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Three White Soldiers | Educational | Colpal The Three White Soldiers candlestick pattern is commonly used in technical analysis. The pattern identifies potential bullish reversals in a downtrend or a period of consolidation. Traders often use the pattern and other technical analysis tools, such as support and resistance levels, trend lines, and volume indicators, to confirm the trend’s strength and potential entry and exit points. The Three White Soldiers pattern can be used on various time frames, from short-term intraday charts to longer-term weekly or monthly charts, depending on the trading strategy and goals. Disclaimer: This is for educational purpose. Definition and details can be found on any other search engine / books/ articles etc.
NSE:COLPALEducation
by IMStockwala
How TradingView is redefining the chart-analytics spaceIf you are a stock or options trader, you might not have taken the trade without analyzing the charts. Gone are those days when traders punch orders just by looking at the prices. All professional traders prefer to take the shot after viewing the chart and that too after analyzing multiple timeframes. There is one player who has made a heck of a difference in this space, it's TradingView (TV). When I started trading in 2010, I used the broker’s chart platform - it was okay, but I did not know what was missing. Later I switched to a new gen broker and for a while, I was stuck with the ChartIQ platform which the broker provided free of cost. I had heard TradingView’s name then, and also visited their website and compared the plans. I thought, who in their senses would opt for a paid plan of TV when the broker is providing it free of cost? I said to myself - I would never pay for it. Back then I had 5 to 7 indicators on my chart - MACD, Bollinger bands, RSI, EMAs, ADX-DMI, SuperTrend to name a few and my chart was pretty complicated. Just like a handwritten prescription by the doctor, I could not even read what came out from my chart. And predictably the streak of loss-making trades continued. Time passed and maybe I got mature enough to realize that the indicators were not the issue, my interpretation was. The first thing I did was to switch to the free plan of TV. Since it had a limitation of 3 indicators per plan - I had to narrow down my selection of indicators. I was left with 2 EMAs and 1 ADX-DMI that I could use with the free plan. And that restriction became a blessing, my charts were not crowded anymore & the price stood out loud and clear. My loss-making days ended there and I possibly matured as a trader. I did not switch to TV’s paid plan then - because I had no special need for it. That restriction of 3 indicators was what worked for me, a blessing in disguise. Early this year, I switched to one of their platinum brokers - Dhan . This was to get my webhooks experimentation going and it required me to upgrade to a paid plan of TV. Even though I was hesitant, I took that leap of faith and upgraded. Seems like that was the 2nd best decision that I took this year, after switching the broker. Few additional things come to you when you take a paid plan. I got access to add more watchlists and segregate them by themes. One of my recently added watchlists contains more than 249 stocks which I analyze over the weekends. These companies are with Mcap less than 3000 crores and I secretly believe 10 of them could become multibaggers over the next decade. Weeding them out is a pain though. There are 2 features TV provides even on their free plan. Publish Idea Minds Publish Idea - This is where you share your chart, analysis, or idea with the public. You need not be a professional chartist to do it - you can start at an amateur level. As your work inspires others and helps them in their trading, you start gaining their respect. Few of them may even follow you and subscribe to your ideas. You get to choose the directional bias too. If you are long on a scrip, you can mark the “long” green colored button on the last page. If you are bearish, you could select the “short” red button. Minds - TV Minds is a new feature that they introduced, it is like a room where you post commentary while trading. Other traders who are watching the same chart as yours can view, and comment on your mind and it can get pretty interactive. Once posted, it will appear on your public page under the “minds” navigation. I love both these features as they immediately notify your followers via email too. TV minds give the exact feeling of entering a trading room. You get to interact with the experts, take their opinions, and debate a bit. I am not quite sure if these can be done via their mobile app, I use it on their desktop version. And it may take a while for real deep penetration as the majority of traders in India are on a mobile device. What is the feature you liked about TradingView the most?
