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Stock Market Risks: A Brief Guide to Get ThroughThe stock market can be an exciting and potentially lucrative place to invest, but it also carries significant risks, particularly in the futures and options segment. While the potential for high returns is a major draw, it is essential to understand the risks and take appropriate measures to manage them effectively. Risks in Futures and Options Segment Futures and options are derivative products that allow investors to buy or sell a particular asset at a specific price on a future date. This segment can be risky due to the potential for high leverage, meaning that a small investment can lead to significant losses or gains. Moreover, futures and options are often complex instruments that require a solid understanding of the underlying asset. Risk Aspects in Investment Investment in the stock market also carries inherent risks, such as market volatility, company-specific risk, and currency risk, among others. These risks can impact the overall performance of your portfolio in the long run. Risk Aspects in Day Trading In day trading, an instrument is bought and sold on the same day so as to make a quick profit. While day trading can be profitable, it also carries significant risks due to the high volatility and leverage involved. Day traders need to have a deep understanding of the market and should use technical analysis to make informed decisions. Step-by-Step Guide for Surviving the Stock Market 1. Educate Yourself: The first step to surviving the stock market is to educate yourself about the risks involved, market trends, and investment strategies. You can attend seminars, read books, and consult with experienced investors or brokers. 2. Set Realistic Goals: Setting realistic financial goals based on your investment horizon, risk appetite, and financial situation is crucial. This not only helps in avoiding impulsive trading but also in staying focussed. 3. Diversify Your Investments: Diversifying your portfolio across different sectors, geographies, and asset classes can help mitigate risks and balance your returns. 4. Have a Disciplined Approach: Avoid chasing quick returns or taking unnecessary risks. Have a disciplined approach to investing, and stick to your investment plan. 5. Manage Your Risks: Use risk management tools such as stop-loss orders and limit orders to minimize losses. Moreover, one should always try to invest only that much money which one can afford to lose. Other than that there is always need to maintain a cash buffer for emergencies. In conclusion, the stock market carries significant risks, especially in the futures and options segment. However, with a disciplined approach, a sound investment strategy, and effective risk management, new and struggling traders and investors can survive and thrive in the stock market. Thanks for reading.
NSE:NIFTYEducation
by Bravetotrade
10
HCLTECH: Rounding TopFrom Jul'22 low of INR 877 prices have retraced to Fibonacci 61.8% retracment level positioned at 1150 zone and formed a potential double top structure. Prices have also formed a Rounding Top pattern whose neckline is in the region of 1101-1100. The measured target for the pattern is coming in the region of 1050-1045 where its 200-EMA is also positioned As per above observations prices are likely to hold below INR 1137 and fall towards INR 1050-1045 in the coming weeks. Trading Strategy: Sell on cmp add on rise , keeping SL of 1137 look for the target of 1050-1045.
NSE:HCLTECHShort
by TradingSutra
12
RESISTANCE CAN BECOME SUPPORTHello friends I am sharing the commodity silver daily chart for educational purpose for that as we can see that 63000 zones was a hazardous resistance for it and after hitting all time high of 72700 levels it looking to came down for retesting the 63000 zones as all we know that if price is trading above the previous resistance zone then that price can become support for any of security in market so we can expect a good bounce from that identified support zone and for that I am sharing my ideas below IDEA NUMBER ONE-: It will reach to it's support zone and give a bounce from there for the target of 68000 in this execution we will take a stop loss of a closing below that support on daily candle basis. IDEA NUMBER TWO-: If it will breach it's mentioned support zone and close below then we can consider as go for a short in this condition for the 60700 zones as looking a good support zone 2 for covering our shorts in this execution we will take a stop loss of closing above of support zone. NOTE-: This is not and trade or investment advice. This idea is meant for learning only. Invest your capital at your own risk 𝐑𝐞𝐠𝐚𝐫𝐝𝐬-: 𝐀𝐦𝐢𝐭 𝐑𝐚𝐣𝐚𝐧
MCX:SILVER1!
