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Chart Patterns

Cup and handle formationThe stock has clear resistance from 117 to 121. It has tried to breach this resistance, however, we can see a big selling. Now the stock is possibly making a cup and handle formation . Price change from the bottom of the cup to the top of the cup is around 45 Rs. If it able to breach the resistace of 118, we can expect up move of 45 Rs from the top of the handle which is coming around 160 Rs. Investors with medium to long term plan should start accumulating this share from this point onward as it is creating a base and a strong support at current levels. Investors should accumulate the stock in each dip until the levels of 120 for very good returns. SL - 90 Weekly basis.
NSE:IOCEducation
by AbNamjoshi
Rounding bottom breakout pattern Learning. Educational purposeThis is a chart of indiamart, here i am sharing to learn some logics of rounding bottom along with reasons, targets and stop loss. Here price has formed rounding bottom, and now it has given breakout along with good intensity of volume at same breakout candle, with supporting views by rsi above 60 at breakout, along with macd running positive crossover and now above zero line. if price retest the neckline of rounding bottom and rises again then probabilities of win are increased. here stop loss should be bottom of rounding pattern and targets should be double of total depth of rounding bottom to neckline, so our risk rewards ratio would be at least 1:2 price challenging upper bollinger band supporting indicators Disclaimer I am not sebi registered analyst My studies are for educational purpose only Consult your financial advisor before trading or investing
NSE:INDIAMARTEducation
by RK_Chaarts
Market Crash after a BULL MARKET? How to predict them?"HISTORY REPEATS ITSELF" is a very powerful mantra for success in STOCK MARKET. Anyone can mint money in a bull market but THE ONE who protects his/her money before a market crash is the one who makes profits in the long run... And the fun fact is that market gives enough chances to protect one's capital before the crash. Here I am with one of the very few patterns which was common in both the major crash of 2008 and 2020 and in a mini crash of 1999. This SETUP is very simple to read...yet a very powerful one CONDITIONS TO QUALIFY IN THIS SETUP: 1.EMA 52 Slope should not be one directional upwards (CHECK IN BOTH DAILY AND WEEKLY TIME FRAME) 2.RSI-Sharp dip below 40 3.Triple Top as seen in the 1999/2008/2020 crash. 4.Breaking the bottom of the channel with gap down/low wick red candle. LOOK AT THE MAGIC (1999 CRASH): 2008 CRASH: 2020 CRASH: Now This was one such SETUP which was common in 2 MAJOR and 1 MINOR crashes in the data which is available on charts. MARKETs can fell in many other bearish reversal setups like HEAD AND SHOULDERS as shown in the BEGINNING OF 2015 BEAR MARKET: Many more reversal setups are there which are visible in most of the mini/major crashes that takes place in the market...I will look forward to share one by one all the possible reversal patterns to avoid confusion in reading and digesting the SETUPs...FOLLOW me to stay updated as soon as I upload them on my channel. Till then, HAPPY TRADING :)
NSE:NIFTYEducation
by keshevdugar
13
ACC STRONG INSIDE ACC following the H&S Pattern breakdown happen yesterday 300 points down side What Does a Head and Shoulders Pattern Tell You? A head and shoulders pattern is comprised of three component parts: After long bullish trends, the price rises to a peak and subsequently declines to form a trough. The price rises again to form a second high substantially above the initial peak and declines again. The price rises a third time, but only to the level of the first peak, before declining once more. The first and third peaks are shoulders, and the second peak forms the head. The line connecting the first and second troughs is called the neckline. How Do I Identify a Head and Shoulders Pattern on a Chart? The pattern is composed of a "left shoulder," a "head," then a "right shoulder" that shows a baseline with three peaks, the middle peak being the highest. The left shoulder is marked by price declines followed by a bottom, followed by a subsequent increase. The head is formed by price declines again forming a lower bottom. The right shoulder is then created when the price increases once again, then declines to form the right bottom. What Does a Head and Shoulders Pattern Indicate? The head and shoulders chart is said to depict a bullish-to-bearish trend reversal and signals that an upward trend is nearing its end. Investors consider it to be one of the most reliable trend reversal patterns. How Can I Use the Head and Shoulders Pattern to Make Trading Decisions? The most common entry point is a breakout of the neckline, with a stop above (market top) or below (market bottom) the right shoulder. The profit target is the difference between the high and low with the pattern added (market bottom) or subtracted (market top) from the breakout price. The system is not perfect, but it does provide a method of trading the markets based on logical price movements.
