bankniftyaaj to bohot hi alag move dikhaya h bank nifty ne almost sub ka stoploss le kar sub ka maal kata h. aaj sub log shock the bank nifty ne 3 bar aapni chal dikhai h jisme phele half me bull fir 2 half me bohot bear and 3 half me fir se bull dikha diya aaj bohot kaam logo honge jinhone paisa kamaya hoga banknifty se warna zada tar logo ne aaj paisa gawaya h
main hamesha ek bat pe zoor deta ho hamesah trend follow kare jis tezi k sath banknifty gira tha utni hi tezi k sath cover bhi kr lia boht hi alag day tha aaj kher market jo dikhati h sub ko chooka deti h.....
Beyond Technical Analysis
How To Use Financial Ratios To Make Better DecisionsFinancial Ratios help you evaluate a company. Most financial ratios will show you how much money you're paying for a specific piece of the business. Let us give a few examples:
Price-to-Sales Ratio = Market Cap / Sales
The Price-To-Sales ratio or PS ratio tells you how expensive a company is relative to its total sales. The formula is calculated in two different ways: divide the company's market capitalization by its revenue or divide the current stock price by revenue-per-share. Because this ratio is being calculated with live price information, you can also watch it in real-time on the chart as we've shown in this example above.
If a company has a market cap of $10 billion and revenue of $1 billion, well that, that implies a PS ratio of 10. You're paying $10 for every $1 in sales. You can do ratios like this for all aspects of the company. For example, PE ratio or Price-To-Earnings ratio measures the Market Cap / Earnings . This tells you how much you're paying for every dollar of earnings .
Keep in mind that Financial Ratios are not perfect. They are also not a buy or sell recommendation. Instead they are shortcuts, ways to quickly evaluate a company, compare its underlying fundamentals, and study that company relative to other companies. You also must remember that financial metrics can change quickly with a single earnings report. A company's future expectations are also just as important. A company like Apple might have a high PE ratio, but if they're building and growing revenue into the future, their PR ratio could come down over time.
Remember, Financial Ratios and Financial metrics in general paint a picture of the underlying business and its earnings potential. Here are some other resources to get you started:
1. Read more about Financials on TradingView in our Help Center.
2. You can also code your own strategy or indicator using this financial information .
3. We've also created a library in our Help Center so you can learn more about every Financial metric .
Here are some other financial ratios that you may find interesting and how they're calculated:
PE Ratio = Market Cap / Earnings
PB Ratio = Market Cap / Book
PEG Ratio = PE / Earnings Growth
Quick Ratio = (Cash + Cash Equivalents + Current Receivables + Short Term Investments) / Current Liabilities
Dividend Yield = Dividends Per Share / Price
EV Multiple = Enterprise Value / EBITDA
To access all of the Financial Ratios available to you, click the Financials button at the top of your chart. From here, you can select many different Financial metrics and study markets at a deeper level.
More importantly, you can combine the study of Technical and Fundamental analysis at the same time. Meaning you can evaluate the fundamental side of the business including its earnings and valuation while ALSO studying price action and planning a trade.
Please feel free to share your feedback and comments below! Thank you for reading.
What is Ascending Triangle?What is an Ascending Triangle Pattern?
Ascending Triangle Pattern is a continuation pattern that means when it plays out it will continue the preceding trend. It is created by price moves that allow for an upper horizontal line to be drawn along the swing highs, and a lower rising trendline to be drawn along the swing lows. These two lines form an ascending triangle . Traders here usually watch for breakouts from upper resistance in ascending triangle patterns.
How does the Ascending Triangle Pattern work?
After the prior uptrend when investors try to book profits it creates a resistance that leads to a high supply zone . But due to the prior uptrend investors are still interested in the asset which leads to picking up in demand slowly, resulting in a rising trendline. Time in this phase is also a crucial element. The longer this pattern consolidates, the more chances it has to give a possible breakout to continue the uptrend.
Why is the Ascending Triangle Pattern Unique?
Ascending triangle patterns usually have a higher breakout success rate than symmetrical triangle patterns. In an ascending triangle , higher lows are constantly being built, which shows there is a strong demand for the asset.
Role of Volume:
Volume plays a major role in the completion of all major patterns. The horizontal trendline which acts as resistance can give spikes in volume . We will call it a breakout when a candle closes above horizontal resistance level with a great volume spike or rise in average volume .
