High Probability Candlestick Pattern 1: Three Line StrikeAs you read from image description that's pretty much all there is to learn on this pattern.
Thomas Bulkowski in his book "Encyclopaedia of Candlestick Charts" mentions that this pattern predicts higher prices with an 83% accuracy rate.
Do you Remember Nirmala Sitaraman Candle?
Yes that's three line strike which was formed after budget was announced on 1st Feb 2021
Adding Another Example here of Reliance
Note: Candlestick patterns alone are not reliable sometime, so combine them with some indicators like RSI to spot positive divergence on same or lower time frame OR MACD crossover and histogram positive as shown in below example
DISCLAIMER:
There is no guarantee of profits or no exceptions from losses.
The stock and its levels discussed are solely the personal views of my research.
You are advised to rely on your judgement while investing/Trading decisions.
Seek help of your financial advisor before investing/trading.
Investment Warnings:
We would like to draw your attention to the following important investment warnings.
-Investment is subject to market risks.
-The value of shares and investments and the income derived from them can go down as well as up.
-Investors may not get back the amount they invested - losing one's shirt is a real risk.
-Past performance is not a guide to future performance.
-I may or may not trade this analysis
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Community ideas
My reasons and Your reasons behind losses while trading.Why do people take losses in trading?
The reasons or mistakes behind a trader make losses. I suggest you these reasons should not be repeated. If you might have also come to cross from this reason and got losses, you can type in comment number of specific reason what you have faced.
In case, you also have another reason except in this post, please or kindly specify it in comment section . We will discuss it for a solution.
1). Stop following the right/perfect "trade-setup strategy" even if you are earning from it.
For instance, you're going good in "breakout setup" but not following consistently, change suddenly/started to follow another pattern the setup.
2). Not enough Technical Knowledge.
New traders just learn from YouTube or another resource about basic charting reading & indicators, such as MACD, chart pattern, trendline, etc. directly jump in practical trading with using full margin and later convert to loss. They believe trading is very easy but it's theoretically. In the practical, you need experience & practice a lot to earn.
3). Believing blindly on Other's Tips.
A lot of traders pay high prices for tips/research/analysis and follow them blindly without applying margin management rules. As a result, they wipe out. I am not saying to ignore/avoid other research or analysis but you should apply margin management rules and also do paper trading on their research.
4). Try to cover loss, Expecting huge profit.
When traders take a loss, they think to recover the loss by taking entry huge quantities to recover from little pips/points and fall into a huge loss.
After taking a position with the perfect trade-setup, some traders expect more profit than the per-defined target. Later, they convert into loss because of changing setup.
5). You take risks that you can't afford to lose.
Taking Unlimited Risk means, neither protective stop nor mental stop.
Some people keep a 1:1 stop-loss and target ratio.
Don't do this: "Holding losers trades while selling winners trades".
6). Lack of Emotion Control.
Not following your own per-defined setup, for example, changing stop-loss or not exiting and expecting to recover, sometimes not booking profit and expecting more profit and finally convert into a loss. In more clear words, change your set-up frequently while real-time trading.
Don't believe in Exit or Marry with Beliefs/Hopes(Hope is not a strategy). Believe in recover loss without any specific reasons and finally had to take a huge loss.
I have seen in many new traders, they let Loose Grow and take a small profit.
Avoid the words ‘hope”, “wish” or ‘feel’ when talking about a trade-setup.
Believing that price cannot move higher/lower.
A simple trading strategy with ways to improve the winning edgeThere are lot of trading strategies which can be easily available. Whatever strategy you use, If you know how to increase the trading edge, and when to avoid the trade will help you to make money. I have taken a simple trading strategy known to most traders, but here I am going to explain how to take the trade which has more winning possibility.
Strategy : Previous day high break out. Go long above 1st 15 mins candle high.
Time frame : 15 mins
Entry condition : 1st candle should close above the previous day high.
Target : 1 : 2 or close at 3 or 3.15 pm if stop is not hit.
Trail : Shift stop to entry once you get 1 : 1 profit
Stop : Low of the 1st candle.
Entry : Above the high of 1st candle.
In this chart I have marked the previous day high.
Now we will see about how to increase the trading edge or winning edge.
On feb 25, the 1st candle volume was normal which indicates participants were not that much enthusiastic about the movement. Volume was not supporting and we did not get big movement as throughout the day volume did not pick up. 1st candle volume gave an indication that the trade was not having high edge.
On Feb 28th, the 1st candle had good volume, but the candle was having selling pressure. So we take the trade after seeing the next candles formation. Here the candles were showing buyers interest in the stock. This trade was having good trading edge.
On March 1st, 1st candle broke the previous day high & closed above it. Volume was good, but the high low difference was big. Position sizing will help but it most of the time we won’t get 1:2 rewards. This trade was not having high edge.
On March 3rd volume was good, but it was a bear candle and closed below previous day high. So no trade.
In this example, price broke the previous day high for 4 days. As per our strategy we got 3 trade set ups, but only one trade has high trading edge.
This is how you can improve you winning rate in a trade.
In this UPL chart, 1st candle broke previous day high, had good volume, but high/low difference was big and it did not give 1:2 profit.
In this Bsoft chart, price close above the previous day high but the candle is having selling pressure and no trade in it.
Whenever you decide to trade on a strategy, back test at least 100 trades to check the winning chances. Always place stop once you enter a trade. Market is having fast direction change nowadays and you should be prepared to handle it.
Trading is like Kids Playing with ABC:Ducon Infratech Trade PlanDear all,
The above chart presents a simplicity of trading, its the heart and soul of trading, let it be a trend following system or investor or day trader or scalper -its as easy as kids ABC
Let me explain my points with the simple yet powerful setup with above chart and more examples:
Points to consider in every setup(conservative)
- Consolidation
- Breakout(A)
- Consolidation
- Retest(B)
- Continuation(C)
- Breakout - As we all know every tick in the market is a confirmation of fight between bulls and bear as bulls want to take prices higher and bears hammer the prices lower, breakout can be understood as a winning the battle and taking the prices higher. And we just have to join the WINNING SIDE in this case its BULLS
- Consolidation - Consolidation can be understood as a laying the foundation for a strong building. In stock market we know it as Flag, triangle, rectangle etc
- Retest - Its like price reversing back to the breakout level & consolidates again and forms patterns as flag, triangle, rectangle etc
- Continuation - Price again breaks out of the consolidation zone and continues
some of the live Nifty examples are mentioned below for better understanding
Some of the Bank Nifty charts for ready reference
Breakdown - retest from bottom & continued lower
Breakout and twice retest
Views are for ‘’EDUCATIONAL PURPOSE ONLY’’ trade at your own risk.
"Always Respect Risk"
Happy Trading
Jai Hind
Double Bottom- Full ExplanationA Double Bottom is considered a bullish signal, indicating a possible reversal of the current downtrend to a new uptrend. Sometimes called an "W" formation because of the pattern it creates on the chart, the Double Bottom is one of the most frequently seen and common of the patterns.
