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Trend Lines

Trade with Conviction - Price Action + MACD + EMAIn the chart above, we can see that the trend resistance and support lines are well established, from where prices have bounced and retreated from on multiple occasions. After a decent recent pullback, we find the Exponential Moving Averages looking up again, almost ready for a Bull Cross. I personally prefer 9,21 Days EMI for trading in a short time frame of 7-10 days. It can be easily seen that on numerous attempts, price has kept these EMA levels. MACD and RSI play an important role to confirm the hunch from the preliminary screening off the Support & Resistance and EMA lines. I try to watch out for where the RSI levels are moving toward and the key levels from where it bounces. Personally I find the 50-60 region safer, after rising from a lower level, as it not just implies that bulls are back in control, but it also leaves decent room for upside movement and gain from the share. MACD helps to now time this entry right. If its clear that the divergence levels are reducing and the lines are closing in for a Bull Cross, I can form a decent opinion if I want to wait for the cross or enter while the divergence is still decreasing. Most of the time, I enter right before it is all set for a Bull cross. It helps me to get an early entry and close my position in a day or two if the MACD cross is rejected, this keeps the losses to a minimum. Finally, Volume surge serves to further strengthen the view that the increase in price is accompanied by smart money flowing in, and now you know that this price increase will have a sustained increase with momentum. EPS and Financial position of the company seem good, and that checks out all the major points for a long position. To summarise, watch out for EMA and Resistance Support levels to screen stocks preiminarily. Out of the selected bunch, review the RSI and MACD levels. Increasing Volume with Price increase always helps. Check the EPS growth at least, and set the targets and stop losses as per your risk appetite. Thanks for reading :)
NSE:CYIENTEducation
by Aayush_Rungta
6
Let us analyze recent fall and rise events in BTCBitcoin had a fantastic rally this year but also had seen the worst of the falls due to China’s crackdown. Let’s analyze the BTC chart and find out the critical signs we have observed during the fall and also analyze what’s the current situation. In this analysis, we will be using Trendlines, Supply and Demand Zones, and RSI. We shall understand them briefly. Trendlines can be ascending or descending lines. The trendlines are formed using at least 2 tops or bottoms. Ascending lines are formed by joining at least 2 higher highs or 2 higher lows which act as support. Descending lines are formed by joining at least 2 lower lows or 2 lower highs which act as resistance. Applications of Trendline s: 1. They indicate the prevailing trend in the particular duration. 2. They act as support and resistance lines. 3. If ascending trendlines are broken to the downside and the immediate low of the rally is broken then the stock may have a new downtrend. 4. Similarly breaking the descending trendlines to the upside and an immediate high of the prevailing fall indicates the new uptrend. Supply and Demand Zones are the zones where the price is failing to break out multiple times. Supply zones are the areas of interest for the bears and demand zones are the areas of interest for the bulls. Applications of Zone s: 1. They represent the critical areas in the chart where the traders or investors are interested. 2. Breakouts in either direction will add momentum in that direction. Interesting Interpretation of Trendlines and Zones : 1. Ascending trendlines are joined by the points where bulls are interested to go long. 2. Descending trendlines are joined by the points where bears are interested to go short. 3. Similarly demand and supply zones are zones where bulls and bears are interested in long and short respectively. 4. Giving up trendlines and prices going below or above immediate level indicate that the bulls or bears have given up on the stock for a while. Important Note : The breakout should be confirmed by checking higher volumes or pull backtest or waiting for the price to take out immediate high or low. This confirmation gives us a confluence between the different schools of thought. Some traders may only follow trendlines for breakouts, some may follow zones, these checks ensure you have more participation towards your position. Once the trendline or a zone is broken the nature becomes opposite. For example, if a supply zone or a descending line is broken, the price rises and then comes back to test the zone, this time it must act as a demand zone or support line, else it is said to be failed in the pull backtest. Relative Strength Index (RSI) It is a momentum indicator of the price in a particular duration. For detailed definition and formula, please check in the indicators section in TradingView. It is generally used to determine whether the stock is oversold or overbought. Applications of RSI: 1. Oversold if the price reaches 20 or 30. 