Above Chart Explanation:
This is the 4H chart of FTTUSDT with a clear preceding upward trend. After the uptrend, we enter the second phase where the upper horizontal line becomes resistance 4 times in a row and the lower rising trendline becomes support 3 times in a row. As we have observed here FTTUSDT consolidated for nearly 1 month in an ascending triangle pattern, which finally led to a super bullish breakout.
Two Possible Entries:
Entry 1: On rising support, when the price touches the rising support trendline and if there is rising average volume , it makes a good entry with a stop loss placed below the previous higher low point.
Entry 2: On resistance breakout, we should wait for the 4H candle to close above the resistance to confirm the breakout’s validity. Once the breakout is valid, a potential opportunity would be to enter at the close of the 4H candle with a stop loss placed a little below the breakout level. Usually, we should target the height of the triangle after the breakout.
Comment down your thoughts on Ascending Triangle Pattern in the comment section.
Disclaimer:
This is just an educational post. Never trade just any pattern. And please do your research before making any trades.
Happy Trading!
PS we are posting this again for our Indian Audience.
cypher harmonic pattern #Learning #StockMarket #StockIdeas The cypher pattern trading strategy teaches traders how to correctly trade and draw the cypher pattern. The cypher harmonic pattern can be used on its own and provide traders a profitable forex trading strategy.
It is not surprising that geometric patterns are used in forex charts. And the cypher harmonic pattern is a very good representation of that. The pattern is part of the harmonic trading patterns and is the most exciting harmonic pattern because it has the highest winning rate.
This is one of the few patterns not identified by Scott Carney. It was discovered by Darren Oglesbee, and though it is technically an advanced pattern formation, it is often linked with and traded together with harmonic patterns. It has particular Fibonacci measurements for every point within its structure.
When To sell Stocks #Learning #StockMarket #StockIdeaswhen to sell a stock🧵
1) Repeated Corporate Governance issues - Exit a stock if there is news of repeated CG issues popping up every now and then. It takes a mountain to change a bad management. Better opportunities always exists.
2) If the financial performance of the company is declining - keep a watch on this over quarters to see if the performance in profits and sales is consistently going down. Attend AGM, Concalls to understand the reasons for same.
3) If the working capital days is increasing - keep a check on receivables days. A higher receivables days QoQ over a period, shows that working capital cycle is strained.
4) If borrowings increase - Check on if the borrowings have gone up due to capex or as a working capital effect. If for capex, check if company has ability to repay the same in a down cycle. Too much of leverage usually kills a business.
5) Key employees leaving the company in short interval of time - Often KMP like CFO, Compliance offer, VP, Director leave the company when they see something fishy in operations or when mgmt does not give heed to repeated red flag/warning.
6) When 5 yr Cash flow to operations(CFO)/EBITDA is less than 40% - There is no benchmark % for this but in my experience if the mgmt is not able to convert the profits into cash over a 5 yr period, it is better to exit the company.
7) When dividends are paid from borrowings - There are companies who often pay dividends from borrowings just to show they are shareholder friendly. Such companies usually bleed internally in their operations and over a point go bankrupt.
8) If Altman Z Score ratio (not applicable for financial companies) is <1.8 (in actual have it below 1.6). It uses profitability, leverage, liquidity, solvency and activity to predict whether a company has a high probability of becoming insolvent. Combine this with other factors
9) When the stock price reaches a point which no longer reflects the underlying business - This can be tricky as many a time stock price reflects sentiments of a proposed capex or potential opportunities for M&A/demerger been considered. Hence have sufficient Margin of Safety.
10) Hype & Hope story - Too much media attention can often lead to a hype created in guise of hope for a business turnaround which often leads to collapse once the frenzy fizzles out. Stay away or book profits from such moves.
11) When you feel like converting your trading position to investment position - Again having seen many (including myself at some point) convert trading position to investment, it has always lead to sunk investment. A trading stock hardly creates wealth in my experience.
12) Unrelated diversification by company - Example of Satyam is well known. Similarly when Avanti feeds acquired football team Blackburn rovers. Same with VRL logistics promoter announcing foray into airlines. Such unrelated diversification shows poor capital allocation.
13) When the investment gives you sleepless nights - Exit the investment at first go, if such investment keeps you awake all night.! If you have invested on a basis of thesis, stick on to such investment as long as rationale is playing out.
14) The company market share is falling - This might be due to competitor's entry into product lines or quality of product deteriorating. If the mgmt is not able to pull up its socks quickly, it might lose out a significant market share in no time with cascading effects.
