Cyber Monday saleUp to 70% OFF

BANKNIFTY

Get the major levels through Pitchfork like a Pro!Hey everyone, My previous education idea on Fibonacci Retracement got some good response. Today, I’m back with another education idea, explaining an awesome tool called ‘Pitchfork’. Alan Andrew, the creator of Pitchfork tool, got inspiration from Roger Babson’s action reaction lines for the idea of this epic Pitchfork tool. Likewise, Roger also got inspired from Newton’s third law of Gravity, which is action-reaction theory. So, the main root for the idea of this pitchfork tool is Sir Isaac Newton. The pitchfork looks like the gardening/agricultural tool used for picking and throwing loose material. There is a usage of median as its primary support or resistance level. There are 4 types of pitchforks, i.e., Original, Schiff, Modified Schiff and Inside. We will discuss only about Original Pitchfork today, which is used in trending markets. The other types of Pitchforks are used in consolidation or reversal or trending markets too. Comment below if you want to learn about the other types of Pitchforks too. There are few trending ways of trading the breakout of Pitchfork, i.e, Price Failure Rule, Divergence, Mini-Median Line and many more. We will not focus on them right now. Do let me know if you want to try them too. How do I trade the Pitchfork levels? Currently I’m using the Original Pitchfork (for the trending market) with the median levels: 0.5, 1, 1.5, 2. The main median line is red. 0.5 and 1.5 lines are dashed. 1 and 2 are important median lines. Let’s start with the strategy. We shall start from higher timeframe first. I’m using daily timeframe. Here is how to draw it: I started to draw the Pitchfork from the first low (marked with ‘A’) of the current trend, then you shall click on the next high (marked with ‘B’), then the next low (marked with ‘C’). Do not forget to turn on the magnet, because every pip matters while drawing the Pitchfork. Now, you will get the levels to trade. We shall go to the lower timeframes now and check if it is in the same trend till the 15mins timeframe. You have to look for few confirmations on 1 and 4 hourly timeframes before taking the trade. These confirmations may be any candlestick pattern and try confirming with any good oscillator too. Remember, in the starting of a bullish market, you should always long your first 3 or 4 swing trades. Here are some of the observations: Prices will touch these median lines before making any move in 80% of the cases. There are 20% chances that prices might not touch the median levels due to sentiments. After touching any median line, price might want to reverse or pass by the median line. For confirming the reversal, you should look for any candlestick pattern and there should be overbought or oversold situation on your oscillator too. Do not take the trade if any one of them is not present on both 1 hourly and 4 hourly timeframes. The target will be the next median line upcoming in the direction of your trade. (For swing trade) For passing by a median line, price will take a pull back on the 15 minutes timeframe after passing by a median line, in most of the cases. It will always make a wick or some engulfing or doji candles there. These candles are the confirmation that you can trail your SL or get into the trade. Trust me, it is not as easy it looks on the higher timeframe. The main game is taking entry on the lower timeframes. Try back testing this strategy before using it. Always use proper risk management. Trade Safe!
Editors' picks
NSE:BANKNIFTY1!Education
by theTAguy
13
Island Bottom Chart Pattern An Island Reversal is a piece of price action that is completely broken off from the rest of the chart. It has a gap before it (Exhaustion Gap) and a gap after it (Breakaway Gap). A bullish Island Reversal starts with a down gap in a bear trend. After a period of sideways trading, the market gaps upwards to reverse the bearish trend. A bearish Island Reversal starts with an upwards gap, followed by sideways trading before reversing the trend . The first gap represents a climatic move aligned with the existing trend. However, instead of following through with the gap’s momentum, the market meanders. Hence, when the market makes a gap against the trend, it is a reversal signal. The logic behind this chart pattern is similar to the Morning Star and Evening Star candlestick patterns . How do we trade an Island Reversal pattern? For a bullish pattern, buy when price gaps up away from the Island. For a bearish pattern, sell when price gaps down away from the Island. For this chart pattern, volume should decrease for the first gap and increase with the second gap that is reversing the trend. For the target objective, measure the height of the Island and project it from the breakaway point
NSE:BANKNIFTYEducation
by PrasantaP
1
