. Bias Detection-: Traders can assess whether the session is likely to be trending or range-bound by observing how price behaves around the first hour range. A clean breakout and sustained move away indicates trend conviction. Repeated rejection from the edges hints at indecision or mean-reversion behavior. Breakout Triggers-: Many intraday breakout strategies use the first hour range as a trigger zone. Long entries may be placed just above the high of the range, while short entries might be taken below the low. Traders often use volume spikes or candle confirmation (e.g., engulfing or Marubozu) for added conviction. Fakeouts and Traps: On some days, price may breach the range high or low and then reverse back within it. This is known as a failed breakout or fakeout, often trapping aggressive breakout traders. For experienced traders, these traps can be lucrative countertrend setups with tight stop-loss placements. Types of Market Days Based on First Hour Behavior Trend Day-: Price breaks out of the range early and continues in the direction of the breakout with minimal pullbacks. Look for rising volume and shallow retracements. Range-Bound Day-: Price stays within the range for most of the session, often forming a sideways consolidation. These are ideal for mean-reversion traders using oscillators or reversal patterns near the extremes. Reversal Day-: The initial breakout fails, and price reverses strongly in the opposite direction. Look for volume divergence or key reversal candlesticks like pin bars or bearish/bullish engulfing patterns. Tips for Using the First Hour Range Effectively Always mark the first hour high and low on your intraday chart, regardless of your trading style. It serves as a reference throughout the day. Align higher timeframe bias (e.g., daily or 4-hour chart) with the breakout direction to improve probability. Watch how price reacts at the range extremes. Wick rejections, reversal candles, or hesitation often precede strong counter moves. In choppy markets, wait for a retest of the breakout level before entry this improves confirmation and reduces false signals. Psychological Importance The first hour is not just about price it’s about trader psychology. Emotional decisions, early fear or greed, profit-taking from overnight positions, and smart money manipulation all unfold during this time. Reading this layer helps you better anticipate the day’s rhythm. Conclusion-: The First Hour Range is a deceptively simple yet incredibly effective framework to assess market structure, trade opportunities, and risk zones. It’s a tool that adapts well to all kinds of markets equity indices, forex, commodities, or crypto. Make it part of your daily routine. Observe how price respects or disrespects it. Use it to align your trades with market momentum or fade the crowd when the context favors reversals. More often than not, the market whispers its intention in the first 60 minutes. The traders who are listening closely tend to ride ahead of the curve. Best Regards- Amit
NSE:BANKNIFTYEducation
by AMIT-RAJAN
4
VWAP+Trendline+Option OI – Deadly Intraday Setup You Must Learn!Hello Traders! Want a setup that combines price action + smart money data + intraday structure ? This is one of my go-to setups for intraday trading that aligns logic with real market strength. If you’re struggling with random entries or early stop-loss hits, this VWAP + Trendline + OI Setup could change the game for you. Why This Combo Works? VWAP: Shows intraday average price where volume is traded — a key level institutions watch. Trendline: Identifies dynamic support/resistance and the structure of the market move. Option Chain OI: Reveals where the big players are writing or exiting positions in real-time. How to Use This Setup Effectively Mark Trendline on 5–15 min Chart: Plot rising/falling trendline based on swing highs/lows. VWAP Re-Test or Bounce: Look for price to respect VWAP and trendline together. Avoid entries far from VWAP. Check Option Chain for OI Confirmation: At breakout/bounce level, check if PE (for upmove) or CE (for downmove) is getting unwound, and opposite side is building. Entry & Exit: Enter on candle confirmation (engulfing, breakout candle). SL = below trendline or VWAP. Target = next resistance/support or 1:2 RR. When It Works Best Between 9:30 AM – 11:30 AM and Post 1:30 PM: Volatility is clear, and smart money flows are easier to read. Low News Days: Best when no big data releases are expected. During Expiry Days (with caution): OI shift gives clearer confirmation on trending or trapping moves. Rahul’s Tip Let VWAP guide you, trendline frame you, and OI validate you. When all 3 align, it’s no longer a guess — it’s precision. Conclusion This deadly combo of VWAP, Trendline, and Option OI shift gives you structure, strength, and confirmation — everything a smart intraday trader needs. Backtest this setup, follow your rules, and stop trading blindly. Have you tried combining VWAP and OI in your trading? Share your tweaks in the comments below!