NSE:NIFTYEducation
by viswaram
Trading is a waste of time Trading is a waste of time - until you do this! Welcome back for another exciting video, an educational video, and an eye-opening video for a lot of traders, and I have given it a very, very interesting title that is Trading a Waste of Time. Let's find out in this short video. Recently reading a book called The Best Loser Wins. It's written by Tom Hoggard , he goes by the name of Trader Tom on YouTube .And I urge you to check him out. There are some things that I have learned from his book and I'd like to share it with you. The particular data is of 2019 and these brokers are all located in European Union and, by law they are required to post the failure rates , how many clients are losing money in their market in their accounts. Out of a hundred clients, 89 clients were in a loss. And the situation is same for almost each and every broking houses. So eventually the brokers are making money, but the clients are not. Whenever as a beginner or even a seasoned trader, we are looking at these data and we believe that we are not in this statistical data. We are in the winning percentage in the remaining 10%, but it's not like that for the markets. We are just a statistic. Right? And even if you look at the top 10 broking forms in the world, the majority of people are in a loss. So that really makes us ask this question. Is trading really a waste of time? Are we just wasting our time in trading? And a lot of people, it's a very fine detail and a lot of people might agree with me that, in the initial stages it's really hard to be consistent in making money, right? And I'll discuss the reason with you because this particular reason is not discussed. The social media of Twitter, YouTube, it has all created an image where if you're not doubling your money every month, then you are a loser in the market. But in fact, trading is a very tough profession and it's really hard to make money and initial days protecting your money is one of the biggest tasks in surviving in the market. Protecting yourself from ruin is one of the biggest achievements in trading. So whenever we are starting our journey as a trader, where is our focus? What are the questions we are looking for? What are the things we are usually focused on? , we are on the internet looking for strategies, how to do scalping, how to do seing trading, how to use the indicators, the MACD and RSI, and how we can use different types of breakout indicators, right? These are the focal points of. I remember when I started trading, these are the things I was looking for. A hundred percent strategy, no loss strategy. These are the things that I was looking for initially, but these are usually the wrong answers. You know, in an area where 90% people are in a loss, then you need to ask yourself that. Because it has never been easier to trade because you go back 10 to 15 years, it was not easy to trade. You had to call your broker. And now we have an online trading system where we can just buy and sell stocks at an instant, right? That leads to high liquidity. And high liquidity usually means you can enter and. Very fast and you don't have to pay much for it. And you have all the tools available, especially a tool like Trading View, where you get each and every trading charts, indicators without paying a single penny. So it has never ever been easier to trade. So why are we all still losing money? We are only creating brokerage for our broking firm. This takes us to another and final topic is that in the year 2019, one Forex brokerage firm did an analysis of over 25,000 traders. And over a span of 15 months or 16 months. So that is a long period of time and over five crore trades were analyzed. So it was a very big data to analyze and that would give us a clear picture. So in that analysis it was recorded that out of hundred. , the traders were profitable in 60 of them and they lost money in 40 of them. So this is a very good data, right? Your win, your hit ratio is very high in the total amount of trades. So eventually the data is in your favor, but there's a small catch . When the traders are winning, they're winning 40 points. And when they lose, they lose around 75 points. This is a recipe for disaster. This particular thing created a lot of problems for me in the initial trades during my initial career. And this might be creating a lot of problems for people who are trading for the past one or two years in this high VIX environment because, you know, on paper, on week to week basis, you are winning And, and suddenly there's one particular day when you lose it all and that is the day when it drags your capital back to square one. So this is the biggest reason why it's very difficult for people to manage their trades. Cause it all comes down to how much you win when you win, and how much you lose when you lose. This brings us to the concept of risk . right in this modern area, uh, where option selling and creating spreads and selling naked options has been a very famous thing to do for the past couple of years. That is what happens whenever you're selling options, you have a probability of one 68%. That is a one standard deviation, right? So out of hundred trades you are going to win in 68% of them. But what you do and how you come out of the remaining 30 trades when the situation is not going to go in your favor, that is all going to matter. And that is the crux of thing that makes your journey as a successful trader. Our position in the market is very, very small for the market to know that we even exist or not. If you look at the data, if you just reverse the win and the loss points, even if you're winning only 50% of the times, then also your position is going to be in a net profit. So that's it for the guys. That makes this particular question really interesting. Is trading a waste of time? You're wasting of time, or are you smart enough to realize this thing that the other traders are doing and are in a loss? And what are you doing to improve this position and to improve your survival In this market. So that's it for you guys. I hope I have provided some value in this video, and if you found the video helpful, don't forget to follow me @piyushrawtani Trading View. And if you have any queries, feel free to post it in the comments section. Thank you very much and good night.
