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Chart Patterns

DOW Jones Index ke HorMonesWhat I felt after watching this 2 hourly chart that markets are in a mood to consolidate and the best way I am finding is the markets every time trying to breach the 34450 levels they go up and came down heavily to 33300 levels which act as significant support. But markets are looking to go sideways and consolidate at 34500 on the higher side and 33300 on the lower side. Giving both opportunities to either buy or sell but don't go long for positional on the index in any manner.
TVC:DJIEducation
by Vipuljain5
Trading Patterns 101 - The Rounding Top patternWhat is a Rounding Top? • A rounding top is a chart pattern that graphically forms the shape of an "Inverted U". • Rounding Tops are found at the end of an uptrend trend and signify a reversal • It is also referred to as an inverted saucer. • Ideally, volume and price will move in tandem. Parts of a Rounding Top: A rounding Top chart can be divided into several main areas: • Advance • Consolidation • Decline Important aspects: 1. Prior Trend: There must be a prior uptrend before the formation of the top. The stock may trade flat before forming the pattern. 2. Advance: The first portion of the rounding top is the advance that leads to the high of the pattern. This rise can take on different forms: some are quite jagged with a number of reaction highs and lows, while others trade in a more linear fashion. 3. High: The high of the rounding top can resemble an “Inverted V” top, but should not be too sharp. Because prices are in an uptrend, the possibility of a buying climax and upthrust exists that could create a higher spike. 4. Decline: The decline from the highs forms the right half of the pattern and should take about the same amount of time as the prior advance. 5. Breakdown: Bearish confirmation comes when the pattern breaks down from the reaction lows and ultimately, the neckline. 6. Volume: In an ideal pattern, volume levels will track the shape of an inverted rounding top: high at the beginning of the advance, low at the end of the advance/consolidation, and rising during the decline. Example: Like always, if anyone is interested in getting a PDF version of this thread, then you can message me, I'll provide it. Happy learning. Cheers!
Education
by johntradingwick
11
Trading Patterns 101 - The Rounding Bottom patternWhat Is a Rounding Bottom? • A rounding bottom is a chart pattern that graphically forms the shape of a "U". • Rounding bottoms are found at the end of extended downward trends and signify a reversal • It is also referred to as a saucer bottom • Ideally, volume and price will move in tandem. Parts of a Rounding Bottom: A rounding bottom chart can be divided into several main areas. • Decline • Consolidation • Advance Important aspects: 1. Prior Trend: In order to be a reversal pattern, there must be a prior trend to reverse. Ideally, the low of a rounding bottom will mark a new low or reaction low. The stock may trade flat before forming the pattern. 2. Decline: The first portion of the rounding bottom is the decline that leads to the low of the pattern. This decline can take on different forms: some are quite jagged with a number of reaction highs and lows, while others trade lower in a more linear fashion. 3. Low: The low of the rounding bottom can resemble a “V” bottom, but should not be too sharp. Because prices are in a long-term decline, the possibility of a selling climax exists that could create a lower spike. 4. Advance: The advance off of the lows forms the right half of the pattern and should take about the same amount of time as the prior decline. If the advance is too sharp, then the validity of a rounding bottom may be in question. 5. Breakout: Bullish confirmation comes when the pattern breaks above the reaction high that marked the beginning of the decline at the start of the pattern. 6. Volume: In an ideal pattern, volume levels will track the shape of the rounding bottom: high at the beginning of the decline, low at the end of the decline, and rising during the advance. Volume levels are not too important on the decline, but there should be an increase in volume on the advance and preferably on the breakout. Potential example: Like always, if anyone is interested in getting a PDF version of this thread, then you can message me, I'll provide it. Happy learning. Cheers!