NSE:NIFTYEducation
by TraderRahulPal
5
Only 1 Setup You Need to Be Profitable!Hello Traders! Are you tired of jumping from one strategy to another, hoping to find the perfect setup? The truth is – you don’t need 10 setups to succeed. In fact, mastering just ONE high-probability setup can make you consistently profitable. Simplicity brings focus, and focus builds consistency. Let’s explore how one solid trading setup can change your entire trading game. Why One Setup is Enough to Win Consistency Over Confusion: Mastering one setup removes the guesswork. You know exactly what to look for and how to execute. Clarity in Execution: With one setup, entries, stop-loss, and targets become second nature – making your decision-making fast and confident. Reduces Overtrading: You avoid taking random trades and focus only when your setup appears – increasing your win rate. Data-Backed Confidence: Repeating one setup allows you to track its performance, build statistics, and trust your process. Example: Trendline Breakout Setup (Just One Example) Entry: Wait for price to break above a well-tested trendline with strong volume confirmation. Stop-Loss: Place SL below the last swing low or candle that broke the trendline. Target: Use measured moves or next key resistance as your target. You can pick any setup – Breakout + Retest, Pullback to Moving Average, Support/Resistance Flip, etc. The point is: pick one setup and master it like a pro. Conclusion You don’t need hundreds of indicators or complex systems. One setup + proper risk management = profitability. The market rewards consistency, not complexity. What’s your favorite setup that works for you? Comment below and let’s help each other grow!
NSE:NIFTYEducation
by TraderRahulPal
4
From Novice to Pro: Navigating Support & Resistance Like a BossGreetings to all. I trust that you are all thriving in both your personal lives and trading endeavors. Today, I present educational content aimed at understanding the concepts of support and resistance in chart analysis. Support and resistance are key concepts in technical analysis used to identify potential price levels where an asset's price might reverse, stall, or consolidate. They are often visualized on a price chart and are critical for traders making decisions about entry, exit, and stop-loss levels. 1. Support: Definition: Support is a price level at which a downward trend may pause or reverse due to a concentration of buying interest. Why it works: Traders perceive this level as a "bargain," increasing demand and preventing further price drops. Visualization: On a chart, support levels often appear as a horizontal line or a sloping line below the current price where previous price action reversed or consolidated. Breakthroughs: If the price breaks below a support level, it may indicate a continuation of the downtrend. 2. Resistance: Definition: Resistance is a price level where an upward trend might pause or reverse due to selling pressure or profit-taking. Why it works: Traders perceive this level as "expensive," reducing demand and increasing selling activity. Visualization: On a chart, resistance levels are horizontal or sloping lines above the current price where the price struggled to move higher in the past. Breakthroughs: If the price breaks above a resistance level, it may indicate the start of a new upward trend. Common Characteristics of Support and Resistance: Role Reversal: Once a support level is broken, it often becomes a new resistance level, and vice versa. Psychological Levels: Round numbers (e.g., $50, $100) often act as strong support or resistance due to psychological significance. Volume Confirmation : High trading volume near these levels reinforces their strength. Types of Support and Resistance: Horizontal Lines: Based on past price action. Trendlines : Diagonal lines formed by connecting higher lows (support) or lower highs (resistance) in a trend. Moving Averages: Dynamic levels that adjust with price movement, often acting as support or resistance. Fibonacci Retracement: Levels based on mathematical ratios indicating potential reversal zones. How to Use Support and Resistance: Entry Points: Buy near support levels or after a breakout above resistance. Exit Points: Sell near resistance levels or after a breakdown below support. Risk Management: Place stop-loss orders just below support (for long positions) or above resistance (for short positions). Today, I decided to share some educational content, as my previous posts have primarily focused on trade ideas. I hope that you all would find this educational material valuable and engaging. If you appreciate this type of content, I encourage you to show your support by liking this post and following me for more educational insights in the future.
NSE:ASKAUTOLTDEducation
by TraderRahulPal
2
HOW LIQUIDITY WORKS!In trading, liquidity refers to how quickly and easily an asset can be bought or sold in the market without significantly affecting its price. It reflects the availability of buyers and sellers and the volume of trading activity for a particular asset. Key Aspects of Liquidity: 1. High Liquidity: The asset can be traded easily with minimal price changes. Common in popular markets like major stocks (e.g., Apple, Tesla), forex pairs (e.g., EUR/USD), and widely traded cryptocurrencies (e.g., Bitcoin). 2. Low Liquidity: It’s harder to find buyers or sellers, leading to potential delays or price changes during transactions. Common in niche markets, lesser-known stocks, or illiquid crypto tokens Importance in Trading: Efficient Price Discovery: High liquidity ensures prices reflect market demand and supply. Lower Risk: Traders face less risk of slippage (unintended price changes during execution) in liquid markets. Flexibility: Allows traders to enter or exit positions quickly, especially important for day traders and scalpers. In summary, liquidity is crucial for smooth and cost-effective trading. #Stockmarketeducation
NSE:HCLTECHEducation
by Sateesh07
