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Beyond Technical Analysis

"Volume and Price" Trend Relationship📈"Volume and Price" Trend Relationship📈 Price Up and Volume Up ✅ The volume trend has supported the uptrend movement. Therefore, we can look for buying opportunities. Price Up and Volume Down ✅ The volume trend has not been supported the uptrend movement. Therefore, we can exit our long position Price Down and Volume Up ✅ The volume trend has supported the downtrend movement. Therefore, we can look for selling opportunities. Price Down and Volume Down ✅ The volume trend has not been supported the downside movement. Therefore, we can exit our short position
Education
by TheNewsCrypto
6
Trading Style verses Trading TimeframeHi all 👋 We all know about three types of trading styles -- investment, swing trading and day trading. Yet most traders remain confused when it comes to trading timeframes. Through this post I just want to eliminate this confusion once and for all. Let us understand some basics.... ✅ Anchor Chart This is the chart used to determine the trend of the market. It conveys a trader whether the market is in uptrend, downtrend or sideways. It sets a bias for the trader. It also conveys us the information about the major support and resistance levels. These levels may provide excellent trading opportunities in future. ✅ Trading Chart Now that we know the trend through the Anchor chart, we have to take our trading decisions. Anchor chart is too big to take trading decisions. Reason being your stop loss would be too wide if you trade on the basis of Anchor chart, so we have to shift to a lower timeframe. This time frame is usually 4-5 times lower than the Anchor chart time frame. This lower time frame helps a trader to pinpoint his entries and decide upon his stop-loss to avoid unacceptable losses. Also minor support and resistance levels are more clear on this chart. ✅It is your trading style which determines your trading timeframe. For more clarity, refer the chart above. ⏰ Bro tip 🚩Anchor chart helps you to trade in the direction of trend. 🚩When the trend is up on the anchor chart we should look for only buy set-ups on the trading time frame. 🚩When trend is down on anchor chart, we should look for only selling opportunities on trading time frame. 🚩When trend is side ways, buy at the support and sell at the resistance. Hope this post will be useful for some traders and to the very least reduce the confusion regarding timeframes. Thanks for reading @Bravetotrade
NSE:NIFTYEducation
by Bravetotrade
5
Rules to keep in mind while trading to became successful traderMost traders and 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...! Anyone who wants to become a profitable stock trader need only spend a few minutes online to find such phrases as plan your trade, trade your plan and keep your losses to a minimum. For new traders, these things can seem more like a distraction than actionable advice. If you're new to trading, you probably just want to know how to hurry up and make money. Each of the rules below is important, but when they work together the effects are strong. Keeping them in mind can greatly increase your odds of succeeding in the markets. Key Takeaways Treat trading like a business, not a hobby or a job. Learn everything about the business. Set realistic expectations for your business. Rule 1: Trade based on Rule, when in doubt, stay out, Always Use a Trading Plan Rule 2: Treat Trading Like a Business, not as a hobby Rule 3: Proper position sizing is the key Rule 4: Use Stop loss never trade based on hope, Protect Your Trading Capital Rule 5: Constantly Analyze your mistakes and try to learn from it, become a student of the markets Rule 6: Think about the risk potential before your reward potential, Risk only what you can afford to lose Rule 7: Develop a methodology based on Facts, The objective is not to buy low and sell high, but to buy high and to sell higher Rule 8: Trend is our real friend so Don't fight the trend Rule 9: Never, under any circumstance add to a losing position Conclusion Understanding the importance of each of these trading rules, and how they work together, can help a trader establish a viable trading business. Trading is hard work, and traders who have the discipline and patience to follow these rules can increase their odds of success in a very competitive areas. This post is just for educational and motivational purpose, See you all next week. 🙂 RK Disclaimer. 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.
NSE:TATAMOTORSEducation
by RK_Chaarts
8
Bitcoin Drops Following Powell's Inflation✅✅✅Bitcoin Drops Subsequent To Powell’s Inflation Remarks ✅ In the previous day, the price of Bitcoin fell by 6.3%. The majority of cryptocurrencies also lost value after Powell’s remarks. Bitcoin and other cryptocurrencies fell on Friday as traders reacted to hawkish remarks made by Federal Reserve Chairman Jerome Powell during a major address at the Jackson Hole economic summit, an event that had dominated the markets all week. The price of Bitcoin dropped 6.3% in the last day to $20,251.34, returning it to a weekly low that had been left behind in the prior days’ gradual rise. Drastic Down on Crypto Market At its upcoming meeting in September, the Federal Open Market Committee will decide whether to raise rates by 50 or 75 basis points. Powell said the decision will depend on the totality of the incoming data and the evolving outlook. The Fed chair predicted that successful inflation control would most likely lead to slower economic growth for a sustained period. Interest rates would have to remain there for a long time in order to achieve that, he cautioned. Powell forecasted some pain for consumers and companies as well as quite likely some deterioration of labor market conditions. He continued, Failure to restore pricing stability will result in much worse suffering. Following Powell’s speech, the majority of cryptocurrencies likewise decreased in value, with FLOW, the 24-hour loss at 11%. The market cap of Ether (ETH), the second-largest cryptocurrency after bitcoin, decreased by 8.5%. The News Crypto ✅✅✅
Education
by TheNewsCrypto
Important types of chartsHey everyone! In this post, we are going to talk about different types of charts that are used in technical analysis. Please remember this is an educational post to help all of our members better understand concepts used in trading or investing. This in no way promotes a particular style of trading! Charts are used to illustrate change in prices over different time frames. It’s a graphical method of showing the historical price information. Charts are two-dimensional and have an x-axis (horizontal) and a y-axis (vertical). The x-axis generally represents time whereas the y-axis indicates the price. 👉 Line chart • “Line charts” are formed by connecting the closing prices of a specific stock over a given period of time. • It is particularly useful for providing a clear visualisation of the underlying trend. • It only considers the “closing value” of the stock and ignores the open, high, and low values. • Since it only uses the closing prices, hence it less noisy as compared to candlestick or bar charts. 👉 Bar chart • A bar shows the high price for the period at the top and the lowest price at the bottom of the bar. • Each bar displays the open, high, low, and close prices (OHLC). • Small lines on either side of the vertical bar serve to mark the opening and closing prices. • The opening price is marked by a small tick to the left of the bar; the closing price is shown by a similar tick to the right of the bar. 👉 Candlestick chart • A candlestick chart provide visual insight to current market psychology. • It displays the open, high, low, and closing prices (OHLC). • The rectangular section of the candles is called the real body, which is the range between the session’s open and close. • Bearish candle- When the close of the session is lower than the open. • Bullish candle- When the close of the session is higher than the open. • The thin lines on each side of the candle are called the wicks/shadows and they represent the session’s price extremes. 