The Double Bottom is a reversal pattern of an downtrend trend in a financial instrument's price. The Double Bottom marks an downtrend in the process of becoming a uptrend.
A Double Bottom consists of two well-defined, sharp bottoms at approximately the same price level. The two bottoms are distinct and sharp . The pattern is complete when prices rise above the highest high in the formation. The highest high is called the "confirmation point".
The bullish momentum may be evidenced through a higher bottom on an oscillator like RSI . Though not required, the market may break below the first low, even if briefly. A slight and temporary break below the first bottom is preferred as it may excite the bears only to reverse and trend higher. The neckline is formed between the price low of the valley between the two bottoms. A break above this neckline will confirm the double bottom pattern. The bullish confirmation is specified by a break in the key price resistance level (neckline) situated at the high point between the ‘bottoms’.
Important Characteristics
Following are important characteristics for a Double Top .
Downtrend Preceding Double Top
The Double Bottom is a reversal formation. It begins with prices in an downtrend. The trend downwards should be fairly long and healthy.
Time between Bottoms
Generally, the longer the time between the two bottoms, the more important the pattern is as a good reversal signal.
Volume
Volume tends to be heaviest during the first bottom and lighter on the second. It is common to see volume pick up again at the time of breakout.
Pullback after Breakout
A pullback after the breakout is usual for a Double Bottom. The higher the volume on the breakout, the higher the likelihood is for a pullback.
Two Peaks at Different Levels
Sometimes the two comprising a Double Bottom are not at exactly the same price level. This does not necessarily render the pattern invalid.
Trading with Double Top:
There are certain rules when trading with Double Bottom chart patterns.
Firstly one should see the market phase whether it is up or down. As the double bottom is formed at the end of a downtrend , the prior trend should be an downtrend.
Traders should spot if two rounding bottoms are forming and also note the size of the bottoms.
Traders should only enter the long position when the price break out from the resistance level or the neckline.
Example:
From the below example of the 15 Min chart of BANKNIFTY we can see how bullish reversal takes places after the formation of the double bottom
Stop Loss & Target :
In the case of a Double Bottom chart pattern, the stop loss should be placed at the second bottom of the pattern and can be trailed at the pullback low as price moves higher but this will be a bit aggressive.
The price target should be equal to the distance between the neckline and the bottoms.
The False Break: How to trade the Double Bottom Pattern and profit from “trapped” traders
Now…
When you trade the Double Bottom, you must pay attention to the time and space between the lows — the larger the “gap”, the better.
Why?
Because when the lows are far apart, it gets the attention of more traders who could push the price higher.
And with this concept, you can use it to profit from “trapped” traders.
Here’s how…
The first and second lows should have time and space between them
Let the price break below the first low
Wait for a rejection of lower prices and then go long
The idea is simple.
As the price breaks below the first low, bearish traders will short the markets and have their stops above the lows.
But if the price quickly reverses higher, the short traders are “trapped”.
And you can take advantage of it by going long, anticipating if the price moves higher, it’ll trigger their stops and push the market in your favor.
Hope you all learnt from this post. Share with the community if you liked it.
Regards
Omahto
How to publish a script/indicator on TradingView?Hey everyone!👋
We have prepared this visual guide to help you out in publishing your very first script/indicator on TradingView. Just type in your code, provide a decent heading, write a meaningful description explaining how your script is original, and just publish. Easy, right? Let’s delve into this process!
A step-by-step guide on how to publish a script on TradingView.
1. When you open TradingView, you will find an option called "Chart". As soon as you click it, it will redirect you to a blank chart template.
2. The blank chart will look something similar to the chart below. At the bottom of the screen, you will see a toolbar with various options. Click on “Pine Editor”. It will open a blank notepad type of page, on which you are supposed to write the code using the Pine script.
3. When you are done writing your code, click on the “Publish script” option at the top-right of the notepad. It will lead to a form similar to the one that comes at the time of posting ideas/charts.
4. In this form, you need to provide the following things:
a) Privacy Settings
You have the opportunity to publish both public and private ideas and scripts on TradingView.
i) Public - Your publication will be visible to all and included in the community scripts section of TradingView.
ii) Private - Your publication will only be visible to you and those with whom you share its link.
b) Visibility
i) Open - Your source code will be visible to everyone. They can favorite the script, apply it to a chart and see or clone the source code.
ii) Protected - Every user can add this script to the chart or favorites, but only the author can see the source code.
iii) Invite-Only - Nobody can add it to a chart without explicit permission from the author and only the author can see the source code. Please note that Invite-Only script publishing is available to Premium users only. Additionally, authors can choose to manage who can access their scripts. You can publish any of these types of scripts both publicly and privately.
c) Category
What is the type of your indicator? Is it based on bands and channels or is it a breadth indicator, or is it an oscillator? There are plenty of categories to choose from.
d) Tags - Provide a few relevant tags for your scripts.
e) Rules - Check the box which affirms that you abide by the house rules of TradingView.
After doing all of the above, you just need to click "Publish Script".
Voila! You just published your first idea on TradingView.
Note : Ideas/scripts once published, cannot be edited/deleted after 15 minutes of publishing. Hence, if you make some mistakes, be sure to rectify them within 15 minutes.
A few important rules that you should keep in mind before posting a script on TradingView. These rules apply to all public scripts on TradingView. Keep in mind that TradingView's general house rules apply to script authors, in addition to these.
Script visibility
Users of all types of accounts on TradingView can publish scripts publicly or privately. Regardless of the private/public visibility, you choose for your script, you can use any source or access control publication mode allowed by your type of account: open-source, protected, or invite-only.
Private scripts
Private Scripts are not moderated and are invisible to everyone but you. If you choose to publish privately, you must also accept that those publications must be incognito elsewhere on TradingView. You are not allowed to refer or link to them from any public TradingView content. You can share private publications with friends or customers by sending them the link to your script, which you can get by opening your script's page and copying its URL from your browser.
Public scripts
Public scripts appear in TradingView's Public Library, where they become visible to the millions of TradingView users and any Internet user who has access to its link. Because they are public, these scripts must meet the requirements mentioned under the following image.
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Description
Write a detailed and meaningful description that allows traders to understand how your script is original, what it does, how it does it, and how to use it. Give traders an idea of the concepts underlying your calculations. Mentioning only that your script follows trends or is intended for scalping does not help traders much; it will be more useful to traders if you also give them an idea of which of the hundreds of trend-detection or scalping methods you use.
Check out the complete list of script publishing rules here: in.tradingview.com
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Feel free to go and explore the Pine script. And if you ever need any help, we are always here to help you.
- Much love, Team TradingView 💘
HOW TO AVOID FAKEOUTS AND PROTECT YOUR CAPITALTaking A Right Breakout Trade Can Be Really Benifical, But What If It Is A Fake Breakout , Than It Will Be A Real Pain ....