How moving average works on chartsHello mates sharing a view How Moving Averages Work A moving average works by calculating the average price of a security over a specific period of time, and then updating that average as new price data becomes available. The purpose is to help eliminate noise (short-term price fluctuations) to provide a clearer view of the underlying trend. Types of Moving Averages Simple Moving Average (SMA) Definition: The most basic type of moving average. It is calculated by taking the arithmetic mean of a security’s price over a specified number of periods. Formula: SMA=Sum of closing prices over a periodNumber of periods SMA=Number of periodsSum of closing prices over a period​ Example: A 10-period SMA adds up the last 10 closing prices and divides by 10. As each new closing price comes in, the oldest price is dropped, and the new price is added. Use: The SMA smooths out price data and provides a basic view of the average price over the chosen period. Exponential Moving Average (EMA) Definition: A more sophisticated type of moving average that gives more weight to recent prices, making it more responsive to price changes compared to the SMA. Formula: The calculation is more complex than the SMA but it’s designed to give more emphasis on the latest price data. Use: The EMA is often preferred in volatile markets because it reacts more quickly to price movements, providing more timely signals. Weighted Moving Average (WMA) Definition: Similar to the EMA but with a simpler calculation. It assigns a specific weight to each data point, with more weight placed on the more recent prices. Use: Like the EMA, the WMA is more sensitive to recent price changes compared to the SMA. Common Periods for Moving Averages Short-Term (Fast) MAs: 9, 10, 20 periods (e.g., 10-day or 20-day SMA or EMA) Medium-Term MAs: 50 periods (e.g., 50-day SMA or EMA) Long-Term (Slow) MAs: 100, 200 periods (e.g., 200-day SMA or EMA) Key Uses of Moving Averages Trend Identification Uptrend: When the price is above the moving average, it signals an uptrend. Downtrend: When the price is below the moving average, it signals a downtrend. Sideways (Neutral) Trend: When the price moves sideways and stays close to the moving average, this indicates no clear trend. Support and Resistance Levels Moving averages can act as dynamic support and resistance levels. In an uptrend, the price might repeatedly bounce off a moving average, using it as support. In a downtrend, the moving average might act as resistance. For example, in a strong uptrend, the 50-day or 200-day moving average might act as a support level, where price tends to pull back to and then bounce up again. Crossovers (Golden and Death Crosses) Golden Cross: A bullish signal occurs when a short-term moving average (like the 50-day SMA) crosses above a long-term moving average (like the 200-day SMA). This is seen as a confirmation of an uptrend. Death Cross: A bearish signal occurs when a short-term moving average crosses below a long-term moving average. This is seen as a confirmation of a downtrend. Momentum and Buy/Sell Signals When the price crosses above a moving average: This is often considered a bullish signal, suggesting that an upward trend could be starting. When the price crosses below a moving average: This is typically a bearish signal, suggesting a potential downward trend. Smoothing Volatility By averaging out price data over a set period, moving averages help reduce the "noise" of daily price fluctuations and provide a clearer view of the overall trend. How to Use Moving Averages in Charts Plotting Moving Averages: On most charting platforms, you can easily overlay a moving average by selecting the tool from the indicators list and choosing the period (e.g., 50-day or 200-day). Adjust the Time Period: You can experiment with different time periods to adjust the sensitivity of the moving average. Shorter periods (e.g., 10-day) react faster to price changes, while longer periods (e.g., 200-day) provide a smoother, slower-moving trend line. Example of Using Moving Averages Trend Confirmation: If the price is consistently above the 50-day moving average, the market is likely in an uptrend, and you might look for buy opportunities. If the price is consistently below the 50-day moving average, the market is in a downtrend, and you might look for sell opportunities. Golden Cross (Bullish Signal): Suppose the 50-day SMA crosses above the 200-day SMA — this is the "Golden Cross," a classic signal that suggests the start of a strong uptrend. Traders may start looking for long (buy) positions. Death Cross (Bearish Signal): Conversely, if the 50-day SMA crosses below the 200-day SMA, it forms a "Death Cross," signaling a potential downtrend, and traders may look for short (sell) opportunities. Using Moving Averages as Support/Resistance: In an uptrend, the price might pull back toward the 50-day moving average and then bounce back up. This makes the 50-day MA act as a dynamic support level. In a downtrend, the price might approach the 50-day MA and then reverse downward. This makes the 50-day MA act as a resistance level.
NSE:NIFTYEducation
by UnknownUnicorn36986101
How to draw support and resistance level on chart1. Identify the Trend Support: This is the price level where a downtrend can pause or reverse. It occurs when buyers are expected to step in and push the price upward. Resistance: This is the price level where an uptrend can pause or reverse. It occurs when sellers are expected to step in and push the price downward. Key tip: The more times the price touches a particular level and reverses, the stronger the support or resistance. 2. Locate Significant Highs and Lows Support: Look for the lowest points where the price has previously bounced. These are the bottoms where price failed to drop further. Resistance: Look for the highest points where the price has previously been unable to break through. These are the tops where price failed to rise further. Key tip: You want to find significant turning points — areas where price made a sharp reversal. 3. Use Horizontal Lines to Mark Levels Support: Draw a horizontal line along the most recent low or lows where price reversed or consolidated. This will mark the support zone. Resistance: Draw a horizontal line along the most recent high or highs where price reversed or faced rejection. This will mark the resistance zone. Key tip: You can use multiple points to validate a support or resistance level. If a price has touched and reversed at the same level multiple times, it becomes more reliable. 4. Adjust for Areas (Zones, Not Just Exact Price Points) Often, support and resistance are not exact price points but zones where price action tends to cluster. For example, if a stock often bounces between $100 and $105, you might draw a support level around $100-105 rather than at one specific price. Key tip: Consider the range of price movement around these levels. Drawing the lines as zones can provide more flexibility for trading. 5. Look for Volume Confirmation High trading volume near a support or resistance level adds strength to the level. A breakout or breakdown accompanied by high volume suggests that the level is more significant. Key tip: Pay attention to volume spikes when the price approaches key support or resistance levels. This may indicate that a breakout or breakdown is imminent. 6. Dynamic Support and Resistance These levels are not always static. Trends can create dynamic support (in uptrends) or dynamic resistance (in downtrends), where support or resistance is aligned with trendlines or moving averages. Key tip: In trending markets, you can use tools like trendlines or moving averages (like the 50-day or 200-day moving average) to spot dynamic support and resistance. 7. Check for Price Patterns Price patterns such as triangles, channels, or head-and-shoulders can also help you identify key support and resistance zones.