HOW THE HARMONIC PATTERNS HELP IN OPTION TRADING AND VOLATILITYThe underlying chart gives us the data but it is important to look into the options chart for the trade. We normally wait for the breakouts to happen in the underlying chart but they happen way ahead in the options chart. By the time we take a trade in the options, it would have been late in options pricing. Below is the bank nifty options chart You can see that the breakouts are happening in both charts. Normally, the terminal bar price for a XACBD bearish butterfly pattern will be at the 1.618 fib ratio. However, for the shorts who enter at this level, the stop loss will be the next fib ratio i.e., 2 in this case. Shorts who entered at 1.618 would have exited in a loss at 2 level, then the price reversed drastically. The long traders who thought there would be a short-covering are trapped mercilessly. This pattern would have benefitted the traders who entered at point B (164.5) and trailed until 1.618 level ( D=197). The price pushed above until 2 (212) but hasn't closed above it and came down quickly. This trade would have given at least 20% for the longs. What I've learned from the harmonics in the volatile and fast-moving scripts is that always mark stop-loss levels also and wait for the price action to proceed. This post is just to show the importance of harmonics in options trading and for educational purposes. Give a like and leave a comment if this helps you. Happy trading :)
NSE:BANKNIFTYEducation
by Sanjan91
2
Ross Hook pattern (simple) explanation using Bank Nifty D ChartRoss Hook pattern (simple) explanation using Bank Nifty Daily chart : We tried to explain Ross Hook pattern in a very simple way here taking Bank Nifty Daily chart as example. Ross Hook pattern can be termed as an extension/correction/advancement (as per me) to 1-2-3 pattern. The difference which can be noticed is hook kind of formation after point 3 where there can be couple of small candles which are formed to give a confirmation for momentum or price action. These small candle formation are termed as hook in simple terms and any upside (Bull pattern) or downside (Bear pattern) movement from these candle sticks will give good momentum and good risk reward. SL need to placed just below/above these small candles as per Bull/Bear formation respectively. Entry just above the candles/below the candles for Bull/Bear formation respectively and exit can be planned with a risk reward ratio of 1:2,3,4,5. In the given chart there are 4 Bull patterns (A,C,D,E) AND 1 Bear pattern (B) for your reference. For confluence the entry points need to looked along with RSI/MACD/Bollinger bands etc. Identification of hook is the key in this strategy. Once it is identified then the RR can be very good. Please do a back testing to identify these hooks so to get a good hold of understanding. Also ample time will be there when we notice these hook formation candles to make entries. Please do not get into entries with long candles formation as it might not be hook formation and we should avoid those entry points. SL is the key and it should be smaller, if this is kept in mind then identification of hook formation in candles can be easily identified. Some times point 3 can also be used for SL but we avoid taking that huge risk and want to move out when our analysis is wrong or the trend is in our opposite direction of our thought process with a small SL. Market gives us abundant opportunities and its believed that for every 8 minutes there would be an opportunity for every one to enter. Hence identify only those trends with small SL opportunity for planning an entry. This strategy works for all time formats and please remember identification of SL (which should be small) is the key (reiterating again) and will lead us to entry and exit points. Disclaimer : This analysis is only for educational purpose and not be considered as any trading idea/tip. Please consult your financial advisor before you take any trade and we are no way responsible for your profits/losses. Thank you! Please do like and share this idea. Thanks
NSE:BANKNIFTYEducation
by AdhigamaTrading
2
BANKNIFTY Levels for Expiry Day !🛑in Yesterday market analysis i told that there's indecision between buyers and sellers at high level , and today also market is rejected from 38800 - 38900 levels and if you see the BANKNIFTY in Day frame chart we can clearly observe that it forming bearish candles at higher levels -in today market we can observe that there's is indecision between sellers and buyers at higher levels and Caution it is bull market (Showing that no more buying interest for Institutional traders and that can be confirmed by FIIs ,DIIs data these two were pulling out their money) -Bank nifty trading above all the moving averages those were 21 day, 50 day , and 100 day - Bank Nifty WEEKLY Pivot is at 38800 🛑 keys Levels to watch out for day traders - resistance is at 39450 - 39850 -with the stop loss of 39700 - we can see target of 40000 - Support Levels is at 39400-39300 - with SL of 39500 - we can see Target of 39000 if you like it ,do follow for more have a nice day
NSE:BANKNIFTYEducation
by agasthya_d