15) When the company doesn't utilise the funds it was supposed to as per IPO - This applies usually for new IPO companies in first few yrs of Ops. If funds are utilised otherwise than for purpose it was raised for, Exit.! First signs of funds taken out of company by promoters.
16) Often investors sell stocks on basis of PE or on back of stock up in quick time. Many investors miss the journey of holding on to stocks for long time due to these factors. A company with high PE can continue to remain high for quite a long period of time without any correction.
17) At times, many of the above factors have to be combined to take a overall view. Likewise, better opportunities do come up as well for switch of stocks/industry bets. PF allocation as well matters along with diversification. Stick to your style of investing.
18) Selling stock is as important as buying one. Be invested as long as your rationale for investment and thesis is in place. Develop the urge of not selling stock when price is down but business continues to grow. Sooner or later, you will be REWARDED for your perseverance.!
How To Tweet a Chart Image Fast!We realize that sometimes you just want to get your charts out to people as soon as possible.
With the Tweet Chart Image feature, now you can!
As illustrated above, simply choose "Publish" then "Tweet Chart Image" and you'll be able to tweet the image out directly from your Twitter account to get that critical analysis to your followers fast!
What's that? You'd like to do this on your iPhone as well?
No problem, we got you.
Check out what idea users are tweeting right now here
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How to ride on a swing trade ??? Ex :AMZNHow to ride on a swing trade?
One good strategy in price action is to use 21 EMA and ride on swing trades for short or long terms. 21-day EMA can be called as the Goldilocks of all moving averages. 5,8,13 can be too tight and 50,100,200 are too loose for looking at moving averages, hence 21 EMA can be considered as a powerful average.
In this strategy 21 EMA LOW and 21 EMA HIGH are plotted on the graph forming a channel. Any channel breakout up or down triggers a buy or sell respectively. The bar which detaches with the bar which pierced out of channel can be used as a buy or sell. Please remember this bar should be in the trend up or down respectively to the earlier bar which is piercing out of the channel and not at same levels. In uptrend, high of that second bar can be used to buy and in downtrend, low of the second bar can be used to sell.
Put stop loss of one bar below for uptrend and one bar above for downtrend. Keep trailing as per the risk appetite. We can add during the trend when the candlestick bars touches the channel line and again detaches itself to follow trend, same second bar high should be used as explained earlier for buy or sell respectively.
Keep raiding this trend until the bars touch lower channel in uptrend and upper channel in downtrend respectively. There are many ways to take profit as per your money management. Book profit at 1:2 or 1:3 or 1:4 etc as per the risk. One best way is to put trailing stop loss at high of every bar, it can also be at low but if the size of bar is big and in case of reversal of trend, that bar length of profit would be lost. If the bars are too big then half of the bar can be used for stop loss to average out of profit on reversal. If the bars are far away from channel profits can be booked.
This works very well for 1 hour and above time period. Certain stocks may not fall into this strategy due to way they operate or may very rarely follow the above 21 EMA channel pattern.
Above chart is an example and we tried to put strategy as simple as we can. Exceptions to strategies will always be there, so please back test as much as you can to understand this method.
Hope this helps to gain a bit of knowledge!
Please press like or thumbs up button, if you like this strategy, Thanks
Trading Crypto/Altcoins Like A PRO! The Easy Way ExplainedIn my latest BTCUSD article I mention that it is easier to profit from the bullish/growing crypto/altcoins market by holding rather than "jumping" around from coin to coin, which can lead to some gains but in the end one can lose.
It is better to buy and hold and wait for your turn to come.
Let me detail this strategy for you in 3 simple steps.
Feel free to hit LIKE now and let's get started!
1) Diversify
You need to buy and hold and wait, yes, but you can't just put all of your funds in one coin and let it roll, the risk is too high.
What we do is to diversify.
Say you have 10BTC you split this in 10, and you have 1 BTC available to put into 10 different altcoins trading pairs.
You look at the ones you prefer, you look for charts, trades, fundamentals, feelings or any and all information that you need to support your call.
Once you have this information, now you buy and starts with the hold.
Instead of putting 10BTC into just Bitcoin or one single altcoin trading pair, you would have 1 BTC into 10 different cryptos and this is better, better risk, better potential for short, mid and long-term gains.
2) Set Your Sell Orders on Target and Define Your Risk
I lie... Waiting is not all.
Right after buying you need to set your sell orders on target and now, finally, you can just let it roll.
There are many ways to choose your targets but here are just a few examples so that you can get started right away.
You can split your sell orders in 3 batches each of 31.5%.
