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Trend Lines

Educational Post Ascending Channel**** Educational Post: ASCENDING CHANNEL An ascending channel is the price action contained between upward sloping parallel lines. Higher highs and higher lows characterize this price pattern. Technical analysts construct an ascending channel by drawing a lower trend line that connects the swing lows, and an upper channel line that joins the swing highs. The pattern’s opposite counterpart is the descending channel. KEY TAKEAWAYS 1. An ascending channel is used in technical analysis to show an uptrend in a security’s price. 2. It is formed from two positive sloping trend lines drawn above and below a price series depicting resistance and support levels, respectively. 3. Channels are used commonly in technical analysis to confirm trends and identify breakouts and reversals. ****Trading the Ascending Channel 1. Support and Resistance: Traders could open a long position when a stock's price reaches the ascending channel’s lower trend line and exit the trade when the price nears the upper channel line. A stop-loss order should be placed slightly below the lower trend line to prevent losses if the security’s price abruptly reverses. 2. Breakouts: Traders could buy a stock when its price breaks above the upper channel line of an ascending channel. 3. Breakdowns: Before traders take a short position when price breaks below the lower channel line of an ascending channel, they should look for other signs that show weakness in the pattern.
Education
by nawaab001
The Ultimate Price Action Breakdown Strategy Preface Alright, the operation started after creating an extreme low at 120.20. Price has created an upward channel from the extreme low, where the equilibrium has occurred between bull and bear traders. Control line has given eleven touches, which shows the strong gravitation at the middle. Here, we can see four reversals on the upper band, and three reversal points occurred on the lower band. We have two opportunities: 1. Now, the price is on the H-line, and the breakout of the h line indicates the lower band touch. 2. Bull can buy at excess, or they can enter at reappearing in the value area for the target of the control line. Every beginner who wants to start trading with naked strategy (without indicator) can use this method because the price is the thing that will pay you. Let me explain to you important aspects of the breakdown strategy. Value area: A zone in which bulls and bears both are satisfied to stay within it. In this zone, supply and demand equally exist. Ascending Value area: Range-Bound Value area: Descending Value Area: Value area has two bands: Upper band: Upper band indicates demand-supply. In this chart, the price has taken four reversals from the upper band to maintain the equilibrium. The upper band put a stop to the bull power. Lower Band: The lower band indicates demand pressure. In this chart, the price has taken three reversals from the lower-band to maintain the equilibrium. The lower band put a stop to bear power. ------------------------------------------ No trading zone: In order to respond to either bull or bears initiative, the price creates an area. In which no trading activities have taken. It helps to find the weakness of any particular move. ------------------------------------------ H Line: After completing the last share move, the price creates the bulk trading activities, where bulls' power becomes dull. Breakout of the H-line indicates the cease of the particular move. ------------------------------------------ Excess: Excess is regret and fake-out. In simple words , price breaks the upper band and again re-enter into the parallel channel. Buying or selling at the excess is the perfect deal. An excess is a signal of reversal. The psychology behind the control line : Price is forming in the parallel channel, but bulls are not satisfied with the current trend. That's why bulls increase demand pressure to break the upper band of the value area. After breaking the upper band, bulls face some problems with profit booking. Now, bulls realize that the price is not going up. Bulls give up on the thought of trend change. Bears were watching this patiently. And after they realize that prices are too high, they increase supply pressure above the upper band of the channel. Now bulls are out of the market, and the seller has maintained the equilibrium & Vice versa. ------------------------------------------ Control line: The Control line is the gravitation point of any value area. We can draw by connecting the reversal points in the middle. The more the points are available, the higher the effectiveness. Please note that the price can not stay away from the control line of the value area. We can use it as a price target or breakout trade. Here, the price has given eleven touches on the control line. ------------------------------------------ Breakout or breakdown of the channel: Bulls and bears both disagree with the current price trend. Either bulls or breaks out the value area by giving consistent closing. It often happens after a complex correction or trend change. I will upload practical work on this idea. Kindly wait for the implementation. Thank you for your support. To be continued.....