There Is No Way One Can Completely Avoid All The False Breakout , But It Is Possible To Avoid Most Of Them With Certain Strategies ,Which We Are Going To Talk About In This Post .
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So, Lets See How To Not Trade A Breakout And Avoid Fake Breakouts...
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Types Of Breakout :-
Trendline Breakouts
Pattern Breakouts (Parallel Channel ,Triangle.....)
All Time High Breakouts
Support And Resistance Breakout
These Are The Basic Types Of Breakouts That Are Majorily Traded Around The World .So We Will Countine Our Discussion Taking Above Types Into Consideration .
Breakout :- When The Price Of A Particular Stocks Closes Above A Price Zone (Support & Resistance ) Which Is Previously Tested By The Stocks Many Times .
Fake-Breakout :-When The Price Of A Particular Stocks Fails To Sustain Its Position Above The Support Or Resistance Level And A End Up With A Reversal .A False Breakout Happens When There Are Not Enough Buyers To Continue The Trend In Breakout Direction.
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Look For These Things To Make Your Breakout Successful
Candlestick Pattern
Volume
RSI
Indices
Support And Resistance
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Candle Stick
Assuming that you already know about the bacis of candle , look if there is bullish or bearish candles at the time of breakout .
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Rsi
check the levels of rsi , check wheather if it is in the overbought(>80) region or oversold(<20) region . RSI below 40 a good for breakout , and above 70 is unhealthy for a breakout . Also check for the divergence RSI indicating .
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Volume
Look for volume buildup at the time of breakout
Indices
You Can Also Look For Nifty Or Bank Nifty Index Or Particular Sectoral Index
Like If You Are Planning To Take A Breakout Trade In Hdfc Than Look At The Charts Of Banknifty Also , Like If It Bullish Or Not , If It Bearish Than Dont Take Trade With Your Full Capital Instead Trade With 50% And Add Another 50% At The Of Retest Or Look For Pullback At Lower Timeframe , Assuming All Above Factors Candlestick, Rsi, Volume Are Favouring The Breakout .
Support And Resistance
Instead of drawing a suppport and resistance a single flat line always draw a price zone indicating support and resistance zone covering the shadows of the candle
You Can Also Use Ema And Couple It With The Above Factor To Add A Extra Confidence To Your Analysis
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Some Other Key Factors ...
1)Market Will Give You Infinte Oppourtunities So Dont Take Trade Based On Emotions .
2)Dont Enter A Trade If Your Price Is Already Went High .
3)If Price Is Moving Rapidly In One Direction And Then Breakout Happens Than Wait For A Reversal And If The Price Consolidate On Lower Time Frame Berfore The Breakout And Then Gives A Breakout There Are Less Chances That It Will Retest The Breakout Levels So Enter As Soon As You Got The Opppourtunity
4) Last but not least never stop learning and keep grinding
HOPE YOU HAVE ENJOYED THE POST , WISH YOU A HAPPY TRADING JOURNEY AHEAD
How to search for stocks at 200EMA?One of Trading Views' strongest feature is its screener. Probably the best some of us have gotten used to so far. This is a small tutorial /writeup to help you search for stocks probably sitting at support.
Remember, for certain stocks their area of value is 20EMA, while for some it’s 50EMA and for others it could also be 100EMA, so on and so forth. Basically, once you understand how this works, you can choose to tweak the values presented here to your liking.
Having said this, let's figure out how to search for stocks that are on or have fallen to 200EMA. You can always choose a different value according to your search needs. For this tutorial we will stick to finding stocks at 200EMA.
But before we move forward, let's get a basic understanding of what we are trying achieve. In a day/week/month/quarter a stock will always make a high and a low and the price will always fluctuate between this range or it will make a new day’s high or a new day’s low.
The example below is a visual representation of a very basic candle or price movement within a range. I am sure you all know this but I am trying to make this as simple as possible for everyone to follow. So, all you need to take away from this is, there is a high, there is a low, and there is a body that represents opening price and closing price. Some candles will not have a body but I do not want to dive into the details of candlesticks. Google is your best friend to know more on candlesticks!
What we are trying to do here is to restrict the search query from giving us stocks/scripts that are above 100EMA. Yes, you got it right. We are going to restrict the highs from going above the 100EMA and restrict the lows from going below the 200EMA.
Without wasting more time, here is how you do it.
Head over to Screeners and select ‘Stock Screener’
You should be on Trading Views default ‘Stock Screener’ page with a default set of filters. This screen displays stocks based on the filter you have selected. The Trading View screener always defaults back to the last used filter.
Now, let’s tweak TVs search filter. Click on ‘Filters’. This will open up the Screener settings menu.
In the search bar, type ‘High’. ‘High’ represents the highest value the stock reached in a single day. You should see 2 drop down options. For the first, choose ‘Below’ and for the second, choose ‘Exponential Moving Average (100)’
Go back to the search box and type ‘Low’. ‘Low' represents the lowest value the stock reached in a single day. You should again see 2 drop down options. For the first, choose, ‘Above’ and for the second, choose ‘Exponential Moving Average (200)’
Now, this part is important to get consistent search results. What happens with only the above search query is that you get a very convoluted or mixed search result where the EMAs get intertwined. Adding this section helps prevent the EMAs and overall search result from being all over the place.
Head back to the search box and type ‘Exponential’. What you need to edit is 100EMA. From the first drop-down choose ‘Above’ and for the second choose ‘Low’ or you could also choose ‘Exponential Moving Average 200’. This setting remains mostly constant even if you edit the above search parameters.
Close your ‘Filters’ settings menu and click the drop-down menu beside 'Filters' to ‘Save’ your newly created filter. Select ‘Save Screens As…’, give your new search filter a name and you should be done.
Viola! Your new search filter is ready to be used.
However, if your search result is huge (it should be), you can tweak it a little further to reduce the total number stocks returned by the filter. Here is what you need to do.
Head back to the filter menu and type 'Last'. ‘Last’ represents the closing price of the stock. From the first drop down option choose 'Between' and enter your desired range in the 2 boxes. Here you are defining the price range of stocks that are within the value of 100 and 800. So, TV will only display stocks that fall in between this range.
In addition to all this, you can limit your search to only one Exchange. Which is either the 'BSE' or the 'NSE' exchange instead of both.
To do this, type 'Exchange' in the filter search menu and choose either one.
Psst: Don't forget to save your filter each time you edit else TV will not save your edits!
Hope you found this helpful and I sincerely hope you find a ton of good stocks to invest in!
Happy Trading!
How to trade like a PRO on the basis of Technical Analysis. In this analysis we'll look how the Professional Trader explore the chart before executing their Trade.
Demand Zone -
Fib Retracement -
Candlesticks -
Divergence - Divergence warns that the current trend is getting weakening and it might possible that the trend get changed in up coming session.
Volume Profile - POC - Point Of Control
It's the Big guys who moves and manipulate the market, The Retail Traders can't.
This is Not investment advice. It's just for learning purpose. Invest your capital at your own risk.
Please like, share & follow.