NSE:BANKNIFTYEducation
by UnknownUnicorn36986101
What is Price Action ? Beginners Guide in Easy Steps Part -2In our previous discussion, we delved into the fundamental techniques of reading a price chart with key price action strategies. This time, we're set to expand our understanding even further. By the end of this article, you'll have a fresh perspective on analyzing charts and interpreting price movements, empowering you with deeper insights and more confident trading decisions. 1. Identify the direction of trend with the help of price action candlesticks a.)Strong Uptrend: Green candlesticks moving upwards continuously. Indicates strong buying pressure with no selling pressure. b.)Uptrend with Deep Retracement: Green candlesticks with some pullbacks. Sellers present, causing temporary price dips. c.)Indecisive Market: Alternating red and green candlesticks. No clear market direction, prices moving up and down without strong conviction. d.)Tight Range Before Breakout: Small red and green candlesticks within a tight range. Usually occurs before a significant breakout. e.)Weak Uptrend with Choppy Price Action: Alternating red and green candlesticks, choppy pattern. Indicates weak buying pressure and strong selling presence. f.)Healthy Uptrend: Green candlesticks with few red ones. Strong buying pressure with minimal selling, indicating a solid upward trend. 2. Importance of Wicks and the closing of candle Wick and a Doji Candle: Indicates early signs of buyers attempting to stop the price decline, If you observe closely there is a wick in previous candle also, on the break of high of the candle price hit trendline resistance and fallen again. Second Wick at the Same Zone: Sellers tried to push the price down again, but buyers stopped it, forming a bullish pin bar. First wick formed a demand zone but the second wick confirmed of buyers activity. After Some Fight, Buyers Win: Buyers managed to push the price up From the range, kicking out the sellers. More Lower Wicks: Indicates both buyers and sellers are active, but buyers are gradually winning, which is bullish. Lower Wick Shows Demand: After a downturn, the lower wick signals demand coming in. Inside Bar with Bigger Upper Wick: Shows bearish bias. The break of the low led to the continuation of the fall. NOTE: Wicks are an early indication of demand or supply presence, but the location of formation will be more important.It would help if you determined whether it's in an uptrend, downtrend, or range. 3. Multiple Candle Rejection A)Exhaustion Gap: At one point, the chart shows a gap up, where the opening price equaled the high of the day. This indicates an exhaustion gap, suggesting potential for a larger correction. Despite this, only a single bar correction occurred initially, showing resilience. B)Brutal Correction: A sharp, one-bar correction is seen, followed by buyers trying to push the prices back up within the same candle. This indicates a strong fight between buyers and sellers. C)Inside Bars and Tight Range: The presence of multiple inside bars with tight ranges and prominent lower wicks signals consolidation and market indecision. This is a period where neither buyers nor sellers dominate, often preceding a significant move. D)Break and Continuation: Eventually, the price breaks and closes above the range of the inside bars. This breakout triggers a continuation of the uptrend, evidenced by the subsequent series of green candles and higher prices. #Understanding Candlestick Wicks: Wicks/Tails: These are crucial as they indicate early signs of demand or supply. In this chart, the lower wicks suggest that buyers are stepping in at lower prices, even during pullbacks, showing underlying strength. 4.Importance of Close Of Candle If you wait for close of the Candle beyond support or resistance zone then it can help you take high-probability entries only and avoid fake breakouts. Fake breakout means when the price breaks the support or resistance area but it failed to sustain beyond that area and quickly comes inside the range. That's all for today's idea I hope you have gained good insights into how to read market direction with the help of candlesticks structure If you read market direction in consideration with the factors explained in Part 1 then the outcomes will be Great. If this idea helped you learn something new hit the boost button and share with your friends, Stay tuned new ideas in this series coming soon. Keep Learning, Happy Trading. NSE:NIFTY
NSE:NIFTYEducation
by SANJAYPATIDAR_
2
Bitcoin Crash Incoming? | Elliott Wave Theory Market ForecastGreetings, fellow traders, In this post, I employ "Elliott Wave Theory" to analyze and predict Bitcoin's price movements. The decision to utilize this theory stems from its robust framework for interpreting market cycles, which is essential for precise forecasting in the volatile cryptocurrency market. 1️⃣ The value of an asset directly reflects the sentiment of investors participating in the market. 2️⃣ When investors are optimistic, increased demand naturally drives prices up, while fear among investors leads to price declines. 3️⃣ Prices are a direct representation of investor sentiment, and the "Elliott Wave Theory" is a framework that patterns these price movements. ✅ Conclusion By applying the "Elliott Wave Theory," it is possible to anticipate Bitcoin's next move. Therefore, let's now dive deep into the "Elliott Wave Theory" to both predict Bitcoin's next movements and gain a thorough understanding of this theory. — ✔️BTCUSDT.P / BINANCE / 8H This chart review covers the period from January 24, 2024, to March 14, 2024. During this timeframe, a rare "Double Extended Impulse Wave" pattern appeared, characterized by an extended 5th wave. The supporting evidence for this pattern is as follows: 1️⃣ A breakout from the 1-3 trendline. 