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Chart Patterns

Doubletop Pattern at SAREGAMABe Cautious #doubletop #Pattern (trend reversal ) at at #SAREGAMA weekly chart. A double top is an extremely bearish technical reversal pattern that forms after an asset reaches a high price two consecutive times with a moderate decline between the two highs. It is confirmed once the asset's price falls below a support level equal to the low between the two prior highs. ONLY FOR #educational NOT SEBI REGISTERED. #LEARNEARN (DONT TRUST ANYONE) #nifty50 #sharemarket #BREAKOUTSTOCKS #Multibagger #sharemarket #sharemarketindia #sensex #technicalanalysis #kukiinvest #Chartanalysis #headandshoulders #doubletop #doublebottom
NSE:SAREGAMAEducation
by Usemerr
Doubletop Pattern at KPRMILLBe Cautious Double Top Pattern (trend reversal ) at #KPRMILL weekly chart. A double top is an extremely bearish technical reversal pattern that forms after an asset reaches a high price two consecutive times with a moderate decline between the two highs. It is confirmed once the asset's price falls below a support level equal to the low between the two prior highs. ONLY FOR #educational NOT SEBI REGISTERED. #LEARNEARN (DONT TRUST ANYONE) #nifty50 #sharemarket #BREAKOUTSTOCKS #Multibagger #sharemarket #sharemarketindia #sensex #technicalanalysis #kukiinvest #Chartanalysis #headandshoulders #doubletop #doublebottom
NSE:KPRMILLEducation
by Usemerr
Triple Top Pattern (trend reversal) at ABFRLBe Cautious Triple Top Pattern (trend reversal) at #ABFRL weekly chart. What Is a Triple Top? The triple top is a type of chart pattern used in technical analysis to predict the reversal in the movement of an asset's price. Consisting of three peaks, a triple top signals that the asset may no longer be rallying, and that lower prices may be on the way. Triple tops may occur on all time frames, but in order for the pattern to be considered a triple top, it must occur after an uptrend. However, the opposite of a triple is a triple bottom, which indicates the asset's price is no longer falling and could head higher. ONLY FOR #educational NOT SEBI REGISTERED. #LEARNEARN (DONT TRUST ANYONE) #nifty50 #sharemarket #BREAKOUTSTOCKS #Multibagger #sharemarket #sharemarketindia #sensex #technicalanalysis #kukiinvest #Chartanalysis #headandshoulders #breakdown #tripletop
BSE:ABFRLEducation
by Usemerr
Head and Shoulders Pattern at AstralBe Cautious Head and Shoulders pattern (trend reversal) at #Astral weekly chart. The head and shoulders pattern is believed to be one of the most reliable trend reversal patterns. It is one of several top patterns that signal, with varying degrees of accuracy, that an upward trend is nearing its end. Stock seems to be changing trend(Head and Shoulders pattern) . One should try to keep the profits with them. Now if you think you are buying it on discount, then you are wrong - you are buying on the other side of trend. ONLY FOR #educational NOT SEBI REGISTERED. #LEARNEARN (DONT TRUST ANYONE) #nifty50 #sharemarket #BREAKOUTSTOCKS #Multibagger #sharemarket #sharemarketindia #sensex #technicalanalysis #kukiinvest #Chartanalysis #headandshoulders #breakdown
NSE:ASTRALEducation
by Usemerr
Head and Shoulders Pattern at SUNTECKBe Cautious Head and Shoulders pattern (trend reversal) at #SUNTECK weekly chart. The head and shoulders pattern is believed to be one of the most reliable trend reversal patterns. It is one of several top patterns that signal, with varying degrees of accuracy, that an upward trend is nearing its end. Stock seems to be changing trend(Head and Shoulders pattern) . One should try to keep the profits with them. Now if you think you are buying it on discount, then you are wrong - you are buying on the other side of trend. ONLY FOR #educational NOT SEBI REGISTERED. #LEARNEARN (DONT TRUST ANYONE) #nifty50 #sharemarket #BREAKOUTSTOCKS #Multibagger #sharemarket #sharemarketindia #sensex #technicalanalysis #kukiinvest #Chartanalysis #headandshoulders #breakdown
NSE:SUNTECKEducation
by Usemerr
