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Chart Patterns

SENSEX : to correct 10% from here ?SENSEX after the index had a spectacular rally for more than one year from 2020 ( march ) covid crash low of 25000 levels to 52300 in 2021 ( june ) is heading towards major resistance , and can have a correction of 10% from here , due to many valid factors factor 1 : bearish harmonics pattern ( monthly ) factor 2 : fibonacii reversal zone 1.618 factor 3 : resistance & upper resistance trend line factor 4 : stochastic RSI at overbought zone of 100 factor 5 : highly stretched valuation from CMP 52300 can correct up to with targets : 49100 / 47740 / 46160 / 44315 stop loss of 53875 closing above trend line
BSE:SENSEXEducation
by HARMONICSANAND
1
BANK NIFTY POSITIONAL | LOSING TRADE | BREAKDOWN AND SETUPHi Traders, Everything seemed Perfect for this positional Trade. Price attempting to breakout resistance for the 3rd time Build up at resistance Price moving in an Uptrend Support taken from Trendline Hammer like formation showing buying presence Entry on 7 Jun Exit on 10 Jun LOSS PER LOT - INR 7500/- PROFIT PER LOT : INR 23000/- This Futures position was hedged with a PE of the index. Though we had multiple confluences , I never trade without a stop loss Now in the case of bank nifty , the daily volatility is in the range of +-300 points , hence it did not make sense purchasing naked futures and maintaining a Stop LOSS Trigger as any normal move of bank nifty could trigger a stop loss A PE was purchased to CAP the maximum loss per lot to 7500 /- Now if you notice on the charts , without PE , I would've been stopped out immediately on the same day Because the position was HEDGED , I was able to carry the trade for 4 days Also note the margin requirements for a HEDGED position reduces significantly (Almost 1/4th) Respect the Markets and Trade with a strict stop loss. LIVE ANOTHER DAY !! Keep This Information Handy and Happy Trading. NOTE : HAD THIS BEEN A NAKED FUT TRADE , THE PAIN OF SEEING A NEGATIVE P&L OF 20000 /- PER LOT WOULD MAKE TRADERS TAKE EMOTIONAL AND IRRATIONAL TRADING DECISIONS. ALWAYS TRADE WITH STOP LOSS AND ENJOY WHAT THE MARKET OFFERS :-) ******* KEEP A CLOSE WATCH FOR A BREAKOUT ABOVE THE LEVEL OF 35500 AGAIN FOR BUY *****
NSE:BANKNIFTYEducation
by FourSTechnicalAnalysis
1
Quick Guide to: F.R Volume Profile ToolFixed Range Volume Profile: helps to construct a significant Supply & Demand zones over a specific period of time. Either it belongs to shorter time frame (15m-4H) or secular time frames (1D-1M) . Note: The whole explanation is in Structured manner. Read carefully and Enjoy. Type of FR Volume Profiles patterns. 1. P Type 2. D Type 3. b Type . 1. P Type image reference: Trading view doesn't give permission for external links to newbies, sorry for that P Type pattern occurs in bullish/up trend and it mostly apply to identify next higher-low for best entries. P type pattern describes that accumulation zone has been done where most of the contracts happen after a bull run. . 2. D Type D Type pattern occurs after retracement of primary trend. It can occurs both in uptrend as well as downtrend. Major goal is after retracement D-type provide a harmonics of Neutral range of highest volume faced in a trend. In simple POC (point of control) where either buyer will control if passed or seller will control further if passed down to POC. . 3. b Type b Type occurs in bearish/down trend which describes that seller has been sell a lot at supply zone. So we have to see at POC redline either seller will control further or not. If the price passes the red seller control will be over buyers if not buyer will in power and as we know in downtrend lower-high will formed by buyers if they control after touching above the red line and there we can look for sell. . Where FR Volume Profile tool is located in trading view? Look for that symbol above EMOJI list. . How to use the FR Volume Profile Professionally? Step 1: Apply Volume Profile - Choose opening price only & locate your 1 Point of Volume Profile as shown in Image below. - Choose last higher-high in bullish trend & lower-low in bearish trend opening prices as shown in image. . Step 2: Create Supply and Demand zone - If price is in trending use spikes (higher price of candlestick) to for Supply and Demand. - if price is in accumulation/consolidation phase choose closing price of candlestick for both Supply and Demand zone. . I hope you like the this part please let me know in comments. If you guys wanna see the Advanced parameters of FR Volume profile using developing POC and VA method to identify the current contracts as compare to last sessions. NSE:RELIANCE
NSE:RELIANCEEducation
by rajveerscolia
2
Ascending Triangle Chart Pattern (Continuation 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. Important Points to look at - The trendlines of a triangle need to run along at least two swing highs and two swing lows. Ascending triangles are considered a continuation pattern, as the price will typically breakout of the triangle in the price direction prevailing before the triangle. Although, this won't always occur. A breakout in any direction is noteworthy. Increasing volume helps to confirm the breakout, as it shows rising interest as the price moves out of the pattern. A minimum of two swing highs and two swing lows are required to form the ascending triangle's trendlines. But, a greater number of trendline touches tends to produce more reliable trading results. Since the trendlines are converging on one another, if the price continues to move within a triangle for multiple swings the price action becomes more coiled, likely leading to a stronger eventual breakout. A triangle is a type of consolidation, and therefore volume tends to contract during an ascending triangle. As mentioned, traders look for volume to increase on a breakout, as this helps confirm the price is likely to keep heading in the breakout direction. If the price breaks out on low volume, that is a warning sign that the breakout lacks strength. This could mean the price will move back into the pattern. This is called a false breakout. $ = Liquidity
COINBASE:ETHUSDEducation
by TraderLeVeR
Trade ManagementLast nights price action is a perfect example of the importance of correct risk management. All 3 entries taken last night ran to roughly 3% and then reversed. Due to correct risk management all 3 of these trades resulted in Break even results instead of full losses. Finishing the night at break even instead of -3% is not a huge difference $ wise but also a massive difference mentally. By closing 0.25% of your position at 3% profit you are essentially Break evening your trading while still leaving your stop open and 75% of the position still running.
Education
by Matt-The-Trading-Cartel