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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
Hacks to surviving marketsMany people who follow me would have noticed I haven't posted for a while. Did I lose the game? No. I saw this coming and I stayed put. Don't believe me? I will add a link to a related idea. Markets are in a precarious position and every mistake will now be an expensive one. Here's how one can see through this period: This type of fall can be regarded as a parabolic move. More often than not, a huge chunk of retail investors are out now and smart money is buying again. Time to get your skin in the game. Occasional blips are fairly common. From what I read, the new COVID-19 new mutation seems to be overhyped and markets shall return to normalcy. Will markets make a new high quickly though? Probably not. Several other issues are still not solved. A phase where bad traders/investors are weeded out from the good ones.
BSE:SENSEXEducation
by vorayash05
3
How to trade like the Institutions/Banks? - Selling narrativeWith this post, we'll try to understand the selling narrative of the institutions and how they trap the traders on both sides. Just remember this one thing, "the market is never moved by retailers, only institutions can do that". The only reason why the institutions sell is to buy at lower prices. Nothing more than that. This happens in the following way: 1. Institutions initiate selling near a support level so as to create a narrative of a "Bearish trend". 2. When the narrative is set, the retailers think in the following ways: •Longs fear for their stops below the support line •Others wait to initiate shorts at the close below the support. 3. When the price closes below the support level, two types of orders are placed instantly. Stop losses of longs and fresh sell orders of the shorts with buy stops above the support line. 4. Longs get stopped out. These retailers are selling to institutions which acts as a discount for them. 5. Breakout shorters start shorting but their stops get taken out in the next few candles when the institutions move the price back up in the intended direction. 6. In this way, the majority of the retail longs and shorts are taken out of the market. After the initial rally, the price returns to the demand block for the following 2 reasons: 1. To fill the pending buy orders from institutions 2. To close the shorts which the institutions initially opened so as to push the price downwards. This is also called mitigation. After the longs get filled and the mitigation is over, the price moves back up in the original direction. This process repeats like the clockwork. You can go and back test on any time frame. The only thing that requires skill is the identification of these phases in the live market, which obviously takes a lot of practice. The more you practice, the better you will become. If you don’t believe in these concepts and are trading profitably using the indicators, then just ignore this post. This post is meant only for those who want to get an insight as to how the institutions work. All these concepts are real and work very much, you are free to read from Google. Also, if anyone is interested in getting a PDF version of this thread, then you can check the links under this post. I spend a lot of time creating these educational posts, illustrations, charts, and PDFs. Please be appreciative of that and leave a like and comment if you found these helpful. It will help to know that people are reading these posts. 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:ICICIBANKEducation
by johntradingwick
62
Bearish market structure - Illustrations + Structure typesThis is the third post on market structure. Do check out the previous 2 posts if you haven't already. Recap Market structure is simple and a basic form of understanding, how the markets move. The Price Action is how the market moves based just on price, without the consideration of trends and how they may continue. But the market structure is focused mainly on the trend. The market structure is formed using swing highs and swing lows. You may have already heard about the formation of higher highs and higher lows in a bullish trend or the formation of lower highs and lower lows in a bearish trend. This is what is called as market structure. What is a Bearish market structure? A bearish market structure is a structure that constitutes of formation of a series of lower highs and lower lows. In simple words, when the price is making lower lows and lower highs, it is said to be forming a bearish market structure. Illustration: Bearish market structure What is the use of identifying a Bearish market structure? Identifying any market structure plays a crucial role in entry and exit. In the case of a bearish market structure, the previous lows are often seen as resistance zones where new shorts can be entered with an expectation of lower price movement. When the price returns to or near the previous low, it is often seen as a selling opportunity, commonly known as “selling the rip”. Exhibit: Pullback in a Bearish market structure If a stock is moving in a bearish trend but the price prints a new higher high, the trader must become cautious because a trend change may be underway or it may just consolidate before resuming the original trend or it may very well be a bull trap. If a trend change is confirmed, the trader may exit the shorts and look for the trades on the long side. So, after the formation of a new high, there are only 3 scenarios that can arise. 1. Trend reversal 2. Consolidation and continuation 3. Bull trap Exhibit 1: Creation of a new high Chart example: Exhibit 2: Trend reversal Chart example: Exhibit 3: Consolidation and Continuation Exhibit 4: Bull Trap These are the only structure that can form in a bearish trend and they will occur time and again. Hence, all these concepts are valid on all time frames. This is all you need to know about a bearish market structure. Now, open any random chart and back test the concepts. The more you practice, the better you will become. Whatever strategy you use, understanding the structure will always make you more confident in your trades. I spend a lot of time creating these educational posts, illustrations, charts, and PDFs. Please be appreciative of that and leave a like and comment if you found these helpful. It will help to know that people are reading these posts. 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
11
CUP AND HANDLE - FOR EDUCATION PURPOSE EFIUSDT is forming cup and handle in 4hr time frame. Let’s see how it is going to play out. INFORMATION ABOUT CUP AND HANDLE: 1. A cup and handle is a technical chart pattern that resembles a cup and handle where the cup is in the shape of a "u" and the handle has a slight downward drift. 2. A cup and handle is considered a bullish signal extending an uptrend, and is used to spot opportunities to go long. 3. Technical traders using this indicator should place a stop buy order slightly above the upper trendline of the handle part of the pattern. (source : www.investopedia.com)