👉 Heikin Ashi chart • Heikin Ashi uses a modified formula of close-open-high-low (COHL). • Normal candlesticks keep changing colour depending on the OHLC even if the price is moving heavily in one direction. But the Heikin Ashi candles stay predominantly mono-coloured during trends. • Candles with no lower "shadows" indicate a strong uptrend. • Candles with no upper "shadows" indicate a strong downtrend. • Candles with a small body surrounded by upper and lower shadows indicate a trend change. 👉 Renko chart • A new brick is created when the price moves a specified price amount. The brick only forms on the chart once the price has moved the set amount. • A brick can be of any size (called the box size). Box size can be set manually or it can be calculated using the Average True Range (ATR). • There is a time axis on Renko charts, however, the time scale is flexible. This means that the bricks are not formed at an equal pace. • Renko charts typically only use closing prices and mitigate the noise to a higher extent, making trend identification easier. 👉 Kagi chart • When the price of the asset rises above the previous high price, a thick line is formed, signalling an increase in the demand. • When the price drops below the previous low, a thin line is formed to indicate an increased supply. • When there is a price reversal of a certain threshold amount, the chart starts to reverse the direction. • Swing highs are called shoulders and the swing lows are called waists. • Rising shoulders = Bullish. Falling waists = Bearish 👉 Point and Figure chart • A P&F chart is used to visualize price movements and trends without any dependence on time. • It makes use of columns made up of stacked Xs or Os, where each one stands for a specific amount of price change. • In general, X illustrates rising price, while O represents a falling price (Some people use the reverse too). • Point and Figures also emphasize on the closing prices only. Thanks for reading! Hope this was helpful! See you all next week. 🙂 – Team TradingView Feel free to check us out on Twitter , Instagram , and YouTube for more awesome content! 💘
NSE:LTFEducation
by TradingView
10
Diamond Chart PatternDiamond Chart Pattern in Classic Technical Analysis is associated with Trend Reversal. However, in Elliot Wave it may act as a Trend Continuation pattern. In this case the pattern mostly occurs in wave B. Since this is a very powerful pattern which occurs rarely, should not be missed as gives a very fast move. The pattern occurred in Adani Enterprises Hourly chart and the targets were achieved in a flash. Sometimes, it is better to keep all patterns handy. Happy Trading
NSE:ADANIENTEducation
by riskOmeter
1
The Major Signals Part :- 3Hello Everyone, Before Starting we will Know about the Strategies of working at 50 and 200 Ma with an Indicator well known to you 🤜 So Lets Start Strategy of 50 and 200-day Ma's WIth the Indicator Stochastics In the strategies, we would take a simple moving average of 50 and 200 days and take Indicator Stochastics, Now whenever you see a Crossover of 50 and 200 days Moving average with the crossover of Stochastics then you have to buy and sell for basics we will talk in detail in the next parts. 1. Inverted Hammers It is a type of candlestick pattern found after a downtrend and is taken to as a reversal signal. The inverted hammer looks like a Shooting star or a Reversed version of the hammer candlestick pattern, and when it is seen in an uptrend it is called a shooting star. Now Many Peoples have doubt that is this a Bullish or Bearish Pattern as it looks exactly like shooting stars, so let me tell you it is a bullish reversal pattern, which signals that a stock can be bullish now. 2. Morning Star It is a candlestick pattern consisting of three candlesticks, It is a bullish pattern used by technical analysts to predict the market. A morning star forms after a downtrend and it shows the starting of an uptrend. It is a sign of a reversal in the price. Traders spy on charts for the formation of a morning star and then seek confirmation that a reversal is coming or not. 3. Evening Star It is a candlestick pattern consisting of three candlesticks, It is a bearish pattern used by technical analysts to predict the market. An evening star forms after an uptrend and it shows the starting of a downtrend. It is a sign of a reversal in the price. Traders spy on charts for the formation of a morning star and then seek confirmation that a reversal is coming or not. 4. Kicker Signals It is a two-bar candlestick pattern to predict a change in the direction of a trend. This pattern is characterized by a sharp reversal in price over the span of two candlesticks. Traders use it to determine which trend of market participants is in power. Hope you all like it Make sure to follow us and leave a comment Thank you Bye-Bye 🙏
NSE:JINDALSTELEducation
by MAYANKTECHRESEARCHING
The Major Signals Part :- 2 Hello Everyone, Before Starting we will Know about the Derivatives Of Morning star and Evening star So Lets Start Morning Star Derivatives (Remember it is on the Bottom side) 1. Abandoned Baby 2. Doji Star 3. Star and Gap 4. Hammer 5. Reverse Hammer 6. Doji Hammer We will talk more deeply in the Next Part Also, I suggest 50 and 200-day MA take into use on the charts (As a survey says that all the charts work better on different ma's but 50 and 200 work best on almost Every stock) 1. Piercing Patterns A Piercing pattern is known as a Major signal and is very potent and can be used for predicting a bullish reversal. The formation occurs rarely. It is a two - candlestick pattern that has the potential for a short-term reversal after a downward trend to an uptrend. The pattern includes the first candle opening is Red in color and the Green candle opens below the Red candle, One can buy it after getting confirmation at the breaking of the red candle as shown in the picture. It also includes a rule to get closed above the half of the red candle that covers at least half of the red candlestick. \ If it doesn't get closed above Half of the red candle then it would be known as 1. In Neck 2. On Neck 3. Thrusting Line 2. Dark Cloud A Dark Cloud pattern is known as a Major signal and is very potent and can be used for predicting a bearish reversal. The formation occurs rarely. It is a two - candlestick pattern that has the potential for a short-term reversal after an uptrend trend to a downtrend. The pattern includes the first candle opening is Green in color and the Red candle opens above the Green candle, One can sell it after getting confirmation at the breaking of the green candle as shown in the picture. It also includes a rule to get closed below the half of the green candle that covers at least half of the red candlestick. 3. Harami - Bullish A Harami - Bullish pattern is known as a Major signal and is very potent and can be used for predicting a bullish reversal. The formation easily. It is a two - candlestick pattern that has the potential for a short-term reversal after a downtrend trend to an uptrend. The pattern includes the first candle opening is red in color and the green candle opening between the red candle, One can buy it after getting confirmation at the breaking of the red candle. 4. Harami - Bearish A Harami - Berishpattern is known as a Major signal and is very potent and can be used for predicting a bearish reversal. The formation easily. It is a two - candlestick pattern that has the potential for a short-term reversal after an uptrend trend to a downtrend. The pattern includes the first candle opening is green in color and the red candle opening between the green candle, One can buy it after getting confirmation at the breaking of the green candle. 5. Shooting Star It is a type of candlestick pattern which forms in an uptrend. A shooting star is a Bearish Candlestick pattern, not a Bullish Pattern having a long shadow on the upper side and a small shadow which is next to visibility can be seen at all. In technical analysis, The Shooting Star looks exactly same like an Inverted hammer. (Remember this is not based on the color) When the goal is completed we will publish Part :- 3 Hope you all like it Make sure to follow us and leave a comment Thank you Bye-Bye 🙏
NSE:JINDALSTELEducation
by MAYANKTECHRESEARCHING
2