2️⃣ The 3rd wave extended beyond 1.618 times the length of the 1st wave. 3️⃣ The 5th wave extended beyond 1.618 times the length of the 3rd wave. 4️⃣ The 4th wave took longer to develop compared to the 2nd wave. I will explore these points in greater detail with the accompanying chart analysis below. — ✔️BTCUSDT.P / BINANCE / 8H This chart includes the evidence discussed earlier, specifically the first point mentioned. (Reference: 1️⃣) In wave analysis, trendlines play a crucial role. A break in the trendline often signifies the end of a wave or highlights the unique characteristics of that wave. In this post, we'll focus on the waves marked on the chart, so please pay close attention to the attached chart. The extension of the 5th wave is significantly influenced by the trendline connecting the peaks of the 1st and 3rd waves. This trendline is especially important in the context of a "Double Extended Impulse Wave." A "Double Extended Impulse Wave" indicates a strong buying momentum in a bull market or a strong selling momentum in a bear market. Therefore, it is expected that the upper trendline (the 1-3 trendline) would be breached as the wave progresses. (leading to a sharp rise in a bull market or a steep fall in a bear market). Please refer to the chart provided above. There are five instances of "Over shooting" , indicating a strong bullish market. This example shows how a single trendline can help identify the market's strength, weakness, and the type of wave pattern in play. Now, let's move on to the next chart. — ✔️BTCUSDT.P / BINANCE / 8H This chart includes the evidence discussed earlier, specifically the second and third points mentioned. (Reference: 2️⃣3️⃣) Additionally, this chart illustrates the internal Fibonacci ratios of the extended impulse wave. The characteristics of the internal Fibonacci ratios for an extended 5th wave in an impulse wave are as follows: (Satisfied: ✔️ / Not Satisfied: ✖️) ✔️ The 3rd wave rises between 100% and 261.8% of the length of the 1st wave. ✔️ The 5th wave rises 161.8% of the (0-3) length, measured from the end of the 4th wave. (It should be shorter than 261.8%.) ✔️ The 5th wave is longer than the shorter of 100% of the (0-3) length and 161.8% of the 3rd wave. Since this wave satisfies all the above conditions, it is highly likely to be a Double Extended Impulse Wave with an extended 5th wave. — ✔️BTCUSDT.P / BINANCE / 8H This chart represents the external Fibonacci ratios of the extended impulse wave. (For an impulse wave with an extended 5th wave, the external ratios are considered more reliable than the internal ratios.) The characteristics of the external Fibonacci ratios for an extended 5th wave in an impulse wave are as follows: (Satisfied: ✔️ / Not Satisfied: ✖️) ✔️ The length of the 5th wave, measured from the end of the 3rd wave, forms at 100%, 161.8%, or 261.8% of the (0-3) length. Since this wave satisfies all the conditions, it is highly likely to be a "Double Extended Impulse Wave" with an extended 5th wave. (The author also considers the external ratios to be highly reliable.) — ✔️BTCUSDT.P / BINANCE / 8H This chart includes the fourth piece of evidence mentioned earlier (Reference: 4️⃣). One of the most essential concepts in "Elliott Wave Theory" is "The Rule of Alternation." This principle is foundational to understanding market movements and is critical to the rules governing wave progression. Without it, Elliott Wave Theory would lose much of its practical value. "The Rule of Alternation" is most clearly demonstrated in the period of corrective waves. In the chart provided above, you’ll notice a comparison between the length of the 2nd wave and the 4th wave. Typically, before an extended wave appears, the market tends to undergo a longer or deeper correction. In this case, the 4th wave is noticeably longer than the 2nd wave, which satisfies this condition. This observation significantly increases the reliability of the wave pattern. — ✔️BTCUSDT.P / BINANCE / 1D Now, let's discuss the potential future direction. If the low point of the 5th wave within the extended impulse wave breaks, it is likely that this impulse wave marks the final wave of a larger wave pattern. In simpler terms, the 5-wave extended impulse wave we've discussed so far may represent the last wave of the current upward trend. To put it even more clearly, if the price falls below the $50,922.5 level, there is a high probability that the market has transitioned into a downtrend. Please refer to the following chart for further details. — ✔️BTCUSDT.P / BINANCE / 1D Based on the assumption that the market has transitioned into a downtrend, I’ve constructed the following scenario. It appears that a Corrective Wave (Flat) has already occurred, and the market is currently experiencing a correction in response to this wave (indicated by the red dotted line). According to this scenario, even if the price experiences an upward movement, it is likely to be a technical rebound within the broader context of a continuing downtrend. — Conclusion Today, we applied the Elliott Wave Theory to the actual Bitcoin chart to analyze the market. I made every effort to maintain an objective perspective. I am aware that many traders and investors are anticipating a continued upward trend. However, my intent in presenting a bearish scenario was not to gain attention, but rather to analyze the market as objectively as possible. It’s important to approach the market rationally, rather than simply calling for a rise without substantial evidence. I encourage you all to remain wise traders and investors who do not succumb to 'FOMO' (Fear of Missing Out) and always maintain an objective view of the market. Thank you for taking the time to read this post. If you found this analysis helpful, I would greatly appreciate it if you could give it a "boost." Should there be significant interest in this post, I'll consider creating follow-up analyses.
