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What is Bullish Flag Pattern?What is a Bullish Flag Pattern? The bullish Flag pattern is usually found in assets with a strong uptrend. It is called a flag pattern because it resembles a flag and pole. Pole is the preceding uptrend where the flag represents the consolidation of the uptrend. How does Bullish Flag Pattern? The flag pattern resembles a parallelogram or rectangle marked by two parallel trendlines that tend to slope against the preceding trend. Phase 1: Preceding Uptrend When there is an extreme demand in prices there is an uptrend. It continued as the demand increases. Phase 2: Flag After the sharp uptrend when supply increases more then the demand prices move to the consolidation phase or flag phase. This acts as a small price channel. Phase 3: Uptrend Continuation As the flag is a pause in an uptrend, as prices consolidate investors again start to show interest in the asset which eventually leads to heavy demand again which further leads to a breakout and uptrend continuation. Role of Volume: Volume plays a vital role in the completion of the Bullish Flag pattern. When in a preceding uptrend the volume is quite higher. In the flag phase, the volume starts to go down as investors are least interested to buy and sell that particular asset. And again on the breakout, the volume surges. Volume with Breakout gives a good indication of a successful uptrend. Above Chart Explanation: This is 4H chart of SOLUSDT We can see a good preceding uptrend with great volumes. Then after the uptrend, we enter the second phase the flag phase we can see perfect bounce and retracement from upper and lower trendlines or flag with diminishing volumes. And again a breakout with good volumes. Here could be the two possible entries one at the bottom of the flag that gives us a very low-risk entry if it breaks the flag we exit. And second entry can be at breakout, first, we have to confirm that the breakout is legit for that we can look at the volumes rising volumes to confirm that the breakout is legit. Usually, we should target the length of the pole after the breakout. Conclusion: Bullish Flag is a continuation pattern it occurs quite often on charts and is one of the most reliable continuation patterns. Comment your thoughts on Bullish Flag Pattern in the comment section below. Disclaimer: This is just an educational post never trade just any pattern. And please do your research before making any trades. PS: We are again publishing this for our Indian Audience Happy Trading!
Education
by Coinlog
3
Symmetrical Triangle Pattern With Full Tutorial 1. This is basically a Symmetrical Triangle Pattern. Where Resistance & Support Line tends to cross near future, which is also known as APEX point. Breakout can happen both the side e.g. ups and down. In this chart is it in upside breakout. 2. We've to measure the distance of price range. Which is between Resistance & Support Line, when pattern was developed and now that range paste on the breakout side for measure Profit Target. 3. That price range has been paste in this area now 721.60 is the initial profit target for this Symmetrical Triangle Pattern.
NSE:CANFINHOMEEducation
by marketaffairs
HDFCAMC Stock AnalysisThe stock price is at major RESISTANCE and it is tested many times. It is also trying to the making of DOUBLE TOP PATTERN. If there is any reversal candle then short trade can be initiated and we can confirm the double top pattern. But for going long you should wait for the closing of 15 min candle with good volumes. HOW DOUBLE TOP PATTERN WORKS 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. KEY POINTS 1. A double top is a bearish technical reversal pattern. 2. It is not as easy to spot as one would think because there needs to be a confirmation with a break below support.