The Major Signals Part :- 1Hello Everyone, Before Starting we will Know about Opening and Closing Marubozu So Lets Start Opening and Closing Marubozu An Opening Marubozu is a White Candle that has shadows only on its Closing Price and A Closing Marubozu is a Black Candle that has shadows only on its Closing Price, Remember they are not showing weakness that the stock is definitely will become down now it gives strength and immunity to the trend and shows the strength that the trend will continue and will remain for now. Now Let's Move to the Main Topic 1. The Dojis A Doji appears when Open and close are equal it happens in two cases 1. When first bears take the market down and then the bulls take the market up than the opening price and then bears take it again down till the opening price 2. When first bulls take the market up and then the bears take the market down than the opening price and then bulls take it again up till the opening price Now dojis are also In many types like 1. Long-Legged Doji 2. Four Price Doji 3. Gravestone Doji 4. Dragonfly Doji Important Notes The bigger the series of Doji will be the stronger the trend would be 2. Bullish Engulfing It is a two candles bullish reversal pattern and can be seen after a downtrend. The first candle is a small body and red in color and is followed by a second bullish candle with a green candle that completely engulfs the previous red candle. 3. Bearish Engulfing It is a two candles bearish reversal pattern and can be seen after an uptrend. The first candle has a small body and is green in color and is followed by a second bearish candle with a red candle that completely engulfs the previous green candle. 4. Hammer It is a type of candlestick that is formed when the price moves down after the open and then comes back to close above the low. This candlestick contains a small real body with a shadow at the low that is at least two times the body. 5. Hanging man It is a bearish candlestick pattern that develops after an up move and looks exactly like a hammer. This candlestick pattern opens on the bullish side but then it becomes bear very dramatically. After the bear, the price goes and closes near the high of the candle and well off the lows. (Remember this is not based on the color) Hope you all like it Make sure to follow us and leave a comment Thank you Bye-Bye 🙏
NSE:JINDALSTELEducation
by MAYANKTECHRESEARCHING
Types of participants in the derivatives marketHey everyone! Last week we talked about the basics of derivatives and what all different derivative instruments are available in the markets. In this post, we will talk about the types of people who use derivatives and why they exist. There are broadly three types of participants in the derivatives market: → Hedgers → Traders (also called speculators) → Arbitrageurs. An individual may play different roles at different times. Hedgers → They employ derivatives to mitigate the risk they suffer from fluctuations in the pricing of the underlying assets. → Institutions such as investment banks, central banks, hedge funds, etc. all use derivatives to hedge or reduce their exposures to market variables such as currency exchange rates, interest rates, equity values, bond prices, and commodity prices. Speculators/Traders → The speculators are primary participants in the futures market. → They try to predict the future movements in prices of underlying assets and position themselves accordingly. → Speculators can be individual traders, proprietary trading firms, hedge funds, or market makers. Arbitrageurs → Arbitrage is a deal that produces profit by exploiting a price difference in a product in two different markets. → Arbitrage occurs when a trader executes a simultaneous purchase and sale of the same asset in different markets in order to gain from tiny price differences between them. → The arbitrage trade is often short lives because the arbitrageurs would rush in executing these transactions, thereby closing the price gap at different locations. Thanks for reading! Hope this was helpful. See you all next week. 🙂 – Team TradingView Feel free to check us out on Twitter , Instagram , and YouTube for more awesome content! 💘
NSE:ADANIPOWEREducation
by TradingView
1
Trading: Ideal Patterns and Behavior✅Almost all traders read books and tutorial over the internet regarding technical analysis and patterns. After reading a lot of literature, traders start believing that some patterns ought to work 100% of the times. But according to my personal experience, this is just a mistaken belief. ✅The chart patterns are based upon human psychology, which the pioneers of technical analysis claim that never changes. But in my humble opinion, different human beings have different psychology in life as well as in trading. Not only that, the trading behavior of one particular trader might be different at different occasions. ✅But does that means we should not rely upon technical analysis at all? ✅In order to settle this dilemma, I must say that 'adaptation' is the best strategy one can add in his/her quiver. Seeking ideal behavior is perfectly fine but when things deviate from theory, we must adapt to the psychological behavior of the traders/investors. ✅Yes, this puts into practice a widely accepted truth that trading is more than 70% psychology. ✅As as example, the stock above never retested the resistance zone, which was an ideal behavior to test buyers at a level which once was a resistance. But it never happened and the stock gave a very strong move after the breakout. ✅A stubborn pullback trader would miss a nice 25% leg in this case. But if he adapts to the buyers' psychology, who were so eager to buy this stock, he would look for opportunities on smaller timeframes with minimum risk and huge potential for momentum. Determination is a wonderful disposition but obstinate determination may hurt, both in trading or in life too. I hope it was useful. Thanks for reading. Keep liking for more educational stuff in coming days. JJSingh (@Bravetotrade)
NSE:CUBEducation
by Bravetotrade
13
Trading Decision Flowchart - Checklist Before placing tradeTrading Decision - Checklist Before placing trade Traders always encounter a thought when analyzing their trade history - I would have been in this much profit if I had avoided this particularly trade/trades(mostly losing trades). There are many reasons behind why traders take up some trades which they should not be taking - reason could be fear of missing out, recovering losses, revenge trading or simply boredom trade. One of the essential thing needed to become a good successful trader is to avoid certain trades where - You don't have conviction - You are Over-trading/Revenge trading - You have already lost your day's worth of losing limit you have set for yourself - You don't have proper setup - You don't have a Good Risk Reward Ratio - Target does not look easy - Trade does not fit on your trading rules - and so on. Traders should try to avoid these trades- one such tool which will be useful will be a trading checklist - which should be checked before placing any trade. This idea is to share one such checklist that I use for trading NIFTY/BANKNIFTY options.I hope this is useful to some folks out here. Cheers, Santosh
NSE:NIFTYEducation
by Santosh_A_Chavan
3
Maintaining Trading Journal.Maintaining Trading Journal :- Maintaining Trading Journal is one of the key aspect of becoming a good trader. This is something which I have struggled to do- I always planned to keep a trading journal but after sometime I failed to maintain it or continue it(Mainly due to the losses that I incurred in between which am really not motivated to write down). However after some time I have realized that without a journal or written records I tend to repeat the same mistakes again and again. So after spending some time on how to make a journal and looking at several templates online/copying them - I have set one for me. This idea is to share the template to everyone. There are three sections of journals:- 1. Trade inputs :- Inputs related to trade 2. Technical Characteristics - Columns which can be calculated using a formula and they can give some insights. 3. Takeaways from the trade:- Kind of diary to record your thought process around this trade. Strategy/ Rules/Reasons of exit/Mistakes /Learnings etc. I hope this can help you to some extent. ** Please Note:- Content entered there is completely random and sample data.