NSE:BANKNIFTYEducation
by piyushrawtani
13
BACKTESTED PIVOT INTRADAY STARTEGY [INDIA MARKET TIMING]A Back-tested Profitable Strategy for Free!! A PIVOT INTRADAY STRATEGY for 5 minute Time-Frame , that also explains the time condition for Indian Markets The Timing can be changed to fit other markets, scroll down to "TIME CONDITION" to know more. The commission is also included in the strategy . The basic idea is when , 1) Price crosses above ema1 ,indicated by pivot high line in green color . 2) Price crosses below ema1 ,indicated by pivot low line in red color . 3) Candle high crosses above pivot high , is the Long condition . 4) Candle low crosses below pivot low , is the Short condition . 5) Maximum Risk per trade for the intraday trade can be changed . 6) Default_qty_size is set to 60 contracts , which can be changed under settings → properties → order size . 7) ATR is used for trailing after entry, as mentioned in the inputs below. // ═════════════════════════// // ————————> INPUTS <————————— // // ═════════════════════════// Leftbars ——————————> Length of pivot highs and lows Rightbars —————————> Length of pivot highs and lows Price Cross Ema —————> Added condition ATR LONG —————————> ATR stoploss trail for Long positions ATR SHORT ————————> ATR stoploss trail for Short positions RISK ————————————> Maximum Risk per trade for the day The strategy was back-tested on RELIANCE ,the input values and the results are mentioned under "BACKTEST RESULTS" below . // ═════════════════════════ // // ————————> PROPERTIES<——————— // // ═════════════════════════ // Default_qty_size ————> 60 contracts , which can be changed under Settings ↓ Properties ↓ Order size // ═══════════════════════════════// // ————————> TIME CONDITION <————————— // // ═══════════════════════════════// The time can be changed in the script , Add it → click on ' { } ' → Pine editor→ making it a copy [right top corner} → Edit the line 25 . The Indian Markets open at 9:15am and closes at 3:30pm . The 'time_cond' specifies the time at which Entries should happen . "Close All" function closes all the trades at 3pm , at the open of the next candle. To change the time to close all trades , Go to Pine Editor → Edit the line 103 . All open trades get closed at 3pm , because some brokers don't allow you to place fresh intraday orders after 3pm . NSE:RELIANCE // ═══════════════════════════════════════════════ // // ————————> BACKTEST RESULTS ( 128 CLOSED TRADES )<————————— // // ═══════════════════════════════════════════════ // INPUTS can be changed for better back-test results. The strategy applied to NSE:RELIANCE ( 5 min Time-Frame and contract size 60) gives us 61% profitability , as shown below It was tested for a period a 6 months with a Profit Factor of 1.45 , Net Profit of 21,500Rs . Sharpe Ratio : 0.311 Sortino Ratio : 0.727 The graph has a Linear Curve with consistent profits. The INPUTS are as follows, 1) Leftbars ————————> 3 2) Rightbars ——————— > 5 3) Price Cross Ema ———> 150 4) ATR LONG ——————> 2.7 5) ATR SHORT —————> 2.9 6) RISK —————————> 2500 7) Default qty size ——> 60 NSE:RELIANCE Save it to favorites. Apply it to your charts Now !! FOLLOW US FOR MORE ! Thank me later ☺
NSE:RELIANCEEducation
by The_Algo_Engineer
1
Symmetrical TriangleA symmetrical triangle is a chart pattern characterized by two converging trend lines connecting a series of sequential peaks and troughs. These trend lines should be converging at a roughly equal slope. How to identify a Symmetrical Triangle correctly 1.The sides of the triangle slope equally (that's why it's symmetrical) 2.The triangle has lower highs AND higher lows – at least two of each. 3.It looks like a funnel, with the price “squeezing” from the left towards the right.