2. Overbought if the price reaches 80 or 70. 3. Reversal signs based on divergences. If price is making higher highs or higher lows but on contrary RSI is making lower highs or lower lows. Then it is a sign of bulls giving up and a bearish reversal is on its way. Let us these concepts and apply to our chart. You can see supply and demand zones and the trendlines on the chart. FALL The supply zone had been tested four times and then took a great fall. You can have a doubt that actually once the price had managed to breakout supply zone with good volumes and crossed immediate higher high but even failed. Yes, here it failed the pullback test. It received resistance from the purple trendline 1 and came back for the pullback test and failed. We can see a bearish divergence by checking corresponding highs trendline 1 connected in RSI. RSI was also indicating overbought signs. After a certain fall, it rose again to test the zone which now turned to supply zone and couldn’t break. This gave confirmation for the participants of different schools of thought, hence with huge volumes price fell. RISE The price reached another critical area called the demand zone. Before falling into the demand zone, the purple trendline 2 gave support to the fall. The corresponding trendline 2 in RSI confirms the bullish divergence and showing oversold signs. This reversal was confirmed by huge volumes, taking out the 40k mark and breaking a strong trendline which resisted price to rise during the fall. The price also took a pullback test and succeeded. CURRENT SITUATION After a pullback, BTC made a high of 48k and then formed an intermediate demand zone. The blue trendline is supporting the rise. If the BTC breaks 48k, it can go to test the supply zone. If it breaks the blue trendlines and the intermediate trendline, it can test the 37k level. If the 37k level fails it may test the demand zone again. We have a minor bearish divergence in RSI and RSI is in the overbought zone. As we analyzed the fall and rise of BTC, we understood before considering any position, confirmation is necessary. This is just an education post and not investment advice.
COINBASE:BTCUSDEducation
by Sanjan91
Distribution Phase ExplainedThe distribution phase is when large funds and institutional investors sell their shares at a high price in order to maximize their profit. Because institutional investors and large funds hold large positions (> 1 million shares), they cannot close their positions with a single sell order because doing so will draw attention to the stock, causing other market participants to sell their positions as well. It's important to remember that institutional investors want the highest price to close their positions because their primary goal is to maximize profits, which is why they spread out the distribution phase over time rather than emptying their position in a single day. The institutions' plan of not to sell their entire position in a single session furthers their goal of selling at high prices because it misleads retail investors into believing that the stock still has room to rise, and the retail side begins buying (increasing demand) while the institutions are selling (exiting at high price). This is referred to as a buying climax. (From the institution's perspective) How can we us retailers identify distribution? Long legged Doji and shooting star candles with high volumes can be seen in the chart above near the resistance zone of 665-685 levels. High and ultra-high volumes indicate the presence of large funds (Mutual-funds, Pension-Funds, etc.). Observing the Doji candle and the shooting star candle in conjunction with their respective high volume bars as highlighted indicates that institutions are selling at high prices of 665-685 levels which has been tested several times. This is a good time to sell stock and take profits, but some retail investors are starting to buy now, expecting prices to rise even further! Sometimes, it's also referred as bull-trap! The mark-down phase follows the distribution phase. Prices begin to decline and make lower lows and lower highs during this phase as institutions begin to book profits. The mark-down phase is also marked in the chart. It is best to avoid buying during the markdown period, as prices tend to decline sharply in this phase. This was an educational post to help you better understand the distribution phase, and possibly avoid being trapped on the wrong side of the trade. Happy learning!