Example: You can have 1 sell order set at 30% profits, another at 50% profits and the last one finally at 100% of profits.
That would be a total of 94.5% that is already set to sell automatically as prices go up.
The remaining 5.5% can be kept to sell higher if the trading pair continues to grow.
There is more...
Another example: You can sell all at 40% profits or even 100 or 200%. It depends on the growth potential of the pair you are choosing and for how long are you willing to wait.
You can always jump in thinking that everything will be said and done in a few weeks or maybe 1-2 months... But be prepared, reality is much different and your wait can take anywhere between 3 to 6 months before your sell orders start to fill up.
Define your risk by making a note of when you would like to sell if prices fail to go up.
Example: If this pair goes down by 20/30%. I take the loss and move on.
We use manual stop-loss but that it is beyond this post.
3) Relax To Later Enjoy
With your funds split, your sell orders ready and the stop-loss... You are finally ready for real, to disconnect and let go.
Now you can go and read books.
Now you can go to the beach, park, mountains, or do anything that is Soul building and leads to fun...
Meditation comes to mind, deep breathing, sharing, exercising, learning & more.
Once the market does its thing...
You can come back and collect the funds.
Rinse and repeat...
The market moves in cycles, prices always move up and down, up and down... Down and then back up.
This is Alan Santana.
Thanks a lot for your continued support.
Namaste.
Indicator Free Analysis of Rounding Bottom Pattern- A Case StudyThe above chart is that of a Weekly Timeframe. Here we can see that a Rounding Bottom is formed at the top of Reliance when it is trading at all time high.
Why a Rounding Bottom is formed?
A rounding bottom marks a struggle between buying demand and selling pressure that is almost equal. In the first part of the formation, the sellers overpower the buyers thus bringing down the prices sharply until both buying and selling pressures equalize giving rise to a flat horizontal bottom. Eventually the buyers reappear and the stock edges higher. However the upward movement is not smooth and is riddled with several sharp upspikes accompanied by down spikes. As the stock reaches the previous high/ resistance, the selling pressure resumes and pushes the stock a little bit lower giving rise to a small handle i.e. forming a cup and handle pattern. However a cup may not be always formed.
What does the Rounding Bottom Represent?
A Rounding bottom can generally be seen as a form of consolidation after a strong bullish or bearish trend.
What does the Rounding Bottom lead to?
A Rounding Bottom can signal 2 changes in the stock: Continuation or Reversal. In most cases, it signifies continuation of the trend. Rounding bottom as a continuation pattern is mostly true for bull run. It signals reversal mostly in cases of bear run. However reversals are rare in Bull runs.
How to Trade a Rounding Bottom? (Trading Psychology and Strategy)
We shall discuss about the Trading Strategems keeping the above example as focus.
We can observe that the previous trend was a bullish trend. Hence the Rounding Bottom formed in the chart is most probably a period of consolidation. The Rounding Bottom formation has formed over a period of 1 year. The recent weekly candle was a strong bullish green candle (Marubozu Candle) which has closed above the left lip of the rounding bottom/ previous high of the pattern. This shows a clear breakout scenario.
Where to Enter?
We can enter at the present market price of 2380-2400 .
Where should be our Stop Loss?
Our ideal Stop Loss should be below the recent swing i.e. around 2000-2100 . If the stock forms a handle, then our stop loss should be below the handle.
What should be our target?
In case of a Rounding Bottom Pattern or a Cup & Handle Pattern, the target can be gauged from the depth of the cup or rounding bottom. Here the depth of the rounding bottom comes to around Rs 550- Rs 600. Hence the target should be Rs 550- Rs 600 from the breakout levels of 2385 i.e. our target should be between Rs 2850-3000.
Important Points to Remember:
1. Use or prefer weekly charts for identification of rounding bottoms since these patterns are formed over a long period of time.
2.Prefer trading the roundin bottoms in a bull market of if the previous trend of the stock is bullish since there is a higher rate of success and
lower chances of breakout failure.
3. Try to select patterns whose breakouts are near all time high or year high.
4. The target is generally reached between 4 to 5 weeks into trade. Thus profit should be booked timely. However one can wait for long term targets to be achieved.
5. Prefer those patterns where the breakout occurs with good volume in a bull market with a clear cut breakout (like here the breakout was given with a strong Marubozu candle with good volume).
Contribute to my efforts with cheers and coins (lol) if you learnt something valuable.
Hope you guys learn and trade responsibly only after understanding the mechanics behind the pattern. Always try to keep the analysis simple and devoid of indicators. Indicators should only be used as supplementary tools for additional confirmation and not absolute trading tools. Maintain a strict SL to restrict and minimize your losses.