Triple Top Pattern at #mastekBe Cautious #tripletop #Pattern (trend reversal) at #mastek weekly chart. What Is a Triple Top? The triple top is a type of chart pattern used in technical analysis to predict the reversal in the movement of an asset's price. Consisting of three peaks, a triple top signals that the asset may no longer be rallying, and that lower prices may be on the way. Triple tops may occur on all time frames, but in order for the pattern to be considered a triple top, it must occur after an uptrend. However, the opposite of a triple is a triple bottom, which indicates the asset's price is no longer falling and could head higher. ONLY FOR #educational NOT SEBI REGISTERED. #LEARNEARN (DONT TRUST ANYONE) #nifty50 #sharemarket #BREAKOUTSTOCKS #Multibagger #sharemarket #sharemarketindia #sensex #technicalanalysis #kukiinvest #Chartanalysis #headandshoulders #breakdown #tripletop
NSE:MASTEKEducation
by Usemerr
1
Doubletop Pattern at KPITTECHBe Cautious #doubletop #Pattern (trend reversal ) at #KPITTECH weekly chart. A double top is an extremely bearish technical reversal pattern that forms after an asset reaches a high price two consecutive times with a moderate decline between the two highs. It is confirmed once the asset's price falls below a support level equal to the low between the two prior highs. ONLY FOR #educational NOT SEBI REGISTERED. #LEARNEARN (DONT TRUST ANYONE) #nifty50 #sharemarket #BREAKOUTSTOCKS #Multibagger #sharemarket #sharemarketindia #sensex #technicalanalysis #kukiinvest #Chartanalysis #headandshoulders #doubletop #doublebottom
NSE:KPITTECHEducation
by Usemerr
Head and shoulders pattern @SPXBe Cautious #headandshoulders #pattern (trend reversal) at #SPX weekly chart. The head and shoulders pattern is believed to be one of the most reliable trend reversal patterns. It is one of several top patterns that signal, with varying degrees of accuracy, that an upward trend is nearing its end. Stock seems to be changing trend(Head and Shoulders pattern) . One should try to keep the profits with them. Now if you think you are buying it on discount, then you are wrong - you are buying on the other side of trend. ONLY FOR #educational NOT SEBI REGISTERED. #LEARNEARN (DONT TRUST ANYONE) #nifty50 #sharemarket #BREAKOUTSTOCKS #Multibagger #sharemarket #sharemarketindia #sensex #technicalanalysis #kukiinvest #Chartanalysis #headandshoulders #breakdown
TVC:SPXEducation
by Usemerr
How do Breakout traders get trapped?In the example above, note the following: - Warning candles: Doji + Hammers + bearish candles indicating exhaustion and a lack of follow-up. - A relatively higher volume on hammer & doji, which is never a good sign for a breakout because it indicates significant selling pressure. - A bullish breakout must always be accompanied by a good follow-up, else it won't sustain. Bullish BO needs good bullish candles, NOT dojis. Notice how a small wick (on the daily chart) looks like a clear liquidity hunt on lower time frames. Underlying concepts: 1. The market was moving sideways and generating liquidity on both sides. 2. In general, when the market is ranging, different participants place orders with a different bias. Hence, there is liquidity on both sides. 3. For a bullish market, the price must form a series of higher highs and higher lows. Similarly, for a bearish market, the price must form a series of lower highs and lower lows. 4. Whenever the price reaches a resistance level, there are 2 types of traders that take positions: - Those who short the level in anticipation of it acting as a resistance. - Those who long early in anticipation of resistance being taken out. 5. The stop losses of these traders act as liquidity. A short position has a “buy order” as SL, whereas a long position has a “sell order” as SL. 6. In general, almost everyone is aware of how the retail participants place their stop losses. They are either: - Above/below an important swing level such as a support, resistance, day high, day low, etc. - Above/below a demand, supply candle. - Above/below the candlestick pattern such as a shooting star, hammer, and doji. - Above/below the charting pattern. 7. The market moves from one zone of liquidity to another. 8. As a retailer, you may not realize the importance of a small wick. The small wicks are more than enough to liquidate plenty of positions. Psychology and Behind the scenes stuff: 1. When the price reached the resistance level, 2 types of traders started opening positions. - Aggressive shorters who shorted in anticipation that the level will hold. - Aggressive longers (those who don't wait for confirmation) who were waiting for the candle to close above the resistance. 