Few learnings I want to share taking Adaniports daily chartFew learnings I want to share taking Adaniports daily chart as example: EMA’s 13,50 and 200 are plotted in the chart. An ideal price should always be near to all EMA’s but due to demand and supply and various other factors, price revolves around the EMA’s. High demand or High supply will make these EMA’s move away from each other. But the fact is after some time they settle and come closer to each other. Smallest EMA moves faster and first than largest EMA which moves last and slow for all price action movements. These are the opportunities which traders need to profit buy entering at correct time to ensure appropriate and maximum profits are earned. It takes time, learnings, experience to understand these concepts for entry and exit. From 2021 beginning the price is ascending constantly and taking 13 EMA as support. Instead of 13 EMA, 20 EMA can also be plotted. 13 EMA helps us for a day trading as well as for short and long terms, hence we used 13, 50 and 200 EMA to address the needs of all types of trading. When ever price goes far away from 13 EMA/20 EMA, it will comes back to test or take support before moving on. If 13 EMA/50EMA are above 200 EMA its considered as uptrend and if they are below 200 EMA, its considered as downtrend. In the current example since beginning of 2021, price is in uptrend hance 13 EMA is above 50 EMA and these two are above 200 EMA proving the uptrend. Once price reaches its high or demand lacks, price wont fall suddenly, it will consolidate for some time and then inches to touch the small EMA, here its 13 EMA and takes support (17th Mar) and then goes for a higher high (7th April 20201 example). If 13 EMA support is broken then price tends to go and touch 50 EMA and take support (22nd April) and then makes higher high (7th Jun). After this price couldn’t sustain but with a huge gap down it went and touch 50 EMA and skipped 13 EMA. These gaps will subsequently gets filled, in a few day or few weeks or few months but surely gaps get filled up (example 17th Oct and 18th Oct gap filled up). When price tends to go lower and if 13 EMA crossed 50 EMA from top then higher chances of price to touch 200 EMA or at least it will go very nearby to 200 EMA before reversing. Flag pattern - Last two months (Mid Aug and Sep till Oct mid), we can see a flag pattern and it got broken on 13th Oct and price making highs covering earlier gaps. Now the probability of price touching earlier highs are very high. This is how we can use EMA’s to optimum and can have a proper entry and exit points for intraday, short term or long term trading. Wicks – Now let’s talk about wicks, some people consider them and some won’t consider. Here we considered wicks and some learnings we want to share. When ever we see big wicks it means there are traders to buy or sell in that wick space. This means eventually that wicks will get filled up. Example, if you see 7th April/16th April there is a long wick on the up side and eventually it got filled up in over May period. Color of candle doesn’t matter here when big wicks are made. Same way 14th Jun a hug wick on down side and got filled in couple of days. Fibonacci – Two Fib levels are plotted to see how price respects them. 0.382 and 0.5 are crucial for a retracement and if support taken then price can move up. At the same time 0.618 if broken then the trend in retracement will continue. Hope above information on EMA, wicks, Fib levels along with a flag break out example and also a trending up and down market we could learn from this example. Disclaimer : This analysis is only for educational purpose and not be considered as any trading idea/tip. Please consult your financial advisor before you take any trade and we are no way responsible for your profits/losses. Thank you! Please do like and share this idea. Thanks
NSE:ADANIPORTSEducation
by AdhigamaTrading
Bank Nifty - My trading SetupI always follow the KIS (Keep It Simple) principle in my trading. I simply trade what my chart says. Bank Nifty has been trading in an upward rising channel. So, which side to choose (bullish/bearish) is self explanatory. But, let me just put it out for you. As you may see on the chart that the upper channel line is acting as a good resistance and the lower channel line is acting as a good support. I wait for the price to touch either the upper line or the lower line. I sell CE once it takes a U turn from upper line and similarly I sell PE once it deflects from lower channel line. The center line acts as a neutral but important zone. A reversal from this line means CE selling and a strong crossing above it means PE selling. Trades can be taken based on how the move behaves on a 15min time frame. But this is not a HOLY GRAIL and is not that easy as it seems. Markets are supreme and need not follow what we think or have decided. Hence, always be alert and change/cut your position accordingly and do no hesitate from taking a loss. Disclaimer: Do not simply dive into trading acc to what has been told above, do your own due diligence, put your own brain to it and then decide your levels/positions/setup. The idea behind sharing this was to impart knowledge/perspective to look at charts and not a recommendation. Happy Trading!! :)
NSE:BANKNIFTY1!Education
by Ankit_Oberoi
28
#1 Moving average convergence divergence (MACD)100%Work# WE WILL MAKE ONLY PROFIT #What Is Moving Average Convergence Divergence (MACD)? Moving average convergence divergence (MACD) is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price. The MACD is calculated by subtracting the 26-period exponential moving average (EMA) from the 12-period EMA. The result of that calculation is the MACD line. A nine-day EMA of the MACD called the "signal line," is then plotted on top of the MACD line, which can function as a trigger for buy and sell signals. Traders may buy the security when the MACD crosses above its signal line and sell—or short—the security when the MACD crosses below the signal line. Moving average convergence divergence (MACD) indicators can be interpreted in several ways, but the more common methods are crossovers, divergences, and rapid rises/falls. IF YOU NEED ANY HELP JUST COMMENT OR MESSAGE ME😊😊