NSE:SHAKTIPUMPEducation
by adityagupta1
Rounding Bottom PatternThe Rounding Bottom is a long-term reversal pattern that is best suited for weekly charts. It is also referred to as a saucer bottom, and represents a long consolidation period that turns from a bearish bias to a bullish bias. 1. Decline: The first portion of the rounding bottom is the decline that leads to the low of the pattern. 2. Low: The low of the rounding bottom can resemble a “V” or "U" bottom, but should not be too sharp and should take a few weeks to form. 3. Advance: The advance off of the lows forms the right half of the pattern and should take about the same amount of time as the prior decline. 4. Breakout: Bullish confirmation comes when the pattern breaks above the reaction high that marked the beginning of the decline at the start of the pattern. To trade this pattern look for the neckline that is marked on the chart. Once the price breaks through and a candle closes above the neckline, you can then enter the market with a buy order. 5. Volume: Volume levels are not too important on the decline, but there should be an increase in volume on the advance and preferably on the breakout. 6. Target: Add the height of the rounded bottom to the breakout point for an estimated upside target. 7. Stop Loss: The stop loss is placed below the neckline of the pattern.When the price trades below this point, there is less chance of this pattern’s functionality. It’s better to exit the market. The rounded bottom are reversal patterns which identify the completion of the trend and indicate a possible reversal point on price chart. The rounded bottom signals that the existing downtrend is about to finish and the possibility of an uptrend to commence. It resembles a clear “U” image.
NSE:AGARINDEducation
by MandeepSinghKohli
7
Shooting Star - Complete GuideWhat is the Shooting Star candlestick pattern? A shooting star candlestick pattern is a chart formation that occurs when an asset’s market price is pushed up quite significantly, but then rejected and closed near the open price. This creates a long upper wick, a small lower wick and a small body. The upper wick must take up at least half of the length of the candlestick for it to be considered a shooting star. And, it must appear at the top of an uptrend. As a result, the shooting star candlestick pattern is often thought to be a possible signal of bearish reversal. This means an uptrend might not continue (prices may fall). Traders should be careful not to confuse the shooting star pattern with an inverted hammer candlestick pattern. They both have a longer upper wick and small body. But the inverted hammer indicates bullish as opposed to bearish reversal. Also, the inverted hammer is often seen at the bottom of a downtrend. How to recognize it: i) Little to no lower shadow ii) The price closes at the bottom ¼ of the range iii) The upper shadow is about 2 or 3 times the length of the body What does Shooting Star tells you ? i) Shooting stars signals a potential downside reversal ii)A shooting star opens and rises strongly during the trading session, showing the same buying pressure that is seen over the last trading sessions. At the end of the trading session, the sellers push the price down near the open. or At the buying climax, huge selling pressure stepped in and pushed price lower. The selling pressure is so strong that it closed below the opening price. In short, a Shooting Star is a bearish reversal candlestick pattern that shows rejection of higher price. Before trading with the shooting star, one should remember the following points: Trade Entry: Before you enter a shooting star trade, you should confirm that the prior trend is an active bullish trend. Entry is below the Shooting Star candle low. Stop Loss: Place Stop Loss just above the high of Shooting Star candle or above recent high. Taking Profits: Minimum target is the size of the Shooting Star candle. I generally prefer 1:2 as first target. Best way to ride the move is to sit till any bullish signal is sensed. You can target previous swing lows or support zone. Examples- TATAMOTORS NIFTY NAUKRI High Probability Scenario:- i)Focus on the major Resistance levels, that’s where traders get trapped When you trade The Shooting Star candlestick pattern, you want to focus on trading the major Resistance levels (the ones which can be seen on the higher timeframe).When a level is obvious and the price breaks out of it, many traders will hop on the bandwagon and buy the breakout (hoping to catch a piece of the move).However, if the price makes a false breakout, this group of traders is trapped, and their stops will trigger strong selling pressure. Now, this is to your advantage because The Shooting Star candlestick pattern allows you to trade the false breakout and profit from “trapped” traders. So the more obvious the level, the more traders will get trapped — and you make more money. Conclusion So here’s what you’ve learned today: The Shooting Star candlestick is a bearish reversal pattern that shows rejection of higher prices. Just because you a spot a Shooting Star candlestick pattern doesn’t mean you go short immediately because you must also consider the context of the markets. Confirmation to go short is always below shooting star candle's low. Set your stop loss slightly above shooting star candle or above previous highs.