BSE:RAMCOSYSEducation
by anaida_sultana
2
What is a Symmetrical Triangle Pattern?The Symmetrical Triangle is usually a continuation pattern. It represents a pause in the existing uptrend after which the original uptrend gets resumes. A breakout from the upper trend line marks the continuation of an uptrend while a breakdown from the lower trend line marks the start of a new bearish trend . This pattern is also known as a wedge chart pattern. How does Symmetrical Triangle Pattern Work? Phase 1 : Existing Uptrend When there is an extreme demand in prices there is an uptrend. It continued as the demand increases. Phase 2 : Pause When demand is equal to supply the there is a pause in an uptrend and investors start to book profits here. As prices consolidate it forms converging trend lines . As there is equal demand and supply investors buy on the lower trend line and sell on the upper trend line . Which results in forming a Symmetrical Triangle Pattern . Phase 3 : Uptrend Continuation After demand matching the supplies when there is when buyers are again interested to buy demand increases. Which results in breakout! And the continuation of the uptrend. Role of Volume: Volume plays a major role in a symmetrical triangle pattern . When in an uptrend the volume is quite higher. In the second phase, the volume starts to diminish due to equal demand and supply. And again on the breakout, the volume surges. Volume with Breakout gives a good indication of a successful uptrend. Above Chart Explanation: This is a 4H chart of AXSUSDT we can see it's in an uptrend previously with good volumes. Now after successful uptrend prices consolidate with diminishing volumes. And after it, there is a breakout with above-average volumes. And then the uptrend continues. Conclusion: Symmetrical Triangle Pattern is a continuation pattern. Which on upper trend line breakout can give a potential bull move and when on lower trend line breakout gives a possible bear move. Comment your thoughts on Symmetrical Triangle Pattern down below. Disclaimer: This is just an educational post never trade just any pattern. And please do your research before making any trades. PS: We are again publishing this for our Indian audience. Happy Trading!
Education
by Coinlog
24
Trade what's happening...not what you think is gonna happenAs soon as we see a breakout on the chart we form a basis ( or have a belief ) that the stock will burst and go upside. We should not try to predict the market. Instead, we should wait and let the market tell whether the breakout is false or true. You can crosscheck with other indicators. I personally use PRICE ACTION data i.e. after breakout the upper trend line previously acting as resistance now should act as Support. Risk management - Enter 30% position at breakout, if the trade fails then your loss will be only upon 30% position. If the price respects the upper trend line then you can execute your remaining 70% position. There is a big difference between predictive technical analysis and reactive technical analysis. Predicting is trying to forecast where prices will go in the future and taking trades based on that belief. Reactive trading is based on taking a trade after a signal has indicated the beginning of a trend. The biggest leap to profitability comes when we stop taking trades based on what we think should happen in the market, and instead learn to trade signals that react to what is happening. Note - The market doesn’t care about your opinion. It will go where it wants to go based on all of the participants’ actions. Get in the habit of going with the flow, and avoid trying to predict where the flow is going.
NSE:SUNTVEducation
by Indrajit08
63
elliot wave labellinglabelling done using following rules for impulse 1)wave 2 should not retrace wave 1 entirely 2)wave 3 cant be shortest 3)wave 4 cant enter wave 1(except diagonal) for flat with truncated wave c 1)wave b should at least retrace wave a by 80% 2)wave c should at least reach 61.8% extention of wave a. for zigzag with truncated wave c 1)wave b should not retrace more then 61.8% wave a 2)wave c should atleast reach 61.8% wave a extention. correction completion 2 stage confirmation rules 1)stage -1 confirmation: 0-b trendline must breach in less time than wave c took to form 2)stage -2 confirmation: wave b should also be taken out or crossed in less time than wave c took to form. Labelling information cycle degree: yellow primary degree: white intermediate degree: red minor degree: green apply fib rules for wave 2,3,4,5,b,c waves targets and trade accordingly by following a trade plan which gives entry and exit signals with target and stop-loss and follow risk management for effective trading results.
NSE:ICICIBANKEducation
by UNDERDOG-29
11
BANKNIFTY WEEKLY ANALYSIS (17/7/21)- Price is converging between lower trendline and upper trendline, will need to give breakout (follow the major trend) - Price must trade above 35800 and sustain to make upper move to ATH which is 5.38% away) - Outperformed nifty this week, follow up price action is needed (upside) as price closed exactly at upper trendline shadow - Anticipating breakout in 1-3 weeks time period (although market is supreme) - HDFC bank results on Monday, can help decide the direction of BNF.
NSE:BANKNIFTYEducation
by Stockupy
NIFTY WEEKLY ANALYSIS (17/7/21)Trendline still not broken (price near trendline and in consolidation mode around 15600 to 15900 This week the nifty closed at ATH and managed to close at upper levels. Making small momentum candles (can break either side, p.s. Major trend is up) Strong support at 15300 levels A decisive close above 16000 with a catalyst is needed to enter new territory. This weak midcap/ Smallcap and many other stocks blasted (realty/ pharma / broking) stocks did well.