NSE:BANKNIFTYEducation
by UnknownUnicorn22712522
13
#1 RSI(Relative Strength Index)100%Work# WE WILL MAKE ONLY PROFIT #The relative strength index (RSI) is a popular momentum oscillator developed in 1978. The RSI provides technical traders with signals about bullish and bearish price momentum, and it is often plotted beneath the graph of an asset's price. #What Does the RSI Tell You? The primary trend of the stock or asset is an important tool in making sure the indicator’s readings are properly understood. For example, well-known market technician Constance Brown, CMT, has promoted the idea that an oversold reading on the RSI in an uptrend is likely much higher than 30% and that an overbought reading on the RSI during a downtrend is much lower than the 70% level.1 As you can see in the following chart, during a downtrend, the RSI would peak near the 50% level rather than 70%, which could be used by investors to more reliably signal bearish conditions. Many investors will apply a horizontal trendline between 30% and 70% levels when a strong trend is in place to better identify extremes. Modifying overbought or oversold levels when the price of a stock or asset is in a long-term horizontal channel is usually unnecessary. A related concept to using overbought or oversold levels appropriate to the trend is to focus on trade signals and techniques that conform to the trend. In other words, using bullish signals when the price is in a bullish trend and bearish signals when a stock is in a bearish trend will help to avoid the many false alarms that the RSI can generate. #Example of RSI Swing Rejections Another trading technique examines the RSI’s behavior when it is reemerging from overbought or oversold territory. This signal is called a bullish “swing rejection” and has four parts: 1. The RSI falls into oversold territory. 2. The RSI crosses back above 30%. 3. The RSI forms another dip without crossing back into oversold territory. 4. The RSI then breaks its most recent high. As you can see in the following chart, the RSI indicator was oversold, broke up through 30% and formed the rejection low that triggered the signal when it bounced higher. Using the RSI in this way is very similar to drawing trend lines on a price chart. IF YOU NEED ANY HELP JUST COMMENT OR MESSAGE M😊😊
NSE:BANKNIFTYEducation
by UnknownUnicorn22712522
37
Bank Nifty looks bearish for tomorrow (27 Aug 2021)Prediction: Since there is Jackson Hole Event, chances are that market wont leave their position open. Hence, there are high chance that we see Bank Nifty down tomorrow. Further, 35600 is important support. Next support will be 35350-00. Below 35300 don't forget to short with SL 35375. Pattern: An ascending triangle is a chart pattern used in technical analysis. It is created by price moves that allow for a horizontal line to be drawn along the swing highs, and a rising trendline to be drawn along the swing lows. The two lines form a triangle. Traders often watch for breakouts from triangle patterns. The breakout can occur to the upside or downside. Ascending triangles are often called continuation patterns since the price will typically breakout in the same direction as the trend that was in place just prior to the triangle forming.
NSE:BANKNIFTYEducation
by Spunkygamer
Pure Price Action Trading - Nifty/Banknifty Hello Traders! Here we gonna learn how one can trade Nifty/Banknifty using pure price action and get better results Assuming that one knows what is Support and Resistance & know about candlesticks So traders, all you need is to draw the support/resistance levels on your chart, here I've draw S/R levels in Banknifty and timeframe I'm using is 15 mins for Intraday trading. After plotting the Support/Resistance levels once the market opens we'll observe the market trend and we'll trade as per the trend. So here we can see on 15 mins time frame that #Banknifty was making Higher high and Higher low so as per that we can say it's a short term uptrend and on the current day the market opens below the previous swing high and candle formation open = high indicates selling pressure So here after the 15 min 1st candle closes on the small time frame of 5 min we can see a candle rejection from S/R zone here we can take entry, it's #Banknifty so as an option buyer we'll short market by buying a PUT of near Out of the Money After we'll set out stop loss before the entry candle in 5 min time frame and lot size is according to risk management then here comes a flip zone, a S/R zone which act as flip zone that market can reverse or continue, at here we'll trail our SL to cost, and on the chart one can see the candle gave a small pullback from flip zone S/R level but pullback was weak and market continued to fell from broken support zone Later we can see how prices reacting from support/resistance levels and finally it reversed from support zone Price action is beauty, one can draw support/resistance levels and take action as per the price movement, candlesticks and trend play an import role
NSE:BANKNIFTYEducation
by realashishdave
2
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
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