Double Top - Full ExplanationA Double Top is considered a bearish signal, indicating a possible reversal of the current uptrend to a new downtrend. Sometimes called an "M" formation because of the pattern it creates on the chart, the Double Top is one of the most frequently seen and common of the patterns.
The Double Top is a reversal pattern of an upward trend in a financial instrument's price. The Double Top marks an uptrend in the process of becoming a downtrend.
A Double Top consists of two well-defined, sharp peaks at approximately the same price level. The two tops are distinct and sharp. The pattern is complete when prices decline below the lowest low in the formation. The lowest low is called the "confirmation point".
The slowing momentum may be evidenced through a lagging peak on an oscillator like RSI. Though not required, the market may break above the first peak, even if briefly. A slight and temporary break above the first peak is preferred as it may excite the bulls only to reverse and trend lower. The neckline is formed between the price low of the valley between the two peaks. A break below this neckline will confirm the double top pattern. The bearish confirmation is specified by a break in the key price support level (neckline) situated at the low point between the ‘tops’.
Important Characteristics
Following are important characteristics for a Double Top.
Uptrend Preceding Double Top
The Double Top is a reversal formation. It begins with prices in an uptrend. The trend upwards should be fairly long and healthy.
Time between Tops
Generally, the longer the time between the two tops, the more important the pattern is as a good reversal signal.
Decline from First Top
The deeper the trough between the two tops, the better the performance of the pattern.
Volume
Volume tends to be heaviest during the first peak and lighter on the second. It is common to see volume pick up again at the time of breakout.
Pullback after Breakout
A pullback after the breakout is usual for a Double Top. The higher the volume on the breakout, the higher the likelihood is for a pullback.
Two Peaks at Different Levels
Sometimes the two peaks comprising a Double Top are not at exactly the same price level. This does not necessarily render the pattern invalid. Some analysts point out that investors should be less concerned if the second peak does not hit the high of the first peak.
Trading with Double Top:
There are certain rules when trading with Double Top chart patterns.
Firstly one should see the market phase whether it is up or down. As the double top is formed at the end of an uptrend, the prior trend should be an uptrend.
Traders should spot if two rounding tops are forming and also note the size of the tops.
Traders should only enter the short position when the price break out from the support level or the neckline.
Example:
From the below example of the 15 Min chart of NIFTY we can see how bearish reversal takes places after the formation of the double
Stop Loss & Target :
In the case of a Double Top chart pattern, the stop loss should be placed at the second top of the pattern and can be trailed at the pullback high as price moves lower but this will be a bit aggressive.
The price target should be equal to the distance between the neckline and the tops.
Hope you all learnt from this post. Share with the community if you liked it.
Regards
Omahto
The Types of Market Days - Handbook for a laymanHi all, today we are going to see one of the most important concepts for day trading. This is an updated version with better illustrations and more exhibits. I have taken all the content from the book “Secrets of a Pivot Boss” and added illustrations and charts so that you don’t have to read the complete book. I am merely a presenter of the concepts written by Franklin Ochoa. The charts and illustrations are all done by me. So, without further ado, let’s delve right into the topic.
There are six types of market days that we will cover. Remember, these days are crucial for a day trader. These types of days are repeatedly seen in the market, but no two days are ever identical. As such, these categories should be used more as guidelines, rather than seeing them as etched in stone. Again, your ability to recognize the pattern of the day accurately will be a huge step toward successfully engaging the market
1. Trend Day
Illustration:
Trend Day is the most aggressive type of market day.
On a bullish Trend Day, the open usually mark the day's low, while the close usually mark the day's high, with a few ticks of tolerance in either direction.
On a bearish Trend Day, the open will usually mark the day's high, while the market will usually close near the session's low.
The market will typically start fast on this type of day and the farther price moves away from value, the more participants will enter the market, creating sustained price movement on increased volume.
Initiative buying or selling is the culprit on this type of market day, as these participants are confident they can move price to a new area of established value.
Price conviction is strongest during a Trend Day. The market will start strong right out of the gate and will usually maintain a unidirectional stance throughout the day, never calling into question the day's direction or conviction.
This type of day has the highest price range (high price minus low price), meaning it can be quite costly if you are positioned against the market or if you fail to recognize the pattern early enough to enter alongside the market.
These types of days only occur a few times a month, but catching these moves can certainly make your month, in terms of profits.
Trend Day is usually preceded by a quiet day of market activity, which is usually a day with a small range of movement. Coincidentally, this type of market behavior will usually follow a Trend Day as well.
Exhibit 1:
Exhibit 2:
2. Double-Distribution Trend Day
Illustration:
While this day is a trending day, it in no way has the confidence or conviction of a Trend Day.
Instead, this type of day is characterized by its indecisive nature at the outset of the session.
During this type of day, the market will usually open the session in a quiet manner, trading within a fairly tight range for the first hour or two of the session, thereby creating an initial balance that is narrow.
The initial balance is traditionally defined as the price range of the first hour of the day.
If the initial balance is too narrow, the price will break free from the range and auction toward new value, creating range extension, which is any movement outside the initial balance.
After the initial balance of the Double-Distribution Trend Day has been defined, the price will break out from the range and auction toward new value, where it will form a second distribution of price. This is the market's attempt at confirming whether a new value has indeed been established.
Double-Distribution Trend Day opens the session quietly, trading within a tight range that can be viewed as the day's "warm-up" period. Eventually, price breaks free of the range and begins trending toward new value, igniting initiative buying or selling.
Once the market finds new value, it then builds out another range before ending the day.
The ranges formed at both the beginning and end of the day is where the term "double-distribution" comes from, as the bulk of the day's volume resides at one of these extremes, essentially forming a double distribution of trading activity.
The initial balance is the base for any day's trading and is extremely important to the Double-Distribution Trend Day.
A narrow initial balance is easily broken, while a wide initial balance is harder to break. The fact that the initial balance is narrow on this type of day indicates that there is a good possibility of a breakout from the initial range, indicating that you will likely see a move toward a new value.
The narrow initial balance at the beginning of the Double-Distribution Trend Day indicates that either buyers or sellers will eventually overwhelm one side or the other.
Once the direction is decided, the price will freely move toward a new area of value since it is being driven by initiative market participants.
Exhibit 1:
Exhibit 2:
3. Typical Day
Illustration:
The Typical Day is characterized by a wide initial balance that is established at the outset of the day.
On this type of day, price rallies or drops sharply to begin the session and moves far enough away from value to entice responsive participants to enter the market.
The responsive players push prices back in the opposite direction, essentially establishing the day's trading extremes. The market then trades quietly within the day's extremes for the remainder of the session.
The opening rally or sell-off is usually sparked by reactions to economic news that hits the market early in the day. This opening push creates a wide initial balance, which means the day's "base" is wide and will likely go unbroken.
A wide base during the first hour of the market will likely mean that the day's extremes will also remain intact, or unbroken.
During this type of day, you will usually see price trade back and forth within the boundaries of the opening range, as fair trade is easily being facilitated.
