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Beyond Technical Analysis

Trader's Queries - TataSteelQueries are in the chart. When you enter/take any trade, you should know your stop loss, targets and duration to carry on with the trade. The direction of the price wont affect your capital if you have a proper plan about the trade. It will save your capital and will make you profitable in long run. No one knows how long a trend will have strength, how many days/weeks the same trend will remain. But everybody knows price will retrace or reverse. So when the trade you took works well & if it is moving beyond your targets, book partial profit and trail the profit for the remaining position. This will help you to get maximum profit from the market. When the trade you took is not moving as per your expectation & reversing means, book loss at the decided stop loss. Dont hesitate at that time. It will generate huge loss if the price has reversed.
NSE:TATASTEELEducation
by vanathi
4
7 Phases of stockI believe, there are no bulls and bear in the market, there are just stock operators. These operators are the people/institutions with the big money and resources to take stock from point A to B and then back to A. Read below in your free time to understand, how operator runs stock, trap retailers & how they generate profits. And in the whole process, how and when retailers lose their hard earned money. Phase 1 - Pumping In this stage consolidation happens, the longer the consolidation time frame the better stock will move. Phase 2 - Increase in OI If the stock is in Derivatives then they will buy calls, futures & short puts before Bull Run. Phase 3 - Breakout Buy with the huge volume for a day or two, to push stock beyond resistance zone. This is the phase when every financial advisor generates call for retailers and this is the phase when retailers get their 1st loss because of phase 4. Phase 4 – Shakeout (Dump in small quantity) Now the operator dumps stock in small % of quantity bought and this is the phase where they hunt for retailers SL. If someone bought shares for Swing trade (For 1 or 2 weeks time frame), then there SL will get triggered first. Swing operators usually view charts in 2 hours timeframe. These people usually keep their SL of certain candle low or below VWAP or some pivot point or maybe some other indicator (1st mistake retailers think that the operator is stupid & doesn’t know how retailers think or where they keep their SL). Definitely thinking that we can outsmart these people so easily is the biggest mistake retailers make. If someone bought shares for short-term duration (Less than 1 year or usually 3 to 6 months) then there SL will be triggered next because there SL will be somewhere in the consolidation phase depending upon the risk appetite. These retailers usually view charts in 1 Day time frame. In this Phase operators cover the interest cost and make small profit on the amount invested for so many months. Remember depending upon the market condition like during Covid Fall recovery when free lunch was getting served to all retailers operators skip this phase. Phase 5 – Stock Rally (Bull Run) Again breakout, in this phase small institutions or investors enter into the stock or average out their buying. Now the retailers who already lost their capital in the stock will not enter because of fear or hate from the stock (Yes emotions play an important role in the market). In this phase small institutions, investors, retailers buy/sell stocks and book small profit & losses. Definitely losses are booked by retailers who have bought shares without research and are gambling with their money. Phase 6 – Stock Dance Operators will make stock dance for few days to generate retailer’s interest for quick 5 to 15% return and trap some on the higher price. Phase 7 - Dumping (Bear Run) Before dumping they will again go long on put & short futures/call. Now those who have bought shares for Swing will book small losses & short term/long term retailers are gone because stock sometimes takes years to come back on the buying price. In this phase retailers won’t even get the time to exit from the stock. In the stock market there is no lift. When stock goes up, it takes the stairs (Up-Down-Up), stock gets tired, it rests and then again starts it journey & when if falls then it is always jump from the terrace (Free Fall). In this whole process, Operators, small institutions or investors generate good profit, doesn’t matter whether it’s going up or down they make money and retailers lose money if not in 1 stock then in another. Now the question is how a retailer can save themselves from these sharks, who are there to take pound of flesh and how can a retailer take profit from their jaw. Follow this 3 Step process to get success in the stock market. 1. Knowledge & Setup – Get detailed knowledge of all the instruments & major indicators available in the market. Create your setup, decide your time frame, calculate your risk appetite and back test your system. 2. Research – Do extensive research on the stock, decide your entry, SL & exit strategy before investing in any stock or instrument. This research can sometimes takes days or weeks to find the right entry and if your entry and timing is right then 80% of the battle is won. 3. Disciple – Trade like a robot & never allow your emotions like fear & greed to overpower you. Know when to average, book loss and take profit. Without mastering these 3 steps one cannot make a profit in the stock market. Remember without these 3 steps you will just bleed more & more in the market. Don't be a bull or bear, be a opportunist (Be an Eagle).