NSE:NIFTYEducation
by Santosh_A_Chavan
8
Basics of DerivativesEver wonder what derivatives are? Check out this handy guide! 😉 A derivative is a contract or a product whose value is derived from the value of some other asset known as underlying. A variety of underlying assets serve as the foundation for derivatives. These include: → Financial assets such as Shares, Bonds, and Foreign Exchange. → Metals such as Copper, Zinc, Gold, Silver, etc. → Energy resources such as Crude oil, Natural Gas, etc. → Agricultural products such as Wheat, Cotton, Sugar, Coffee, etc. Cotton Futures Gold Futures Derivative Instruments Forwards It is a contractual agreement between two parties to buy/sell an underlying asset at a certain future date for a particular price that is pre-decided on the date of the contract. Both the contracting parties are committed and are obliged to honor the transaction irrespective of the price of the underlying asset at the time of delivery. The terms and conditions of the contract are customized to cater to the needs of both parties. These are Over-the-counter (OTC) contracts, meaning they are a deal you make directly with a bank or a dealer. As a result, there is always counterparty risk involved. Futures Futures are standardized contracts similar to a forward contract, except that the deal is made through an organized and regulated exchange rather than being negotiated directly between two parties. The arrangements come with a fixed maturity date along with uniform terms for all the parties involved. In simple language, futures are exchange traded forward contracts. The futures contract has little to no counterparty risk since the exchange is acting as a mediatory. Options An Option is a contract that gives the right, but not an obligation, to buy or sell the underlying on or before a fixed date and at a stated price. While the buyer of the option pays the premium and buys the right, the writer/seller of the option receives the premium with the obligation to sell/ buy the underlying asset if the buyer exercises his right. There are two types of options: → American → European American options can be exercised at any time prior to their expiration while the European options can only be exercised on the expiration date. In India, European options are used. Swaps A swap is an agreement made between two parties to exchange cash flows in the future according to a prearranged formula. A random variable (such as an interest rate, foreign exchange rate, commodity price, etc.) is used to determine at least one of these series of cash flows at the moment the contract is initiated. Swaps are, broadly speaking, a series of forward contracts. They help the participants manage risk associated with volatile interest rates, currency exchange rates, and commodity prices. Thanks for reading! Next week we’ll talk about the types of people who use derivatives and why they exist. Stay tuned! See you all next week. 🙂 – Team TradingView Feel free to check us out on Instagram , YouTube , and Telegram for more awesome content! 💘
NASDAQ:TSLAEducation
by TradingView
2
The Powerful Indicator that can lead you to SuccessHello Everyone, Today we are again with a New Topic CRS (Comparative Relative Strength) So Lets Start What is Comparative Relative Strength This chapter will share insights on a valuable lesser-known form of market analysis referred to as comparative relative strength ( CRS ). This is the study of one stock or sector in relation to other sectors or the overall market. This technical study can give a better look at where the money may or may not be flowing. Comparative relative strength is not to be confused with Welles Wilder's relative strength index or Williams Percent “R” indicators. Both of these technical tools are considered oscillators and give an indication if the stock or security is overbought or oversold relative to its past price action over a specific period of time. WHAT IS IT USED FOR? In using CRS , we take one market and divide it into another, and the result is a continuous close line graph. Typically, the numerator is the product that we are comparing against the denominator or benchmark. This technique is used to uncover or detect any hidden weakness or strength when analyzing one company against another in the same sector or comparing an individual stock against its related industry sector. We can also use this technique to compare individual stocks or sectors to the benchmark stock index like the Standard & Poor's ( S&P ) 500, the Dow Jones Industrial Average , the Russell 200, the Nasdaq 100, or the Nasdaq Composite . Why do traders use this analysis method? To see where the money is flowing to help confirm a trading bias. To see if a stock or sector is outperforming compared to its benchmark. To see which are the weakest sectors compared to the benchmark. As an early warning signal. Pair Trading A pair trade simply consists of buying one company and simultaneously selling short another similar or “like” company with the expected results to see the company one bought outperforming the company that was sold. Keep in mind that the key word here is performance. As you will see, markets can move higher or lower, but one product may not move up or down as far or fast compared to the like market. This is why a spread or relative strength chart may show an increase or decrease in the trend. Example of Pair Trading :- We saw a couple of months ago that when Ronaldo moved two Bottles of Coke, The share price of coke started to a downfall in this situation Pepsi will get a much profit than coke so we will select Pepsi to buy CREATING THE CHARTS Setting up your charting platform is relatively easy. A basic relative chart is created as a spread chart. Here are a few reasons why you want to look at a comparative difference chart. Comparative analysis or pairs-trading charts are easy to create. Again, we're only looking at the price relationship of one product against another. Logically, since the price is dictated by the laws of supply and demand , you can anticipate that when one market outperforms another, it will do so over a period of time, which lends itself to a trending condition. As you can see with the Help of the Moving Average and the Breakout of Trend Line in CRS ( Comparative Relative Strength ) This shows with the potential of moving up The dead Company Tata power shows a big bullish than Power grid Trader's Tip 1. When placing a spread trade, one should remember to enter the size of each side of the trade basis, and the notional value of each side of the spread. Spread trades are not necessarily placed on a “one-to-one” basis, such as selling 100 shares and buying 100 shares. In commodity spreads, for example, one platinum contract is 50 ounces and one gold contract is 100 ounces. Therefore, as a correct spread trade, a ratio of two contracts of platinum versus one contract of gold would be the correct trade per spread order. As for the S&P 500 (ES) versus the Nasdaq 100 (NQ), if the E-mini S&P is valued at 1,340 and the index is priced at $50 times the index, then the notional contract value is $67,000. At the same time, if the E-Mini Nasdaq 100 contract is valued at 2605 and the index is priced at $20 times the index, then the notional contract value is $52,100. Therefore, a correct ratio for a spread trade between the ES and the NQ would be four contracts of the S&P versus five contracts of the Nasdaq 2. Thus, using comparative RS is by definition trading metric. Once again, the question begs: How we can make money using this form of analysis? Spread charts or RS comparisons graphs can give you an idea of the best place to put your money, but perhaps it may help you decide where not to put your money. Using trend-line breaks in the RS charts helps us to uncover what we call divergence between the spread chart and absolute prices. Therefore, make sure you set up your trading platform so that you look at the two different markets that you want to compare against, as well as the spread or the RS chart. Two definitions of metrics found in Webster's dictionary are 1. The art of metrical composition, which is pertaining to measurement. 2. Combining form means the science of measuring that specified by the initial element. Automating Signals Most traders and technicians ask themselves what they can do to improve their indicators so they can respond more quickly to changes in market conditions. The obvious answer is the speed at which the data is received. But for end-of-day analysis, speed is not an issue. With thousands of markets to analyze, it would be nearly impossible to detect signals in all the market combinations, a requirement of using RS analysis. Therefore, it is best to take advantage of computer technology and create an automated scanning feature. How do we create this? By using moving averages on the RS charts themselves. As a rule of thumb, when using moving averages, the shorter the time frame, the more sensitive it is to price changes. I find that using a simple moving average for shorter time periods is effective for using longer time frames. Using a weighted moving average to the nearest close is more effective. For instance, if I'm using a 3- period moving average, I would use a simple moving average . If I'm using 12 or more time periods, I would use a weighted close moving average. In the following examples, I am using a 15-period weighted moving average . Comparing two significant charts, So that we could find which gives more profit and which gives less Conclusion Comparative RS analysis demonstrates the concept of sticking with stocks in the strongest-performing groups—that's not to say that you can't make money in an overall rising stock market, but your best rate of return or performance will be with the stocks that are tied to strong industry groups. It also helps identify the weaker sectors, so you may figure out what to avoid. That way you are not putting good money to use on a less productive market. I don't want to make this out to be the end-all form of analysis. As I will discuss, there is no one single holy grail of market analysis tools or techniques; that's why we look for corroborating analysis, such as trying to fine-tune our indicators and finding the need for using a moving average of the spread or RS line in addition to trend line analysis. The coming chapters will show how we can apply other tools and techniques to help pinpoint our price entries as well as exit strategies. Hope you all Like it Bye-Bye for now