NSE:ACCEducation
by mcpriceaction
How to enter a stock with institutions!Using multiple confirmations, different timeframes and by applying rules of price action over a chart let's one understand HOW THE PRICE BEHAVES! Here is an example of buying a stock at the lows (Disclaimer: NOT THE ABSOLUTE LOWS) Let's start with a Higher TF- Weekly' The stock is in a formation of a price action pattern called CUP & HANDLE, where CUP is complete and HANDLE is forming and it is the spot where an early entry is possible ahead of a proper breakout. This early entry becomes possible with following confirmations: 1. Volumes : Since the absolute low has been established the volumes in the stock as grown multi-fold which in itself is an indication that smart money is already into the stock. 2. RSI: After declining into bearish teritory below 40 in March 2020, the stock bounced back into neutral zone between 40-60 and closing above 60 on 31 August 2020. Since then the stock remained in overbought zone and kept on increasing and took a breather making a double bottom at 40(which is also termed as a support level) and making a neckline on 60 which was breached and retested providing adittional confirmation to the setup 3. The HANDLE: During handle formation the stock made a double botton between 870-910 levels which a pettern within a pattern also adding to the confidence. The DAILY Chart Now, the stock is confirmed that it is in a directional trend. Samller TF will help us in better entry and exit levels. The same procedure must also be followed in the lower TF because if the trend is distorting it will reflect in smaller TF first. Here, 1. Volumes: Near the neckline the stock has seen low volumes and the price has moved in a narrow range which we can also say an accumulation zone confirmed by a breakout with tremendous volumes. 2. RSI: Since the stock has been accumulating the RSI line rested near 60 zone which is also a support zone. 3. Pattern: As discussed earlier double botton is formed which more vibrant and act as a confirmation on lower TF.
NSE:IFBINDEducation
by abhinavjain97
Ross Hook pattern (simple) explanation using Bank Nifty D ChartRoss Hook pattern (simple) explanation using Bank Nifty Daily chart : We tried to explain Ross Hook pattern in a very simple way here taking Bank Nifty Daily chart as example. Ross Hook pattern can be termed as an extension/correction/advancement (as per me) to 1-2-3 pattern. The difference which can be noticed is hook kind of formation after point 3 where there can be couple of small candles which are formed to give a confirmation for momentum or price action. These small candle formation are termed as hook in simple terms and any upside (Bull pattern) or downside (Bear pattern) movement from these candle sticks will give good momentum and good risk reward. SL need to placed just below/above these small candles as per Bull/Bear formation respectively. Entry just above the candles/below the candles for Bull/Bear formation respectively and exit can be planned with a risk reward ratio of 1:2,3,4,5. In the given chart there are 4 Bull patterns (A,C,D,E) AND 1 Bear pattern (B) for your reference. For confluence the entry points need to looked along with RSI/MACD/Bollinger bands etc. Identification of hook is the key in this strategy. Once it is identified then the RR can be very good. Please do a back testing to identify these hooks so to get a good hold of understanding. Also ample time will be there when we notice these hook formation candles to make entries. Please do not get into entries with long candles formation as it might not be hook formation and we should avoid those entry points. SL is the key and it should be smaller, if this is kept in mind then identification of hook formation in candles can be easily identified. Some times point 3 can also be used for SL but we avoid taking that huge risk and want to move out when our analysis is wrong or the trend is in our opposite direction of our thought process with a small SL. Market gives us abundant opportunities and its believed that for every 8 minutes there would be an opportunity for every one to enter. Hence identify only those trends with small SL opportunity for planning an entry. This strategy works for all time formats and please remember identification of SL (which should be small) is the key (reiterating again) and will lead us to entry and exit points. Disclaimer : This analysis 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! Please do like and share this idea. Thanks