Exhibit 1:
Exhibit 2:
4. Expanded Typical Day
Illustration:
Similar to the Typical Day in that it usually begins the session with early directional conviction. However, price movement at the open is not as strong as that seen during a Typical Day.
The initial balance is wider than that of a Double-Distribution Trend Day but not as wide as that of the Typical Day. Hence, it is susceptible to a violation later in the session.
Eventually, one of the day's extremes is violated and price movement is seen in the direction of the break, which is usually caused by initiative buying or selling behavior.
During an Expanded Typical Day, both the upper and lower boundaries of the initial balance are susceptible to violations. On any given day, you will see one, or both, of the boundaries, violated, as buyers and sellers attempt to push the price toward their own perceived levels of value.
Exhibit 1:
Exhibit 2:
5. Trading Range Day
Illustration:
Both the buyers and sellers are actively auctioning prices back and forth within the day's range, which is usually established by the day's initial balance.
On this day, the initial balance is about as wide as that of a Typical Day, but instead of quietly trading within these two extremes throughout the day, buyers and sellers are actively pushing prices back and forth.
This type of day is basically like a game of tennis. The players stand on opposite sides of the court and take turns volleying the ball to one another throughout the match.
Likewise, buyers and sellers will stand at the extremes of the day and will enter the market in a responsive manner when the price reaches the outer limits of the day's range.
Responsive sellers will enter shorts at the top of the range, which essentially pushes price back toward the day's lows, while responsive buyers will enter longs at the bottom of the range, which pushes price back toward the day's highs.
This type of market day offers easy facilitation of trade and gives traders amazing opportunities to time their entries.
Exhibit 1:
Exhibit 2:
6. Sideways Day
Illustration:
On this type of day, price is stagnant, as both buyers and sellers refrain from trading. This type of session usually occurs ahead of the release of a major economic report or news event, or in advance of a trading holiday.
There is no trade facilitation and no directional conviction.
The initial balance is rather narrow, which at first indicates the potential for a Double-Distribution Trend Day. However, the initiative buying or selling required for a Double-Distribution Trend Day never enters the fray, which leaves the market terribly quiet the rest of the session.
The Trading Range Day and the Sideways Day sound similar, but the difference lies within the participation levels of both buyers and sellers.
Exhibit 1:
Exhibit 2:
So, with this, we are done with all types of trading days. Remember, each of these types of days is not set in stone. While every market day is similar to a day from the past, similar does not mean "exactly." You must be able to snuff out the subtleties of each new day as it relates to a day from the past. Steadfast practice creates a valuable experience.
Disclaimer : This is NOT investment advice. This post is meant for learning purposes only. Invest your capital at your own risk.
Happy learning. Cheers!
Rajat Kumar Singh (@johntradingwick)
Community Manager (India), TradingView
What type of trader are you? A day trader, or a swing trader? Let me know in the comments. Also, if you need a PDF of this post with all the charts and illustrations, check out the links in the signature section (under the post).
BREAKOUT vs FAKEOUTTrading breakouts is a most profitable trading strategy that involves buying or selling an asset after a long period of consolidation.
Confirming breakouts before jumping into a trade is the key task to become a successful breakout trader.
Now lets see about the important key points to consider to confirm such valid breakouts
TYPES
There are different types of breakouts including
1)Trend line breakouts (diagonal form of S&R) ,
2)Horizontal price breakouts,
3)Pattern breakouts (double top, double bottom & other)
4)All time highs/lows breakouts,
5)Fib level breakouts etc.,
The support and resistance lines that are drawn at potential breakout points "should be seen as area/zones instead of fixed lines" .
BREAKOUT :
A breakout is when the price of the stock breaches a support or resistance levels that has previously formed followed by a strong candle close.
FAKEOUT :
A false break or fakeout, as the name implies, is any move above a resistance or below a support followed by a reversal that fails to close above or below the broken level.
WHEN THE FALSE BREAKOUT HAPPENS :
A false breakout happens when there are no enough buyers or sellers to continue supporting the stock towards the breakout direction.
In the examples above,the upper false breakouts happened because there were no enough buyers to continue pushing the price higher & tends to reverse similarly viceversa for the lower false breakout.
VARIOUS SCENARIOS OF FALSE BREAKOUT
POINTS TO REMEMBER
1)False breakouts can be avoided by waiting for strong candle closure above or below the levels to confirm the breakout strength.
2)Avoid the breakouts with non-stop parabolic movement (without pullback or retest).
3)Instead of using a single line as support or resistance, it is better to have an area/zone that covers all shadows in previous touches.
4)To take entry, always wait for the zone to breach by the candle closing confirmation combined with price action.
Hope it was helpful to you,
Happy Learning & Profit making :)
Thanks & Regards
Divyaapugal
How to publish an idea on TradingView? Hey everyone!👋
We have prepared this visual guide to help out the awesome new users of TradingView. A lot of you are not aware but TradingView provides you a facility to share your charts with a wholesome community. All you have to do is just mark your chart, give it an awesome heading, write a good description and just publish. Easy, right? Let’s delve deeper into this process!
A step-by-step guide on how to publish an idea on TradingView.
1. When you open TradingView, you will find an option called "Chart". As soon as you click it, it will redirect you to a blank chart template.
2. The blank chart will look something similar to the chart below. On the top-left-hand corner, you will see the "Scrip name" of the current scrip that you are checking.
3. Click on the "scrip name" and find the symbol that you like to see the chart of. Easy right?
4. You can now mark whatever you feel like as per your trading system. In general, you can mark different levels/zones of support, resistance, demand, supply, patterns, etc.
5. After marking all the levels, click on the "Publish" button shown at the top-right corner of the screen. It will redirect you to a blank form that you need to fill out.
6. In this form, you need to provide the following things.
a) Title - A title for your idea
b) Description - A meaningful description explaining your idea so that others can understand from your perspective.
c) Choose the type of idea - Analysis or Tutorial. An analysis is an idea about a specific stock at a given point in time whereas a tutorial can be a generic idea regarding educational things related to trading or TraingView.
d) Privacy settings - If you want to share your ideas with the community, you need to select the "Public" option. Else if you just want to keep the idea to yourself as a reference or a journal, you can select the "Private" option.
e) Category - Select the basis for your analysis using the options given in the category slab.
f) Investment strategy - Whether you are bullish, bearish, or neutral on the stock.
g) Share - You can check the share box if you want to share your post on Twitter as well.
h) Tags - Provide a few relevant tags for your idea.
i) Rules - Check the box which affirms that you abide by the house rules of TradingView.
7. After doing all of the above, you just need to click "Publish Idea".
Voila! You just published your first idea on TradingView.
Note : Ideas once published, cannot be edited/deleted after 15 minutes of publishing. Hence, if you make some mistakes, be sure to rectify them within 15 minutes.