NSE:NIFTYEducation
by Omahto
8
Market Phases - Every trader must knowMarket Phases -Stock prices may appear random, but there are repeating price cycles, which are predominantly driven by the market participation. Below are the four types of market phases that occur. Phase 1: Accumulation - The accumulation phase is a stage of consolidation. There is no clear trend, and the stock is usually trading in a range. It's a span of time in which traders and institutions are slowly accumulating shares, but the market has not broke out yet. Trend traders finds difficulty to trade. Phase 2: Advancing - During the advancing phase, price breaks out of range (comes out of the accumulation phase) and begins a sustained uptrend. This stage is when the price begins moving up. The big money has established a position and retail investors are now invited to join in the profit party. This is the most profitable time to own the stock – an opportunity to let your profits run. Phase 3: Distribution - The distribution phase begins as the advancing phase ends and price enters another range period. The shares are being sold over a period of time—the opposite of accumulation. This time, the sellers want to maintain higher prices until the shares are sold. Phase 4: Declining - During the declining phase, price breaks out of the range (comes out of the distribution phase) and begins downtrend. This stage comes after distribution when price begins moving down. Now lets understand them one by one in detail :- 1.)Accumulation phase where trend traders find difficulty to trade Accumulation usually occurs after a fall in prices and looks like a consolidation period. Characteristics of accumulation phase: It usually occurs when prices have fallen over the last 6 months or more It can last anywhere from months to even years It looks like a long period of consolidation during a downtrend Price is contained within a range as bulls & bears are in equilibrium The ratio of up days to down days are pretty much equal The 200-day moving average tends to flatten out after a price decline Price tends to whip back and forth around the 200-day moving average Volatility tends to be low due to the lack of interest Examples of Accumulation - How To Trade Accumulation ?? 1.)Sell At Resistance 2.)Buy At Support Do not go blindly short at resistance, wait for any reversal candle or look for any negative price action in smaller TF. Look for reversal candles Never buy blindly on support. Look for reversal candles. Switch to smaller Time-frame find a bullish price action/ bullish chart patterns. Never Ever Trade At Midpoint In A Range Market. You never no where it will head, to the the support area or to the resistance area. 2.)Advancing phase which trend traders love — Best trading strategy is to long the uptrend After price breaks out of the accumulation phase, it goes into an advancing phase (an uptrend) and consists of higher highs and lows. Characteristics of advancing phase: It usually occurs after price breaks out of accumulation phase It can last anywhere from months to even years Price forms a series of higher highs and higher lows Price is trading higher over time There are more up days than down days Short term moving averages are above long-term moving averages (e.g. 50 above 200-day ma) The 200-day moving average is pointing higher Price is above the 200-day moving average Volatility tends to be high at the late stage of advancing phase due to strong interest Examples of Advancing How To Trade Advancing ?? 1.)Breakout Trading - Where you above the highs 2.)Pullback Trading - Where you buy support which was earlier a resistance. This is called change in polarity. Avoid Trading against the trend. If you trade then take small profits. You will get max with the trend. 3.)Distribution phase- - Distribution usually occurs after a rise in prices and looks like a consolidation period. Characteristics of distribution phase: It usually occurs when prices have risen over the last 6 months or more It can last anywhere from months to even years It looks like a long period of consolidation during an uptrend Price is contained within a range as bulls & bears are in equilibrium The ratio of up days to down days are pretty much equal The 200-day moving average tends to flatten out after a price decline Price tends to whip back and forth around the 200-day moving average Volatility tends to be high because it has captured the attention of most traders Examples of Distribution :- How To Trade Distribution ?? 