by AMIT-RAJAN
4
10 Reasons why Most traders lose moneyHey everyone!👋 Trading & investing is not easy. If it were, everyone would be rich. Here are a couple of time-honored tips to help you get back to basics. Lack of knowledge 📘 Many traders jump into the market without a thorough understanding of how it works and what it takes to be successful. As a result, they make costly mistakes and quickly lose money. Poor risk management 🚨 Risk is an inherent part of trading, and it's important to manage it effectively in order to protect your capital and maximize your chances of success. However, many traders don't have a clear risk management strategy in place, and as a result, they are more vulnerable to outsized losses. Emotional decision-making 😞 It's easy to feel strong emotions while trading. However, making decisions based on emotions rather than rational analysis can be a recipe for disaster. Many traders make poor decisions when they are feeling overwhelmed, greedy, or fearful and this can lead to significant losses. Lack of discipline 🧘‍♂️ Successful trading requires discipline, but many traders struggle to stick to their plan. This can be especially challenging when the market is volatile or when a trader is going through a drawdown. Create a system for yourself that's easy to stay compliant with! Over-trading 📊 Many traders make the mistake of over-trading, which means they take on too many trades and don't allow their trades to play out properly. This leads to increased risk, higher brokerage costs, and a greater likelihood of making losses. Clearly articulating setups you like can help separate good opportunities from the chaff. Lack of a trading plan 📝 A trading plan provides a clear set of rules and guidelines to follow when taking trades. Without a plan, traders may make impulsive decisions, which can be dangerous and often lead to losses. Not keeping up with important data and information ⏰ The market and its common narratives are constantly evolving, and it's important for traders to stay up-to-date with the latest developments in order to make informed decisions. Not cutting losses quickly ✂️ No trader can avoid making losses completely, but the key is to minimize their impact on your account. One of the best ways to do this is to cut your losses quickly when a trade goes against you. However, many traders hold onto losing trades for too long, hoping that they will recover, and this can lead to larger-than-expected losses. Not maximizing winners 💸 Just as it's important to cut your losses quickly, it's also important to maximize your winners. Many traders fail to do this, either because they don’t have a plan in place, telling them when and how to exit a trade. As a result, they may leave money on the table and miss out on potential profits. Not Adapting 📚 Adapting to changing market conditions is paramount to success in the financial markets. Regimes change, trading edge disappears and reappears, and the systems underpinning everything are constantly in flux. One day a trading strategy is producing consistent profits, the next, it isn't. Traders need to adapt in order to make money over the long term, or they risk getting phased out of the market. The majority of traders can improve their chances of success by educating themselves, developing a solid trading plan, planning out decisions beforehand, and avoiding common pitfalls. I hope you enjoyed this post. Please feel free to write any additional tips or pieces of advice in the comments section below! Happy learning. Cheers! Rajat Kumar Singh (@johntradingwick) Community Manager (India), TradingView
NASDAQ:TSLAEducation
by johntradingwick
9
Risk-Reward ratioHey everyone!👋 Risk management is an essential part of successful trading as it helps in identifying, assessing, and mitigating potential risks that may arise from various factors such as volatility. Whether you are a day trader, swing trader, or scalper, effective risk management can help you in protecting your capital, and minimising losses while maximizing potential profits. Before we move ahead, please remember this is an educational post to help all of our members better understand concepts used in trading or investing. This in no way promotes a particular style of trading! One of the key pillars of risk management is Risk-Reward (RR) ratio. Traders can use this concept for optimising their entries and exits. 📚 What is Risk-Reward ratio? → The RR ratio measures your potential risk to the potential loss for a given trade. → A Risk:Reward of 1:3 means that you are risking 1 point in order to gain 3 points. → Conversely, some traders like to visualise it as Reward:Risk, in which case, the same proportion is written as 3:1. 🔍 What's an ideal Risk-Reward ratio? → In general, some traders consider 1:2 or higher as a good RR ratio. → However, this is not written in stone and should not necessarily be taken at face value. → There is no “One-size-fits-all” approach. Different traders have different systems and winning rates. → The risk-reward ratio combined with the win rate determines a trader's profitability. 🚨 Risk-Reward versus Win rate % For a trader to stay breakeven, → A low RR requires a higher winning rate → A high RR requires a lower winning rate As evident from the above data, a trader using a higher RR with a low win rate can still be profitable. Hence, traders must combine their winning rate with an optimal RR to reach their desired profitability target. Need for a balanced approach → A high risk-reward ratio seems attractive because it allows traders to make more profit than they stand to lose. → Similarly, a low risk-reward seems less attractive because it gives less reward as compared to the risk. Example: Buying the horizontal breakout (Higher risk, higher RR) Example: Buying the horizontal breakout (Lower risk, lower RR) Risk is subjective and no two traders have the same risk tolerance. Therefore, it is advisable to use a RR as per your own trading system and the winning rate so as to ensure that the potential reward justifies the potential risk. Thanks for reading! As we mentioned before, this isn't trading advice, but rather information about a tool that many traders use. Hope this was helpful! See you all next week. 🙂 – Team TradingView Feel free to check us out on Instagram , and YouTube for more awesome content! 💘