NSE:INDUSTOWEREducation
by forextidings
55
Market Crash:- Is it an opportunity? Hi Everyone! In this analysis we'll look at some chart after we met Crash. Whenever market crash it's an opportunity for us to buy a good share at discounted price. Just Switch to the higher time frame ( Monthly, Weekly ) and find out the major Support/Resistant. It'll try to test major Support/Resistant, Trendline , Channel. ASHOKLEY :- The chart is self explanatory. HDFCAMC :- Find support at IPO's high in 2020 Corona crash. SBIN :- Major support @150 AXISBANK :- Create support at previous resistance. JSWSTEEL :- Create support at previous major resistance. VEDL :- No need to explain. Q- Can we enter as soon as price touch the Support/Trendline/Channel? Ans- No, Wait for Price Action or W pattern in Short time frame { D } Disclaimer:- This is Not investment advice. It's just for learning purpose. Invest your capital at your own risk. Please like, share & follow if you find this article helpful for you in any manner.
NSE:TATAMOTORSEducation
by TheGopal
4
Real life market structureGood day guys this is to explain how real life market structure work and how the market maker manipulate your thoughts First thing when you are analysing on the market make sure you identify the key zones first. What's the key zone. A key zone in an uptrend is the lows( higher low) that makes the market to form another high which is higher than previous high. While in downtrend it's an High that makes the market to form another new low which is lower than previous low. They are important when you are analysing market. Now when you are analysing the market. Make sure you identify the trend in higher time frame. Because retracement in an uptrend will look like downtrend.. but once you know the key zone you won't be confused. Breaking of trend line is not really a reversal. Before you consider it as a reversal check if it violated your key zone. Or else it's just a manipulation.
Education
by EinsfardGlobal
2
TRENDLINES & S/R ZONES WORKS VERY WELL (EDUCATIONAL)Hello Friends, Trendlines are one of the best part of technical analysis, see how resistances turns into supports, and supports turns into resistances. One can start with practicing with Trendlines...! 1) Trendline is the base for all the technical patterns. So pls start practicing drawing trendline charts and then slowly move to next patterns. 2) Practice only few patterns and master in it rather than trying to learn all the patterns and techniques. 3) I would like to mention the quote of Bruce Lee here. "I fear not the man who has practiced 10,000 kicks once, but I fear the man who has practiced one kick 10,000 times". 4) Do more and more practice on charts, more time you spend on charts, more friendship they made with you, you'll be able to understand the language of charts, because chart says everything...! 5)Best learning comes out of practice you do everyday and then you apply it in real market. 6) Books knowledge will not be use full, if you don't practice it particularly in real market, because it involves lots of emotions. 7) Spend at least one hour per day in identifying chart patterns and preparing your own charts. 8) Track your charts, Understand how the price moves once the support or resistance is broken. 9) Understand which method gives you better success rate and focus on it more to improve further. 10) Believe me, Nobody can stop you. some examples are shared below nifty spot chart example gold chart example silver chart example techm chart example
NSE:NIFTYEducation
by RK_Chaarts
34
U-TURN Resistance converts into Support (EDUCATIONAL -AARTIIND) Aarti Ind. ltd. This stock has taken Resistance twice at same level, then it consolidated as a parallel channel at that same zone, and then it given good breakout from parallel channel along with good intensity of volume, Now it has retraced almost 78.6%, co-incidentally (1) same resistance zone, (2) Parallel channel's top, (3) Support trend line and (4) 200 DEMA, all are there at similar point location, All these 5 conditions met at same level that can provide good support. This scenario makes probabilities very strong each time. where stop loss is too low and Reward is too Good. Overall scenario Perfectly U-turn from valid fibonaccy level 0.786% Daily macd line uptick and also converging towards positive Good support zone Support providing 100DEMA also at same responding zone Parallel channel scenario Support Trend line Disclaimer I am not sebi registered analyst My studies are for educational purpose only Consult your financial advisor before trading or investing I am not responsible for your profits and losses
NSE:AARTIINDEducation
by RK_Chaarts
16
How to trade a breakout successfully? We shall see the chart of century text & ind in the 2-hour time frame. The script had resistance at around 820 where a double top pattern had formed. The third time when the share price approached this resistance trendline a strong green candle was formed breaking out of the resistance. This green candle denotes a breakout. Risky traders usually enter a trade when this breakout occurs. The breakout can be further confirmed by the resistance trendline switching its role into a support line now. This is where most risk-averse traders take the trade. After taking support at the same 820 level we can see the script rallying upwards. The targets can be marked using the Fibonacci extension. The stop loss for this trade should be below the trendline. Happy trading!