Editors' picks
NSE:ANDHRSUGAREducation
by Vinay227
37
Distribution Phase ExplainedThe distribution phase is when large funds and institutional investors sell their shares at a high price in order to maximize their profit. Because institutional investors and large funds hold large positions (> 1 million shares), they cannot close their positions with a single sell order because doing so will draw attention to the stock, causing other market participants to sell their positions as well. It's important to remember that institutional investors want the highest price to close their positions because their primary goal is to maximize profits, which is why they spread out the distribution phase over time rather than emptying their position in a single day. The institutions' plan of not to sell their entire position in a single session furthers their goal of selling at high prices because it misleads retail investors into believing that the stock still has room to rise, and the retail side begins buying (increasing demand) while the institutions are selling (exiting at high price). This is referred to as a buying climax. (From the institution's perspective) How can we us retailers identify distribution? Long legged Doji and shooting star candles with high volumes can be seen in the chart above near the resistance zone of 665-685 levels. High and ultra-high volumes indicate the presence of large funds (Mutual-funds, Pension-Funds, etc.). Observing the Doji candle and the shooting star candle in conjunction with their respective high volume bars as highlighted indicates that institutions are selling at high prices of 665-685 levels which has been tested several times. This is a good time to sell stock and take profits, but some retail investors are starting to buy now, expecting prices to rise even further! Sometimes, it's also referred as bull-trap! The mark-down phase follows the distribution phase. Prices begin to decline and make lower lows and lower highs during this phase as institutions begin to book profits. The mark-down phase is also marked in the chart. It is best to avoid buying during the markdown period, as prices tend to decline sharply in this phase. This was an educational post to help you better understand the distribution phase, and possibly avoid being trapped on the wrong side of the trade. Happy learning!
BSE:RAMCOSYSEducation
by anaida_sultana
2
How to Execute the Trend trading system?Look for Low risk, High reward, and High Probability setups. – Richard Weissman Scenario Many traders get destroyed by fighting the trend, insisting that the market is due to reverse itself or they try to chase the market. They may try to catch short-term countermoves in hopes of making a few quick points, or they may always look to catch tops and bottoms in hopes of capturing the big moves. All these traders end up trading against the longer-term trend and against the odds. How to find low risk, high reward, and high probability setups? Use of Trend Following indicators for High Probability trading A-Use of Moving average. If you just jump into trades because the market is trending, you will be guilty of chasing the market. You have to remember that the market will never go in one direction nonstop, the market typically congests or retraces after a strong move. When the market is trending and you are looking for a place to get in, wait for it to retrace to one of the moving averages or trendlines. When the price is just riding on the moving average or trendline, your downside risk is smallest because you know you will be out as soon as it breaks the line. B-Use of ADX (only for conformation) The ADX does not tell you the direction of the trend; it only tells you if there is a trend and measures how strong it is. On its own, the ADX lags price action and is not a great indicator, and so one should not use it to trigger trades. Instead, it should be used as a way to get confirmation of whether the market is trending or choppy and how strong it is . The level between 20 and 30 is considered neutral. The higher the level, the stronger the trend. When it is rising, one should trade only in the direction of the trend. When the ADX is below 20, you can consider the market to be choppy and range-bound, and a trending system will not work well, resulting in whipsaws. Things to Remember while Trading with the Trend 1. Know what the trend is. 2. The best trades are made in the direction of the trend. 3. Assume that the main trendline or moving average will hold. 4. The longer the moving average is, the better it defines the trend. 5. Wait for the pullback. 6. Don’t chase the market. 7. Don’t fight the market. 8. Even in the strongest trends there should be some retracement. 9. The closer the market is to the trendline, the better the risk/reward ratio is. 10. Use ADX to determine the strength of the trend. 11. Higher the level of ADX, the stronger the trend, below 20 consider the market to be choppy 12. Hold trades longer in a strong trend. 13. Wait for confirmation of a trendline breaking before reversing position. 14. Know where the Support levels are. 15. Place stops outside the Support levels. Closing Words- A successful trader will trade primarily in the direction of the major trend, waiting for retracements to get in.