Education
by TradingView
13
NSE ABFRL – Motive Cycle BeginsTimeframe: Daily NSE ABFRL has been forming into the corrective formation for more than 15 weeks. This manner of the price is corrective because it is falling steeply into the channel. As per the rule of the channel, the corrective wave respects the channel because they don’t have the power to break out from the parallel lines. The impulse breaks the channel, whereas the correction forms within it. Currently, the price has accomplished wave 5 of wave (C) at 240 , and the price started lifting near the upper band of the regression channel. This breakout can be a holy grail for bulls to reach near wave (B). Safe traders can wait for the retracement to ride the impulse.
NSE:ABFRLLong
by forextidings
15
My precious-s-s-s EPSIn the previous post , we began looking at the Income statement that the company publishes for each quarter and year. The report contains important information about different types of profits : gross profit, operating income, pretax income, and net income. Net income can serve both as a source of further investment in the business and as a source of dividend payments to shareholders (of course, if a majority of shareholders vote to pay dividends). Now let's break down the types of stock on which dividends can be paid. There are only two: preferred stock and common stock . We know from my earlier post that a stock gives you the right to vote at a general meeting of shareholders, the right to receive dividends if the majority voted for them, and the right to part of the bankrupt company's assets if something is left after paying all debts to creditors. So, this is all about common stock. But sometimes a company, along with its common stock, also issues so-called preferred stock. What advantages do they have over common stock? - They give priority rights to receive dividends. That is, if shareholders have decided to pay dividends, the owners of preferred shares must receive dividends, but the owners of common shares may be deprived because of the same decision of the shareholders. - The company may provide for a fixed amount of dividend on preferred shares. That is, if the decision was made to pay a dividend, preferred stockholders will receive the fixed dividend that the company established when it issued the shares. - If the company goes bankrupt, the assets that remain after the debts are paid are distributed to the preferred shareholders first, and then to the common shareholders. In exchange for these privileges, the owners of such shares do not have the right to vote at the general meeting of shareholders. It should be said that preferred shares are not often issued, but they do exist in some companies. The specific rights of shareholders of preferred shares are prescribed in the founding documents of the company. Now back to the income statement. Earlier we looked at the concept of net income. Since most investments are made in common stock, it would be useful to know what net income would remain if dividends were paid on preferred stock (I remind you: this depends on the decision of the majority of common stockholders). To do this, the income statement has the following line item: - Net income available to common stockholders (Net income available to common stockholders = Net income - Dividends on preferred stock) When it is calculated, the amount of dividends on preferred stock is subtracted from net income. This is the profit that can be used to pay dividends on common stock. However, shareholders may decide not to pay dividends and use the profits to further develop and grow the company. If they do so, they are acting as true investors. I recall the investing formula from my earlier post : give something now to get more in the future . And so it is here. Instead of deciding to spend profits on dividends now, shareholders may decide to invest profits in the business and get more dividends in the future. Earnings per share or EPS is used to understand how much net income there is per share. EPS is calculated very simply. As you can guess, all you have to do is divide the net income for the common stock by its number: - EPS ( Earnings per share = Net income for common stock / Number of common shares issued). There is an even more accurate measure that I use in my analysis, which is EPS Diluted or Diluted earnings per share : - EPS Diluted ( Diluted earnings per share = Net income for common stock / (Number of common shares issued + Issuer stock options, etc.)). What does "diluted" earnings mean, and when does it occur? For example, to incentivize management to work efficiently, company executives may be offered bonuses not in monetary terms, but in shares that the company will issue in the future. In such a case, the staff would be interested in the stock price increase and would put more effort into achieving profit growth. These additional issues are called Employee stock options (or ESO ). Because the amount of these stock bonuses is known in advance, we can calculate diluted earnings per share. To do so, we divide the profit not by the current number of common shares already issued, but by the current number plus possible additional issues. Thus, this indicator shows a more accurate earnings-per-share figure, taking into account all dilutive factors. The value of EPS or EPS Diluted is so significant for investors that if it does not meet their expectations or, on the contrary, exceeds them, the market may experience significant fluctuations in the share price. Therefore, it is always important to keep an eye on the EPS value. In TradingView the EPS indicator as well as its forecasted value can be seen by clicking on the E button next to the timeline. We will continue to discuss this topic in the next publication. See you soon!
