Horn top and horn bottom patternHorn tops are formed in an uptrend and are separated by a week on weekly chart. It appears to be in 'H' shape.
Horn top pattern formation indicates bearish reversal. And there will be price spikes while formation, as seen in above chart.
Later, once the pattern is confirmed, short positions can be initiated when the price closes below the low of horn top candles. In above chart, short to be considered below 3850 and target will be 395 points (difference b/w high and low ie., 4245-3850), which is good 10%. SL can be considered as the horn top high, if it favors the RR.
In the same way horn bottom pattern will be formed, where again the pattern appears to be in H shape, during the downtrend.
Horn bottom pattern formation indicates bullish reversal.
In the above main chart, I have placed Tatamotors chart where I could identify horn bottom. After the pattern confirmation, longs position can be considered with same criteria for the target. SL can be considered as horn bottom low, if it favors RR.
Hope the above chart was useful with the information provided.
Happy Investing !
Contains image
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 !
Agarwal IndAgarwal Industrial C is involved in the business activities of Manufacture of other petroleum (includes manufacture of petroleum jelly, micro-crystalline petroleum wax, slack wax, ozokerite, lignite wax, petroleum coke, petroleum bitumen and other residues of petroleum oils or of oils obtained from bituminous minerals). Company’s Total Operating Revenue is Rs. 833.29 Cr. and Equity Capital is Rs. 10.26 Cr. for the Year ended 31/03/2021. Agarwal Industrial Corporation Ltd. is a Public Limited Listed company incorporated on 13/01/1995 and has its registered office in the State of Maharashtra, India.
WaveTalks: Nifty-Can Bulls Bounce Back?- The Irregular Triangle 6th / 7th Oct2021
The index topped at 17882 this morning was a perfect behavior for the last leg downside in an irregular triangle updated in TradingView Author status / Last idea (add on comment).
6th Oct2021 – WaveTalks: Nifty-Irregular Triangle: ( Stops Above 17890 )
Irregular structures are those which is surpassed in the next leg as it happened for Index Nifty starting 17th Sep2021.
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Let us take a flashback tour for Index Nifty starting 17th Sep2021.
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Wave A or 1st Leg / Wave Downside- Starting at highs of 17792 on 17th Sep2021 (17792 to 17326 = 466 Points drop)
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Considering 17792 High on 17th Sep2021, as the start of the structure, slipped to 17326 as 1st leg downside & pushed upside in 2nd leg to new all-time highs of 17948 (From 17326 to 17948).
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Wave B or 2nd Leg / Wave Upside (17326 to 17948 = 622 Points Upside Rally)
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2nd leg crossed 17792 highs & made a new high at 17948 giving us 1st clue that some irregular structure could be unfolding next as all the moves so far from 17th Sep2021 was corrective in nature which was running across my mind at that moment.
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Wave C or 3rd Leg / Wave downside (17948 to 17452 = 496 Points drop)
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The fall from 17948 highs to 17452 was again corrective in nature. This time I became 100% sure that it is a 75-80% chance that Triangle could be unfolding next & I started putting my sleeves up in excitement as I could be getting 2 legs back to back if identified correctly.
This is all I was thinking like a trader.
The market pushed upside right from the zone 17450-17475 buying zone suggested as PRZ (Potential Reversal Zone) in the idea published to the TradingView community on 1st Oct2021 - Bullish Gartley
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Wave D or 4th Leg / Wave Upside (17452 to 17882 = 430 Points Upside Rally)
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This 4th Leg had to stop below 17948 Highs if the structure had to be correct as crossing above 17948 – this whole triangle scenario could have gone for a toss as structure invalidates.
Keeping that in the mind, I quickly updated all the followers in the last idea this morning before the market starts selling below zone 17800-17825 which was an important zone. I agree it was choppy as markets will never give you straight or easy moves & especially when the triangle is unfolding.
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Wave E or 5th Leg / Wave Downside (17882 to 17617 = 269 Points drop)
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This wave was choppy at the start but it was all controlled by the bears till the end of the day when Nifty made low @ 17613 & closed at 17646 @ 6th Oct2021
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Few things to note
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Our Final Target 17550-17575 is not completed so be careful as the Index may slip to these levels & take support of the Trendline rising upside connecting Wave- A(Bottom-17326) & Wave-C (Bottom- 17452) respectively.
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What Next?
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As a trader, we want to know what next. So here it is. When Triangle gets completed which is assumed to be sideways correction in the uptrend suggests that the next wave can be upside in an explosive manner which is seen or observed as a Thrust. In current scenario, thrust is expected upside for new highs or similar highs of 17948
So, Holding Levels 17452 which is Wave C – Bottom & 17326 which is Wave A – Bottom are key & critical level of support.
