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Dow @ critical levels.FOR EDUCATIONAL PURPOSE ONLY! This is a daily chart of Dow . It has taken a support exactly at its daily support trendline (blue). From last several months, Dow has been trading in a range on weekly charts which can be seen in pink lines. On weekly charts Dow has made a flag and pole pattern and either it takes support at this level or may give break down. If it gives break down then it will be a bad signal for entire markets around the world. Break down on a weekly chart means begining of a down trend in Dow and eventually markets around the world would break down. 33682 is a very import support for Dow and if it starts to trade below that, keep a very strick SL of your portfolio on Daily charts .
DJ:DJIEducation
by AbNamjoshi
Best Trade setup for Forex pairs tradingStrategy to execute trades in forex market, works for all pairs (please do back testing to gain confidence) : What we need : Candle Sticks Timeframe – 1 hr Bollinger Band – Length 20 and StdDev 2.5 Bollinger Band – Length 20 and StdDev 2 RSI – Length 6 Stochastic Oscillators – 14,3,3 MACD – 8,21,5 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. MACD (For trend identification with convergence/divergence) Risk Reward Ratio : 1:3 and above or as per your risk appetite Rules of the game : Whenever candle stick crosses Std Dev 2 and touches/crosses Std Dev 2.5 above/below then we have to find the entry. Any candle after this should be used as entry point which reverses the previous candle trend. At the same time RSI, Stoch and MACD should also reverse from their respective over sold or over bought positions. Stoch will give first hint of reversal followed by RSI and MACD. If RSI is at 20 or 80 (extremes) then it’s a perfect setup and find the reversal trend along with Candle sticks for entry. If RSI is not at extremes but at 30/40 and 60/70 levels then the setup can work but may not be so accurate, this gives scope for less RR. Stop loss should be the candle stick (candle stick which crossed) high or low (sell/buy respectively) or below the Std dev 2.5 band which ever are nearer or as per your risk appetite. Take profit : First target will be middle band, Second target will be other end once candle sticks touches Std 2 or take profit @ 1:3 or when Stoch blue line touches red line and reverses or when MACD blue line touches red line and reverses or as per the risk appetite. Avoid when : >Confluence of candlesticks trend with RSI/Stoch/MACD is missing (all should be in following same trend path) >RSI is in between 40 to 60 range >If Candle stick do not touch Std dev 2.5 band and reverses >If entry candle sticks are near to the middle line of the Bollinger band as room for uptrend is less >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 Story behind this setup : Trend will be in between Bollinger band upper and lower bands and entry is sought whenever trend reverses after touching Stddev 2.5 upper or lower band. As per Empirical Rule 95% of Data will fall within 2 Standard Deviation 99% of Data will fall within 2.5 Standard Deviation, reversal happens after this and we try to take confluence with other indicators help for entry and exit. Sometimes an exit can also trigger entry for next trade if the setup gives confluence with mentioned parameters above. Stop Loss : Stop loss is the key here, please do not enter unless you understand how to calculate stop loss. Calculate Stop loss first before entry and it should be below Std dev 2.5 or just below the previous candle of the entry candle whichever is acceptable loss or as per your risk appetite. 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!
FOREXCOM:XAUUSDEducation
by AdhigamaTrading
1
Horn top and horn bottom patternHorn tops are formed in an uptrend and are separated by a week on weekly chart. It appears to be in 'H' shape. Horn top pattern formation indicates bearish reversal. And there will be price spikes while formation, as seen in above chart. Later, once the pattern is confirmed, short positions can be initiated when the price closes below the low of horn top candles. In above chart, short to be considered below 3850 and target will be 395 points (difference b/w high and low ie., 4245-3850), which is good 10%. SL can be considered as the horn top high, if it favors the RR. In the same way horn bottom pattern will be formed, where again the pattern appears to be in H shape, during the downtrend. Horn bottom pattern formation indicates bullish reversal. In the above main chart, I have placed Tatamotors chart where I could identify horn bottom. After the pattern confirmation, longs position can be considered with same criteria for the target. SL can be considered as horn bottom low, if it favors RR. Hope the above chart was useful with the information provided. Happy Investing !
NSE:LALPATHLABEducation
by AK1808
2
NIFTY BREAKDOWNNIFTY has been trading in a ascending channel for the last few months, properly following and respecting the course of the channel until yesterday when the new variant of the corona virus has seen a negative impacts on the global front. There was a gap down and also a breakdown as we can see the red candlestick has clearly breached the lower support of the channel. Points supporting a Breakdown: (i) 17700 Head and Shoulder Pattern breakdown (ii) Ascending channel breakdown Hence Indicating NIFTY in a down trend. Till where can NIFTY fall: Support levels are as follows- (i) 17000 immediate support psychological support (ii) 16900 0.382 Fibonacci retracement support (iii) 16700 a big support of the previous breakout zone. (iv) 16375 Fibonacci support Omicron variant of Covid-19 still seems to hamper international tensions, so trade cautiously and don't go against the trend. Have a happy week ahead and Happy Trading.