A few important rules that you should keep in mind before posting an idea:
1. Make ideas understandable.
When publishing content, make sure to write an easy-to-read title and a thoughtful description so that everyone can get the gist of your published work and the reasoning behind it.
2. All content should be ad-free.
Any advertisement such as logos, links or references to any website, social media, messaging or email contacts, company names, wallet addresses, will invite action from the moderators. All content has to be free from promotion.
3. Publish in the same language as the site you're on.
Writing in one language when the audience reads in another is just a waste of time and energy, so please make sure to stick to the language of the TradingView subdomain you're on. If you'd like to publish or chat in another tongue, please click on the language selector in the top bar menu and select the desired dialect.
Check out the house rules of TradingView here: in.tradingview.com
Feel free to go ahead and post an idea today! And if you ever need any help, we are always here to help you.
- Much love, Team TradingView 💘
How to use macd indicator in daily tradePreface
Macd indicator use to help them to make trading decisions postional trade. Every trader most of the use macd indicator .Because trader favourite indicator and what is your favourite indicator ? Write it in the comment.
Speciality of Macd indicator?
Macd Negative area(zone,cross)
see nifty 50 chart this date 21 jan 2022 macd move down side negative(zone,area)
Macd Postive area(zone,cross)
see nifty 50 chart this date 27 dec 2021 macd move up side postive(zone,area)
Alright, the operation start after creating an high 18604.45 date 19 oct 2021. Macd indicator indicate negative cross 22 oct 2021 and price consolidation three four candle and next candle breakdown. Most of the case macd indicator indicate price direction .This reason most of the people use this indicator .
Case Price move up direction 29 oct 2021 to 15 Nov 2021 this case Macd indicator negative zone move up side and again reverse down side 16 nov 2021 and price go down 18150 to 16855
Role of Support Resistance in Breakout tradingWhat is Breakout Trading ?
A breakout is a potential trading opportunity that occurs when a share price moves above a resistance zone or moves below a support zone on increasing volume .
For trading breakouts one should be aware of support and resistance . It acts as the backbone of Price Action trading.
What is Support & Resistance ?
Support is a place where a stock price stop moving downwards. It is a horizontal area on a chart, where price experience buying pressure and tends to move up.
Resistance is a place where a stock price stop moving upwards. It is a horizontal area on a chart, where price experience selling pressure and tends to move down
Why are these support and resistance formed?
Support and resistance are formed only due to our own emotions at points around high supply or demand zone . For instance, if a price falls from high 100 to 50 then in and around that price (50) there will be lots of buyers ready to buy assuming it to be very cheap price and same goes for resistance where lot of traders would like to offload their positions considering that price to be too high for the stock and good time to book profit.
Why do we need Support and Resistance?
Support and Resistance often helps to set
1)Target,
2)Entry and
3)Stop loss.
Guidelines for Drawing Support and Resistance:
For the same chart if we ask 10 traders to draw support and resistance area, we will get 10 different result. So, what are the important things to consider ?
I always prefer drawing rectangular zone instead of drawing single line to make chart look clean and easy to understand the area of supply and demand .
*Always Use Higher Time frame to draw Support and resistance area.
* Draw a zone using rectangle which shows multiple touches. While, this zone act as great support and resistance area compare to few touches which was due to volatility .
* While drawing zone make sure to cover shadows in all previous touches
Things to know:
* The more times the S&R zones are tested in a short period of time, the weaker they become &
the greater the likelihood it will break.
Rules for Positional breakout :
1)Candle closing is mandatory to trade breakouts.
2)Wait for the retest, if the price closes too far from the breakout level.
3)There should not be HTF support/resistance near the breakout level.
Types of breakout Patterns :
1)Rising & Falling Trendline
2)Rising & Falling Channel
3)Rectangular Channel
4)Ascending , Descending & Symmetrical Triangle
5)Head & Shoulder
6)Support & Resistance Breakout
Hope it was helpful to you,
Happy Learning & Profit making :)
Thanks & Regards
Divyaapugal
Descending Triangle - Full ExpanationWhat is descending triangle ??
The descending triangle is one of the top continuation patterns that appears mid-trend. Traders anticipate the market to continue in the direction of the larger trend and develop trading setups accordingly.
The descending triangle is a bearish pattern that is characterized by a descending upper trendline and a flat lower trendline that acts as support. This pattern indicates that sellers are more aggressive than buyers as price continues to make lower highs. The pattern completes itself when price breaks out of the triangle in the direction of the overall trend.
Element Of Descending Triangle
The descending triangle is fairly easy to spot once traders know what to look for. The below method can be applied to all financial markets.
1.)Downtrend: The market must be in a downtrend before the descending triangle pattern appears. This is important and emphasises that traders should not simply trade the pattern whenever the descending triangle appears.
2.)Consolidation: The descending triangle then appears while the market enters the consolidation phase.
3.Flat Lows Or Flat Line Lower trendline: The lower trendline acts as support. Price often approaches this level and bounces off until the breakout eventually occurs.
4.)Decsending or Lower Highs: While the market is consolidating, a downward sloping trendline can be drawn by connecting the highs. This downward sloping trendline shows that sellers are slowly pulling the price down – which provides further support for a bearish trading bias.
5.)Breakdown & Trend Continuation: After price posts a strong break below the lower trendline, traders will look for confirmation of the pattern via continued downward momentum.
Calculating Target
The descending triangle, often referred to as the ‘falling triangle’, has an inherent measuring technique that can be applied to the pattern to gauge likely take profit targets.
For the descending triangle, traders can measure the distance from the start of the pattern, at the highest point of the descending triangle to the flat support line. That same distance can be transposed later on, starting from the breakout point and ending at the potential take profit level.
The illustration below shows the distance from A to B can be transferred lower down, from C to D, in order to project a possible take profit level.
How to trade Descending triangle
When trading the descending triangle, traders need to identify the downtrend and this can be seen in the BANKNIFTY 15 Min chart below. Thereafter, the descending triangle appears as the candlesticks start to consolidate. The measuring technique can be applied once the triangle forms, as traders anticipate the breakout.
After viewing a strong break below support, traders can enter a short position, setting a stop at the recent swing high and take profit target in line with the measuring technique.
Learn about an Indicator today - AVWAPThere are plenty of indicators traders use to help them to make trading decisions. Every trader have their favourite indicator/indicators. What is your favourite indicator? Write it in the comment.
We are going to know about the indicator AVWAP(Anchored Volume Weighted Average Price) in this post.
What is the speciality of AVWAP?
We can place it anywhere in the chart. From that place VWAP will begin.
I have taken bank nifty chart here as an example. In daily time frame I have seen a pin bar which is taking support from the trend line.
Now I have selected AVWAP from the trend line tools. I am placing it on the pin bar. We got the pin bar on feb 8.
How to use it in trading?
Reduce the time frame to 30 mins. From 9th the price is trading above the AVWAP bands. If price is trending above the middle band it is mildly bullish. Above all the band means bullish. Below the middle band means mildly bearish. Below all the band means bearish.