NSE:HDFCAMCEducation
by capitalsmack
TOP/BOTTOM REVERSAL CANDLE PATTERNSHi Its been a while since my last post. In this post I have represented selective candlestick reversal patterns. In a candlestick, "body" represents the distance between candle OPEN and CLOSING price. Whereas "wicks" represent the entire range of the candle from TOP to the BOTTOM. In most of these patterns only bodies are important. There are no conditions for wicks unless specifically mentioned like in abandoned baby star and (first two candles of) shooting star pattern. In an abandoned baby star pattern the wicks of the second day should not overlap with the wicks of first and third day. But there can be wick overlapping in morning and evening stars where the condition is for bodies only. Similarly in shooting star, the second day should not overlap with the first day (not even wicks) whereas the third day may have some overlapping. One should always try these patterns with some sort of confirmation in the form of volume or overbought/oversold scenarios etc. While taking a trade based on these patterns one should follow money management and trade management principles. I hope this post will update your knowledge in one way or the other. Do not forget to like and comment (for any doubts) to encourage writing on trading view. Regards JJSingh
NSE:NIFTYEducation
by Bravetotrade
41
Price Action with RSI and MACD - Trade with ConvictionFor the purpose of explaining the combined use of these indicators, I have taken the example of TCS - TATA CONSULTANCY SERVICES, which recently gave a clear breakout. Know your Lines! - By joining the recent highs and recent lows of a share price, we can identify if the share has a well tested Support & Resistance or not. I prefer those with a clear defined pattern simply because all traders are looking out for these levels and there is a pretty good chance they will hold good, if not, you will know its time to exit. Catch the Support! - The key to any exchange profit is BUYING AT A LOW and SELLING AT A HIGH. While it might sound obvious, majority of people lose out because they FOMO in at a HIGH and then Sell at a Low to cut losses. Classic Failure Strategy. It is pretty normal if a stock is all abuzz in the market, but do not enter it based on the buzz, check if its already too late or not. If at all, buy at a pullback at Fibonacci levels 0.68 or 0.50 ( Higher Success Rate levels ) One Eye on the MACD! - What makes an Indicator exceptional is the number of people using it. RSI, MACD, STOCH are like the biblical indicators which you certainly want to check before taking a position. When the blue line of MACD cuts the signal line from below, and the price is around its support, chances are you will not repent going long. RSI is your best friend! - RSI is very crucial to avoid buying at a high. When it is above 70( I prefer 80 ), it is better to wait for a pullback. In a bullish market, it usually bounces back from 50, but again it differs from share to share. Identify its key support and a bounce from that level around the price support when MACD is bullish, means its a good set up for a Long Position. I also prefer to watch out for RSI and MACD divergence to see the momentum of the price. If the RSI or MACD is making lower HIGHS while the Share Price is making Higher HIGHS, it means the momentum is weaking and one must watchout for a nice pullback. To summarise, Identify the Support and Resistance, Check if MACD has turned bullish when the pricce has pulled back to its support, Check if RSI has bounced from its support and preferably above 50 ( It means bulls are in control ). If everything checks out, it should be an ideal long setup. I hope you take back something from the explanation, This strategy has almost everytime worked for me. I hope it does for you too. Keep Learning :)
NSE:TCSEducation
by Aayush_Rungta
23
The reason behind Fibonacci retracement in stock marketsWhat is the reason behind Fibonacci retracement in stock markets? As a traders we all know Fibonacci that the Fibonacci ratios, i.e. 61.8%, 38.2%, and 23.6%, finds its application in stock charts. Fibonacci analysis can be applied when there is a noticeable up-move or down-move in prices. Whenever the stock moves either upwards or downwards sharply, it usually tends to retrace back before its next move. The reasons that I come across why this uncertain market follows the Fibonacci retracement . The stock market only involves demand and supply, but how this golden ratio-number can govern the price movements, like most of us don’t have the mathematical knowledge. But psychology we all think in a similar way . The two reasons that I come around are: -Stocks do NOT "follow Fibonacci retracement." Stocks move around randomly, together with some bias due to overall unpredictable market conditions. Sometimes these random movements correspond to a recognizable pattern on accident, and when they do people notice and say "look at that, a pattern!" Then they give these patterns fancy names like "Fibonacci retracement," and start looking for them in other places, which they will certainly find if they look hard enough. Sadly, any attempt to use these patterns in advance to predict future price movements fail. Sometimes they match on accident, and just as often they don't. If these patterns worked, then they would quickly be used until they stop working. E.g. If the pattern actually, correctly, showed that the stock price will go up next week, then a whole bunch of people will start buying it THIS week, causing it to go up sooner, and ultimately erasing the pattern. -There are two schools of thought - one that believes in technical analysis, and one that doesn’t. from the view of the latter With many people believing in the significance of the stock price reaching or crossing certain levels - be it fibonacci levels, support lines, crosses of death, or whichever, those people react by buying or selling, thereby creating a self-fullfilling prophecy. If you want to make money in the market, you need to be aware of these reactions, and act accordingly - sometimes even supporting the supposed beliefs. Personally, I think it’s like astrology - great if it helps you, but there is nothing behind it. Again, look forward to the other side explaining you why it’s real, and make up your own mind. Thanks for reading it. Please share your thoughts on things..