1.)Sell On Resistance 2.)Buy On Support Do not go blindly short at resistance, wait for any reversal candle or look for any negative price action in smaller TF. Look for reversal candles Never buy blindly on support. Look for reversal candles. Switch to smaller Time-frame find a bullish price action/ bullish chart patterns. Never Ever Trade At Midpoint In A Range Market. You never no where it will head, to the the support area or to the resistance are. 4.Declining phase - Best trading strategy is to short the downtrend After price breaks down of the distribution phase, it goes into a declining phase (a downtrend) and consists of lower highs and lows. This is the stage where traders who do not cut their loss become long-term investors. Characteristics of declining phase: It usually occurs after price breaks out of distribution phase It can last anywhere from months to even years Price forms a series of lower highs and lower lows Price is trading lower over time There are more down days than up days Short term moving averages are below long-term moving averages (e.g. 50 below 200-day ma) The 200-day moving average is pointing lower Price is below the 200-day moving average Volatility tends to be high due to panic and fear in the markets Examples of declining :- How To Trade Declining ?? 1.)Breakdown Trading - Where you sell below the lows 2.)Pullback Trading - Where you sell on rise after a breakdown. Supports turned into resistance. This is called change in polarity. Avoid Trading against the trend. If you trade then take small profits. You will get max with the trend. Hope you all learnt from this post. Share with the community if you liked it. Regards Omahto
NSE:NIFTYEducation
by Omahto
21
Symmetrical Triangle - Full ExplanationA Symmetrical Triangle is considered a bullish signal, indicating that the current uptrend may continue. It is a bullish continuation pattern. It is a volatility contraction pattern. This means volatility in the market is shrinking and a sign the market is likely to breakout, soon. A Symmetrical Triangle shows two converging trendlines, the lower one is ascending, the upper one is descending. The formation occurs because prices are reaching both lower highs and higher lows. The pattern will display minimum two highs touching the upper (descending) trendline and minimum two lows touching the lower (ascending) trendline. This pattern indicates a phase of consolidation before the prices breakout. The symmetrical triangle pattern is different from a descending or ascending triangle pattern as both triangles’ lower and upper trend lines slope towards the center point. A horizontal upper trendline is formed in ascending triangles that predict a higher breakout. With a descending triangle, a horizontal lower trendline is formed that predicts a lower breakout. Formation Of Symmetrical Triangle Below is the formation of symmetrical triangle Identification a Symmetrical Triangle i) The sides of the triangle slope equally (that’s why it’s symmetrical) ii) The triangle has lower highs and higher lows – at least two of each iii) It looks like a funnel, with the price “squeezing” from the left towards the right iv)The bullish symmetrical triangle should be formed in an ongoing uptrend and the prices should breakout from the upper trend line. Below is the example of the bullish symmetrical triangle formed on the 15 Min chart of NIFTY. We can see how it is formed in an ongoing uptrend and prices breakout from the upper trend line in the direction of the prior trend. Entry Entry can be done after the breakout. Sometime, when the price breaks out of the Symmetrical Triangle, it might re-test the previous market structure. So, traders can enter on the pullback also. You should also look for any reversal candlestick pattern like Hammer , Bullish Engulfing in the pullback. pullback here is very small as it is in a small Time Frame (15 Min) Stop Loss :- The stop loss is placed right before the breakout point in a symmetrical triangle chart pattern. Previous low before the breakout is the stop loss. Trailing Stop Loss :- No one knows how high or low the market can go. And by trailing your stop loss, you allow the market to reward you as it moves in your favor. You can use the Exponential Moving Average (EMA) or Moving Average (MA) to trail your stop loss. You can use the 50 EMA to trail your stop loss. If the price closes below it, then you’ll exit the trade. Target :- The price target is equal to the distance from the high and low of the earliest part of the pattern applied to the breakout price point. i)Take the distance between the high and the low of the Symmetrical Triangle — the widest point of the pattern. ii)“Copy and paste it” at the breakout point iii)Exit your trade at the price projection level There is also a bearish symmetrical triangle which is a bearish trend continuation chart pattern. The bearish symmetrical triangle should be formed in an ongoing downtrend and the prices should breakout from the lower trend line. Hope you all learnt from this post. Share with the community if you liked it. Regards Omahto
NSE:NIFTYEducation
by Omahto
4
