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Dowtheory

Basics of Dow theory trading strategy forecasts:What is Dow theory? The Dow theory is a financial theory that says the market is in an up-trend if one of its averages (i.e. industrial or transportation) advances above a previous important high and is accompanied or followed by a similar advance in the other average. For example, if the Dow Jones Industrial Average (DJIA) climbs to an intermediate high, the Dow Jones Transportation Average (DJTA) is expected to follow suit within a reasonable period of time. What Is Support? Support refers to the price level that an asset does not fall below for a period of time. An asset's support level is created by buyers entering the market whenever the asset dips to a lower price. In technical analysis, the simple support level can be charted by drawing a line along the lowest lows for the time period being considered. The support line can be flat or slanted up or down with the overall price trend. Other technical indicators and charting techniques can be used to identify more advanced versions of support. What Is Resistance? Resistance, or a resistance level, is the price at which the price of an asset meets pressure on its way up by the emergence of a growing number of sellers who wish to sell at that price. Resistance levels can be short-lived if new information comes to light that changes the overall market’s attitude toward the asset, or they can be long-lasting. In terms of technical analysis, the simple resistance level can be charted by drawing a line along the highest highs for the time period being considered. Resistance can be contrasted with support. what is support become become resistance? when price breaks the resistance and after it will be create a support that same level this situation was called by support become resistance. what is resistance become support? when price breaks the support and after it will be create a resistance that same level this situation was called by resistance become support. How To Read The Support Level On Chart? Share prices which are subject to recurrent oscillations command the attention of investors at all times. Aiding investors make their move; it is significant for them to read the resistance level on the chart which can bring a chance for them to make a good buy when the prices are balanced to rise higher. How To Read The Resistance Level On Chart? In disparity, when the price enters the resistance level, the market is noticeable of traders’ combat with a pressure to sell, when the price of the stock is balanced to fall further, going by its past performance. Hence, these two factors are important for every investor to base his entry and exit moves in the share market when these determinants go a long way in representing the direction of the price of the stock, whether it will rise or drop.
NSE:TCS
by Trade-Technique
24
DSONIC - new wave starting?as salam dan salam sejahtera traders a very volatile market ye last week, for a momentun traders sure buat untung last week kan? kalau perhatikan banyak kaunter yang selesai melakukan first spike dan kini sedang retrace as a trend trader dan swing trader ini peluang yang ditunggu tunggu perhatikan dsonic selepas spike dengan volume minggu lepas ia retrace cantik dengan volume yang yag semakin mengecil. ini adalah apa yang kita nantikan. retrace with low volume adakah masanya untuk enter? risk taker mungkin akan enter sekarang Higher Low, tapi perlu di ingat kaunter ini masih lagi di dalam downtrend jadi see money just take it. berdasarkan Dow Theory, confirmation of a trend. trend hanya kan confirm apabila bila harga mampu break resistance pada harga 0.48 dan maintain di atasnya. maka di situ boleh apply break out strategy for short term strategy atau tunggu Higher Low yang seterusnya which is much safer. apa apa pun kita kasi dia lepas resistance 0.48 to be safe. NOT A BUY CALL< JUST SOME SHARING OF IDEA Halim Hamdan
MYX:DSONIC
by halimhamdan
HANDAL – new trend starting?As salam dan salam sejahtera traders. Apa khabar? Melihatkan pada pergerakan harga kaunter ini baru baru, ia telah pun break downtrend line. Tetapi adakah trend baru akan bermula? Jika kita menggunakan Dow Theory as a way of confirming a trend, High dan Higher Low already confirmed. Apa yang ia perlukan hanyalah new Higher High dan ketika itu barulah risk akan berkurang. So far, harga telah pun break 20 MA barrier yang menandakan harga sedang masuk ke Bullish market. Tinggal lagi untuk ia meneruskan pergerakan dengan volume yang baik. MACD masih lagi di dalam negative region tetapi ia sedang mendaki naik semula ke positive region. Jadi kemungkinan trend baru bermula adalah tinggi TRADING IDEA As a wise trader, saya akan tunggu sehingga trend confirm baru saya akan mencari entry, ini bermakna saya akan menunggu sehingga harga break resistance 0.42 dan kekal di atas untuk ia menjadi selamat untuk saya trade. Supaya anda tidak terlepas mana mana posting terbaru dari saya, sila like/follow saya untuk sebarang idea baru DISCLAIMER – INI BUKANLAH BUY CALL TETAPI HANYA JOURNAL TRADING SAYA SENDIRI YANG MUNGKIN DAPAt MENJADI PANDUAN KEPADA TRADERS DI LUAR SANA Halim Hamdan
H
by halimhamdan
Go long in NIFTY for TARGET of 10800, with a STOP LOSS of 9990So do you think I'm giving an aggressive call? If you observe my stop loss is conservative, so this gives me a mileage to keep a big target. Considering the recent fall in NSE:NIFTY just observe the previous fall dated from 19th September to 27th September, just see you will find a lot of similarities in both the situation. The Earlier one looked like a DOUBLE TOP and from there it jumped to making new highs a rally of tremendous 800 plus points. Look at the RSI levels as well, every time it goes below 30 we see a bounce of minimum 500 points. There is one more thing I want you all to observe, there are 2 Trend Lines, the Maroon one it has been breached twice now, so it gives you a FALSE ALARM , and if the price closes above it again then the market resumes it's previous bull trend. The Blue Trend Line has fewer touch points but it sure has not been breached till now. So we can also use these 2 pointers to confirm a trend reversal. So considering all this, I feel it's more safe to buy and going by the sentiments, it's kinda negative. Which gives me further mileage because if I'm right and trading against the overall sentiments. I'll get a swifter rally. Stock specific I'm expecting that it will have tremendous volatility, as you would have observed even today the surge in stock price was more than 2% to 5% in major stocks. Stop is recent swing long and also below a psychological 10000 level. Note: Always trade with stop loss (In Trading Discipline is everything)
NSE:NIFTYLong
by RITESH_TMR
1
MEDIUM TERM BUY JSW ENERGY @ 75, STOP LOSS OF 48 & TARGET of 110NSE:JSWENERGY was moving in in Downward Channel on Weekly Chart, and the stock broke this channel in the 1st week on September there after we witnessed a swift rally 81.70. Trading in better rewarding as risk is comparative lesser where you try to gauge reversal at channel extremes and take advantage of low stop loss during this reversal points. Channel breakouts on the other hand are extremely difficult to trade because stock has tremendous volatility and getting a proper entry during this high volatile period is a challenge. The ideal way is to wait for the initial volatility and euphoria to die down and let the stock consolidate and wait for channel role reversal of channel support/resistance. NSE:JSWENERGY after 2nd week of September there was a correction with lower volumes and the stock test the support of the channel which earlier was resisting the stock. This should be an Ideal entry point. This is a medium term trade, from increasing volumes we can make out the participation phase. Duration should be 6-8 months for this and we can expect around 50% return on investment.
NSE:JSWENERGYLong
by ritesh85