NSE:NIFTYEducation
by UnKnowN_ThE
The Secret of Sokyu Homma Related to Charts Part :- 1Hello Everyone, Today we will be talking about The Secrets of Sokyu Homma Related to Charts So let's start with 1. The Sokyu Honma's Two Methods 1. The Samini No Den of the Market 2. The Sakata strategies 2. The first Method, The Samini No Den of the Market (The Subjective Part of the Method) The first part of Sokyu Honma’s method, the Samni No Den of the market, seeks to develop adequate reflexes and the right attitude of a trader in us. Here is the method and its five rules: The Five Rules : 1. Without being greedy, look at past market movements and think about the time/price ratio. 2. Try to buy a bottom and sell a top. 3. Increase your position after a rise of 100 bags from the bottom or a decline of 100 bags from the top. 4. If your forecast is incorrect, try to recognize your mistake as soon as possible. Then, close your position and stay out of the market for 40 to 50 days 5. Close 70 to 80 % of your positions, if they are profitable, closing what is left after a top or a bottom is reached. 3. Examining the Simple and Powerful Methods (HOW TO MASTER YOUR TRADING: YOUR FIRST STEP TO SUCCESS) Rule 1 This rule tells us to measure and study the time/price relationships. Note that this approach was at the heart of Gann’s method, for which an equilibrium between time and price is crucial. This rule enables us to categorize the movements of the market in terms of time and price. Here is an example: the market has risen x points in y weeks from a historic bottom to a historic top. During this rise, there have been upward movements for each swing of p points and w weeks. Within this same movement, corrections and consolidations are each within a range of d points for a duration of e weeks. We follow the same procedure for the movement from the historic top to the historic bottom. This measuring technique may be applied to any time frame. The rule tells us that we must not be greedy. It is important that we do not try to obtain the maximum possible gain, as indicated by past movements. We must try to win without becoming greedy. In this way, we will avoid the risk of overstaying in the market and seeing our gains disappear. Unfortunately, this is exactly what happens to most traders. Therefore, choose an exit point that will limit your avarice and that, at the same time, is indicated by the market itself. Here, only practice will bring you knowledge. By studying the time/price ratios, you will discover things – the market itself will speak to you. Remember that the only master is the market. Remember also that it is necessary to have a practical attitude – a way to knowledge by doing. I can guarantee that this rule alone will enable you to succeed in the market. The rule has another benefit. It will make you invulnerable. No one else will have knowledge of your tactic. It will be your secret. Rule 2 This rule does not tell us to buy bottoms and sell tops but to attempt to do it. This is something completely different. Act at the right time. Avoid the temptation to buy when it is already too late. Anxiety and impatience push us toward this kind of behavior. Learn to wait for only the best opportunities. Rule 3 Increase your position following a rise of 100 bags from a bottom or a decline of 100 bags from a top. This rule indicates a price/volume ratio. For any given price change, there is a corresponding change in volume. Here, the market is inverted because the price was fixed and the volume was variable at the time. A rise of 100 bags means a drop in price. A decline of 100 bags means a rise in price. This rule tells us to increase our position in the direction of the market (i.e. increase our position only if the market continues to rise; we should not increase our position if the market is down unless it progressively declines). It also tells us to increase progressively only until our positions have been completed. For example, if we buy 900 shares, we must break up our buying into several purchases. We buy first, say, 300 shares at one price and the next 300 only if the market goes our way. We buy the last 300 shares only if the market continues to go our way. Do not buy everything at the same time! Exercising patience is a much worthier goal than winning in the market. Thanks to our exercise of patience, we will end up by having a much greater number of winning trades. Someone may argue, ‘But when there is an opportunity, why not place all our positions in the beginning?’ Greed has just made its appearance. A fatal mistake! Rule 4 In case we are wrong, we must close our positions and stay away from the market for a period of 40 to 50 days. This advice is a nugget of wisdom. It conceals a secret and is a mystery in itself. Even though the meaning of the rule is to refrain from the market activity so that we can have a clear mind, the following literal sense of this rule is excellent. Not only will your mind relax and rest, but also your unconscious will have time to integrate and perfect your strategy and tactic, enabling you to see ‘clearly.’ You will receive insight that only comes as a result of patience and waiting. The secrets of trading will be made clear.5 Once again, we hear a call for patience and a warning to control greed. Understand whoever can! Rule 5 Close 70 to 80 % of your positions as soon as you have the minimum expected gain. Wait until the end of the movement to close the others. Here, once again, it is studying the market that will tell us when to close each position. Again, this rule is a call for our patience and a warning to keep greed under control. Many traders want to close their positions as soon as they have a small gain. This leads, as a consequence, to achieving big losses and small gains. We must learn to wait and have the courage to see our position develop according to the precise plan that was prepared in the beginning. One must recognize that a plan that was prepared previously will tell us exactly when to close the first 70 or 80 % of our position and when to close the rest – taking into account the risk/reward ratio known and tested in advance. This rule contains a hidden and powerful secret. It is up to you to discover it! Up to this point, we have examined the five rules of the subjective part of the method. Their logic is consistent. Further, the five have a common denominator – a call for patience and to control greed. This is a mastery of self that has, as a result, the mastery of time, because we learn to wait for the right moment, and the mastery of price, since we learn to buy at the right price. There is a rigorous linking of the five rules. The first rule indicates the fundamental principle of the market and its fluctuations in time and price. It tells us to measure them, to measure objectively the natural market movement – its oscillators or swings. Once the extent of this movement is known, the second rule tells us when to take action within these movements. We must wait for the right time. Once we know when to buy and when to sell, we must still learn how much to buy or sell. Rule 3 tells us this. Finally, once we are engaged in a trade, we must know when to exit and close our position with a gain or a loss. Rules 4 and 5 tell us this. 4. In this way, the Samni No Den, the part of Sokyu Honma’s method which consists of the subjective five rules, will have taught us: 1. How to manage time and price. 2. How to manage buying and selling points. 3. How to decide what size of position to take. 4. How to manage losses. 5. How to manage wins. 5. The Second Method, The Sakata Methods (The Objective Part of the Method) SAKATA’S FIVE METHODS AND THEIR CORRESPONDING MARKET PHASES The ‘five Sakata methods’ belong to the objective part of Sokyu Honma’s method and focus on the structures or phases of the market. There are five structures or basic configurations: The Five Rules :- 1. San Zan means three mountains and is the triple top. 2. San Sen means three rivers and is the triple bottom. 3. San Ku means a triple gap and refers to the empty intervals between prices. 4. San Pei means three lines and refers to a continuously ascending trend that is composed of three time/price units. 5. San Poh means three rests and refers to a corrective movement within a trend that is made up of three time/price units. 6. Each of these strategies or methods is related to a specific market phase or configuration. These phases are: If You Don't Understand then Refer to the Picture. In the Next Part, We will Give a Complete Representation of It. Premutation of the Five Phases :- (a) 1 and 2: turning points, tops or bottoms; (b) 3: gaps; (c) 4: trends; (d) 5: consolidations, or times when markets rest before continuing their trend.