NSE:BANKNIFTYEducation
by AdhigamaTrading
2
WaveTalks - Nifty: Channel Trading Strategy WaveTalks - Nifty: Channel Trading Strategy There are three (3) types of channels: 1. Ascending Channel (higher highs and higher lows) 2. Descending Channel (lower highs and lower lows) 3. Horizontal Channel (ranging) ------------------------- Ascending channel ------------------------- An Ascending channel is a pattern formed from two upward trendlines drawn above and below a price representing resistance and support levels The ascending channel is also known as a “rising channel” and “channel up“. Ascending channel has a rectangle shape (Current Case – Nifty / 20th Oct2021) --------------------- Trading Strategy --------------------- As long as prices remain within the ascending channel, the upward trend in price can be expected to continue. 3 Supports shown as 17613 – 1st Support / 17864 – 2nd Support / 18209 - 3rd Support When executing trades based on a trendline, it is important that the trendline is a valid one / How do you know it is valid – 2 points required to draw a trendline & 3rd point which is 18209 if falls & takes support then it confirms that the trendline is a valid one. So, Any Buy or Long Trades should be executed with stops below the trendline so 18209 is an important level. Traders can keep 18200 level which is a psychological level. ------------------------- Descending channel ------------------------- A Descending channel is a pattern formed from two downward trendlines drawn above and below a price representing resistance and support levels. The descending channel pattern is also known as a “falling channel” or “channel down“. ------------------------- Horizontal Channel ------------------------- A horizontal channel is a chart pattern formed from two parallel trendlines drawn above and below price representing resistance and support levels -------------------------------------------------------------------------- The Last Idea - Bulls Yelling The Excitement - Gap Strategy -------------------------------------------------------------------------- Hope you enjoyed selling at the tops 18600 for 18200 approx. Nifty Index took support in the 2nd Gap. Are You Ready for the Next Move?
NSE:NIFTYEducation
by WaveTalks
14
SECRETS OF A FAKEOUTThe markets were/are in a state of frenzy. Any strategy with a long bias would have had a positive expectancy, even the ones that don't have an edge. It is vital for traders to build good habits because bull runs don't continue forever. Right now, you can buy the highs and still get away with it because the market is flush with liquidity and inexperienced, new coming investors. When this euphoria will die down, one has to understand the difference between real trading and jumping on the bandwagon. This tutorial is an attempt to de-mystify a simple classical chart pattern combined with statistically tested indicators and tools. Hope this helps. Here are some examples of a bad breakout: 1. 2. 3. I also have a scanner that I use to scan very tight compressions beforehand. This is what my current list looks like:
NSE:TATAINVESTEducation
by vorayash05
48
Trading setup for beginnersOne thing that is a problem for novice traders is the lack of repeatable trading setups. Manually scanning through charts every day is counterproductive. One might take a trade just for the sake of it if they do not find anything worth trading. This pattern can be scanned very easily on charting platforms. Lack of patience is very real during early days as a trader. Having a fixed systematic pattern like this is an antidote to lack of patience and bad trades. Whenever the market penetrates the mentioned low and doesn't follow through, one can expect a short time spike in prices that can be capitalized. These patterns tend to resolve themselves within 3-5 days and occasionally make take some time. This pattern is called Turtle Soup/Turtle Soup Plus One. If the market closes above the mentioned low on the same day, it is called turtle soup and if it closes higher the next day, it is called turtle soup plus one. I learned this strategy from a legendary veteran trader, Linda Bradford Raschke, in her book Street Smarts. The trading pattern is explained thoroughly on the chart but if you have any questions, you can drop them in the comment section. P.S. I highlighted the most recent trade because that was the one that I took and the previous examples on the chart may look like a benefit of hindsight, but that is simply to see how the markets reacted and whether this trade would have worked out or not. Past market behavior is very important. *Welcome corrections on the chart if any*
