Candlestick Analysis
Inside Mother candle rangeNIIT TECH trading in a range from past 6-7 days.....A close above or below the range needs to be looked into. RANGE 1131 -1061
Doji, Gravestone Doji, DragonFly Doji, Marubozu ExamplesExamples of Doji, Gravestone Doji, DragonFly Doji
Examples of Green Marubozu and Red Marubozu
RBL Bank trading near its Lifetime low - FPI Buy Position
Positive Points:
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- Stock is trading near its lifetime low.
- Also, RSI positive divergence can be seen on the weekly chart.
- A bulk deal done by FPI(erstwhile FII) for 256.48 rs.
Negative Points:
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- India is struggling with TRUST factor with some banks like PMC, YesBank etc. Keeping in mind, banks like RBL Bank, may be affected badly.
Nifty Inside Bar and Divergence ComboWe can clearly see the price struggling to breakout of the Weekly Levels. In the Daily, we can see a Negative Divergence with RSI (orange line) followed by Double Red Inside Bar. If today, the price breaks below the yesterday's range, we can expect quick down move.
Is this the time for correction in Reliance Industries NSE:RELIANCE
Long term trend line (without log.
It looks like one top has been formed on chart after the formation of duo bearish candles. Good correction expected.
Escorts-BuyEscorts-Buy
Current market price: Rs . 653.45
Stop loss : Rs . 634.90
Target : Rs . 748.80
Risk Reward: 1:5.14
On daily chart there is strong support, buying momentum increases and pullback is weak.
Above mention idea is educational purposes only.
INFOSYS Infosys after that dramatic fall is still reeling under pressure.
On hourly time frame it has formed triangle which depicts uncertainty.
Body of candles formed is very small which indicates no buying interest.
Need to wait till the trade comes to us.
For this expiry 650 would be the key resistance to watch out for.
Om the put side highest OI is at 600
Om the call side highest OI is at 600
CASTROLIND-BUYCASTROLIND-BUY
Current Market Price: Rs.132.00
Stop Loss: Rs.128.80
Target: Rs.144.40.
Risk Reward: 1:3.875
On daily chart there is strong support and pullbacks are weak.
Trader's Queries - Part 2 of finding trend directionThis is a classic example for explaining "tails". Price was nearing the support and both buyers & sellers were trying to take control. This was expressed by upper wick & lower wick candles formation. Support was at 462 - 464 levels. Whenever we saw battle between buyers & sellers, we have to wait for few minutes so that we can get trend direction confirmation. Jumping in to the trade seeing "tails" and buying was not a good idea.
Remarkable points: Trading is a waiting game. And winners are the traders who have patience.
Price broke the support and had nice fall. I have given the part 1 in the link below.
Therefore "tail" got negated below 462 - 464 level.
Realtime example of TAIL trade on TATASTEEL4 tails at the value high with one excess and 2 tails found at the value low with one excess. The presently fromed tail is not at excess but its a breakdown channel.
Remarkable points , recently created tail has enough shadow as comparted all others.
Therefore, Possible to fall more OR create a series of tails .
Traders Queries : Finding trend direction.Query : How to find trend direction as I am confused with tails.
Answer : Yellow line is the support which turned as resistance, Once the price has broken the support, it becomes resistance. When price was nearing the support, the candles were forming with long upper wick, which indicates more sellers were coming in. Once the support was broken, trend was bearish and selling pressure was indicated by candles, we can sell.
Conclusion : Find stocks which has broken the support to go short.
Note : Hit like to get more educational posts and please do not write comments :)
Tail and look at different things than the long term traders
There're 4 tails at the value high and, 2 tails are detected at value low for a major channel .
When the price is higher above the value high, We found the tail as price reject and reversal.
For instance, you can observe the trend is up before the tail(1) created. U-Turn has been seen after the tail formed. The same thing happened for the tail (1) to (4) in the chart. Vice-versa, Trend is turned up after creating a tail at value low.
Conclusion: Find some stocks which usually create TAILS and observe it. And You can also comment or PM me if you find the stocks. I will lead for trade setup on it.