NSE:RELIANCEEducation
by Be_Capy
4
TECHNICAL PICK NIFTY FINANCEHello friends I am sharing the hourly time frame chart of Nifty Finance and it seems that is trading in a Symmetrical Triangle pattern nowadays with taking a resistance on upper line of triangle and support from the lower line of triangle now it gives a Breakout from upper trendline resistance of the triangle so we can make a long in it for the targets of 19000 AND 19250 levels TARGET 2-: STOP LOSS-: Close below resistance trendline on same time frame chart NOTE-: This is not and trade or investment advice. This idea is meant for learning only. Invest your capital at your own risk
NSE:CNXFINANCELong
by AMIT-RAJAN
14
ROSE "Ascending Scallop" An ascending scallop pattern is a bullish continuation pattern that appears near the top of an uptrend. It's characterized by a rising price trend, followed by a short-term retracement, and then another rise to form a higher peak. This creates a scallop shape on a stock chart. Currently the price of Rose is trading in the range of 0.08373, If pattern continues it might reach to the next resistance level $ 0.09670 , If trend breaks below support level it may fall till $ 0.07522
Long
by TheNewsCrypto
3
BIOCON OVERSOLD (FIBO TIME ZONE ANALYSIS )Biocon Ltd looks fundamentally very disappointing but there are few patterns on charts that makes it technically interesting at this point of time. Betting for an upside with a calculated risk doesn't seem as a bad option for now. BIOCON ON CHARTS: - Biocon has formed a Bullish Wolfe Wave. - After 10 Weeks the Weekly closing has been above prior candle's close. -The bullish pattern has been formed at a very important Fibonacci Retracement level of 89%. - RSI is at Oversold zone and at Reversal Zone. - Negative DI index stands at 31, it generally indicates a oversold trend and a trend reversal in Biocon. Because -ve DI in Biocon never crosses 35. - Directional Index stands at 38. Generally 40-50 Level is a trend reversal indication. - According to Fibo time zone analysis, Biocon is nearing 5.55 Time level. It is a trend reversal level. A good up move above 260 can lead the stock to 320 Level. SL seems to be at below 220. CHART & ANALYSIS ADARSH DEY
NSE:BIOCONLong
by AdarshDey
7
Proximal and Distal Line Plotting For Supply and Demand ZonesProximal and Distal lines are important components of any Supply and Demand zone. One needs to plot two horizontal lines to mark Supply and Demand Zones. To know How to draw these lines, you need to understand Supply and Demand Zone formations. Proximity means nearest to the current price, while distal means farthest from the current price. What is the need to draw Proximal and Distal lines on a zone? As a Supply and Demand trader, one needs to know which price point to enter and where to exit. The proximal line is used to define the entry point into a trade, and the Distal line defines the Stopping Point. We place our stop losses slightly beyond the distal lines of the zones. Have a look at the above image Supply zones are located above the current market price and Demand zones are located below the current market price. In the illustration above, CMP is Rs.1668.3 The green-shaded zone below CMP is the Demand zone. It has two horizontal lines one at Rs.1607.65 which is nearer to the current price, and it forms the proximal line, whereas the other horizontal line is at Rs.1588.75 which is far away as compared to Rs.1607.65, so it constitutes the distal line of the demand zone The pink-shaded zone above CMP is the Supply zone. It has two horizontal lines one at Rs.1688 which is nearer to the current price, and it forms the proximal line, whereas the other horizontal line is at Rs.1702.4 which is far away as compared to Rs.1688, so it constitutes the distal line of Supply zone. How to Draw Proximal and Distal Lines for a Demand Zone A Demand zone is a designated area on a chart where Demand exceeds Supply, and there is a high likelihood of having pending Institutional Buy Orders. We look to enter long trades when the price retraces back to the demand zone, in doing so we also participate along with the Institutions which increases the probability of the trade working in our favour. So it's important to correctly identify the Proximal line and Distal line of a Demand Zone. Let u see how to mark the Proximal and Distal line of a Demand Zone Proximal Line Marking For A Demand Zone Irrespective of whether it’s a DBR or RBR Demand zone, the proximal line marking method remains the same. There are