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Chart Patterns

DOUBLE TOP TUTORIALEducation Double Top chart pattern A double top chart is a classic bullish reversal, which signals end for bullish rally. This chart pattern help traders to exist their trades if they go long on certain instrument and get prepared for selling opportunities after the break of neckline. This chart pattern should only be considered when there's existed bullish rally on a timeframe. And sell trades should strictly be taken only after the break of neckline. Traders can target next demand zones and stop loss above neckline or previous resistance.
BITSTAMP:ETHUSDEducation
by CELGIB_TRADING
Rounding Bottom patternHey everyone! 👋 Today we are going to share a quick write-up about the “Rounding bottom” formation, along with a few examples 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 Rounding bottom pattern? • A rounding bottom is a bullish reversal pattern that resembles the shape of the "U". • Rounding bottom pattern occur at the end of long downtrends and indicate a potential reversal. • The pattern is also referred to as a saucer bottom due to its resemblance to a saucer. • Although, the volume and price move in sync but in practice, this can vary widely. • When the price moves above the neckline, it indicates strength and suggests that the stock may begin a new uptrend. Components of a Cup and Handle pattern: A rounding bottom pattern can be divided into three main parts. • Decline • Formation of the base • Advance Important aspects: 1. Prior Trend: Since it is a bullish reversal pattern, the prior trend must be a downtrend. The low of a rounding bottom should ideally mark a new low or reaction low. The stock may trade sideways or flat for a long duration before the formation of the pattern. 2. Decline: The sell-off or decline that leads to the formation of the low, can take a variety of forms. Sometimes, the down move has many whipsaws while other times, the stock may just trade flat. 3. Low: In general, the pattern resembles a "U" shaped bottom. However, it can also resemble a "V" or a "W," but the low should not be too sharp. In addition to this, there is always a possibility of a new low due to a selling climax. 4. Advance: In general, the formation of the right half of the pattern should take about the same amount of time as the left half. This means that the up move off the lows should take about the same time as the down move. Moreover, the advance shouldn't be too sharp, or else there is a possibility of breakout failure. 5. Breakout: The pattern is confirmed once the price breaks and sustains above the neckline. The price may return to the neckline to test for the demand before continuing upwards. 6. Volume: In general, the volume levels should be ➡ High during the down move ➡ Low during the formation of the base ➡ Rising during the up move However, these are only guidelines and should not necessarily be taken at face value. 7. Target: Using the measurement objective, the target comes out to be equal to the depth of the base. 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 base. But if the price oscillated up and down a number of times near the neckline, the stop-loss can also be placed below the most recent swing low. Exhibit: Rounding bottom 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 Instagram and YouTube for more awesome content! 💘
Editors' picks
Education
by TradingView
9
Different Methods to Identify Perfect Entries with ConfluenceBasics of Trading and the areas of interest of every trader to have minimum knowledge to understand the market and its movement. Volume Based Entries Basics of Volume When the price is trending volume will be above volume moving average that will be considered as trend, when volume is too high in a session thats higher than 3x to volume moving average that will be considered as climax which means maximum orders are filled in the exsisting trend. Apart from stocks if such Climax pattern in volume in any format is seen then consider there might be a reversal soon. If one is trading in the stocks you get to see this ultra high volumes in gap ups and gap downs, now you will have to know what sort of gap it is to take entries which we will discuss in the Gaps later. -------------------------------------------------------------------------------- Gaps Gaps theory needs to be understood properly, over 4 kinds of Gaps are found in charts. Simple understanding follows : Common Gaps : Normal gaps that happen every day with in a ranging market Break Away Gaps : If a range/pattern/Support or Resistance is broken with a gap that is called break away gap. This