My analysis is based on the Monthly chart. The monthly chart is considered ideal for long term investors and gives a directional perspective of the stock price.
The stock is forming a double bottom pattern. Typically, a double bottom is formed after a single rounding bottom pattern is formed and is often an early sign of a potential reversal. According to...
Types of Resistance: -
There are 3 major types of Resistance
1. Trendline Resistance
2. Dynamic Resistance
3. Structure Resistance
If you like this post then hit like button and follow me for future updates.
On Eth 1Hr chart: An example of Strong Regular Bullish Divergence using the RSI. Confluence with Stochastic Oscillator also shown for entry confirmation
17600 level is resistance for Nifty50 and it may push down from level then go up for further move. Keep on eye on the level. 17600 level also 61.80% from top to bottom.
RSI
As Scanner for identifying price direction: Very Useful
As Scanner For Trading with Trend: Useful
As Scanner For Trading Mean Reversion: Not Useful
Stochastic
As Scanner for identifying price direction: Not Useful
As Scanner For Trading with Trend: Useful
As Scanner For Trading Mean Reversion: Very Useful
Stochastic RSI
As Scanner for identifying...
In general, a logical stop loss varies from one situation to another.
Some of the logical stop losses can be:
1. Swing high/low
2. Low of the Hammer/Inverted hammer
3. High of the Shooting star/Hanging man
4. Low of the demand zone
5. High of the supply zone
If you are trading in options, broadly there are 2 ways to set a stop loss. There are:
1. Place the...
Hello, Kotak bank shows a divergence (RSI) on 15 minute chart, However instead of exiting our long position we can hold the stock till it breaks down the trendline.
A recent example, that I personally encountered :
On 20th August - 24th August we could see a divergence on the Hourly chart of Hindustan Unilever, snapshot of which can be seen in the comments...
Initial Understanding on Weakly TF:
1. Pattern: A clear Inverted H&S pattern is formed which took around 3 Years to form and that signifies entry in the Stage 2 i.e. Mark-Up.
2. Volume: Volumes has seen a drastic jump this year as compared to previous years, which again tells the presence of bulls.
3. Resistance Zone: A number of times resistance zone...
Rising Wedge Pattern : - Rising wedge is a bearish pattern found in a downtrend. A rising wedge is formed when the price consolidates between upward sloping support and resistance lines.
Falling Wedge Pttern :- Falling wedge is a bullish pattern found uptrend. A falling wedge is formed when the price consolidates between downward sloping support and resistance lines.
What Is Quadruple Witching?
Quadruple witching refers to a date on which stock index futures, stock index options, stock options, and single stock futures expire simultaneously. This happens in the US market but since the US market affects the markets worldwide, hence it becomes an important event for all other markets too.
Highlights:
• Quadruple witching...
Today on Nifty, It was a bear trap after consolidation, Generally, we wait for a strong 15-minute candle when breakout/ breakdown happens. Today after the breakdown Nifty again started an upward journey, Most people thought it's going for Retracement Maybe. It spent some time on the breakdown Point.
At this time if we see RSI, It was showing strength and was...
Excellent Example of POC at work.
- Huge Accumulation Happened on JSL between 8th & 22nd July.
- Price remained Sideways and started dropping.
- Price took support exactly at the Point of Control (POC) of Huge Accumulation days and retraced back up.
What is POC?
It is a Point of Control. It tells us the average price at which maximum volume activity happened...
For the purpose of demonstrating how one can identify a trend change using Support - Resistance and Price Action, I have taken the daily chart of IEX. I had also identified and posted about it before the recent rally.
The first step is to establish a clear support and resistance line. In case of a breakout, I like to keep my target at around the same price...
One can use this indicator for sell trade in downtrend market. In downtrend one can sell when CCI reading is above +100 to +150. This is trading technique when market is in downtrend and we may use SELL ON RISE STRATEGY. After selling we should place stop loss above latest high price. For conservative traders they can sell when CCI start going down below +100 reading.
The analysis is on how to create a low risk high reward trade with RSI being a key indicator,together with previous broken resistance line now acting as a support.
If the price slope of the stock is negative (bearish) and the RSI slope is positive (bullish) it is an indication (RSI BULLISH DIVERGENCE) of the reversal in the price of the stock.With the previous...
The stock has been trading in the range for past 200+ days and has started to show the signs of strength and these are:
1. A quick bounce from the support taking out the short term resistance of 1070.
2. Volumes have stated to increase showing the bullish sentiment among buyers.
3. The gap between 21-day and 50-day EMA has been reducing.
Why this time the...