Now take 15 mins time frame. See how the price is bouncing up, taking the support of the upper band. Feb 10th price took good support from the upper band. Traders use different observation on the indicators they use, what I have written is just one observation about how to use AVWAP indicator in trading.
Let me give you another example.
This is the daily chart of tatasteel. I have placed AVWAP on Jan 27. Now reduce the time frame to 30 or 15 mins to get the trading opportunities.
Always use all the knowledge in making any trading decision. Indicators wont be right 100 % as market is dynamic.
In BN chart price is taking trend line support and in tatasteel price is taking support in daily time frame. In addition to that I have used AVWAP to get more edge in trading.
The Ultimate Price Action Breakdown Strategy Preface
Alright, the operation started after creating an extreme low at 120.20. Price has created an upward channel from the extreme low, where the equilibrium has occurred between bull and bear traders. Control line has given eleven touches, which shows the strong gravitation at the middle.
Here, we can see four reversals on the upper band, and three reversal points occurred on the lower band.
We have two opportunities:
1. Now, the price is on the H-line, and the breakout of the h line indicates the lower band touch.
2. Bull can buy at excess, or they can enter at reappearing in the value area for the target of the control line.
Every beginner who wants to start trading with naked strategy (without indicator) can use this method because the price is the thing that will pay you.
Let me explain to you important aspects of the breakdown strategy.
Value area:
A zone in which bulls and bears both are satisfied to stay within it.
In this zone, supply and demand equally exist.
Ascending Value area:
Range-Bound Value area:
Descending Value Area:
Value area has two bands:
Upper band:
Upper band indicates demand-supply.
In this chart, the price has taken four reversals from the upper band to maintain the equilibrium.
The upper band put a stop to the bull power.
Lower Band:
The lower band indicates demand pressure.
In this chart, the price has taken three reversals from the lower-band to maintain the equilibrium.
The lower band put a stop to bear power.
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No trading zone:
In order to respond to either bull or bears initiative, the price creates an area. In which no trading activities have taken.
It helps to find the weakness of any particular move.
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H Line:
After completing the last share move, the price creates the bulk trading activities, where bulls' power becomes dull.
Breakout of the H-line indicates the cease of the particular move.
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Excess:
Excess is regret and fake-out.
In simple words , price breaks the upper band and again re-enter into the parallel channel.
Buying or selling at the excess is the perfect deal. An excess is a signal of reversal.
The psychology behind the control line :
Price is forming in the parallel channel, but bulls are not satisfied with the current trend. That's why bulls increase demand pressure to break the upper band of the value area. After breaking the upper band, bulls face some problems with profit booking. Now, bulls realize that the price is not going up. Bulls give up on the thought of trend change. Bears were watching this patiently. And after they realize that prices are too high, they increase supply pressure above the upper band of the channel. Now bulls are out of the market, and the seller has maintained the equilibrium & Vice versa.
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Control line:
The Control line is the gravitation point of any value area. We can draw by connecting the reversal points in the middle.
The more the points are available, the higher the effectiveness.
Please note that the price can not stay away from the control line of the value area. We can use it as a price target or breakout trade.
Here, the price has given eleven touches on the control line.
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Breakout or breakdown of the channel:
Bulls and bears both disagree with the current price trend.
Either bulls or breaks out the value area by giving consistent closing.
It often happens after a complex correction or trend change.
I will upload practical work on this idea. Kindly wait for the implementation.
Thank you for your support.
To be continued.....
How to use "Channel Tool" on the Price Chart and its technique?On the price chart can be draw in parallel lines. For example, prices come right in front of you. If this is accurate and if I call the channel of the true value you draw. No, see if it is contained by parallel lines.
It is a reasonable price, the price of the action counter train is contained by the action parallel mind, so if the price action is not contained by the parallel lines by default.
For example, let's look at an impulsive structure. Here we have Waves 12345, just an excellent Elliot Wave Impulse move. Now let's look at it from the channeling technique.
The first thing we want to do Pull back when I call the "Base channel" and it will be this channel here. We start from the origin of wave 1 to the extreme of wave 2 and then take it to parallel to the extreme line of wave 1. The move at this point. We now believe in clarity that we are rallying in the third wave step.
Next channel. Whenever there is a lower boundary line on acceleration for the importance of acceleration channel I will call the "Acceleration Channel" which you draw from the extreme of wave 3 to the extreme of wave 3. The channel entered into its signals and confirmed that there were the wave 3 is complete. And, the wave 4 is under way.
At that point, we draw a "Deceleration Channel" that defines the parameter of the wave 4.
if we go back and look at the base channel, what I found out using this technique is that the trend line that forms the base channel often provides support for the wave 4 and then ends at the break of the boundary line above it. Wait until the correct price channel is on the bearish channel. Then we look at 5 ways to develop an idea. If you have three waves it is very easy, you argue that you can usually only draw one price channel and that is the signal on the price move. If your check is a counter-turn price move if you watch 5 waves, you should be able to draw 3 clear channels on it. So 3 waves, one channel, 5 waves, 3 channels. Well, now that I look at this price chart, well, what do you have? There is a move upwards, which is contained in parallel lines. It's a counter-train move. Thus we can expect more than to withdraw completely. Now go to the downside.
Best of luck.
Regards,
Chitroda Dharmik.
Flag Pattern (Flag and Pole Pattern)A flag pattern is a trend continuation pattern, appropriately named after it’s visual similarity to a flag on a flagpole. Flag patterns can be bullish or bearish.
1. Flagpole: A line extending up from this break to the high of the flag/pennant forms the flagpole. The flagpole is the distance from the first resistance or support break to the high or low of the flag. The sharp advance (or decline) that forms the flagpole should break a trend line or resistance/support level.
2. Flag: A flag is a small rectangle pattern that slopes against the previous trend. If the previous move was up, then the flag would slope down. If the move was down, then the flag would slope up. The price action just needs to be contained within two parallel trend lines.
3. Break: For a bullish flag, a break above resistance signals that the previous advance has resumed. For a bearish flag, a break below support signals that the previous decline has resumed.
4. Volume: Volume should be heavy during the advance or decline that forms the flagpole. Volume contracts during the flag's formation and expands right after the resistance/support breakout.
5. Target: The length of the flagpole can be applied to the resistance break or support break of the flag to estimate the advance or decline.
Real-Time EICHERMOT with deep study of Triangle variety.What's the difference between a running triangle and, contracting triangle?
Trick is very simple. The wave "B" is beyond the origin of wave "A" we have diagram in a chart.
Respect to the triangle a few things to remember.
1) they can only form by themselves in wave "4" , wave "B" , wave "X" and rarely wave "2" . That being the case, triangles always proceed the final move within a sequence.
2) The final move of the triangle which is referred to as a triangle thrust that is either typically small or very large. Rarely is there a medium type move.
3) If you're very aggressive and you want to try and capture the final move. Okay, because that would give you maximum profit potential in this. That's not my training trading style because it is aggressive. When you do this, most people have a tendency to want to put a protective stop at the extreme at wave "C" but I do not recommend that, Actually recommend putting the stop at the extreme of wave "A".