sort of gap happens in the early stages of trend. Running Gaps : After breakaway gaps rest of the gaps if happened towards the trend is called running gaps. as long as there is an exhaustion gap. Exhaustion Gaps : This Exhaustion Gap happens either up or down after an up trend or the same in a down trend. These gaps gets filled giving an idea that the trend has ended. Consolidation Areas Consolidation areas or the trading ranges are to be considered as Support & Resistance areas to identify for patterns like Triangle, wedge, flag, pennant, or rectangle patterns. good areas to look for gap up or down and volume to identify breakout for the next move or plan for the next session. Fib Extension & Retracements Fibonacci extention and retracements is the basic knowledge that any trader who is willing to learn about technical analysis should be considering learning in depth, its a basic tool that gives you a lot of info, Basic knowledge to know is Fibbonacci Retracement is used to identify the entry and Extension is used to identify the exit. levels of interest are called the golden ratio i;e: 38%, 50%, 62% this is where majority of the reversals happen, these can be considered as Support & Resistance zones to look for breakout entries Support & Resistance Every traders nightmare is to understand or identify S&R in the initial days of your trading is not because you cannot ... it is because you are too curious, anxious, exited to enter into a trade, once you calm down and try to understand the market its not that hard to identify them ... S&R areas are the reversal zones or breakout zones it is going to be a big topic if tried to explain the whole concept so lets just stick to basics and use pivot high and low and FIB levels as your support and resistance zones for now. Trendline Breakout These are first thing that any trader learns try to master them, a perfect trendline is considered a strong support in uptrend or resistance in downtrend when it has respected this line for least 2 times from its start point. A breakout gives you and opportunity to enter in to a trade. Elliott Wave This is not considered as entry point in the initial stages of learning but one should know the basics of elliott wave to identify the trend we are in by looking at the leg we are in and you can calculate the trend by given wave length through fibonacci ratios. Only thing that you need to know is that market doesnt move in a straight line like you see in elliott wave picture above there will be waves with in waves. Try to bring all these together as confluence to understand the market move and take entries. Note : Train the eye to identify the structure, then comes the logic and explanation.
Editors' picks
NSE:YESBANKEducation
by TeamTaurus
14
Gap up / gap down intraday strategy with simple entry / exitI get queries from a lot of people who don't want to study technical analysis much. They're just focused on getting a predefined trading strategy, which they can use effectively in the market without looking much at the charts . So, in this video, I share a strategy which has been given really good results and it works a lot of times and I believe the probability of this particular strategy is close to around 65 to 70%. It has simple entry and exit rules, and you can only apply this particular strategy when the market opens gap up or gap down. See, whenever the market opens gap up or gap down, there is high volatile period of the market during the beginning half an hour or an hour. And in that period of time,if you place a trade, then you have a good probability if market moves as per expectation. As you can see these days, nifty and back nifty have been creating gap up and gap down opening almost on a daily basis. In this case, the first rule is that if the market opens gap up by more than half a percent. So for example, if bank nifty opens gap up by more then 200 points. , then only you can apply this strategy. And on the other hand, if nifty opens gap up or gap down by more than 50 or 60 points, then only you should think of applying this particular strategy. Small gaps do not count in this strategy. So if bank nifty gaps down or gaps up by only 50- 60 points, then avoid this strategy altogether. See, whenever the market is opening gap up or gap down, there are two possibilities. The market might continue the current trend. For example, if the market opens gap up, the chances are that the market might move higher, or the other possibility is that the market might go sideways the whole day. So ,in this case, whenever you see the market opening gap up or gap down by more than half a percent, just have to follow this simple