NSE:TECHMEducation
by vorayash05
3
Multiple confirmation for breakout examples...Multiple confirmation for breakout (GBPJPY) : We want to share a perfect example of breakouts. There are multiple confirmation of break out on a daily basis for GBPJPY : • Flag pattern breakout • Double bottom breakout • Head and shoulder breakout • EMA 13 cross over of 50 EMA and recent support of 200 EMA twice Disclaimer : This analysis 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! Please do like and share this idea. Thanks
GEducation
by AdhigamaTrading
Few learnings I want to share taking Adaniports daily chartFew learnings I want to share taking Adaniports daily chart as example: EMA’s 13,50 and 200 are plotted in the chart. An ideal price should always be near to all EMA’s but due to demand and supply and various other factors, price revolves around the EMA’s. High demand or High supply will make these EMA’s move away from each other. But the fact is after some time they settle and come closer to each other. Smallest EMA moves faster and first than largest EMA which moves last and slow for all price action movements. These are the opportunities which traders need to profit buy entering at correct time to ensure appropriate and maximum profits are earned. It takes time, learnings, experience to understand these concepts for entry and exit. From 2021 beginning the price is ascending constantly and taking 13 EMA as support. Instead of 13 EMA, 20 EMA can also be plotted. 13 EMA helps us for a day trading as well as for short and long terms, hence we used 13, 50 and 200 EMA to address the needs of all types of trading. When ever price goes far away from 13 EMA/20 EMA, it will comes back to test or take support before moving on. If 13 EMA/50EMA are above 200 EMA its considered as uptrend and if they are below 200 EMA, its considered as downtrend. In the current example since beginning of 2021, price is in uptrend hance 13 EMA is above 50 EMA and these two are above 200 EMA proving the uptrend. Once price reaches its high or demand lacks, price wont fall suddenly, it will consolidate for some time and then inches to touch the small EMA, here its 13 EMA and takes support (17th Mar) and then goes for a higher high (7th April 20201 example). If 13 EMA support is broken then price tends to go and touch 50 EMA and take support (22nd April) and then makes higher high (7th Jun). After this price couldn’t sustain but with a huge gap down it went and touch 50 EMA and skipped 13 EMA. These gaps will subsequently gets filled, in a few day or few weeks or few months but surely gaps get filled up (example 17th Oct and 18th Oct gap filled up). When price tends to go lower and if 13 EMA crossed 50 EMA from top then higher chances of price to touch 200 EMA or at least it will go very nearby to 200 EMA before reversing. Flag pattern - Last two months (Mid Aug and Sep till Oct mid), we can see a flag pattern and it got broken on 13th Oct and price making highs covering earlier gaps. Now the probability of price touching earlier highs are very high. This is how we can use EMA’s to optimum and can have a proper entry and exit points for intraday, short term or long term trading. Wicks – Now let’s talk about wicks, some people consider them and some won’t consider. Here we considered wicks and some learnings we want to share. When ever we see big wicks it means there are traders to buy or sell in that wick space. This means eventually that wicks will get filled up. Example, if you see 7th April/16th April there is a long wick on the up side and eventually it got filled up in over May period. Color of candle doesn’t matter here when big wicks are made. Same way 14th Jun a hug wick on down side and got filled in couple of days. Fibonacci – Two Fib levels are plotted to see how price respects them. 0.382 and 0.5 are crucial for a retracement and if support taken then price can move up. At the same time 0.618 if broken then the trend in retracement will continue. Hope above information on EMA, wicks, Fib levels along with a flag break out example and also a trending up and down market we could learn from this example. Disclaimer : This analysis 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! Please do like and share this idea. Thanks
NSE:ADANIPORTSEducation
by AdhigamaTrading