Double Bottom- Full ExplanationA Double Bottom is considered a bullish signal, indicating a possible reversal of the current downtrend to a new uptrend. Sometimes called an "W" formation because of the pattern it creates on the chart, the Double Bottom is one of the most frequently seen and common of the patterns. The Double Bottom is a reversal pattern of an downtrend trend in a financial instrument's price. The Double Bottom marks an downtrend in the process of becoming a uptrend. A Double Bottom consists of two well-defined, sharp bottoms at approximately the same price level. The two bottoms are distinct and sharp . The pattern is complete when prices rise above the highest high in the formation. The highest high is called the "confirmation point". The bullish momentum may be evidenced through a higher bottom on an oscillator like RSI . Though not required, the market may break below the first low, even if briefly. A slight and temporary break below the first bottom is preferred as it may excite the bears only to reverse and trend higher. The neckline is formed between the price low of the valley between the two bottoms. A break above this neckline will confirm the double bottom pattern. The bullish confirmation is specified by a break in the key price resistance level (neckline) situated at the high point between the ‘bottoms’. Important Characteristics Following are important characteristics for a Double Top . Downtrend Preceding Double Top The Double Bottom is a reversal formation. It begins with prices in an downtrend. The trend downwards should be fairly long and healthy. Time between Bottoms Generally, the longer the time between the two bottoms, the more important the pattern is as a good reversal signal. Volume Volume tends to be heaviest during the first bottom and lighter on the second. It is common to see volume pick up again at the time of breakout. Pullback after Breakout A pullback after the breakout is usual for a Double Bottom. The higher the volume on the breakout, the higher the likelihood is for a pullback. Two Peaks at Different Levels Sometimes the two comprising a Double Bottom are not at exactly the same price level. This does not necessarily render the pattern invalid. Trading with Double Top: There are certain rules when trading with Double Bottom chart patterns. Firstly one should see the market phase whether it is up or down. As the double bottom is formed at the end of a downtrend , the prior trend should be an downtrend. Traders should spot if two rounding bottoms are forming and also note the size of the bottoms. Traders should only enter the long position when the price break out from the resistance level or the neckline. Example: From the below example of the 15 Min chart of BANKNIFTY we can see how bullish reversal takes places after the formation of the double bottom Stop Loss & Target : In the case of a Double Bottom chart pattern, the stop loss should be placed at the second bottom of the pattern and can be trailed at the pullback low as price moves higher but this will be a bit aggressive. The price target should be equal to the distance between the neckline and the bottoms. The False Break: How to trade the Double Bottom Pattern and profit from “trapped” traders Now… When you trade the Double Bottom, you must pay attention to the time and space between the lows — the larger the “gap”, the better. Why? Because when the lows are far apart, it gets the attention of more traders who could push the price higher. And with this concept, you can use it to profit from “trapped” traders. Here’s how… The first and second lows should have time and space between them Let the price break below the first low Wait for a rejection of lower prices and then go long The idea is simple. As the price breaks below the first low, bearish traders will short the markets and have their stops above the lows. But if the price quickly reverses higher, the short traders are “trapped”. And you can take advantage of it by going long, anticipating if the price moves higher, it’ll trigger their stops and push the market in your favor. Hope you all learnt from this post. Share with the community if you liked it. Regards Omahto
NSE:BANKNIFTYEducation
by Omahto
17
Descending Triangle - Full ExpanationWhat is descending triangle ?? The descending triangle is one of the top continuation patterns that appears mid-trend. Traders anticipate the market to continue in the direction of the larger trend and develop trading setups accordingly. The descending triangle is a bearish pattern that is characterized by a descending upper trendline and a flat lower trendline that acts as support. This pattern indicates that sellers are more aggressive than buyers as price continues to make lower highs. The pattern completes itself when price breaks out of the triangle in the direction of the overall trend. Element Of Descending Triangle The descending triangle is fairly easy to spot once traders know what to look for. The below method can be applied to all financial markets. 