NSE:RELIANCEEducation
by johntradingwick
103
Trading Patterns 101 - The Bullish flag patternWhat Is a Bullish Flag? Bullish flag formations are found in stocks with strong uptrends and are considered good continuation patterns. They are called bull flags because the pattern resembles a flag on a pole. The pole is the result of a vertical rise in a stock and the flag results from a period of consolidation. The flag can be a horizontal rectangle but is also often angled down away from the prevailing trend. Volume usually increases in the pole and then declines in the consolidation. The pattern consists of two important moves: 1. Impulsive move - In the first stage, buyers aggressively step into the market, driving prices higher. This rise in price then attracts other buyers, creating a buying frenzy. 2. Corrective move/Consolidation - After a while, the price settles down. This happens because fewer and fewer buyers are willing to buy at this point because the move seems overextended. The buyers who entered at the bottom start taking profits. When all of this happens, the stock will go into consolidation. At the bottom of the consolidation range, new buyers keep entering since they don’t want to miss the move. How to identify a Bullish flag? The bull flag pattern has 5 main characteristics: • The preceding trend – Uptrend • The consolidation channel – Either sloping downward or rectangular • Volume – The volume must be high during the formation of the pole, low during consolidation, and again, high during the breakout. • Breakout of the consolidation range • A confirmation where price moves in the same direction as the breakout Target objective: The target for a bull flag is derived by measuring the length of the flag pole and projecting it from the breakout point. The psychology behind a Bull flag: 1. The bulls start their buying frenzy and charge ahead with a strong breakout, causing the bears to either panic and cover their ‘shorts’ or add to their ‘short’ positions. 2. Once the stock is in the consolidation stage, the bears (short-sellers) regain some confidence and they add to their ‘short’ positions with the expectation of a price drop. This causes them to get trapped again when the price breaks to the upside, causing the shorts to cover their positions and ultimately driving the prices even higher 3. Since some short-sellers from the initial flagpole run-up may still be trapped, the second breakout forming through the flag can be even more extreme in terms of the angle and severity of price move. How reliable is a bull flag pattern? Flag patterns are considered to be among the most reliable continuation patterns that traders use because they generate a setup for entering an existing trend that is ready to continue. Flag formations are all quite similar when they appear and tend to also show up in similar situations in an existing trend. I guess that's almost everything you need to know about a bull flag! If anyone is interested in getting a PDF version of this thread, then you can message me, I'll provide it. Happy learning. Cheers!
NSE:WIPROEducation
by johntradingwick
19
Wyckoff Distribution Scheme - Catch early - Beat the Operators!A classic example of Wyckoff Distribution catching retail investors off guard in Olectra Greentech Limited over a couple of years. It is important to analyze the same chart through different time-frames. New patterns can emerge this way! Full Text Reference, highly recommended must-read - school.stockcharts.com PSY—preliminary supply, where large interests begin to unload shares in quantity after a pronounced up-move. Volume expands and price spread widens, signaling that a change in trend may be approaching. BC—buying climax, during which there are often marked increases in volume and price spread. The force of buying reaches a climax, with heavy or urgent buying by the public being filled by professional interests at prices near a top. A BC often coincides with a great earnings report or other good news, since the large operators require huge demand from the public to sell their shares without depressing the stock price. AR—automatic reaction. With intense buying substantially diminished after the BC and heavy supply continuing, an AR takes place. The low of this selloff helps define the lower boundary of the distribution TR. ST—secondary test, in which price revisits the area of the BC to test the demand/supply balance at these price levels. For a top to be confirmed, supply must outweigh demand; volume and spread should thus decrease as price approaches the resistance area of the BC. An ST may take the form of an upthrust (UT), in which price moves above the resistance represented by the BC and possibly other STs before quickly reversing to close below resistance. After a UT, price often tests the lower boundary of the TR. SOW—sign of weakness, observable as a down-move to (or slightly past) the lower boundary of the TR, usually occurring on increased spread and volume. The AR and the initial SOW(s) indicate a change of character in the price action of the stock: supply is now dominant. LPSY—last point of supply. After testing support on a SOW, a feeble rally on narrow spread shows that the market is having considerable difficulty advancing. This inability to rally may be due to weak demand, substantial supply or both. LPSYs represent exhaustion of demand and the last waves of large operators’ distribution before markdown begins in earnest. UTAD—upthrust after distribution. A UTAD is the distributional counterpart to the spring and terminal shakeout in the accumulation TR. It occurs in the latter stages of the TR and provides a definitive test of new demand after a breakout above TR resistance. Analogous to springs and shakeouts, a UTAD is not a required structural element: the TR in Distribution Schematic #1 contains a UTAD, while the TR in Distribution Schematic #2 does not.
NSE:OLECTRAEducation
by Wolf-AD7
2
ASTRON | WEEKLY ANALYSIS | 40%-100% UPSIDE POTENTIALCLOSELY WATCH THE LEVELS VOLUMES HAVE STARTED TO POP IN 23/6/21 - Smallcap, Material (paper)--posted negative results FY21---quarterly results mar21 is positive -W- Stock has bottomed out and started making positive price structure - Above all major EMA on D, in W, crossing 100EMA with good VOL - Parameters positive on D & W - Volume have started to increase - Breakout and close above 60-62 on closing basis with good volume will validate - Can initiate buy at lower trendline if makes bullish candle - 100EMA and Resistance confluence
NSE:ASTRONEducation
by Stockupy