NSE:SBICARDEducation
by Trader3301
4
How to make a winning trade using pennants A pennant is a small symmetrical triangle that begins wide and converges as the pattern matures (like a cone). Here is an example of IEX. The company has declared a good set up of numbers on 22nd July. Profit after tax is up by 48% Sales are up by 36% The price is now hovering near the previous Resistance which now acts as a support Tight price range near the support level. Look at the small candles. Price goes up with rising volume on 23rd Aug. Any pattern may falter depending on the overall market condition. So one should always keep a stop loss. :) Hope you liked the idea. Happy trading.
NSE:IEXEducation
by ObliviousChart
6
How to make a winning trade through Cup and Handle !!! Infoedge the owner of Zomato has been consolidating for 7 months. - The stock has formed a cup and handle formation - Cup pattern took 7 months & - Handle pattern took 1 month for the formation - The stock has given a breakout and moved out of the range with good volume. - Additionally, the stock is trading above 50 SMA. -Globally markets are choppy and the pattern can fail with the market. Thus one should keep a stop loss. -The post is for educational purposes. :) Happy trading.
NSE:NAUKRIEducation
by ObliviousChart
1
BankNifty Trading Strategies Explained and ComparedAlthough it is very difficult to explain the difference between different indicators at different time frame and setup, but I’ll try to keep it as simple as possible. I will try to explain with 1 example. Index: BankNifty (BN) Timeframe: 5 Mins Trading: Intraday only Date: 26th Aug Indicators for Strategy 1: BB + RSI (9) @ 50 + EMA (3) on RSI + WMA (21) on RSI VS Indicators for Strategy 2: Pivots + CPR + Previous Day High / Low Strategy 1 - 1. @ 9:50 BN trading @ 35,560 - RSI is above 50 + WMA is below EMA so it’s a Buy. And exit when situation reverses, RSI below 50 + WMA is below EMA & that comes @ 10:25 when BN was trading @ 35,570. So No PnL generated considering Theta Decay. 2. @ 10:50 when market was trading @ 35,600. Buy call generated, SL & exit again as per indicators and would have gained 110pts by 12:15. 3. Next Entry in Put @ 12:20 when market was trading @ 35,710 & exits @ 35,700 at 13:00 so no PnL. 4. Again @ 14:15 market was showing weakness so entry @ 14:20 entry below 35,685 & exit as per indicators or since its EOD, exit with 100pts profit. You can check this in 10/15/30 mins time frame; you will get entry & exit at the same point mostly in sideways market. Only on smaller time frame you will get multiple calls. Benefits of Strategy 1: 1. Nothing to lose even in sideways market 2. Can generate maximum profit in 1 side market since you will be able to ride full 3. Easy to understand and Execute 4. Generates better signal after consolidation Drawbacks of Strategy 1: 1. Will be difficult to generate profit in sideways market 2. Late Entry & Exit 3. Indicators take time to generate signals as they are based on MA 4. If market is giving crazy moves in small time frame then by the time system generates entry/exit it will be too late 5. If market opens gap up / gap down and continue to move in the same direction whole day then you will be reluctant to take entry in the midway. Strategy 2 – 1. @ 9:20 BN trading @ support zone of 35420 & 34435. Also, Gap down opening below CPR and since CPR works as magnet and 60 to 70% of the time if market opens gap up or gap down it starts moving towards CPR. 2. So entry above 35435 with the SL of 20 pt below support zone and Target 35,665. And if you watch closely @ 10:05 market touches the target. So 230pts gain. 3. In case SL hits then reverse position again with the SL of 20pts with the target of next support / resistance 4. @ 14:05 when BN was trading near 35,760 one can buy put but since SL would have been above resistance zone i.e. above 35,830 (70pts), Take profit @ 35,665 (95 pts) pivot point (Black Line) and since market is sideways, it was a risky trade and risk reward ratio was not favorable. So avoided this trade. Benefits of Strategy 2: 1. Early entry & exit 2. Can generate profit even in sideways market also Drawbacks of Strategy 2: 1. Risky & logic based 2. Will not be able to generate maximum profit in 1 side market 3. Complicated as so many things to consider like; previous day high/low, 1st candle high/low, CPR, Virgin CPR, etc. 4. Takes time to master the skill 5. 