Credits - Encyclopedia of Chart Patterns (2nd Edition) by Thomas N. Bulkowski
Thank you.
Indicator Free Trading of Cup and Handle Pattern - A Case StudyThe above chart is the daily chart of Bharat Electronics . Here we can observe that the stock has formed a Cup and Handle Pattern. Now I shall elaborate in detail on how to trade the Cup and Handle Pattern with appropriate Trading strategy and Psychology.
In the above chart, we can observe a stiff resistance at 160 levels for the stock. Hence it needs to be hit multiple times to make it weak and finally give a breakout. In case of a Cup and Handle Pattern, the resistance is hit a minimum of 3 times, before giving a breakout. In this case, we observe an ideal scenario which may not be the case always.
How to Trade Cup and Handle Pattern?
Trading Strategems:
When to enter?
There can be 2 fundamental ways to trade the stock.
1. Take Entry as as soon as stock breaks out of the pattern (Entry 1) i.e. at 161-163. Generally an experienced trader or a trader with good risk appetite takes entry here.
Trading Tip - Even if you have good risk appetite, do not take trade as soon as the breakout occurs. Wait for a daily green candle to close above the breakout levels and enter the next day when the previous breakout candles's high is taken out.
2. Wait for Retest of previous resistance and then take an entry (Entry 2) i.e. at 173. Generally a beginner or a safe trader takes entry here.
Trading Tip - Wait for a green bullish candle (ideally a bullish green hammer candle with a good tail) to form at the retest levels. Take entry on the next day, only when the previous bullish green hammer's candle's high is taken out.
Where should be the Stop Loss?
In every trade, we should give utmost and primary importance to Stop Loss rather than target. Only after calculating our Stop Loss, we can assess our Risk and accordingly plan the Reward or Profit. In this case, there can be 2 different SL levels for above 2 strategies:
1. For Entry 1, the stop loss should be a little below the handle i.e. 140.
2. For Entry 2, our stop loss becomes a bit less i.e at 160
Trading Tip - Do not give SL at exact levels from where the stock has bounced back. For example - In entry 1, it is better to give SL at 138 rather than 140 so that minor fluctuations do not hit our SL and then move upward. Similarly in entry 2, it is better to give Sl at 160 rather than 162.
What should be the Target?
In general, the target is calculated by calculating the depth of the cup. In this case, the depth of the cup ranges from Rs 120 - 160 i.e. Rs 40. Hence the stock will move up by Rs 40 from breakout ( or retest levels) i.e. from Rs 160 - 200. Hence our ideal target should be Rs 200
Trading Tip - In the present times, all traders use digital charts. Hence the whole world can see that a Cup and Handle Pattern has formed. Every trader knows the ideal target is Rs 200. Thus all FIIs, DIIs, automated trading systems, retail traders, etc. would have put huge sell orders at 200 levels. Hence the stock may fall sharply as soon as it touches Rs 200 due to heavy selling or heavy supply.
Thus it is better to book profits at just below the target i.e. between Rs 195-198 so that you may not lose money.
Thank you. Please like and share the idea if you learnt something..Cheer me up!
Guess the company? Fundamental Analysis [Sector : Gas & Fuel]Small cap company with good sales and profit growth on yearly basis :
Fundamental key points : The fundamental analysis involved different aspect of company from top line to bottom line items, cash flow, financial ratio, order books, etc.
This analysis based on simple ratio and past growth figure for better understanding.
- Price/Book Value : 2.25 = It means share is trading at 2.25 times from book value, BV = Rs.72 v/s CMP = Rs 160 : Lower the better
- P/E : 7.72 = It means how much price you are paying to company for its earnings per share (P = Rs.160 , No of Share = 2.10 crores, Earning = Rs ? - Plz calculate)
Lower the better, as per industry norm less than 15 is considered as favourable/undervalue but also depend on industry to industry.
- 3 Years Net Sales CAGR : +100 % = in simple term sales compounding : Higher the better
- 3 Year Profit CAGR : +100 % = in simple term profit compounding : Higher the better
- 1 Year ROE : 50% = in simple term Return of investment : Higher the better
- additional to this please also refer current ratio (more than 2 is consider favourable) , debt/equity (less than 1 is consider favourable), ROCE% (Higher the better).
Technical key points : - price at resistance level , RSI positive , volume build-up
Disclaimer : Analysis for learning purpose only not any kind of recommendation !!