procedure. Just plot the 15 minute chart with a 20 exponential moving average. Why 20 exponential moving average because the market usually gets good support and resistance around the 20 moving average. You can expect the market to stall around the moving average for a lot of times if you take a trade. So ,you just have to plot the 15 minute chart, and if the market gaps up or gaps down, you just have to watch the first 15 minute candle. So if the market opens gap up and it forms a bullish candle. Then , what you can do is you can sell puts if price breaks the first 15M candle high. You can sell puts with the stop loss at the low of the candle. If the market comes below the low of the candlestick the first 15 minute bar, then you exit your position and book the loss. Why sell puts? The idea behind selling puts is that during the first 15-30 minutes, the volatility is on a very higher side during that period. And if at that point of time you start to sell options, then with the passage of time, as the market starts to move sideways, the volatility reduces. And, what occurs is a concept called IV Crush. The volatility starts to reduce very quickly and that will give you a benefit if you sell a put, even if the market goes sideways. So for example, the market formed a very big bullish candle, and the criteria is if it crosses the high of the candle ,sell puts . So, the whole day, if the market is moving sideways/upwards , the volatility crush will start to happen. And with the passage of time, you'll start to see the benefit of the IV Crush and the time decay. So this is a very handy strategy which you can apply. Always remember, keep the stop loss below of the first 15M candle. It's a very effective technique, and it's based upon gap openings. And ,the first 15 minutes usually tell us who is on the stronger side, who's winning , buyers or sellers. So make sure the gap is big and whatever bar is being formed in the first 15 minutes. If the bar is bullish, you sell a put If the price crosses the high of that candle stick, and stop plus below the low of that candlestick. It's an effective rule based strategy and you can back test it on nifty and bank nifty. And you can also check its reliability, its effectiveness, you can also add this particular strategy in your tool kit. So I hope this strategy will provide some sort of value to you in your trading. And if you find the video helpful, don't forget to like this and share it and also comment your thoughts. Thank you very much and take care.
Editors' picks
NSE:BANKNIFTYEducation
by piyushrawtani
26
Few Most Profitable Chart Patterns1) Double Top, a Bearish reversal chart pattern It is a trend reversal chart pattern formed after good bullish price movement (a continuous upward price movement for a good duration) where the upward price movement loses its steam (formed a first top) and it retraces a bit (to neck line or mid point). Then again it moves in direction of original trend and reaches the first top level there by forming second top . It again cannot move above first top and start moving to neckline (NL). Once the neck line is broken its fall in price is steep. There starts a downtrend. Target The Height of the tops will be taken as a target. Stoploss It is recommended to keep a stop loss of 1.5% above the neck line. 2)Double Bottom, a Bullish Reversal Chart pattern It is a trend reversal chart pattern formed after good bearish price movement (a continuous downward price movement for a good duration) where the downward price movement loses its steam (formed a first bottom) and it retraces a bit (to neck line or mid point). Then again it moves in direction of original trend and reaches the first bottom level there by forming second bottom . It again cannot move below first bottom and start moving to neckline (NL). Once the neck line is broken its rise in price is steep. There starts an uptrend. Target The Height of the bottoms will be taken as a target. Stoploss It is recommended to keep a stop loss of 1.5% below the neck line. 3)Cup & Handle, A Bullish Continuation pattern It is a pattern where the Price movement of a chart resembles a teacup . It consist of two parts: 1) A cup: A cup formation happens when the price moving in a uptrend shows a pull back followed by a consolidation period which makes the bottom of the cup and finally the reverse back to upside continuing the uptrend. Usually the pattern looks like a 'U' to round bottom. The deeper the 'U' or round shape the reliable the pattern is. 2) A Handle : After the formation of right highs of a round cup, there is a pull back before continuation of the trend which forms the handle of this pattern. It is formed in the right hand side of the cup. Entry: A Neckline breakout supported by huge volumes is the confirmation of this pattern that the previous trend has resumed. Trade should be taken only after the neckline Breakout Target : The height of the cup will be taken as a target. Stoploss: Stop loss should be placed under the handle low