2nd Entry very difficult & more risky in sideways market Observations - 1. If someone followed strategy 2 then they would generate good profit without any risk & would have gained 200+ pts in a day even in sideways market. 2. If someone followed strategy 1 then they would have gain 200+ pts @ SOD only What I do? 1. I trade with Strategy 2 @ start of the day, since indicators takes time to generate calls due to gap up & down. 2. Now depending upon CPR/virgin CPR/Previous Day High/Low like any candle touched CPR or not/it is moving away or towards CPR. Also, depending upon the market conditions or on which day I am trading, I take my exit. 3. During 2nd and 3rd session i.e. after 11:00, I use strategy 1 since indicators have mostly stabilized and now will be able to give better entry & exit. Now the question is which strategy you should follow? 1. Those who are new in the market they should definitely go with the strategy 1. 2. Try with 2 lots or more, book 50% of lot when BN gives 100/150pts depending upon the market and remaining 50% as per indicator so either huge profit or no profit on remaining 50%. 3. Start learning strategy 2 by observing market for few weeks/months, get detail knowledge of pivots & CPR, start mock trading and once you are comfortable then start small with 1 lot. 4. Once you have mastered & combined both these strategies you will be easily able to get on an average 100+ pts / lot in options. Note: 1. These strategies are only for BN 2. Same strategy & Time frame may not work in Nifty / Stocks 3. You can try strategy 1 in Stocks / Nifty trading also but time frame needs to be adjusted based on your holding period As I always say no strategy/indicator is full proof, but mastering these 2 strategies and executing them together will definitely give you much better results. And most important, it is always easy to say buy this and sell this as an example after the market is closed, but very difficult to execute during live market. Only after practice, practice, practice & discipline you will be able to trade successfully. So keep practicing as no 2 days in the market are same. Don't trade with emotions, trade with logic. *I am posting chart in 15mins time frame as smaller time frame is not allowed but you can check exact entry & exit in 5mins time frame.
NSE:BANKNIFTYEducation
by Vinay227
3
Bank Nifty looks bearish for tomorrow (27 Aug 2021)Prediction: Since there is Jackson Hole Event, chances are that market wont leave their position open. Hence, there are high chance that we see Bank Nifty down tomorrow. Further, 35600 is important support. Next support will be 35350-00. Below 35300 don't forget to short with SL 35375. Pattern: An ascending triangle is a chart pattern used in technical analysis. It is created by price moves that allow for a horizontal line to be drawn along the swing highs, and a rising trendline to be drawn along the swing lows. The two lines form a triangle. Traders often watch for breakouts from triangle patterns. The breakout can occur to the upside or downside. Ascending triangles are often called continuation patterns since the price will typically breakout in the same direction as the trend that was in place just prior to the triangle forming.
NSE:BANKNIFTYEducation
by Spunkygamer
nifty is showing flag and pole patternFlag and pole is a bullish pattern. I it breaks the channel upside stock price makes a new high. But if it breaks the downside then it will no good breakout. How flag and pole pattern work:- Flags are areas of tight consolidation in price action showing a counter-trend move that follows directly after a sharp directional movement in price. The pattern typically consists of between five and twenty price bars. Flag patterns can be either upward trending (bullish flag) or downward trending (bearish flag). The bottom of the flag should not exceed the midpoint of the flagpole that preceded it. Flag patterns have five main characteristics: 1.The preceding trend 2.The consolidation channel 3.The volume pattern 4.A breakout 5.A confirmation where price moves in the same direction as the breakout Bullish and bearish patterns have similar structures but differ in trend direction and subtle differences in volume pattern. The bullish volume pattern increases in the preceding trend and declines in the consolidation. By contrast, a bearish volume pattern increases first and then tends to hold level since bearish trends tend to increase in volume as time progresses.