Education
by Killer_Whales
2
Mastering Trade Setup with simplicity of dow theorySimplifying Trade Strategies with Dow Theory Wisdom Welcome to the world of trading, where the Dow Theory can be your trusty guide. Let's break down an easy trade strategy that suits different market situations. Dow Theory Insights Dow Theory, a key tool in technical analysis, says understanding trends is crucial. Figuring out the trend is where we start, setting the stage for smart trade decisions. Bullish View If we're feeling positive Higher Lows: Check if prices keep going up. Near Support: Make sure prices are close to a support zone. Reversal Signs: Look for any candle patterns signaling a turnaround. Buying Setup: Stoploss: Think of it like a safety net, set it at the recent lowest point. Execute a buy trade when these factors line up, always keeping an eye on that stoploss. Bearish View If we're feeling negative Lower Highs: Check if prices keep going down. Near Resistance: Make sure prices are close to a resistance zone. Reversal Hints: Look for any candle patterns signaling a potential shift. Selling Setup: Stoploss: Your safety measure, set it at the recent highest point. Execute a sell trade when these conditions come together, always mindful of that stoploss. Sideways View For a market that's just hanging out Draw Lines: Sketch lines above and below the current prices (Support and Resistence Trendlines) Be Patient: Hang tight until prices break above or below those lines. Only jump into a trade when the market decides where it's going. In the lively world of trading, Dow Theory keeps us wise. By using these strategies, along with clever stoploss placements, you can navigate the markets with ease This post is for educational purposes only. Trading involves risk, and past performance is not indicative of future results. Always do your research and consider consulting a financial advisor before making any investment decisions. I am not sebi registered analyst. My studies are for educational purpose only. Please Consult your financial advisor before trading or investing. I am not responsible for any kinds of your profits and your losses. Most investors treat trading as a hobby because they have a full-time job doing something else. However, If you treat trading like a business, it will pay you like a business. If you treat like a hobby, hobbies don't pay, they cost you...! Hope this post is helpful to community Thanks RK💕 Disclaimer and Risk Warning. The analysis and discussion provided on in.tradingview.com is intended for educational purposes only and should not be relied upon for trading decisions. RK_Charts is not an investment adviser and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Charts does not share in your profits and will not take responsibility for any losses you may incur. So Please Consult your financial advisor before trading or investing.
NSE:NIFTYEducation
by RK_Chaarts
25
What is Price Action ? Beginners Guide in Easy Steps NSE:NIFTY What is Price Action Really? When I started learning I was using a lot of indicators and crap but then I heard about Price action, its meaning is pretty vague and confusing after a lot of effort I get to know that the simplest things work best. Let's see a structured way to approach Price Action analysis. 1. Chart Reading Bar by Bar. Studying the Previous candle reflects a lot of important information on the market movement and future direction. 2. Reading the Context and the whole Structure. *The circles marked on the chart show the best location where certain candlestick formation offers good trading opportunities. *The reading chart in the overall structure helps to eliminate taking trades in the direction of exhausted trends. 3. Identifying Momentum Increase or decrease. 4. Adding Volume Confirmations. Volume is the better half of price and without volume analysis can be incomplete. These are some of the factors that start the price action analysis. By practice, one can look into the deeper significance of these factors and use them easily. I hope this has added some new value to your knowledge, if you like these educational ideas, Share your views and like. Will Upload the Next Part with more factors. Keep Learning, Happy Trading.