NSE:NIFTYEducation
by UnKnowN_ThE
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
All About Options 👇Hello Everyone👋 Today we will be talking about What are Options So let us get Started, What is Options Trading :- Options trading is a type of trading specific security on a specific date at a time and closing it at the date on which the options are getting to end. Here end doesn't mean the options are going to end forever it means that options are getting end of that month on stocks and every Thursday of Index in Indian markets. Many people also trade options because they can be taken in less Money, Eg:- Bajaj Finance is 7300 currently now but its option can be taken in 4000 or even 3000, that's why people try in Options. As stock prices are very volatile, options prices are even more volatile than Stock shares. Options are generally risky but some of the options strategies are relatively less risky. Options trading may seem very complicated at first, but it's easy to understand if you know a few key points like Option greeks, How money burns in Option, How Options eat money in Range bound and etc. Anybody who wants to trade options can do it simply just following the steps:- To trade options there are just four steps but for basics 1. Have a very good knowledge of options otherwise just go away from here and do what you are doing 2. If the First Step is Done then Open a trading account 3. Pick which option to buy or sell 4. Predict the market and then select the strike price What are the " Two main " types of options :- There are two main types of options: calls and put, Call options allow us to buy the options at a fair price whereas Put options are the opposite of call options, Put options allow us to sell the options at a fair price. You can see further for more details about them. What is Call in Options ? Call Option :- In call options, a position is taken when a contract is purchased from the seller. In this transaction, you have to give back the shares to the seller from which you have taken and what you pay to him is your premium called, the seller is given a premium to sell shares at the strike price. What is Put in Options ? Put Option :- In put options, a position is taken when a contract is purchased from the seller. In this transaction, you have to give back the shares to the seller from which you have taken and what you pay to him is your premium called, the seller is given a premium to sell shares at the strike price. See I have told you about call seller and put seller we also say them as " Writer " so don't get confused between them What is Call Buying and Call Selling ? Call Buying :- When we buy a Call, we pay the options premium in exchange to get the rights to buy shares at the strike price on a certain date, Investors most often buy calls when they are bullish on a stock. Call Selling :- When we are selling a Call option, we are selling its rights to someone of the underlying security at a set price before a specific date. The seller gets a premium for agreeing for delivering the security for a pre-set price before a set date if the buyer is demanding Which is Better Between them :- If the stock price moves up significantly then buying a call option is much better than owning the stock like the seller. If the market is In a range then Call selling is a nice option because a call seller doesn't lose a premium like the Call Buyer in ranging markets. Example of an Options Contract :- Just assume that you have forecasted XYZ and got the market will go up, So now you have decided to buy up a call and selected a strike price so that selected strike price trade at 130 now, and a call seller is looking for selling calls at 140 with a time limit of 1 month. If the share price lies below 140 till the end of the option, then the call seller keeps the shares and collects a premium by selling them to anyone else. What is Put Buying and Put Selling ? Put Buying :- When we buy a Put, we pay the options premium in exchange to get the rights to buy shares at the strike price on a certain date, Investors most often buy Puts when they are bearish on a stock. Put Selling :- When we are selling a Put option, we are selling its rights to someone of the underlying security at a set price before a specific date. The seller gets a premium for agreeing for delivering the security for a pre-set price before a set date if the buyer is demanding. Which is Better Between them ? If the stock price moves down significantly then buying a Put option is much better than owning the stock like the seller. If the market is In a range then Put selling is a nice option because a call seller doesn't lose a premium like the Put Buyers in ranging markets. Example of an Option Contract :- Just assume that you have forecasted XYZ and got the market will go down, So now you have decided to buy up a put and selected a strike price so that selected strike price trade at 130 now, and a put seller is looking for selling calls at 140 with a time limit of 1 month. If the share price lies below 140 till the end of the option, then the call seller keeps the shares and collects a premium by selling them to anyone else. The Important Thing :- Like this Idea and Follow us on Trading view. Bye Bye Hope You all Love it We will be meeting very soon till the next idea Have a Nice day and health
NSE:NIFTYEducation
by MAYANKTECHRESEARCHING
Nifty Future - Educational This Nifty Future Chart i have used in this Educational Tutorial is to summarize how many parameters keep playing in disguise on Daily Charts which is possible to track properly only in Short Term Trades . The Trade Setups for Longs / Shorts are those which i have personally Taken in markets in recent times for short term setups . The Overall Risk Reward is positive till date but not as expected due to high Volatile Markets in last 1 year XABCD Patterns used in this chart is a casual approach to show how things start making sense once the pattern is completed :) ABCD Pattern used is to Project Nifty Future Probable Target in coming days Ongoing Long Setup : Reason 1 : The Last Long Entry which was made around 15th of July is a case of Trend Change Expectation as per Time Cycle , If u notice the projected path of ABCD Pattern (from weekly chart) hasn't moved as expected but there was a price decay instead of time so this trade made a lot of sense Reason 2 : First Entered this trade around 15th of July which was clearly a Buy and i have published this idea under my profile during the day, but with following days Nifty Future hasn't even shown a single day of weakness on Daily Charts on closing basis. How i Projected Targets in advance: All Targets Projected in advance are Fibonacci levels of last swings i personally use 1.27 & 1.61 (to Project Initial & Profit Targets respectively) but if market keeps rolling without correction then i am happy to hold with trailing Stops. This is my First Educational Content for my friends/followers , Tried my best to explain the rational on chart which you can practice by urself using Bar Replays and can find my Entry Reasons which are mostly retracements of last swings . Intraday Trade Setups are totally different as most of these patterns goes unnoticed due to scarcity of time ( attaching few NIFTY ideas i shared in last few days). I will try to make another tutorial for Intraday Trade setups which i mostly trade The downside is as you start trading lower time frames our/your success rate too keep diminishing but the game is to win only via Proper Risk Reward Management in each and every single trade :) which is the hardest task but not an impossible one Do Comment , share and "LIKE" if you find this info valuable to use . Attached below few Related Ideas posted under my profile in recent time. Happy Hunting , Chintamani Disclaimer. I am not SEBI registered analyst. My studies are for educational & General purpose only. Please Consult your financial advisor if you have plans of trading or investing. You yourself hold sole responsibility of profits and your losses arising of above shared info
NSE:NIFTY1!Education
by Chintamoney
Why holding Nifty50 on Friday over the weekend can be a bad ideaIn this analysis we are just looking at the weekly days at key turn around periods. It seems that Monday tops the list of trend change, having said that this also means option seller is trying to trap people who have taken positions (in the same direction as Thursday) over the weekend. A cut throat theta decay perhaps over the weekend, followed by a trend change on Monday is a sweet spot for sellers. How can you plan your trade? Look for key day in previous three swings, and check what are the smart money strategies in terms of basic days of the week. During those days, plan a reversal trade. Dos and Don'ts for option buyer for Nifty trade setup: 1. Do not hold positions on one day prior to key date - here e.g. Monday so do not hold key overnight for Friday 2. Plan reversals based on monthly swing dates followed by trigger line method or Heikinashi Candle setup Heikinashi Candle Setup:
NSE:NIFTYEducation
by Falcon_Trader_1
The Most Powerful CandlesticksHello Everyone 👋 Before Starting I want to tell you all the names of the Candle sticks in this Part 1:- These are:- 1. Evening Star 2. Morning Star 3. Bullish Engulfing 4. Bearish Engulfing 5. Three white soldiers 6. Three black crows 7. Three Identical Crows 8. Bullish Meeting Lines 9. Bearish Meeting Lines 10. Bullish Breakaway 11. Tweezers Top 12. Bearish Breakaway 13. Tweezers Bottom 14. Falling Three Method 15. Matching Low 16. Rising Three method 17. Matching High --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 1. Evening Star:- Definition:- An Evening star is a bearish candlestick consisting of three candles used by technical analysts to detect a downtrend. It holds up a Green candle after it is a small Doji and after it a Red candle as shown in the Thumbnail. The Doji opens up in a gap with the green candle and with a gap, the red candle also gets closed. When to trade:- So to trade this we have to wait until it breaks the low of the Red candle with a confirmation when you have got the confirmation just take trade and enjoy the profit. Important The evening star pattern is also known as one of the most reliable indicators to know that a downtrend has begun. To make it more reliable traders use trendlines to confirm that an evening star pattern has occurred and confirmed or not. It is very popular between traders. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 2. Morning Star:- Definition:- A Morning star is a Bullish candlestick consisting of three candles used by technical analysts to detect an uptrend. It holds up a Green candle after it is a small Doji and after it a Red candle as shown in the Thumbnail. The Doji opens up in a gap with the green candle and with a gap, the red candle also gets closed. When to trade:- So to trade this we have to wait until it breaks the high of the green candle with a conformation when have got the confirmation just take trade and enjoy the profit. Important The morning star pattern is also known as one of the most reliable indicators to know that an uptrend has begun. To make it more reliable traders use trendlines to confirm that an evening star pattern has occurred and confirmed or not. It is also very popular among traders. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 3. Bullish Engulfing:- Definition:- A Bullish Engulfing is a Bullish candlestick consisting of two candles used by technical analysts to detect an uptrend. It holds up a Small Red candle and after it a Big Green candle as shown in the Thumbnail. When to trade:- So to trade this we have to wait until it breaks the High of the green candle with a confirmation when have got the confirmation just take trade and enjoy the profit. Important The Bullish Engulfing pattern is also known as one of the most reliable indicators to know that an uptrend has begun. To make it more reliable traders use trendlines to confirm that a Bullish Engulfing has occurred and confirmed or not. It is also very popular among traders. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 4. Bearish Engulfing:- Definition:- A Bearish Engulfing is a Bearish candlestick consisting of two candles used by technical analysts to detect a downtrend. It holds up a Small Green candle and after it a Big Red candle as shown in the Thumbnail. When to trade:- So to trade this we have to wait until it breaks the Low of the red candle with a confirmation when have got the confirmation just take trade and enjoy the profit. Important The Bearish Engulfing pattern is also known as one of the most reliable indicators to know that a downtrend has begun. To make it more reliable traders use trendlines to confirm that a Bearish Engulfing has occurred and confirmed or not. It is also very popular among traders. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 5. Three White Soldiers Definition:- A Three white soldiers is a Bullish candlestick consisting of three candles used by technical analysts to detect an Uptrend. It holds up three Green candles as shown in the Thumbnail. When to trade:- This is not a Reversal Pattern it is a continuation pattern and this shows that the trend is strong and you can stay and enjoy the profit. Important The Three white soldiers pattern is also known as one of the most reliable indicators to know that the uptrend is strong and confirmed or not. To make it more reliable traders use trendlines to confirm that the trend is strong enough for now or not. It is also very popular among traders. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 6. Three Black Crows Definition:- A Three Black Crows is a Bearish candlestick consisting of three candles used by technical analysts to detect a downtrend. It holds up three Red candles as shown in the Thumbnail. When to trade:- This is not a Reversal Pattern it is a continuation pattern and this shows that the trend is strong and you can stay and enjoy the profit. Important The Three Black Crows pattern is also known as one of the most reliable indicators to know that the downtrend is strong and confirmed or not. To make it more reliable traders use trendlines to confirm that the trend is strong enough for now or not. It is also very popular among traders. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 7. Three Identical Crows Definition:- A Three Identical Crows is a Bearish candlestick consisting of three candles used by technical analysts to detect a downtrend. It holds up three Red candles as shown in the Thumbnail. When to trade:- This is not a Reversal Pattern it is a continuation pattern and this shows that the trend is strong and you can stay and enjoy the profit. Important The Three Identical Crows pattern is also known as one of the most reliable indicators it is better than both " Three white soldiers and Three black crows. To know that the downtrend is strong or not. To make it more reliable traders use trendlines to confirm that the trend is strong enough for now and confirmed or not. It is also very popular among traders. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 8. Bullish Meeting Lines:- Definition:- A Bullish Meeting Lines is a Bullish candlestick consisting of two candles used by technical analysts to detect an Uptrend. It holds up a Green candle and after it a Red candle. Both of them Meet at the close of Red and the Opening of Green as shown in the Thumbnail. When to trade:- So to trade this we have to wait until it breaks the Opening price of the Red candle with a confirmation when have got the confirmation just take trade and enjoy the profit. Important The Bullish Meeting Lines pattern is also known as one of the most reliable indicators to know that an uptrend has begun. To make it more reliable traders use trendlines to confirm that a Bullish Meeting Line has occurred and confirmed or not. It is also very popular among traders. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 9. Bearish Meeting Lines:- Definition:- A Bearish Meeting Lines is a Bearish candlestick consisting of two candles used by technical analysts to detect a downtrend. It holds up a Red candle and after it a Green candle. Both of them Meet at the close of Green and the Opening of Red as shown in the Thumbnail. When to trade:- So to trade this we have to wait until it breaks the Opening price of the Green candle with a confirmation when have got the confirmation just take trade and enjoy the profit. Important The Bearish Meeting Lines pattern is also known as one of the most reliable indicators to know that a downtrend has begun. To make it more reliable traders use trendlines to confirm that a Bearish Meeting Line has occurred and confirmed or not. It is also very popular among traders. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 10. Bullish Breakaway:- Definition:- A Bullish Breakaway is a Bullish candlestick that can consist of many candles used by technical analysts to detect an Uptrend. It holds up a Green candle but before it makes a group of Red candles which are small as shown in the Thumbnail. When to trade:- So to trade this we have to wait until it breaks the Opening price of the Green candle with a confirmation when have got the confirmation just take trade and enjoy the profit. Important The Bearish Meeting Lines pattern is also known as one of the most reliable indicators to know that a downtrend has begun. To make it more reliable traders use trendlines to confirm that a Bearish Meeting Line has occurred and confirmed or not. It is also very popular among traders. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 11. Tweezers Top:- Definition:- A Tweezers Top is a Bearish candlestick consisting of two Dojis or Hammer or Hanging man used by technical analysts to detect a downtrend. It holds up a Green candle and after it a Red candle as shown in the Thumbnail. When to trade:- So to trade this we have to wait until it breaks the shadow price of both of the candles with a confirmation when have got the confirmation just take trade and enjoy the profit. Important The Tweezers Top pattern is also known as one of the most reliable indicators to know that a downtrend has begun. To make it more reliable traders use trendlines to confirm that a Tweezers Top has occurred and confirmed or not. It is also very popular among traders. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 12. Bearish Breakaway:- Definition:- A Bearish Breakaway is a Bearish candlestick that can consist of many candles used by technical analysts to detect a downtrend. It holds up a Red candle but before it makes a group of Green candles which are small as shown in the Thumbnail. When to trade:- So to trade this we have to wait until it breaks the Opening price of the Green Candle with a confirmation when have got the confirmation just take trade and enjoy the profit. Important The Bearish Breakaway pattern is also known as one of the most reliable indicators to know that a downtrend has begun. To make it more reliable traders use trendlines to confirm that a Bearish Breakaway has occurred and confirmed or not. It is also very popular among traders. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 13. Tweezers Bottom:- Definition:- A Tweezers Bottom is a Bullish candlestick consisting of two Dojis or Hammer or Hanging man used by technical analysts to detect an Uptrend. It holds up a Red candle and after it a Green candle as shown in the Thumbnail. When to trade:- So to trade this we have to wait until it breaks the shadow price of both of the candles with a confirmation when have got the confirmation just take trade and enjoy the profit. Important The Tweezers Bottom pattern is also known as one of the most reliable indicators to know that an Uptrend has begun. To make it more reliable traders use trendlines to confirm that a Tweezers Top has occurred and confirmed or not. It is also very popular among traders. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 14. Falling Three Method:- Definition:- A Falling Three Method Jaisa Naam waisa kaam it is a Bearish candlestick consisting of Five candles. It is used by technical analysts to detect a downtrend. It holds up a Big Red candle at the start and the End and Between them are three small Green candles as shown in the Thumbnail. When to trade:- This is not a Reversal Pattern it is a continuation pattern and this shows that the trend is strong and you can stay and enjoy the profit. Important The Falling Three Method pattern is also known as one of the most reliable indicators to know that a downtrend is continuing or not. It is also very popular among traders. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ 15. Matching Lows:- Definition:- A Matching Low is a Bearish candlestick consisting of two candles. It is used by technical analysts to detect a downtrend. It holds up a Big Red candle at the start and the End but the end one is small as shown in the Thumbnail. When to trade:- This is not a Reversal Pattern it is a continuation pattern and this shows that the trend is strong and you can stay and enjoy the profit. Important The Matching Low pattern is also known as one of the most reliable indicators to know that a downtrend is continuing or not. It is also very popular among traders. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ 16. Rising Three Method:- Definition:- A Rising Three Method Jaisa Naam waisa kaam it is a Bullish candlestick consisting of Five candles. It is used by technical analysts to detect a downtrend. It holds up a Big Green candle at the start and the End and Between them are three small Red candles as shown in the Thumbnail. When to trade:- This is not a Reversal Pattern it is a continuation pattern and this shows that the trend is strong and you can stay and enjoy the profit. Important The Rising Three Method pattern is also known as one of the most reliable indicators to know that an uptrend is continuing or not. It is also very popular among traders. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ 17. Matching Highs:- Definition:- A Matching High is a Bearish candlestick consisting of two candles. It is used by technical analysts to detect a downtrend. It holds up a Big Red candle at the start and the End but the end one is small as shown in the Thumbnail. When to trade:- This is not a Reversal Pattern it is a continuation pattern and this shows that the trend is strong and you can stay and enjoy the profit. Important The Matching High pattern is also known as one of the most reliable indicators to know that a downtrend is continuing or not. It is also very popular among traders. Hope you all like it 👍 Bye-Bye ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
NSE:NIFTYEducation
by MAYANKTECHRESEARCHING
2
The Cup & Handle patternHey everyone! 👋 Today we are going to share an informative write-up about the “Cup and Handle” pattern along with a few exhibits that may help you solidify your understanding of this chart pattern. Please remember this is an educational post to help all of our members better understand concepts used in trading or investing. This in no way promotes a particular style of trading! The post will shed some light on the following topics: → Basics and identification of the pattern → Components → Important aspects What is a Cup and Handle pattern? • The Cup and Handle is a bullish continuation pattern that resembles a cup with a handle. • The cup is visualized as the alphabet "u" and looks like a rounding bottom pattern. • The handle is formed as a range or a smaller “u”. • The cup marks a consolidation phase whereas the handle has a slight downward move, which marks a retest phase. • The handle is meant to signal a buying opportunity. When this part of the price formation is over, the stock may reverse the course and resume the prior uptrend. Components of a Cup and Handle pattern: The cup and handle chart has 3 main components: • Cup • Handle • Neckline Important aspects: 1. Prior Trend: The cup and handle pattern is a bullish continuation pattern, hence the prior trend should be an uptrend. 2. Cup length : In general, the cups with longer and more "U" shaped bottoms that resemble a rounding bottom, provide a stronger signal. This ensures that the cup is a consolidation pattern with valid support at the bottom of the “U”. The perfect pattern would have equal highs on both sides of the cup, but this is not always the case. In general, cups with sharp "V" bottoms should be avoided because there is almost no consolidation in this case. 3. Cup depth: Normally, the cup should not be overly deep. In practice, the cup depth can be up to 60-70% of the last swing move. (This can vary widely, though.) 4. Handle: The handle can occur in the form of a flag, a pennant, or a rectangular consolidation. This is the final retracement phase before the impulsive move higher. By and large, the handle can retrace anywhere between 40-60% of the depth of the cup. 5. Breakout: Bullish confirmation comes when the pattern breaks above the neckline (made using the prior highs) with a good volume. 6. Volume: In general, the volumes should decrease during the formation of the base of the cup as well as during the formation of the handle. Conversely, the volumes should pick up when the stock begins to make its move higher, back up to test the previous high. 7. Target: Using the measurement objective, the target comes out to be equal to the depth of the cup. It can be measured by calculating the distance between the bottom of the base and the neckline. 8. Stop-loss: Ideally, the stop loss is placed at the lowest point of the handle. But if the price oscillated up and down a number of times within the handle, the stop-loss can also be placed below the most recent swing low. Exhibit: Cup and Handle pattern with a failed breakout Thanks for reading! As we mentioned before, this isn't trading advice, but rather information about a tool that many traders use. Hope this was helpful! See you all next week. 🙂 – Team TradingView Feel free to check us out on Twitter , Instagram , YouTube , and Telegram . 💘
NSE:APARINDSEducation
by TradingView
16