NSE:NIFTYEducation
by aaroncastelino25
2
Nifty - A short study using the various indicatorsLet's analyze the charts using different indicators that are commonly used so as to see what the different traders are looking at. Daily time frame 1. The RSI still has a potential for further selling. We are near the oversold territory. 2. There is no prominent support on the daily time frame until 15900-16000. 3. The 200 MA cluster is near 16100, which almost overlaps with the horizontal support at 16000. 4. So, it is safe to assume that 16000 should act as good support on the daily time frame. 4 hours time frame 1. Let's start with RSI and MACD. Both the indicators are showing that the price has been in the oversold region and there is still a good selling pressure. 2. There has been a confirmed breakdown of 17429 level, which was an important level since September. 3. An unfilled gap is present at 16764-16722. For those who don't know, gaps act as areas of support and resistance. Hence, it's highly likely that we fill this gap in the coming days. 4. There is an untested monthly pivot at 16700. 5. The price has closed below the 200 MA cluster. We may expect only 2 things: i> Either the trend has reversed and the market wants to go down. ii> Or the price is just hunting for liquidity at obvious levels and taking out the retail longs from the market. I am more inclined towards the 2nd case. We may hunt a bit more (about 2-3%) so that the bearish narrative is set, before resuming the uptrend. A weak support level is also available near 16350, which has been tested only once. Hourly time frame 1. Hourly time frame plays an important role since it is used by the swing traders for entry/exit. 2. There is a bullish divergence which may provide a dead cat bounce. 3. If there is a relief rally, then we may push till 17300-17400, before selling again. 4. This relief rally will be to trap the breakout longs along the trendline and to grab liquidity. TPO chart (Unavailable on Tradingview. If you want to see TPO chart of this post, check the PDF link under this post) If we look at the TPO chart on the daily time frame, we can notice the following things: 1. A single print between 16900-16740, which is expected to be filled. 2. An untested value area high from August near 16690, which may act as a support. 3. POC of August at 16337, which is expected to act as a support. 4. A prominent POC at 15757, which has a very high probability to act as a support. In simple words, we have plenty of interest zones from 16900-16300 that may act as support. But we cannot pinpoint the exact reversal point. Volume Profile (June-Present): 1. On the downside, the nearest high-volume node lies at 16600. The other high volume node lies at 16200. 2. On the upside, the nearest high volume node lies at 17400, which was already taken out. 3. The POC lies at about 15800, where a massive volume was traded. This should act as very strong support. Conclusion: In my humble opinion, we have plenty of supports from 16000-16500 as per different indicators/factors. It would be good if we sell-off till these levels so the market can find the bottom faster. P.S: Take this post with a pinch of salt. This is just my opinion and what I am able to conclude using my limited knowledge. You are free to do your own research. Also, if anyone is interested in getting a PDF version of this thread along with all the charts, then you can check the links under this 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)
NSE:NIFTYEducation
by johntradingwick
12
GOLDEN CROSSOVER Golden Strategy INDICATORS USED: EMA 4 EMA 9 EMA 18 TIME FRAME FOR ENTRY/EXIT: 5 min WORKS VERY WELL ON BOTH NIFTY AND BANK NIFTY As you can see on the chart that when EMA 4 crosses EMA 9 and EMA 18 together then the crossover of EMA 4 is golden crossover. This is the bookish definition...Now let's look at the applications with complete trading setup This strategy works well only on a trending day... STRATEGY: BUY once there is a golden crossover as shown in the post below: SELL once there is a golden crossover as shown in the post below: SOUNDS very simple and it is indeed but works well only if the day is trending...simple price action or anchored vwap strategy. Let's look into the STOPLOSS and TARGET: STOPLOSS: Place stoploss BELOW EMA 18 TRAILING STOPLOSS: EMA 4,EMA 9, EMA 18 acts as a good support...Place the trailing stoploss below any of them depending on your setup...(EMA 18 is preferred) TARGET: This strategy does not provide and fixed target...Keep trading until the trailing stoploss is hit. (Captures almost entire trend on a trending day...that's why it is best for trending days) EXAMPLES: SELL As you can see on the chart how beautifully EMA 4/9/18 are respected by the market on a trending day...and 250 points of move was captured in NIFTY 50. BUY Similarly 230+ points were captured and the market again respected these moving averages FALSE SIGNAL: This strategy is not a holy grail...it will give many false signals in a non trending day...so using this strategy along with price action will make it a lot more accurate. DO KEEP IN MIND THAT ANY STRATEGY WHEN FOLLOWED WITH PROPER RISK MANAGEMENT AND POSITION SIZING WILL ONLY GIVE PROFITS IN THE LONG RUN... If you have any doubts in this strategy do let me know in the comments...would love to answer them asap FOLLOW ME for more such content ahead...Till then, HAPPY TRADING :)
NSE:NIFTYEducation
by keshevdugar
29
Chart made by the market particularly for Investors !The above weekly chart is of Infosys Ltd. Here the stock price moves beautifully just in between the parallel channel, making higher highs and higher lows. If one successfully manages to find the chart as above, he can simply buy at the lower channel trendline and sell at the upper channel trendline. Yes, everything looks wow and amazing after the chart formation. As I do not have access to post chart image in my post here, I have tried my best to show the chart formation from Mar'20 till May'21, which you can see on the main chart, where the stock price moves in between the upper and lower channel trendline. After identifying the channel pattern, if one had taken the position even on May'21, where the price touched and later bounced from lower trendline, would have made a good 28% in 3 months (Aug'21), where price touched the upper trendline. Hope the above chart was useful with the information provided. Happy Investing !
NSE:INFYEducation
by AK1808
1