2. Both of these traders opened their positions and placed their stop losses in the system. 3. The banks/institutions have fairly complex algorithms that can easily identify these positions. 4. The stops of these aggressive participants are taken out fairly easily and the market moves from one zone of liquidity to another. Thanks for reading! Hope this was helpful. If you need a PDF of this post with all the charts and write-up, check out the signature section (under the post). Disclaimer : This is NOT investment advice. This post is meant for learning purposes only. Invest your capital at your own risk. Happy learning. Cheers! Rajat Kumar Singh (@johntradingwick) Community Manager (India), TradingView
NSE:POLYCABEducation
by johntradingwick
56
'Verse' of 'Reverse' Candlestick Pattern-> Definition of Reversal patterns :- Reversal patterns mean the formation of candlesticks which indicate the end of the existing trend (uptrend or downtrend). When such formation appears in a downtrend, it indicates a bullish reversal or end of selling spree and onset of buying spell. Conversely, when a trend reversal pattern forms in an uptrend, it warns traders of a possible end to bullish run and onset of a slump. Candlestick patterns are visual patterns, helping traders to visualize when market sentiment is shifting, which is why many traders prefer candlestick charts over other trading tools. However, any trend reversal indication must conform with other popular technical trading tools. -> Engulfing Patterns :- An engulfing pattern is a two-candle formation that signals trend reversal, and hence, there are bullish engulfing and bearish engulfing. The bearish engulfing happens in the uptrend. The first candle is a white/green candle that forms in the uptrend. The second candle opens higher than the previous session and then closes below the previous. It indicates that the bullish force made a final thrust before bearish forces took over. The opposite of bearish engulfing is bullish engulfing, and it appears at the bottom of a downtrend. ->Doji :- Doji is a unique formation – a candle with no real-body but with shadows. Doji can take many forms like Doji Star, Dragonfly Doji, Gravestone Doji, Long-legged Doji, and more. It is often associated with market indecision before a trend reversal. Apart from Doji star, Dragonfly Doji and Gravestone Doji also indicate a trend reversal; but to base your trading decisions on them, those must concur with other popular trading tools like moving average, RSI, or moving oscillator. Doji formations often have no real-body, means that the opening and closing price is almost the same, or the market has reached an equilibrium where neither the buying not the selling strengths are strong enough to give it a direction. -> Abandoned Baby :- Apparently, an abandoned baby is a more decisive trend reversal pattern than Doji. It is a rare formation, but when it appears, it is a strong enough indication for traders to alter their position accordingly. Since it is a trend reversal pattern, an abandoned baby can appear in both uptrend or downtrend. An abandoned baby is a Doji star that appears between two candles – the first one appearing in the direction of the trend and the second confirmation candle appearing in the reversed trend, either bullish or bearish. The shadow of the first candle mustn’t overlap the second candle. The star appears above or below the trend, looking abandoned, hence the moniker. -> Hammer Pattern :- Hammer is a single candle pattern that appears in a downtrend implying a trend reversal to bullish. It usually has a small real-body and a long downward shadow. It indicates that the market fished for the bottom but eventually buying forces were strong to push the market up – the result is a bullish or green candle comprising a short real-body. The candle appearing next to the hammer must confirm the trend reversal to form a trading strategy. It must close above the last candle formed before the hammer. The opposite formation of a hammer, an inverted hammer which appears in an uptrend, is also a trend reversal pattern. In this case, the