Now you know, with respect to the wave principle, there's two types of wave form survey modalities, Motive waves and Corrective waves. Now with within the corrective wave family are specifically, we have zigzags, flats and triangles. We're going to be examining Triangles. And within the triangle family there's actually 3 subsets or three types of triangles:
1) Contracting triangle,
2) Barrier triangle and,
3) Expanding triangle
Now, any kind or types of Triangle, and its easily to identify because the trend lines. Connect line the extreme of waves "A" and "C" coverage & "B" and "D" coverage with trend-line. There's very minor variation the the Contracting Triangle and Running Triangle. For Running Triangle wave "B" exceed the origin point of wave "A" .
Next is Barrier Triangle and its forming rare or less and its easy to identify because of one trend-line which connect actually a Horizontal and another connecting trend-line will slop in the direction of larger trend.
Last type of triangle we're going to examine is going to be an Expanding Triangle. In this triangle is actually very very rare. This only this type of a triangle forms only 10% of the time or less than. The most distinguishing characteristic of the expanding triangle is that true lines which connect the extremes of wave A and C & B and D coverage is actually expand.
This is EICHERMOTOR weekly price chart, Scenario 1 which is under-construction for Symmetrical Triangle. The contracting for wave (B) of wave B. Here, the probability of wave ((D)) as complex.
We've been learning a lot about triangles and it is actually one of three corrective wave patterns , zigzag, flat and triangles family. There is actually 3 different types of triangles we have contracting triangle., barrier triangle and expanding triangle. Now a variation of the contracting triangle that we examine was also referred to as a running triangle. We've learned that triangles me only form by themselves in the wave "4", wave "B" and wave "X" positions in that triangles always follow or proceed. Excuse me to proceed the final move within a sequence. Sometimes the move The thrust following a triangle is very small. Sometimes it's very very big, so this is.
Now we're actually gonna do today is actually apply what we've learned about triangles to some relevant or a timely markets. The EICHERMOTOR chart is one right here. Whenever I look at triangle pattern characteristics which is covering trend-line. The wave ((b)) is not beyond the origin of wave ((a)) that why this is not "Running Triangle" but its a "Contracting Triangle".
Thrust Measurement Technique :
The simply taking the widest portion( horizontal green dash line ) of the triangle and measuring it in this instance upward from the extreme of wave ((d)) which is 3300 +. The wave ((d)) is very strong evidence whenever price cross about it and the wave ((e)) can be little exceed wave ((c)) or it can complete under the wave ((a)) and ((c)) connected trend-line. Personally I recommended protective stop at or below extreme wave ((a)) .
Daily price chart for closer look:
Trend-lines observation for turning point:
Fib. ratio of all sub-waves:
Thanks.
Why is Closing Price important? Why do I prefer taking trades at 3:25 p.m.?
Most stock prices rise significantly after 3:25 or fall just before 3:25, forcing us to enter at a lower price. Second, we simply want to be as close to the closing price as possible because many intraday positions are squared off at 3:20 p.m. and the price remains somewhat volatile for the next 5 minutes. In my opinion, the most accurate price is at 3:25 pm, which is reflected in the stocks as well, as most of them close at or near the price at 3:25 pm.
Until trading resumes on the following trading day, the closing price is considered the most accurate valuation of a stock or other security. There is a widely held belief that amateurs always open the market and professionals always close it. Opening prices can be influenced by a variety of factors, including global news, gap ups and downs, economic news, and so on. Furthermore, there is always a larger player than you working in the markets alongside you. By "bigger players," I mean people with a lot of money, also known as institutional investors or "smart money." They trade between 9:15 a.m. and 3:30 p.m., the same time as you. They face the same risk when dealing with billions of shares as you do when dealing with a single share. At night, anything can happen. He is basing his holdings on the day's closing price. As a result, it is the most important price. They are certain that it will not result in a gap the following day.
The primary goal of looking at the closing price is to ignore intraday price movement because it allows us to avoid tracking the market for the entire day, make fewer but higher quality decisions, enforce discipline, and reduce the likelihood of false breakouts. There are numerous examples of the market trading in the positive all day but then dipping into the negative at the end. When such movements occur, it indicates that professional money is at work at the time. In most cases, they are probably better at predicting future events than most people, so they are relying on the closing price of their holdings.
When looking at breakouts, we do not consider it very significant if the stock crosses above a certain level and then returns to the previous level. There are numerous intraday breakouts occurring in the markets, and tracking them is, in my opinion, a futile exercise because it is difficult to predict whether they will hold or not.
As only a few people can spot a breakout in live markets, the closing price is the earliest option to enter a trade. 90% of traders will begin researching the stock after the market closes, putting you ahead of the competition and allowing you to capitalise on gap-up opportunities. It aids in determining whether or not the trend is sustainable.
As a result, as you'll see, most of the charts are plotted solely on the closing price, implying that people's attention is drawn once the price closes above a certain level.
Research report: flat correction (real-time) - Support Zone.In this " Research Report " we're going to be looking at the "Flat correction". As you know, with respect to the Wave Principle, there are three types of Corrections.
1. Zigzag
2. Flat and,
3, Triangle
We're going to examine the Flat now. The first thing that's important about this pattern here is being able to identify its characteristics.
First is, its substructure. What I'm referring to is if you notice within "A" wave, we have three waves ((A)), ((B)) and ((C)). Then, also within "B" wave be 3 more waves, ((A)), ((B)) and ((C)). These waves are labelled "A", "B", "C" and, then that followed by a 5 wave move 1,2,3,4 and 5 which is an impulse wave and sometimes an ending diagonal bottom line. The pattern is referred to as a 3-3-5 pattern. That's one characteristic of the structure.
Another characteristic of the structure is that wave "B" at or near the origin wave "A". The wave " C" is at or near extreme wave A. In rare instances, the wave "B" is surpass origin of wave "A" which is referred as an "Expanded Flat". But we're not talking about "Expanded flat" right now.
Now the next thing I would like to show you with respect this pattern. Here's a price chart of HCLTECH which real time price chart rather than utilizing diagram.
This is what I see when I label price chart three ways in A, B & C and wave "B" is near Origin wave "A" which dawned blue line.Okay.Next, For HCLTECH, impulse wave "C" which ends at or near the extreme wave "A". In this instance we actually went a little bit lower , typically with respect to wave.
The relationships have either wave C=A or 1.382 multiples of wave are very acceptable.
wave C = 1.382 of wave A, at 963
C = wave A, at 1073
Next we also need to take a look at Art of correct "Price Channel". How do we actually draw the trend lines that consists or make up the correct price channel whenever you're working with a flat correction? Very simply, you begin with the at the origin wave "A" to the extreme of sub-wave 2 of "C" and then take a parallel of that line of the extreme wave "A". Notice how in HCLTECH identifies nice trend line support for the extreme of Waves C.