Till the time key & critical support holds we expect Bulls to come back & take the control or be in the driver’s seat next.
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Target Next
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Upside Nifty Index is open to travel minimum 17948 Highs & crossing above it will easily travel 18000+ A New All Time High.
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Note
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Always be careful at the tops as euphoria or crazy moves may put a trader in complacent zone & we forget all about risk management. Historically, It has been observed that crazy upside moves are followed immediately by opposite downside move which can be even bigger in size if happens.
All About 200MA |How to use it to take trade with example.Part-1NSE:HINDPETRO
All About 200 DMA. How to use it to take Mid/Long term trade.
1)What is 200DMA?
It is simple technical analysis tool that is an average of daily close price of last 200days/candles. It is used to smooth out the price and it will remove the intraday fluctuation noise.
200DMA == 200 Daily Moving Average
2)200DMA is the one of the main critical support/resistance that it will work in downtrend or in uptrend.
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How to use it and how to take trade?
200DMA as support:
If price is above 200DMA then it will work as Support and it is time to buy trade opportunity.
Please refer below chart: 1Day Time Frame
200DMA as resistance:
If price is below 200DMA then it will work as resistance and it is time to short/sell trade opportunity.
Please refer below chart: 1Day Time Frame
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Steps to follow to find and take Trade.
Step: 1
Need to find Chart pattern on Daily Time frame; such as bullish flag, triangle, rounding bottom, cup and handle head and shoulder etc…
Step: 2
If there is no clear pattern then Judge the price action. If it is trading in uptrend/downtrend parallel channel , If it is in accumulation , if it is in distribution etc….
Step : 3
Find Support and Resistance on Chart
Once these 3 steps are clear you have most of all to take mid/long term trade.
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NOW Let’s look at example.
I am taking HINDPETRO for example.
This Part 1 is with buy trade example.
Let’s take Step: 1
So, in below chart we found one pattern which is Cup and Handle Pattern.
So, our entry will be on breakout of it.
Please refer below chart: 1Day Time Frame
Step 2 is not needed as we already found Pattern.
Step 3 : Please refer below chart for Support and resistance level.
We can see that it is having immediate resistance at 190 level and major resistance at 200 Level. Breakout on 190 level will be quick buy till 200
But safe buy will be on breakout of 200 level with SL just below 190 level which will be 185 level for mid/long term trade.
Please refer below chart: 1Day Time Frame
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Now the main point about Target: What can be the Target. As our SL is decided at 185 level.
To decide our Target, we can go a back in history where earlier it had taken support at 200DMA and gave bullish rally.
So, if we see in month from May to Aug it rallied almost 94.65 points after it took last support in near range from 200DMA.
Please refer below chart: 1Day Time Frame
So, let’s take target of max 90 points from the level of 200DMA.
Level 179 was the level at which it took support from 200DMA and now adding 90points we can see 269/270 as our Target.
Let’s consider our buy trade entry at 205 level. And Our Target will be 270 and SL will be 185.
Hence our Risk Reward will be 65 (up move) / 20 (down move till SL) = 3.25 : 1
Please refer below chart: 1Day Time Frame
Even we can see that stock even move higher than our target. But to get higher target we will need to use FIB Retracement tool.
For this article let’s keep it till this.
Hope I made it easy to understand.
Part 2 for 200DMA short trade with example will be posted separately.
Do comment your doubt or suggestions.
**************this is for educational purpose only**************
Bullish Intraday Candlestick Patterns for StudyPatterns in Candlestick Charts
Candlestick charts are an excellent way of understanding the investor sentiment and the relationship between demand and supply, bears and bulls, greed and fear, etc. Traders must remember that while an individual candle provides sufficient information, patterns can be determined only by comparing one candle with its preceding and next candles. To benefit from them, it is important that traders understand patterns in candlestick charts.
cypher harmonic pattern #Learning #StockMarket #StockIdeas The cypher pattern trading strategy teaches traders how to correctly trade and draw the cypher pattern. The cypher harmonic pattern can be used on its own and provide traders a profitable forex trading strategy.
It is not surprising that geometric patterns are used in forex charts. And the cypher harmonic pattern is a very good representation of that. The pattern is part of the harmonic trading patterns and is the most exciting harmonic pattern because it has the highest winning rate.
This is one of the few patterns not identified by Scott Carney. It was discovered by Darren Oglesbee, and though it is technically an advanced pattern formation, it is often linked with and traded together with harmonic patterns. It has particular Fibonacci measurements for every point within its structure.
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