color of the hammer doesn’t matter, but the upper shadow is twice the size of its real body. An inverted hammer requires stronger confirmation candles to ascertain trend reversal. Another similar formation that appears in the candlestick chart is called a hanging man. It is a hammer that appears in uptrend. When the hanging man appears after a rally, it indicates a trend reversal. It needs further confirmation from the following candles appearing in the trendline. If those appearing in a downtrend, the hanging man confirms a downward trend reversal. -> Piercing Line :- A piercing line is a two-candle formation – a bearish long-bodied candle and another bullish candle which opens at a gap and closes at the midway of the bearish candle. Both candles have robust long bodies. It shows that the market started in bearish impulse, but eventually, buyers gained momentum to pull the market up and reserve their position. -> Harami Pattern :- Harami patterns are common and can be both bullish harami and bearish harami. In Japanese, the word translates to pregnant. It is a two-candle formation where the second candle is a small-bodied candle that opens and closes within the body of the first candle, representing a pregnant form. In the case of Harami Cross, the second candle is a Doji star. A Harami is a reversal pattern, but it isn’t as strong as the hammer and needs confirmation from other technical trading tools like RSI, MACD, and the like. My OBSERVATION :- These reversal patterns works very well when used with RSI, In case of indices, when RSI is above 65 or below 35 any such pattern visible indicates reversal and In case of stocks, when RSI is above 70 or below 40 any such pattern visible indicates reversal.
NSE:NIFTYEducation
by Chaser30
64
Diamond Top Formation Educational PostDiamond Top Formation A diamond top formation is a technical analysis pattern that often occurs at, or near, market tops and can signal a reversal of an uptrend. It is so named because the trendlines connecting the peaks and troughs carved out by the security's price action form the shape of a diamond. KEY TAKEAWAYS 1. A diamond top formation is a chart pattern that can occur at or near market tops and can signal a reversal of an uptrend. 2. A diamond top formation is so named because the trendlines connecting the peaks and troughs carved out by the security's price action form the shape of a diamond. 3. Technicians suggest that to calculate the potential move, once the neckline of a diamond formation is broken, the trader should calculate the distance between the highest and lowest point in the diamond formation and add it to the breakout point. Key Characteristics Most diamond top formations will exhibit the following characteristics: 1. The security's price should be trending upward. 2. Price action should then start resembling a broadening pattern, where the peaks are higher and the troughs are lower, at the onset. 3. Subsequently, the price action changes to where the peaks are lower and the troughs are higher. 4. Connecting the peaks and troughs will form a diamond, usually tilted to one side.
Education
by nawaab001
How to avoid sudden market selling?Using #BTST (Buy today, Sell tomorrow) trades, you can avoid sudden market selling like today. How? - When you take BTST trades, you usually ride the momentum and are only in the market for a few minutes. - For example, I typically buy stocks at 3:25 p.m. and sell them the following morning at 9:15 a.m., so technically I am only in the markets for 5-10 minutes every day, reducing my exposure and, consequently, the risk I face. - No one can predict the next market downturn, but you can work to reduce your exposure to the risk of a downturn. - We can adjust the amount of capital we put into BTST trades because we are taking new positions on a daily basis. Because we take new positions every day with BTST trades, we can adjust the amount of capital we put into the markets based on the current market conditions. - In comparison to BTST trades, swing trades can turn any profitable trade that you have been holding for many days upside down in a matter of minutes, and you must actively track them every day. - Because we have specified targets with BTST, we can exit them early and avoid this risk as well.