NSE:NIFTYEducation
by SANJAYPATIDAR_
18
Concept Of Support and Resistance & Roles ExchangeDefination Of Support and Resistance levels-: The support and resistance (S&R) are specific price points on a chart expected to attract the maximum amount of either buying or selling. The support price is a price at which one can expect more buyers than sellers. Likewise, the resistance price is a price at which one can expect more sellers than buyers. Particular defination-: Resistance As the name suggests, resistance is something which stops the price from rising further. The resistance level is a price point on the chart where traders expect maximum supply (in terms of selling) for the stock/index. The resistance level is always above the current market price. The likelihood of the price rising to the resistance level, consolidating, absorbing all the supply, and declining is high. The resistance is one of the critical technical analysis tools which market participants look at in a rising market. The resistance often acts as a trigger to sell. Support understanding the support level should be quite simple and intuitive. As the name suggests, support is something that prevents the price from falling further. The support level is a price point on the chart where the trader expects maximum demand (in terms of buying) coming into the stock/index. Whenever the price falls to the support line, it is likely to bounce back. The support level is always below the current market price. Reliability of S&R The support and resistance lines are only indicative of a possible reversal of prices. They by no means should be taken for ascertain. Like anything else in technical analysis, one should weigh the possibility of an event occurring (based on patterns) in terms of probability. Key takeaways from this chapter 1-S&R are price points on the chart 2-Support is a price point below the current market price that indicate buying interest. 3-Resistance is a price point above the current market price that indicate selling interest. 4-To identify S&R, place a horizontal line in such a way that it connects at least 3 price action zones, well-spaced in time. The more number of price action zones (well spaced in time) the horizontal line connects, the stronger is S&R 5-S&R can be used to identify targets for the trade. For a long trade, look for the immediate resistance level as the target. For a short trade, look for the immediate support level as the target. 6-Lastly, comply with the checklist for optimal trading results How support and resistance changes their roles-: If the price falls below a support level, that level will become resistance. If the price rises above a resistance level, it will often become support. As the price moves past a level of support or resistance, it is thought that supply and demand has shifted, causing the breached level to reverse its role. Examples by Snapshots-: Support become Resistance Resistance become Support Conclusion Technical analysis is one approach of attempting to determine the future price of a security or market. Some investors may use fundamental analysis and technical analysis together; they’ll use fundamental analysis to determine what to buy and technical analysis to determine when to buy. Don’t forget that technical analysis is not an exact science and it is subject to interpretation. If you continue your study of technical analysis, you’ll likely hear someone say it is more of an art than a science. As with any discipline, it takes work and dedication to become adept at it. Best Regards- Amit rajan
NSE:NIFTYEducation
by AMIT-RAJAN
13
Trends- Based on Price MovementUptrend- In an uptrend, both the peaks (tops) and troughs (bottoms) of a stock chart keep increasing successively. So, every day or so, the stock price touches a new high and falls lower than it did previously. Don’t be a mistake; this need not be a lifetime high. It could be the highest the stock touched in the past few days, weeks, or months too. This steady rise in tops and bottoms indicates that the market has a positive sentiment. It expects the stock has a higher chance to appreciate more than depreciate. So, more investors buy, thus driving the price higher. Similarly, each time the stock falls, investors see it as an opportunity to buy even more. They don’t wait for it to fall to the previous level. They buy the stock before that. This arrests the fall. Sideways- In a sideways trend, a stock doesn’t move notably in either direction during an extended period. Peaks and troughs continue to be constant and there is no significant move to decide whether to buy a stock or not. A sideways trend occurs when the force of demand & supply are nearly equal. A sideways trend is also called a ‘horizontal trend’. In this trend stock trading between two parallel horizontal support and resistance lines with less movement. Downtrend- A downtrend is a pattern, where a stock is falling constantly. Not only are successive peaks lower, but successive troughs are also lower. This means that investors in the market are convinced that the stock will fall further. Each little rise in the stock’s price is used by investors to sell their existing quota of shares. No further buying takes place at these levels. Such a stock must not be bought, no matter how much its price has fallen especially if you are a short-term investor. If you are a long-term investor, you may want to wait until the stock price falls further.
NSE:NIFTYEducation
by Mr_Chartist_
Find a perfect Trend Line With this check listThere are many traders out there who trade trend lines. Mastering trend lines is not easy as it seems, with experience things changes with your perception about Trend Lines. What I learned from my experience is that it is important to find a trend line, but it is more important to filter it so that, we can trade only the potential opportunities. Here I do not say that those trades which we filter out will not work or we efficiently filter out those less profitable trades, because adding a filter in your system not only filter trades which are unprofitable but also filter out profitable trades. You have to accept that you are leaving better for best. So, what are the check points I follow to filter out Trend Lines, 1) Touches, I prefer more than three touches and I strictly follow it. See what happens with two touch the number of trades increases too much; I am not saying trend line with two touches does not work but that trend line cannot be of higher profit potential than 3 or four touches. 2) Distance between touches, it is stated that if touches have equal distance between them the trend line is considered as a good Trend Line, but i do not strictly apply if the touches are places at enough spacing and the distance between then approximately equal that it is a good Trend Line. I do check distances but not strict on it. 3) Apply your own logic, this is a very subjective thing, person to person it will vary. Every trader looks the same setup differently, setups will only work when his psychology matches with those setups otherwise it will not work. Build your own logic. At last, I want to end this post by a quote I have in my mind. "True Knowledge cannot be taught, it can only be caught."