HEducation
by Divyaapugal
4
📚Learn More💰Earn More - Inverse Head and Shoulders in UNIUSD📚 LEARN MORE 💰 EARN MORE Inverse Head and Shoulders Definition: A head and shoulders pattern is also a trend reversal formation. It is formed by a Valley (left shoulder), followed by a Lower Valley (head), and then another Higher Valley (right shoulder). A “Neckline” is drawn by connecting the highest points of the two Peaks. Neckline resistance does not need to be strictly horizontal. This illustrates that the downward trend is coming to an end. When a Head and Shoulders formation is seen in a downtrend, it signifies a major reversal. The pattern is confirmed once the price breaches the neckline resistance. In this example, we can easily see the head and shoulders pattern. How to Trade the Head and Shoulders Pattern: ENTRY: we put an entry order above the neckline. TARGET: We can also calculate a target by measuring the lowest point of the head to the neckline. This distance is approximately how far the price will move after it breaks the neckline. ❤️ If you find this helpful and want more FREE forecasts in TradingView . . . . . Please show your support back, . . . . . . . . Hit the 👍 LIKE button, . . . . . . . . . . Drop some feedback below in the comment! ❤️ Your Support is very much 🙏 appreciated!❤️ 💎 Want us to help you become a better Forex trader? Now, It's your turn! Be sure to leave a comment let us know how you see this opportunity and forecast. Trade well, ❤️ ForecastCity English Support Team ❤️
Education
by ForecastCity_ME
'SWING' your losses into profits with 'SWING' trading strategiesIn prior posts, we have covered some great teachings about the market and, in this post, we will elaborately cover the swing trading strategies. Let's start !! ->Definition of swing trading -: Swing trading is generally referred to as a trade carried out for a short time. Swing traders do not wait till the price action opposes their direction, they are known for their prior moves. They are good at identifying the shifts in market trends with the help of various techniques which are explained throughout this idea. Swing trading strategies include the use of Fibonacci, Bollinger Bands, Channel Trading, Moving Average, MACD crossover, and better understanding of chart patterns like Head & Shoulder, Flag, and Triangle Patterns. We will discuss chart patterns, later on, now let's focus on the indicator strategies. - >Swing trading strategies -: ->Fibonacci Retracement: The stock price tends to retrace, and swing traders use this retracement as an opportunity to enter a trend. The retracement levels could be identified using Fibonacci Retracement, all you need is to identify the prior trend and if the price retraces to the 0.618 level and again resumes the trend jump on it and ride the position till it reaches 0.236 level. ->Bollinger Bands : Most probably, the stock price tries to move in the Bollinger band, which is used by swing traders to initiate and terminate their position. Firstly you need to identify the major trend, let's suppose it's bearish than when the price reaches the upper bound and there is a formation of a bearish candle you could initiate a short position also when a bearish candle is formed at the median, there also you can initiate a short position. ->Channel Trading: Sometimes, stock price trades in a channel now this channel is used by swing traders i.e. when the trend is bullish they try to take long position at the lower range of channel and book partial profits on median and wait for the price to reach the upper end. ->Moving Average: Here traders identify the major trend and take position according to it, with help of crossovers they generally prefer 10DEMA crosses 20DEMA. ->MACD : This is a simple strategy where the trades are initiated when there is MACD crossover but the cross should correlate with the trend. My Observation-: These strategies could be more accurate if used to trade with the trend, i.e. if the stock is in an uptrend only take positions for a positive signal and just avoid negative signals. Another basic strategy is to take a position when a script moves above the swing high or below the swing low, here the only thing to ponder is to manage your risk. Don't take over positions understand your risk appetite then take positions.