Editors' picks
NSE:WIPROEducation
by Indrajit08
61
WaveTalks - Nifty -The Piercing Pattern at 16180This short video will discuss my reasons for having bullish bias towards stock indices. False breakdown below 16180 Piercing Candlestick pattern close to 16180's - Two times Heavy weight -HDFC yet to finish final target @ 2900+ Let me know your comments. Thanks for watching the video. -------------------------------------- Last Idea on HDFC -------------------------------------- -------------------------------------- Last Video Idea on Nifty ---------------------------------------
NSE:NIFTYEducation
by WaveTalks
9
GreenLam. How to set Targets when stock are at all time high.Understanding the overall structure. :- Here it is simple higher high higher low structure. Stock currently above previous higher high. How to Set Targets using Fibonacci extensions. First Identify the swing. here it is 308 to 1389. then place Fibonacci tool. After placing look at 38.2% 50% 61.8% levels if the stock has faced major resistance or support or consolidated for some time then the swing identification is correct. Look for extension levels. You'll get your targets. Looking at the momentum review the potion at each extension levels .
NSE:GREENLAMEducation
by varadtambolkar
4
Trader's Queries & Newbie's corner - Can everybody trade? Part 4Prologue : Trading seems to be the perfect solution in tough times. When there is no hope, trading gives easy ways to earn money. Share market looks so mesmerizing with so many good promises. Thrills everybody with its twists and turns. Who will escape from its attraction? Who dares to challenge it? For every tick, it makes the heart beat faster, making the hormones to addict to it. Who dares to control their mind? U do ? Query : This week's most asked query. I have 2 Lakhs in my savings and lost job recently. Can I start trading to fulfil my family needs? Finding job in this pandemic has become tough. Can I trade with borrowed money? Answer : Ok, lets take few examples. An engineer lost his job. Can he start doing surgery to earn money? To fulfil his family needs? A pilot lost his job. Can he start to work as a software engineer to feed his family? Does not sound logical or correct, right? Now read the query again. Step 4 : Everything has a right value. Stock market price moves up when there is demand and price falls down when there is supply. A person gives more emotional attachment to money when he has financial problems. A trader trades well when he give the right value for the money. When a trader under values money, he gets greed, risks more and trade without proper position sizing. When a trader over values money, he get fear and miss good trading opportunities. Can you understand now how emotions make a trader to trade with out discipline? To become an engineer, a person has to complete B.E in engineering. To become a physician, a person has to complete MBBS. To become a trader is there a degree qualification? No. But it does not mean without proper education you can be profitable. You can be profitable if you have proper trading education and education. Everybody can trade with proper education. (to be continued...)
NSE:CNXPSUBANKEducation
by vanathi
8
How to Identify the trend in the Stock? - EducationHi Guys, Welcome to Thenali Views? Today we are going to learn how to identify the trend? What is Trend in the Market? In layman language: Stock moves higher and higher its uptrend or Stock moves lower and lower in downtrend. Then.... What is a Range Bound or Consolidation? When the stock moves in a within range for period time its consolidation. But you look at broader picture of the market, it's has 4 Stages.... Stage 1 : Accumulation: This stage occurs after a decline in price and looks like a range market in a downtrend. Its Look things for: 1. Occurs after the price fallen over a period of last 4 months to 5months or more in daily time frame. 2. It looks like a range market with support and resistance in a downtrend. 3. 200 days Moving Average looks flat. 4. The Price move back and forth around 200 days moving average. Stage 2: Advancing: After the price breaks out the accumulation phase, its move to advancing phase (an Uptrend) In this Stage: 1. Its usually occurs after the price breaks out the accumulation phase. 2. Here its a important thing... the price forms Higher Highs and Higher Lows. 3. Short term MA (Ex. MA50 or MA20) is above MA200. 4. MA200 pointing higher and price of script is higher above MA200. Stage 3: Distribution: Distribution usually occur after advancing phase (Uptrend) and its look like a consolidation. In this Stage: 1. Its usually occur when the price have risen over the past 6 months or more 2. Its looks like a long period of consolidation during uptrend 3. The 200MA tends to flatten out after price decline 4. The price tends to move back and forth around MA200. Stage 4: Final Stage: Declining: After the price breaks as result of distribution phase, its goes to declining stage ( Downtrend). In this Stage: 1. It usually occurs after the price breaks the distribution zone. 2. Here its important...the price forms a series of Lower High and Lower Lows. 3. Short term MA (Ex. MA50 or MA20) are below long term MA (200MA) 4. MA200 is pointing lower and price below the MA200. So Guys in this we have learned the stages of trend in the market. In this chart we can analysis the trend.
NSE:FEDERALBNKEducation
by Caapinves
5