NSE:CNXFMCGEducation
by Kapil-Mittal
2
'Inside' Story of 'Inside' Candle !!!! -> Definition of Inside Candle As the name suggests, an inside bar chart pattern engulfs the inside of a large candle, some call it a mother bar. It’s a pattern that forms after a large move in the market and represents a period of consolidation. The inside bar pattern can be a very powerful price action signal if you understand how to trade it properly. Matching lows and highs are acceptable, however, the inside bar’s range must not be outside of the mother candle by even 1 point. -> Facts about Inside Candle Inside bar pattern within the trading range (or shadow) of the preceding bar. It is at least a two candlestick formation. Mother candlestick can be either bullish(green) or bearish(red). The inside bar chart pattern can be bullish or bearish. Inside bar setup. -> Procedure to trade Inside Candle Entering: – When the price action completes an inside candlestick chart pattern, you should mark the low and high of the Inside Bar consolidation range. These two levels are used to trigger a potential trade. Remember, the inside candle clues us into the eventual breakout and likelihood of a continuation outside the range in the direction of the break, however, it doesn’t give us information about the direction of the breakout through the range, prior to the actual move. In simple terms, if the price action interrupts the range upwards, then you should go long. If the price action breaks the range downwards, then you should trade the short side. Exiting: – Projecting the potential move with Inside Bar Breakouts can be challenging. Often inside bar trades can lead to a prolonged impulse move after the breakout, so employing a trailing stop loss after the price has moved in your favor is a smart trade management strategy. Stop Loss: – In either case (If you are Long or short), your stop should be located below the bottom of the range, as stated in the picture below. There can be a buffer of 1% below the range. -> Inside Candle helps to identify change in trend The inside bar candlestick pattern is such a valuable tool because it tells us that the market is not as bullish or bearish as it was in the preceding period. Being able to identify periods of market expansion and contraction will help any trader improve their odds of finding a winning trade because we know from history that expansion and contraction can only last so long. When either of those market phases ends, the resulting moves can be explosive! My OBSERVATION -> It is more effective if used with RSI i.e. when RSI is greater then 70 and inside candle is formed , that spot is best for shorting, and if RSI is less then 30 and inside candle is formed , that spot is best to go long.
NSE:NIFTYEducation
by Chaser30
27
Magical Parallel Channel : Dynacons Sys SolutionDSSL BO with huge volume with support/demand zone found on the magical Parallel channel. Stock is finding good support in the zone of 250-260, rest we can plan the trade as levels mentioned on the chart Case Study 1 - Reliance Industries - Long Term Magical Parallel Channel : we can clearly see the price has respected the parallel channel in a magical way, 1996-1997 3 point touch parallel channel support HELD in 2015-2016-2017 & Mar 2020 crash too. #relianceind Case Study 2 - Tata Steel - Parallel Channel worked magically in the Tata Steel were price went strongly through the ceiling of parallel channel, creating another parallel channel guided to capture the whole rally in #TataSteel Case Study 3 - Havells - Initial Parallel channel was drawn from 2003 base and connected to 2009 low, stock found buyer on the same parallel channel in 2020 crash, even late buyers could have mad +234%. #havells Case Study 4 - Nifty - Same Parallel Channel can Help to enter the larger trend by using it in the correction phase, examples are Case Study 1 - #Nifty Case Study 2 - #Techm(Tech Mahindra) Conclusion : Parallelchannel is one of the most powerful tool in the TA & it can be very useful in finding trend and riding most of it. Hope above examples help in your trading decisions in future, if you find the work useful do LIKE, SHARE & COMMENT... Wish You Happy & safe trading Views are for ‘’EDUCATIONAL PURPOSE ONLY’’ trade at your own risk. "Always Respect Risk" Happy Trading Jai Hind Jai Bharat
NSE:DSSLEducation
by DhirajSinghBais
2
Running triangle Leading and Ending Diagonals Comparison between Running triangle-Leading and Ending Diagonals Chart 1 depicts a theoretical structure of Running triangle and an ending diagonal in a down trend. As mentioned the comparison is in a downtrend. Accordingly downward move is termed as directional move and move to the upside is termed as non-directional. A running triangle has non-directional momentum ie faster moves to the upside (wave A, C and E) than the downward moves (Waves B and D). These non-directional moves donot retrace the previous move completely. On the contrary, Ending diagonal has directional momentum ie faster moves to the downside (waves 1, 3 and 5) in the direction of trend and these downward moves completely retrace the previous non-directional corrective moves (wave 2 and 4). Chart 2 depicts a theoretical structure of Running triangle and an ending diagonal in an uptrend. Differences in a running triangle and leading diagonal is opposite to that mentioned for downtrend. As mentioned the comparison is in an uptrend. Accordingly upward move is termed as directional move and move to the downside is termed as non-directional. A running triangle has non-directional momentum ie faster moves to the downside (wave A, C and E) than the upward moves (Waves B and D). These non-directional moves donot retrace the previous move completely. On the contrary, Ending diagonal has directional momentum ie faster moves to the upside (waves 1, 3 and 5) in the direction of trend and these upward moves completely retrace the previous non-directional corrective moves (wave 2 and 4).