Editors' picks
NSE:NIFTYEducation
by Chaser30
20
Intraday Consolidation Breakout ExplainedOK let's get started , A Day Trading (Intraday) Consolidation Breakout Indication Strategy that explains time condition for Indian Markets . The commission is also included in the strategy . The basic idea is , 1) Price crosses above upper band , indicated by a color change (green) is the Long condition 2) Price crosses below lower band , indicated by a color change (red) is the Short condition 3) ATR is used for trailing after entry // ═══════════════════════════════// // ————————> TIME CONDITION <————————— // // ═══════════════════════════════// The Indian Markets open at 9:15am and closes at 3:30pm. The time_condition specifies the time at which Entries should happen . "Close All" function closes all the trades at 2:57pm. All open trades get closed at 2:57pm , because some brokers dont allow you to place fresh intraday orders after 3pm . NSE:NIFTY1! // ═══════════════════════════════════════════════ // // ————————> BACKTEST RESULTS ( 114 CLOSED TRADES )<————————— // // ═══════════════════════════════════════════════ // LENGTH , MULT (factor) and ATR can be changed for better backtest results . The strategy applied to NIFTY ( 3 min Time-Frame and contract size 5) gives us 60% profitability , as shown below It was tested for a period a 8 months with a Profit Factor of 2.2 , avg Trade of 6000Rs profit Sharpe Ratio : 0.67 The graph has a Linear Curve with consistent profits. NSE:NIFTY1! // ═════════════════════════// // ————————> INPUTS <————————— // // ═════════════════════════// For the Back-Tested results : LENGTH ————————> 30 MULT_STDEV ——————> 3 ATR TRAIL ————————> 2 Save it favorites. Apply it to your charts Now !! Thank me later ;)
NSE:NIFTY1!Education
by The_Algo_Engineer
30 mins candle sticks strategy for next day trading setup 30 mins candle sticks strategy for next day trading setup : I want to share a strategy which is based on candle sticks price action and the time period we should take as base. If we are able to find the setup at right time (trading sense) then win rate would be 60%+, works well in trending market; side ways market this setup may not work. Stop Loss is key and ensure to put it along with the entry. Calculation of SL is an art and science, spend time on understanding it first before catching up/learning any strategies. SL will save us from wrong entries and ensures capital is saved. We get many opportunities of trade setups, so avoid FOMO (fear of missing out). Will try to explain strategy in simple words. I also welcome constructive feedback to make this much more better and also request you ignore this strategy if this is not making any sense to you. I am sharing only for educational purpose and not recommending anyone for real trading. Thanks in advance! There will always be room for improvement and this is not any fool proof system/strategy and neither want to prove that this is correct, every transaction has a buyer and seller mindset. So please be cautious! What we need : Candle sticks of 15 mins time frame Confirmation with indicators should be in same trend with candle stick trend 1. RSI (For trend identification) 2. Stoch (Entry and Exit confirmations / Overbought and Oversold confirmations) 3. Any other indicator of your choice which adds value to setup and confluence Bit of explanation on time period: Indian market starts at 915am and ends by 330pm which has about 25 candlesticks of 15 mins (time frame). Sentiments of the market behavior will be based on the timings, like in the morning trend will have an impact of over night news and/or once Europe market opens its impact will be around 1pm.. etc. 315pm till 330pm will have all closures for intraday by brokers which directly or indirectly impacts the candlesticks. So ideally if we consider 245pm and 300pm candle stick, in total 30 mins; this would typically create a base for next day strategy. That means taking these two candle sticks and marking high and low of them will give us a preparatory base for next day on how to setup trade or what needs to be done. Rules of the game : Once we mark the high and low of 245pm till 315pm candle sticks, price moving up from the high can be considered our entry with a stop loss of just below the high line and look for a good RR. If the price goes down the low point marked then it can still go down and our entry can be at that place keeping stop loss just above that low line and look for a good RR. If market opens big gap up then chances of it falling till the high line are high; once it reaches this high line, it can further try for next target of touching low line. In similar way if market opens big gap down then chances of it raising up till the low line are high; once it reaches this low line and then it will try to touch the high line. If one entry has already come in any of above setup in a day then don’t expect that it will give you another setup as it would have exhausted already with the levels given; So one day one setup only. Stop Loss : There are various ways to keep SL here (Please work out acceptable SL as per your risk appetite and entry should be truly based once SL is identified correctly. If you do not know how to keep SL’s then this strategy may not work and also hitting of SL. Please be cautious!) 1. Just below high line or just above the low lines 2. Half of the market area, high and low 3. For a short entry at low line, SL can be high line or for a long entry at high line, SL can be at low line 4. Prior candle high or low or entry candle high or low 5. Or any of your best working SL ideas Risk Reward: If you are having good understanding of the market/asset where you are applying this strategy then ideal RR should be 1:1.5 and can be trailed for a bigger reward too. Please do a good back testing of this strategy. Avoid : • If you do not understand the strategy • If you do not understand how candle sticks are behaving • If candle stick pattern is not respecting high and low lines marked as mentioned above • If there is no confluence of the setup with indicators • When calculated SL is way high due to the formed candle stick (large or big candle stick, if taking entry after this candle) • When there is no confidence on the setup • Fear of Missing Out • In a sideways market, hitting of SL will be high Please do let me know if you have any questions would be happy to respond. Please do like and share this idea. Thanks Disclaimer : This analysis/strategy is only for educational purpose and not be considered as any trading idea/tip. Please consult your financial advisor before you take any trade and we are no way responsible for your profits/losses. Thank you! I will also put some examples (todays live charts) for better understanding :
NSE:BANKNIFTYEducation
by AdhigamaTrading
37
Bank Nifty - Channels Basis For WavesChannels have been basis for wave analysis. Drawing them on price data offers support & resistance offering good trading opportunities. One such channel drawn from the bottoms of 37950 & connected with 39258 lows offered support to the opening low of 40288 as of today - 14th Sep 2022 Prices rallied sharp upside to new highs above 41600+ which is very close to upper boundary of the parallel channel. Can this halt the price action on upside & traders get fall again is the matter of due diligence to be done from your end. Kindly do not take this as a trading call. Thank You.