Education
by TRADEWITHFUN247
11
FALLING TREND LINE Education Falling trend line: Rising trend line is the type of trend line which typically helps trader in identifying the exact bearish momentum (downward trend). The rising trend line or descending trend line, be connected from highest price traded within the time range, and connect to the lower prices of the asset or security. Traders may prepare for selling after retest of the falling trend line and stop above the trend line. It helps minimizing risk and maximizing rewards when used appropriately.
Education
by CELGIB_TRADING
How to Draw Trendlines and Their ImportanceHi, In this idea I will try to throw some light upon the traders' favorite tool, that is trendlines (also known as dynamic support and resistance). Trendlines represent the direction of trend- up or down. They also indicate the strength of the trend. Steeper trendlines means more momentum than a less steeper trendline. The following discussion would focus mainly upon: ✅How to draw trendlines & ✅Importance of trendlines Let us discuss these topics one by one. ✅How to draw a trendline? For drawing a trendline, we need at least two touch points. Join the two points and extend the line forward. These two touch points could be: 1. A low made by the stock in a correction and a swing low/trough/valley made due to a pullback 2. Two troughs/valleys on the chart, made during pullbacks/consolidation see chart 👇 There are higher chances that the price will hold the trendline during subsequent touches. ✅The steeper ones will need adjustments A sharp price wave on a chart may have shallow pullbacks. This leads to a steeper trendline. This is because more traders sitting on the sidelines wanted to get in quickly, so as not to miss out the move. These sharper trendlines are less likely to hold and may soon need to be adjusted as the price progresses. See chart 👇 ✅Breakout of a down-trendline During corrections you might have the urge to connect swing lows without including the lowest point. There is nothing wrong in it. Price often takes support from these lines too but we need to trade with caution in such cases. When the price breaks an up-trendline (yellow), we need to wait as the price may change behavior and starts forming lower peaks/highs. This offers us an opportunity to draw a down-trendline (red). We don't need to buy before the price breaks out of this down-trendline. See 👇 As the price makes new highs, we again join the lowest low (base) and the most recent larger swing low to make a new trendline. See 👇 ✅What is meant by a valid trendline? Many users might have different verdicts for the validity of a trendline but I am sure they would all agree upon one thing, that is touch points. The more the touch points available to draw a trendline, the better. More touch points offer validity and solidarity to the trendline. And hence more chances for traders to take high probability trades near the trendline. See the chart above 👆 ✅Invalidation and Breakdown As I said before, the steeper trendlines are less likely to hold for long. They may lead to a correction or a pullback. At one point the major trendline would also be invalidated. This would happen when the price manages to break the most recent attempt (swing low at the trendline) to hold the trendline. This often leads to a steep fall or a long term correction. ✅Up-trendline as resistance We all know that horizontal support and resistance levels once taken out, reverse their role. Resistance once broken turns out to be support and vice versa. The same is true for dynamic support and resistance levels (trendlines) As the price breaks an up-trendline and then approaches it again, it tends to react. The same is true for down-trendline. Also notice that we have a major down-trendline (red) which is in action and it had a nice confluence with the up-trendline (yellow). The price hit that confluence and reacted. I just hope that this information would be useful for some traders. Thanks for reading.
NSE:AMBUJACEMEducation
by Bravetotrade
11
How to draw a good Trend Line .?(SCANNING TRENDING SCRIPS) 1) First, find a trending stock where , price moving up or down in a swinging fashion, like higher swing highs higher swing lows for up trend and lower swing lows and lower swing highs for down trend. ------------------------------------------------------- (FILTERING OUT THE IMPERFECT TREND LINE) 2) At least three touches ,I mean touches without crossover. If you making a trend line by connecting swing lows then price should not be traded both the side price should be at left side of the trend line only that is the core concept of trend line. ------------------------------------------------------- 3) Check the distance between touches the distance between consecutive touches should not very too much. ------------------------------------------------------- 4) (SLOPE) The slope of trend line should not be very steep. Flat trend line is okay but very steep trend line is not a good trend line. Note: the trend lines are not very different from Support and resistances , The concepts apply to them is exact same just with one difference is that they are "TILTED". Trend lines also called tilted support and resistance. ========================== The more you practice the more you get the grip.There are some trend lines ideas I shared where you can observe how price behave at trend lines. Examples:
NSE:NATIONALUMEducation
by TRADEWITHFUN247
21
Using the Moving Averages and RSI to optimize buying processIn this chart I have explained my rationale using Moving averages, relative strength and RSI to initiate a buy on this scrip. I always use a weekly chart to check for overall trend and analysis and based on it will initiate a buy on a Daily chart. Explanations are given on the chart. The idea is get the maximum conditions in our favour for a profitable trade. Hope it will be helpful. Another important thing is to always define a stop loss if the trade does not go according to plan.
TEducation
by TheUnlearningOne
25