NSE:NIFTYEducation
by capitalsmack
23
Bitcoin: ABC WavesFriends: Post here a study on the natural correction that BTC may undergo. I am not saying here that it will happen this way. But I am expounding Elliot's theories about the ABC correction waves. I hope I helped in some way. Leave your like please and comment your opinion! 👉🏼If you want to talk to me, send an inbox message, or click on the footer of this post! ⚠️Disclaimer: The above comments reflect solely my opinion, this is not a buy or sell recommendation. Just a series of published studies, so that together with the community we can discuss operational tactics and techniques. CLICK DOWN HERE! 👇🏼👇🏼👇🏼👇🏼
COINBASE:BTCUSDEducation
by GustavoCorrea1
NIFTY LOOKS TO TEST ITS SUPPORTSNifty at its curial support of 16630, any fall would take the index to 16580-550. Also, Nifty has made double top and accordingly, likely to test 16380-50 levels soon so that double top pattern can be completed!! Further, if cues are negative from Jackson Hole Event i.e., liquidity cut, we may see a good correction all over the world market. However, as the COVID cases are increasing in US, I believe the US Government will not cut the liquidity flowing in market and hence, its unlikely that Nifty will test lower levels and should fly above 16380-50. PS: I am amateur in this huge investment world. Kindly check with your financial adviser before investing/ shorting/ longing the index.
NSE:NIFTYEducation
by Spunkygamer
Helpful Questions to Ask Yourself.The quality of our life depends upon the quality of the question we ask. I think it's the same with trading also, successful traders ask better questions, and as a result, they get better answers. They get answers that help them to know exactly what to do in any situation to produce the results they desired. Below are the 5 questions that will help you to stay focused and will make sure you do the right things. 1-Did I get in before the market broke? One thing traders do that hurts them is to anticipate breakouts that never amount to anything. Instead of waiting for the market to break, they rush in to buy when it is at the top of its resistance level, hoping for the breakout. You shouldn’t anticipate a breakout every time the market approaches the support or resistance area, but you should be prepared to act if it does. 2-Am I getting in too late? Suppose a breakout happens with a huge candle showing a 6-8% move. We always feel that if we don't act immediately, we could miss a great trade. It’s not always easy for a trader to walk away from a tempting trade, but this is the difference between a high probability trader and a low probability trader. You will be better off missing a few good trades while removing out the mediocre ones as you wait for the trades that have a higher probability with a better risk/reward ratio. 3-Did I use volume or any other indicator to see if the breakout was a high probability one? To increase the probability of a breakout trade working, one can do a few things. By looking at different time frames to see the market more clearly, adding indicators such as the ADX or stochastics to time trades better, using volume to see if a move is substantiated, or adding filters to keep from rushing into a trade, one can improve the odds of capturing a breakout. 4-How much room does it have to go? When a market breaks out of a trading range, a trader should try to estimate the potential move so that he can measure the risk if the trade goes sour. Without a good mix between the two, no trade should be taken. It doesn’t make sense to make a trade with a 100rs potential profit but with a chance of losing 300rs. You need to have realistic ideas on how much each market or stock can give you or cause you to lose on a trade. Use the size of the previous wave, range, or congestion to measure the next move. 5-Should I wait for a retracement? By waiting for the market to test the old resistance line at Point Y one can make a higher probability trade than by chasing it at point X. By waiting for retracement you can trade with a better risk-reward ratio. Sometimes when the volume is strong, the initial move can be stronger and the chances of it retesting the breakout level are diminished, and so one has to let go of that trade. Your goal should be to take the trade with a better risk-reward ratio. Short Summary 1-Be prepared to do something when the market approaches a potential breakout area. 2-Use other indicators to help determine the chance of a breakout working. 3-Use the size of the previous wave, range, or congestion to measure the next move. 4-If the current R: R is good then enter & if not then wait for the pullback.
NSE:HINDUNILVREducation
by Indrajit08
6
Head & Shoulder Failure Chart PatternHead and Shoulder is a reliable reversal chart pattern that forms after an advance or a decline and the completion of the formation suggests a reversal of the existing trend. As this case with different chart patterns, H & S reversals can fail. However, the failure of this specific reversal chart pattern same reliable as compare to other chart patterns . When H & S chart pattern invalidate the earlier interpretation then H & S Failure pattern forms . The failure, once confirmed, would help us set price targets for the newly established trend. Breach above the right shoulder confirm it as a H & S Failure Chart Pattern formed . Further details Mention in CHART .
BITSTAMP:BTCUSDEducation
by PrasantaP