NSE:BANKNIFTYEducation
by WaveTalks
2
📚Learn More💰Earn More - Inverse Head and Shoulders in NEARUSD📚 LEARN MORE 💰 EARN MORE Inverse Head and Shoulders Definition: A head and shoulders pattern is also a trend reversal formation. It is formed by a Valley (left shoulder), followed by a Lower Valley (head), and then another Higher Valley (right shoulder). A “Neckline” is drawn by connecting the highest points of the two Peaks. Neckline resistance does not need to be strictly horizontal. This illustrates that the downward trend is coming to an end. When a Head and Shoulders formation is seen in a downtrend, it signifies a major reversal. The pattern is confirmed once the price breaches the neckline resistance. In this example, we can easily see the head and shoulders pattern. How to Trade the Head and Shoulders Pattern: ENTRY : we put an entry order above the neckline. TARGET : We can also calculate a target by measuring the lowest point of the head to the neckline. This distance is approximately how far the price will move after it breaks the neckline. ❤️ If you find this helpful and want more FREE forecasts in TradingView . . . . . Please show your support back, . . . . . . . . Hit the 👍 LIKE button, . . . . . . . . . . Drop some feedback below in the comment! ❤️ Your Support is very much 🙏 appreciated!❤️ 💎 Want us to help you become a better Forex trader? Now, It's your turn! Be sure to leave a comment let us know how you see this opportunity and forecast. Trade well, ❤️ ForecastCity English Support Team ❤️
Education
by ForecastCity_ME
2
BankNifty-Twist & Turn-Will it die on Euphoria? Island ReversalDisclaimer: This is not an Investment Advice. Trading leveraged products carries a high degree of risk and you could lose more than your initial deposit. "Bull markets are born on pessimism, grown on skepticism, mature on optimism and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell." -John Templeton What Is an Island Reversal? An island reversal is a price pattern indicating grouping of days on either side by gaps in the price action. This price pattern occurs when two different gaps isolate a cluster of trading days. Pattern usually indicates reversal in trend - which can be short term or long term. Check the charts 7th Sep 2022 Gap down opening as shown in circle shape & 8th Sep 2022 - Possible Gap up opening in next trading session Check the Snapshot / Image - Island Reversal Pattern Try to relate with the current chart of BankNifty. Check yourself where are you in the chart & what could you expect if something similar has to repeat. Thanks for reading
NSE:BANKNIFTYEducation
by WaveTalks
9
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
ICICIBANK perfect example for cycle stockEvery Stock is having bad phase and good phase in their life span. Good phase will give up time cycle and bad phase will give down time cycle. When you are trading on that time you forget the stock is up cycle or in down cycle and you trade blindly which results in draw down in your system. Till you include the time in your analysis with price your system will not get good results. You can take Lunar cycle as daily chart reference point for in your candles or Sun cycle in weekly time frame or cycle indicator of tradingview. Please like and follow if you like the explanation.