multiple ways to mark proximal lines, I will discuss the one that I follow and is widely used. While marking the proximal line we look at only the Base Candles, Proximal line is plotted at the Highest Wick of the base candles. Distal Line Marking For A Demand Zone There is a slight variation while marking distal lines, depending upon whether it’s a DBR or RBR Demand Zone Distal Line For DBR Demand Zone We need to consider all three components, Leg In, Base Candles & Leg Out. The distal line is plotted at the lowest point of the entire formation. Distal Line For RBR Demand Zone We need to ignore the Leg In and focus only on the Base candles and the Leg Out. The distal line is plotted at the lowest point of either the Base candles or the Leg Out, whichever is lower. How to Draw Proximal and Distal Lines for a Supply Zone A Supply zone is a designated area on a chart where Supply exceeds Demand, and there is a high likelihood of having pending Institutional Sell Orders. We look to enter Short trades when the price retraces back to the supply zone, in doing so we also participate along with the Institutions which increases the probability of the trade working on our favour. So it's important to correctly identify the Proximal line and Distal line of a Supply Zone. Let u see how to mark the Proximal and Distal lines of a Supply Zone Proximal Line Marking For A Supply Zone Irrespective of whether it’s an RBD or DBD Supply zone, the proximal line marking method remains the same. There are multiple ways to mark proximal lines, I will discuss the one that I follow and is widely used. While marking the proximal line we look at only the Base Candles, Proximal line is plotted at the Lowest Wick of the base candles. Distal Line Marking For A Supply Zone There is a slight variation while marking distal lines, depending upon whether it’s an RBD or DBD Supply Zone Distal Line For RBD Supply Zone We need to consider all three components, Leg In, Base Candles & Leg Out. Distal line is plotted at the highest point of the entire formation. Distal Line For DBD Supply Zone We need to ignore the Leg In, focus only on the Base candles and the Leg Out. Distal line is plotted at the Highest point of either the Base candles or the Leg Out, whichever is Higher. Conclusion In conclusion, the Proximal and Distal lines are critical components of the Supply and Demand Trading Strategy. Knowing how to properly place them is essential for the correct identification of zones. Supply and Demand Zone formations when combined with other factors like Trend, Location, and Quality attributes of the zone form a very sound rule-based Price Action Trading Strategy.
NSE:HDFCBANKEducation
by MAKTradingSchool
13
Importance of Stoploss in TradingStop-loss is a risk management tool used by traders to limit their potential losses. It is an order placed with a broker to automatically sell or buy a security if it reaches a certain price level, known as the stop-loss level. Here are some general guidelines on where to place stop-loss orders 👇 ⚡ Support and Resistance Levels A common approach is to place stop-loss orders at key levels of support or resistance. For example, if you are long in a stock, you may place your stop-loss order just below a support level. If the price falls below this level, it is an indication that the trend has changed and it's time to exit the trade. ⚡ Volatility Another approach is to place stop-loss orders based on the volatility of the security. If a stock has high volatility, you may want to place your stop-loss order further away from the entry price to give it more room to move. Conversely, if a stock has low volatility, you may place your stop-loss order closer to the entry price. But you still need to give the stock enough room to breath in case of the latter. ⚡ Technical Indicators Some traders use technical indicators to place stop-loss orders. For example, you may use the average true range (ATR) to set your stop-loss order. The ATR measures the average range of price movements, and you can set your stop-loss order at a multiple of the ATR. Ultimately, where you place your stop-loss order will depend on your trading strategy, risk tolerance, and the specific security you are trading. It's important to have a clear plan for where to place your stop-loss order before entering a trade, as it can help you manage risk and avoid potentially large losses. What are your thoughts on using stoploss and which method do you use? Do write in the comment section. Trade safe and stay healthy.