NSE:NIFTYEducation
by Stockupy
ASTRON | WEEKLY ANALYSIS | 40%-100% UPSIDE POTENTIALCLOSELY WATCH THE LEVELS VOLUMES HAVE STARTED TO POP IN 23/6/21 - Smallcap, Material (paper)--posted negative results FY21---quarterly results mar21 is positive -W- Stock has bottomed out and started making positive price structure - Above all major EMA on D, in W, crossing 100EMA with good VOL - Parameters positive on D & W - Volume have started to increase - Breakout and close above 60-62 on closing basis with good volume will validate - Can initiate buy at lower trendline if makes bullish candle - 100EMA and Resistance confluence
NSE:ASTRONEducation
by Stockupy
📚Trading Lesson. Triangle Types & How to Read Them📚 Triangle is a classic price action pattern that is applied by technical analysts to make predictions trading different financial markets. Depending on the shape of the triangle, there are three main variations of this pattern. Its meaning changes dramatically from one to another so it is crucially important for you to know the difference. 👉 The symmetrical triangle is determined by two contracting trend lines. The pattern is considered to be indecisive meaning that while the market is stuck within, the directional bias is unknown. Only the breakout of a boundary of a triangle clarifies the future direction. 👉 In contrast, the ascending triangle (also called a bullish accumulation) is a classic example of a bullish biased pattern. With a horizontal trend line serving as resistance and a rising trend line service as support, the market is accumulating volumes for a bullish breakout. Once the horizontal resistance is broken, bullish continuation follows. 👉 The descending triangle is a bearish biased pattern. Also called a bearish accumulation, the pattern indicates the preparation of the market participants to set a new low after consolidation and contraction within a triangle. Once the horizontal support is broken, bearish continuation follows. 🔔Please, support this educational post with a lovely comment and like. Also, subscribe to our page for more educational posts & signals.🔔
BITFINEX:BTCUSDEducation
by UnitedSignals
3
How to use Anchored VWAPAn Anchored VWAP (Anchored - Volume weighted Average Price) lets you make up an idea on whether the control of the market is on side of bulls or bears. Like the traditional VWAP, it incorporates price and volume in a weighted average and can be used to identify areas of support and resistance on the chart. Just like in intraday setup, a traditional VWAP lets you gauge the control of bulls or bears on the price after the opening of the day, the Anchored VWAP (AVWAP) tells you the control of bulls or bears with respect to an important day in the past over daily or weekly chart. In other words, an AVWAP indicator ties VWAP calculations to a specific price bar chosen by the trader. In a price reversal from the previous swing high or low, an A-VWAP tells us a general idea about the long-term (or short term based on the Anchor date) support or resistance or the price. In the attached TV screen, A-VWAP is applied over BankNifty futures (current contract in front). Here we can see that the price has taken reversals multiple times from the AVWAP.
NSE:BANKNIFTY1!Education
by SHRIKANT_KADAM
CONFLUENCE TRADING | YOUR KEY TO ACCURATE ENTRIES 🥇 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 (it should match higher lows if the market is bullish; it should match lower highs if the market is bearish). Once the trend line is confirmed by at least two touches and consequent reactions , you can look for a confluence zone. 1️⃣Project a trend line and identify the next POTENTIAL touchpoint of the market with a trend line. 2️⃣Take the last impulse in the direction of the trend. Draw a fib retracement based on it (swing low to swing high in case if the market is bullish, swing high to swing low in case if the market is bearish). 3️⃣Take the previous impulse (it must be in the same direction as the initial one). Draw a fib retracement based on it. 4️⃣Look for a match of retracement levels of the last two impulses and a projected trend line. In case if two retracement fib.levels & trend line match, you found a confluence point. 5️⃣ Apply it as a safe entry point. You will get a perfect trend following opportunity. ❤️ Please, support this idea with a like and comment! ❤️ ⬇️ Subscribe to my social networks! ⬇️
Education
by VasilyTrader
2