NSE:ICICIBANKEducation
by siddmuk2005
Analysing long-term trends with Log charts1) What's the Log chart? Before I define a Log chart, consider the chart you use daily: 'The Linear Chart.' - Most platforms use a linear chart by default. This is most likely why you were unaware of log charts. 2) So, what exactly does a Linear chart mean? Look at the chart below - The y-axis is divided into 200 equal points ranging from 0 to 3000. - As a result, any linear chart's y-axis would always be equally separated by 'N' points. And this is where the issue arises... 3) But I don't see any issue. Allow me to explain... - Could you look at this #PIDILITIND chart and tell me the price when it was listed in 1999? No! - In this chart, can you draw a proper trendline? No! The reason is because of the price congestion from 2007 to 14... 4) 4 Is there anything else? - When there is a significant price change in an instrument, it is difficult to analyse it on a linear chart. - Take a look at this #BTCUSD example. What happened in 2021 (as shown in the red box)? All of this is due to the equally spaced Y-axis! 5) Now, let's talk about, 'The Log Chart.' The LOG option is located at the bottom right of your chart. Alternatively, right-click on the Y axis and choose Logarithmic. You can also convert it to a log chart by pressing the Option + L keys on your keyboard. Do you notice a difference in the same #PIDILITIND chart? (Reason in the chart) There you have it! - A clear price trend is visible. Trends can be identified since listing. 6) When should you use a log/linear scale? - As you can see, the log/linear scale makes no difference in short-term charts. - If you only trade intraday or in the short term, you can continue to use linear charts. However, if the price of a cryptocurrency fluctuates dramatically, use log... If you are a swing/long term trader, you should ALWAYS use a log chart. - You can properly analyse charts. - Draw precise trendlines - Recognize primary trendline and channel reversals Short-term charts should work well with log!
NSE:TATAELXSIEducation
by Kapil-Mittal
4
Draw Trend-lines like a Professional These simple rules, if followed, can assist in identifying HIGH PROBABILITY TRADES! 1⃣ Trendlines are zones, not straight lines! - Because of price volatility, prices frequently spike on both sides. - To get the best fit trendline, consider trendlines as zones from multiple swing highs (including wicks). - With zones, your chances of winning increase. 2⃣ Trendlines with more touchpoints - Any trendline with 3 or more touchpoints is a very significant one - The price points around significant trendlines are important & should be watched Observe the commentary on the chart below 3⃣Trendlines on higher Time Frame are more significant - A trendline on the 15 min chart will be easily broken than a trendline on the daily - A shorter time trendline break might just mean a consolidation phase before the price moves up again Due credits to @dmdsplyinvestor 4⃣ The steeper the trendline the more likely it will break - The less steep the trendline angle, the more significant it is & more likely to be respected. - Any trendline with an angle greater than 30° is steep & likely to be broken before the previous trend continues. 5⃣ Trendline Adjustments are important - The 1st trendline should be drawn connecting the swing lows - Once the 1st trendline breaks, wait for new high & connect the recent swing lows - Repeat this - Remember Rule 4 Remember, all the 5 rules apply for down trendlines as well! Learnt something new?
NSE:NIFTYEducation
by Kapil-Mittal
2
"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
Editors' picks
Education
by TheNewsCrypto
6
How to Draw Trend lines In a ChartSteps To Follow - 1- Open The Chart In DTF (Daily Time Frame) 2- Switch To Line Graph To Capture CLOSING PRICE Of Stock 3- Now Take Trend Line From Your TOOLS and Construct A Trend Line (Joinig the CLOSING PRICE of Stock) 4- After Constructing The Trend Line ( SEE ALL POSSIBLE CLOSSING PRICES IN THE CHART ) 5- Now Switch to CANDLESTICK CHART 6 Now see where your stock price moving ( IF IT IS AT GOOD TRADE ABLE LEVELS THEN INITIATE YOUR TRADE AS PER YOUR SETUP ) NSE:DYNAMATECH
NSE:DYNAMATECHEducation
by adityagupta1