NSE:NIFTYEducation
by Bravetotrade
6
How to fail as a traderHey Everyone! 👋 Over the last few months, we've looked at a couple of the best ways to improve your trading, including learning to adjust to market conditions, building a proper trading mindset, and more. Today, we thought it would be fun to do the opposite. Instead of trying to help the community build up solid, professional trading practices, let's design a losing trader from the ground up! What attributes/decisions will we have to encourage to get a losing result? Theoretically, the market is just a game of probabilities. How can we guarantee that our trader will lose? As it turns out, there are a couple of easy behaviours we can combine to ensure that a losing outcome is a foregone conclusion. Number 1: They never define risk 🤷🏼‍♂️ In trading, people often say things about "Risk management" , "Defining your risk" or "Defining your out", but it can sometimes be difficult to determine, as a new trader, what the heck people are talking about. Define my risk? How? What are you talking about? What does this actually mean? Put simply, defining your risk is figuring out *where* you are wrong on a trade/investment. 👉 For active traders, it can be as simple as picking a recent low or high and saying "If this price is hit, then I'm exiting the trade. The short-term read I had on this asset is no longer valid. I don't think I know what's going to happen next." 👉 For someone who is more of a position trader, it can be as simple as saying "I don't want to lose more than 10% (or some percent) of my capital at any point when I am in this position. I think that I have selected my entry well enough that a 10% drop (or x%) would mean that, for some reason or another, my thesis is no longer valid." 👉 From a cash management/portfolio management perspective, defining your risk has another dimension: How much of your total capital do you want to potentially lose in a worst-case scenario? Should each trade risk 50% of your capital? 20%? 5%? 1%? How much of your total bankroll will you lose before you stop? In order to ensure that we have a losing trader, it's important that they don't have a plan for position sizing, setting stop losses, or setting account stop losses. This way, they won't have any consistency and will inevitably take a few big losses that knock the out of the game forever. Number 2: They use lots of leverage 🍋 👉 When combined with Number 1, using lots of leverage is a great way to accelerate the process of losing money. Given that a strategy that wins 50% of the time will statistically face a 7-trade losing streak in the next 100 trades, sizing up and using leverage is a great way to ensure that when a rough patch strikes, you lose all your capital. 👉 Letting trades go past how much you expected to lose is a great way to speed this process because, with the addition of leverage, things only need to go against you 50%, 20%, 10%, etc, before you're wiped out. You can't risk to zero. Considering that the most aggressive hedge funds in the world typically don't use an excess of 5-8x leverage, even in FX trading, we will need our losing trader to use at least 10-20x leverage in order to speed up their demise. Number 3: They hop from strategy to strategy 🐰 Bruce lee once said, “I fear not the man who has practised 10,000 kicks once, but I fear the man who has practised one kick 10,000 times.” 👉 In this example, sticking to one strategy, even if suboptimal, is the man who has practised one kick many many times. The trader who strategy hops is the one who has tried almost every kick out there but mastered none. In order to ensure that our trader is a losing trader, we need to ensure that they never develop any mastery and keep switching from strategy to strategy. 👉 We need to constantly dangle a new strategy, indicator, or trading style constantly in front of our traders. Thus, no matter what strategy the trader picks, they will lack the hours necessary to have anything but suboptimal trade execution, poor overall market sense, and a general lack of nuance & understanding. Combined with number 1 and number 2, it's going to be nearly impossible for this trader to be profitable. -- So there you have it; 3 ways to ensure that the trader will fail. Recognize any of them? Our hope in writing this is not to discourage anyone from getting involved in the markets, but rather to continually shine a light on some of the bad habits we can get into when starting out. Avoiding rookie mistakes and bad practices that can stunt a career as a trader & create bad habits! Let us know if you enjoyed it, and we will continue to make more of these posts that go through some trading "best practices" . Have a great week! -Team TradingView ❤️ Do check us out on Instagram , and YouTube for more awesome content! 💘
NSE:ADANIENTEducation
by TradingView
18
BANKBARODA possible Elliot wave countsThis stock has shown almost aligned wave counts from weekly to daily and from daily to hourly and right now its in correction area of some lower degree wave counts macd on hourly chart momentum negative cross done on hourly Price under and below RK's stopline in daily Price made neutral candle under and below 20DMA in daily Most investors treat trading as a hobby because they have a full-time job doing something else. However, If you treat trading like a business, it will pay you like a business. If you treat like a hobby, hobbies don't pay, they cost you...! Disclaimer. I am not sebi registered analyst. My studies are for educational purpose only. Please Consult your financial advisor before trading or investing. I am not responsible for any kinds of your profits and your losses.