CEducation
by Stock-Holmes
falling wedge pattern !bandhan bank : a. The falling wedge pattern is a continuation pattern . b. these patterns are formed when price bounces between two downward sloping converging trendlines . c. with lower lows and lower highs d. this pattern is considered as bullish chart formation , e. but some times can indicate both reversal and continuation patterns – it depends on where it appears in the trend. f. trade should be taken when price breakout happens at upper resistance trendline with volume . g. keeping lower trendline support price as stop loss trade set up / technical shown in charts .....
NSE:BANDHANBNKEducation
by HARMONICSANAND
1
What are Falling and Rising Wedge Patterns?What Is the Wedge Pattern and Its Common Characteristics? 1. Wedge patterns have converging trend lines that come to an apex with a distinguishable upside or downside slant. a. Wedge with an upside slant is called a rising wedge b. Wedge with downside slant is called falling wedge 2. It has declining volumes as the pattern progresses 3. It breaks out from one of the trend lines Why We Should Pay Attention to Wedge Patterns? Some studies suggest that a wedge pattern will breakout towards a reversal rather than a continuation more often than two-thirds of the time. Therefore as the rule of thumb, people generally treat a falling wedge as a bullish pattern and a rising wedge as a bearish pattern , especially a falling wedge would be a more reliable reversal indicator than a rising wedge Since we know a wedge pattern has a higher probability to reverse and due to the fact that the price of wedge pattern converges to a smaller area, we can trade the reversal set up with a relatively close stop loss to its entry price, which provides us with a good trading opportunity with a decent Risk:Reward ratio. Examples of a Bullish Rising Wedge and Bearish Falling Wedge Sadly, there is nothing that works 100% in trading. Not every rising or falling wedge will reverse as one might expect. Every trader must properly manage their risk by setting stop losses and not just trading based on price patterns. Below are two examples. Bullish Rising Wedge ( ETHUSDT during 15/NOV/20 - 28/DEC/20) In the early stages of the epic 20-21 bull market, if traders blindly treat the rising wedge as a bearish signal and trade accordingly, they would pay a heavy price. Bearish Falling Wedge ( LTCUSD during 14/AUG/18 - 14/NOV/18) On the contrary, in the late stage of the 2018 bear market, any trader who blindly trades the falling wedge to bet on a reversal would also learn a hard lesson. Comment down your thoughts on Wedge Patterns in the comment section. Disclaimer: This is just an educational post. Never trade just any pattern. And please do your research before making any trades. Happy Trading!
Education
by Coinlog
4
Trade Using Multiple Trend Lines Important Note:- Very complex and professional techniques I have discussed in the below texts. So my friends read this minimum 3 times, otherwise you will not get the inside what I'm saying about. See how a professional trader using multiple trend lines in a chart and find out opportunities. 1. Here you can see two old trendlines are there and two new trend lines i.e. support & resistance line. 2. Price has been take support and resistance in different different position of the chart and if we join them then we can see a different trend channel in different angle along with previous one. 3. Trend channel already change few months ago i.e. new support line and new resistance line. 4. Now break in the upside direction. 5. So we can take position on direction of the breakout. But my friends there is something more in this story, Actually we can't recognize multiple support and resistance in same direction , that's why we can't draw trend lines there. Reality is there is the difference, between professionals and intermediate or beginners. We have to look into the chart in different way all the time then you can see the chart differently or in professional way. In this chart the price already break the old resistance line and now it's break the new resistance line with big bullish candle. Also previous support and resistance line nothing but a symmetrical triangle pattern. By using multiple trend lines you can see the different opportunity in different position of the chart and you have to choose the correct one which have highest provability to move the price in your way. I know this concept is little bit complex but if you download this in your mind, in near future you will get the taste of success.
NSE:RELIANCEEducation
by marketaffairs