1.)Downtrend: The market must be in a downtrend before the descending triangle pattern appears. This is important and emphasises that traders should not simply trade the pattern whenever the descending triangle appears. 2.)Consolidation: The descending triangle then appears while the market enters the consolidation phase. 3.Flat Lows Or Flat Line Lower trendline: The lower trendline acts as support. Price often approaches this level and bounces off until the breakout eventually occurs. 4.)Decsending or Lower Highs: While the market is consolidating, a downward sloping trendline can be drawn by connecting the highs. This downward sloping trendline shows that sellers are slowly pulling the price down – which provides further support for a bearish trading bias. 5.)Breakdown & Trend Continuation: After price posts a strong break below the lower trendline, traders will look for confirmation of the pattern via continued downward momentum. Calculating Target The descending triangle, often referred to as the ‘falling triangle’, has an inherent measuring technique that can be applied to the pattern to gauge likely take profit targets. For the descending triangle, traders can measure the distance from the start of the pattern, at the highest point of the descending triangle to the flat support line. That same distance can be transposed later on, starting from the breakout point and ending at the potential take profit level. The illustration below shows the distance from A to B can be transferred lower down, from C to D, in order to project a possible take profit level. How to trade Descending triangle When trading the descending triangle, traders need to identify the downtrend and this can be seen in the BANKNIFTY 15 Min chart below. Thereafter, the descending triangle appears as the candlesticks start to consolidate. The measuring technique can be applied once the triangle forms, as traders anticipate the breakout. After viewing a strong break below support, traders can enter a short position, setting a stop at the recent swing high and take profit target in line with the measuring technique.
NSE:BANKNIFTYEducation
by Omahto
19
Cup and Handle PatternA Cup and Handle pattern is a bullish continuation pattern that resembles a teacup on a candle chart followed by a breakout. The cup part of the pattern is where the price gradually changes its direction from bearish to bullish. The handle part is when the price pullback slightly before roars higher and continues the previous trend. Cup and handle is used to understand the reinforcement of the trend and explains in case you want to double your position or sustain the position for a longer time period. This pattern can take between 30 to 60 candles to form on any given time resolution. 1. Cup: The cup should be “U” shaped and resemble a bowl or rounding bottom. Generally, cups with longer and more “U” shaped bottoms, the stronger the signal. The cup should not be too deep. The depth of the cup should retrace 1/3 or less of the previous advance. Volume should dry up on the decline and remain lower than average in the base of the bowl. 2. Handle: After the high forms on the right side of the cup, there is a pullback that forms the handle. The smaller the retracement, the more bullish the formation and significant the breakout. Sometimes this handle resembles a flag. If the right side of the handle breaks above the peak formed between the cup and the handle, it confirms that the pattern is complete and that the uptrend will resume. There should be a substantial increase in volume on the breakout above the handle's resistance. The projected advance after breakout can be estimated by measuring the distance from the right peak of the cup to the bottom of the cup.
HEducation
by MandeepSinghKohli
18
Max Healthcare Institute Ltd.Daily Chart Pattern Share at all time high Break Short time Resistance Positive Volume Build Up Pro Positive last Quarterly Results OPM % grow continuously Profit before tax grow Net Profit grow and all time high Cons Company has low interest coverage ratio. Promoter Shareholding holding Jun 2020 Sep 2020 Dec 2020 Promoters + 82.24 75.25 75.25 I am not a SEBI registered adviser. All the information provided by me are for educational/informational purposes only. Never invest more then 2 % Capital In Single trade. Trade on your own Risk and analysis
NSE:MAXHEALTHEducation
by CapitalGain360
Triangle Chart Patterns , Descending Chart PatternDescending chart pattern is a type of Triangle chart patterns . Descending chart pattern is formed when price is taking a support and forming continuous lower heights. Adequate buy or short area would be after the price gives a breakout . Descending pattern you can short or buy as well . Wait for the price to give a breakout and enter in which ever direction the breakout is given . Please Share , Follow and Like if this content was useful and you gained some knowledge.
NSE:BAJAJHLDNGEducation
by Deepak_dc93
2