EEducation
by PankajSaharkar
Bullish market structure - Illustrations + ChartsRecap Market structure is simple and a basic form of understanding, how the markets move. The Price Action is how the market moves based just on price, without the consideration of trends and how they may continue. But the market structure is focused mainly on the trend. The market structure is formed using swing highs and swing lows. You may have already heard about the formation of higher highs and higher lows in a bullish trend or the formation of lower highs and lower lows in a bearish trend. This is what is called as market structure. What is a Bullish market structure? Like I said above, a bullish market structure is a structure that constitutes of formation of a series of higher highs and higher lows. In simple words, when the price is making new highs and higher lows, it is said to be forming a bullish market structure. Exhibit: Bullish market structure What is the use of identifying a Bullish market structure? Identifying any market structure plays a crucial role in entry and exit. In the case of a bullish market structure, the previous highs are often seen as support zones where an entry can be made with an expectation of higher price movement. When the price returns to or near the previous high, it is often seen as a buying opportunity, commonly known as buying the dip”. Exhibit: Pullback in a bullish market structure Similarly, as soon as the price breaks the previous low and creates a new low, the trader must become cautious because a trend change may be underway or it may just consolidate before resuming the original trend or it may very well be a bear trap. If a trend change is confirmed, the trader may exit longs and look for the trades on the short sides. So, after the formation of a new low, there are only 3 scenarios that can arise. 1. Trend reversal 2. Consolidation and continuation 3. Bear trap Exhibit 1: Creation of a new low Exhibit 2: Trend reversal Exhibit 3: Consolidation and Continuation Exhibit 4: Bear Trap These are the only structure that can form in a bullish trend and they will occur time and again. Hence, all these concepts are valid on all time frames. This is all you need to know about a bullish market structure. Now, open any random chart and back test the concepts. The more you practice, the better you will become. Whatever strategy you use, understanding the structure will always make you more confident in your trades. I spend a lot of time creating these educational posts, illustrations, charts, and PDFs. Please be appreciative of that and leave a like and comment if you found these helpful. It will help me to know that people are reading these posts. Also, if anyone is interested in getting a PDF version of this thread, 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
70
BEARISH DIAMOND PATTERNRULES TO KEEP IN MIND:- A visible uptrend must take place before the diamond top formation. The diamond top formation must be well stated with four trend lines that links to each other. They should not be far apart from one another. Place a sell order at the market after a break and close beneath the uptrend close to the finishing of the pattern. Traders often apply the stop loss at the very recent swing high before the breakout level. Traders often determine the target level depending on the calculated move measured. We will calculate the proximity between the highest high and the lowest low in the structure, and plot that downward from the breakout level. This plotted line would serve as the profit exit mark. The trade will have an additional time stop component. Precisely if 50 candles passes, and the price fails to trigger either the stop loss or target mark, we will have to exit the trade immediately.
NSE:COLPALEducation
by GauravLB
Amazing all-in-one chart !!The above chart is of TCS on 15 min TF. The chart has formed various patterns and shows the price action after successful completion of the pattern. Hope rarely we can found a chart which exhibits most of the patterns in a single chart. Here are some of the patterns which i was able to identify: (A) Bullish flag pattern: After recognizing and marking the pattern on chart, longs can be considered on breakout above the upper trendline of the flag, with proper SL favoring atleast 1:2 RR. (B) EW Counts (Although i am not good at EW analysis, have managed to mark some primary/corrective counts on chart): After recognizing and marking the counts (1-2) on chart, longs can be considered on breakout above the high of (1) candle, with proper SL favoring atleast 1:2 RR. (c) Head and Shoulder pattern: After recognizing and marking the pattern on chart, short position can be considered on price closing below the neckline, again with proper SL favoring atleast 1:2 RR. (D) Bearish Inverted Flag pattern: After recognizing and marking the pattern on chart, short position can be considered on breakdown below the lower trendline of the flag, with proper SL favoring atleast 1:2 RR. (E) EW corrective count: After recognizing and marking the counts (a-b) on chart, short position can be considered on price closing below the low of (a) point, with proper SL favoring atleast 1:2 RR. (F) Symmetrical triangle: After recognizing and marking the pattern on chart, longs can be considered on breakout above the upper trendline of the triangle, with proper SL favoring atleast 1:2 RR. Most of us have paid penalties/fine to the market for making mistakes. The objective of this chart is to show some simple and interesting pattern formations and price action after successful completion of the pattern. One should try to learn atleast few simple patterns, which will help to avoid or atleast minimize the penalties that we pay to the market :). Identifying such patterns on higher TF, say daily/weekly chart, and trading them with proper SL would reep good returns over long term trade. Hope the above chart was useful with the information provided. Happy Investing !
NSE:TCSEducation
by AK1808
A Tutorial on Support and Resistance - Part 1.A Tutorial on Support and Resistance - Part 1. What are Support and Resistance ? Support - Is the price level from where people expect maximum buying/demand to come. 1. Price is falling and it is expected to reverse and move up from Support. 2. Support level is always below current price level. 3. Is used to create buying positions or book profits in shorts. Resistance - Is the price level from where people expect maximum selling/supply to come. 1. Price is rising and it is expected to reverse and move down from resistance. 2. Resistance level is always above current price level. 3. Is used to book profits in long positions or create shorts. Other parts to be followed - Part 2 - Why Support and Resistances are formed ? or Why they work ? Part 3 - How to find/draw Support and Resistance ? part 4 - How to trade using Support and Resistance ?
NSE:EDELWEISSEducation
by NaveenGr