Education
by Hari-Ram-Kumar
2
The Darvas Box TheoryThe Darvas Box Theory is a trading method that is based on stock momentum. The momentum theory basically suggests that stock prices that have previously climbed are more likely to do so again in the future. Stock prices that were falling previously are more likely to fall again in the future. By drawing boxes around the highs and lows throughout time, the idea provided insight into when to enter and depart certain positions. It encourages practitioners to only take long positions in rising boxes and to set exit points based on the highs of such boxes. As a result, if the price of a stock falls below that exit threshold, the stock should be sold. > When the price moves between a horizontal support and resistance levels, it forms a rectangle. > As the price goes up and down between support and resistance, the pattern shows that there is no trend. > When there is a breakout and the price moves out of the rectangle, the rectangle comes to an end. > Some traders prefer to trade rectangles by buying around the bottom and selling or shorting towards the top, but others prefer to wait for breakouts. During rectangles, there are a lot of false breakouts. Some traders prefer to wait for a false breakout before entering a trade in the hope that the range would persist. Some breakouts result in massive profits when the price explodes out of the rectangle with a large move. Many rectangles will have little price movement towards the end. In certain circumstances, the price moves outside of the range and then returns to it.
NSE:BANKNIFTYEducation
by Vibhor-Varshney
1
Large Base Can Potentially Find ''MULTIBAGGER STOCKS''Nagreeka Exports has BO of long 4.3 yrs base with 7x volume . Can be bought on every dips for the target levels as mentioned on the chart. Educational Points Large Base 1 - Early rally 2 - First point of profit booking/sell off 3 - Base formation after profit booking/sell off - this is the point to consider adding the stock to the watchlist(supply getting absorbed) but not in the buy list. 4 - Smart Money action, taking the prices to the previous high which should act as a resistance 5 - JOIN THE PARTY AT BREAKOUT, Important point to consider is Volume at BO 6 - Conservative Confirmed Buying Examples of Large Base Formation could be Nagreeka Exp Wish You Happy & safe trading Views are for ‘’EDUCATIONAL PURPOSE ONLY’’ trade at your own risk. "Always Respect Risk" Happy Trading Jai Hind Jai Bharat
NSE:NAGREEKEXPEducation
by DhirajSinghBais
Educational Post Ascending Channel**** Educational Post: ASCENDING CHANNEL An ascending channel is the price action contained between upward sloping parallel lines. Higher highs and higher lows characterize this price pattern. Technical analysts construct an ascending channel by drawing a lower trend line that connects the swing lows, and an upper channel line that joins the swing highs. The pattern’s opposite counterpart is the descending channel. KEY TAKEAWAYS 1. An ascending channel is used in technical analysis to show an uptrend in a security’s price. 2. It is formed from two positive sloping trend lines drawn above and below a price series depicting resistance and support levels, respectively. 3. Channels are used commonly in technical analysis to confirm trends and identify breakouts and reversals. ****Trading the Ascending Channel 1. Support and Resistance: Traders could open a long position when a stock's price reaches the ascending channel’s lower trend line and exit the trade when the price nears the upper channel line. A stop-loss order should be placed slightly below the lower trend line to prevent losses if the security’s price abruptly reverses. 2. Breakouts: Traders could buy a stock when its price breaks above the upper channel line of an ascending channel. 3. Breakdowns: Before traders take a short position when price breaks below the lower channel line of an ascending channel, they should look for other signs that show weakness in the pattern.
Education
by nawaab001