NSE:BANKBARODAShort
by RK_Chaarts
23
Basics of Elliot Waves.Hello Traders! 1. Today, we will discuss the basic market movement structure, elliotically . A recent comment on one of my ideas published pointed (indirectly) towards the need for a basic understanding of Elliot Waves for the general trading public. 2. The market moves in consistent impulsive and corrective structures . Waves 1, 2, 3, 4, and 5 together form the 1st Impulsive structure of the market. Waves A, B, and C together form the next Corrective structure of the market. What is an Impulsive Structure ? These are patterns that occur in the direction of the trend. A movement consisting of 5 smaller cycle waves and following certain set rules/guidelines set by Elliot; Wave 2 never retraces more than 100%, Wave 3 is never the shortest, & Wave 4 does not enter the price territory of Wave 1. The 3rd rule is at times compromised and that should be up for discussion some other day. More rules exist but are not required for the basic understanding of the markets. What is a Corrective Structure ? We will put this very vaguely. Whatever is not impulsive, is corrective, in laymen's terms. 3. Let's address the Impulsive structure . Waves 1, 3, and 5 are impulsive waves within the impulsive structure. Waves 2 and 4 of this impulsive structure stand to be corrective. Waves 1, 3, and 5 consist of 5 waves each. Waves 2 and 4 consist of 3 waves each. 4. Now we'll address the next Corrective structure . Wave A and C of this structure are impulsive whereas Wave B is of corrective nature. Waves in the corrective structure are very interesting. Wave A can at times consist of 5 waves as well as 3, even though impulsive, and can also be a diagonal. Wave B can sometimes contain 5 waves, when in a form of a triangle, even though corrective. Wave C always has only 5 waves and can be a diagonal as well. The corrective waves are a whole lot more complicated and require a vigorous understanding of the structures. 5. Every wave structure is part of a larger wave structure on a larger timeframe. 5 impulsive, 3 corrective waves of the smallest cycle; which will form Waves 1 and 2 of a larger cycle. Then these two waves along with 3, 4, 5, and the next correction set, will form the 1st and 2nd waves of an even larger cycle. This is how our final wave structure (basic) would look like. The world moves in harmony with progression and recession. And so do the markets. All they need is an observer. Be one. Happy observing! Profits, Market's Mechanic.
NSE:NIFTYEducation
by UnknownUnicorn27677748
7
How to subscribe to the TradingView newsletter?Hey everyone! 👋 Our weekly newsletter is built for one purpose: to keep you up to date in the markets. We include educational posts and ideas from our community, top scripts, an earnings calendar, an economic calendar, and more to prepare you for each week. How to subscribe to our weekly newsletter? 1. Go to the top right-hand side of your screen, click on the display picture, and then select “Profile settings”. 2. Then click on the “ Notifications ” tab. 3. Once you open the notifications, you will see various options under the “ Email preferences ” tab. Just check the “ Weekly digest ” option and save changes. That’s it, you are good to go! 4. Once you are done subscribing to the newsletter, just sit back, and relax. We send our newsletter each Monday morning at 9 AM . Make sure to open the next newsletter! ❤ Oh, and please feel free to send us any feedback about our newsletter. We especially want to hear if you enjoy it or if there’s anything you would like to see added! Let’s go! ❤ – Team TradingView
NSE:NIFTYEducation
by TradingView