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A Comprehensive Guide to Rectangle Formation.Introduction: Price trends do not usually reverse on a dime. uptrend and downtrend are typically separated by a transitional period or trading range, and trading range formation signal trading opportunities for traders. The trading range separating rising and falling price trends discussed here is a pattern known as a rectangle. This post will cover these questions: 1. Types of a trend reversal. 2. Rectangle formation. 3. consolidation rectangles. 4. Significance of a rectangle pattern. 5. Retracement moves 6. What when a rectangle fails? 1.Trend reversal The turning point between the bull and bear phases is termed a reversal pattern. # Reversal patterns at market tops are known as distribution because the security is said to be “distributed” from strong, informed participants to weak, uninformed ones. # Price patterns, including rectangles, that develop at market bottoms are called accumulation formations where the security passes from weak, uninformed participants to strong, informed ones. a.Horizontal or transitional reversal. An oil tanker takes a long time to slow down and then go into reverse. The same is normally true of financial markets. Generally speaking, the longer the trend, the more time spent in the reversal (turnaround) process. This transitional or horizontal phase has great significance because it is the demarcation between a rising and a falling trend. b. Reversal on a dime without warning. This type of reversal is the exception to transitional reversal and they are the highly emotional market that changes without warning. 2. Rectangle formation. The figure shows the price action at the end of a long rising trend. price starts to move in a trading range between Point A and Point B. Point A can be identified as a resistance area after the price backed of two times from Point A. Point B can be identified as a support area after the price moved up two times from Point B. one can draw horizontal trendlines or Box on the chart to mark the level. At this point, the demand/supply relationship comes into balance in favour of the sellers whenever the price reaches A, and the demand/supply relationship comes into balance in favour of the buyers when the price reaches B. Finally, prices fall below point B signals a trend reversal and the sellers are dominating the market. 3. consolidation rectangles. If the rectangle following an uptrend is completed with a victory for the buyers as the price pushes through the upper line A , a reversal does not develop because the breakout above A reaffirms the underlying trend. In this case, the corrective phase (trading range) associated with the formation of the rectangle temporarily interrupts the bull market and becomes a consolidation pattern. In the figure, a breakout to the upside makes this pattern a continuation rectangle. #the prevailing trend is in existence until it is proved to have been reversed. 4. Significance of a rectangle pattern. i. Time Frames The longer the time frame, the more significant the pattern. A pattern that shows up on a monthly chart is likely to be far more significant than one on an intraday chart, and so forth. the longer a pattern takes to develop in a particular time frame, the greater its significance within that time frame. # Most of the time the larger pattern will be more important, but not every time. In technical analysis, we are dealing in probabilities, never certainties. ii.Volume Considerations. volume is an important independent variable that can help us obtain a more accurate reflection of crowd psychology. volume shrinks during the formation of pattern and blastoff on successful breakout/breakdown of the price. iii. Measuring implications: The depth of the pattern is projected in the direction of the breakout from the breakout point 5. Retracement moves. Many times when the price breaks out from the rectangle, the initial move is followed by a corrective move back to the breakout point. This is known as a retracement move, and it offers an additional entry point for left out players who pushes the prices again in the breakout direction. 6. What when a rectangle fails? One of the first things that should be done upon entering any business venture is to weigh the possible risk against the potential reward. the same is true in the financial markets. *Amatures on breakout only focuses on potential profits. *Professionals always consider the risk as an equal. this means when opening a new position you have to consider the risk to reward ratio and decide prior to opening the position what type of price action would cause you to conclude that the breakout was a whipsaw. Some price action to consider to identify a whipsaw (fake breakout). a.50% rule. It very much depends on the chart. If there are no obvious support points, many traders believe that a penetration of the 50 percent mark is the place to exit. In this case, the 50 percent mark is the central point between the two horizontal lines that make up the rectangle. b. Trendline support using price action trendline to identify if the trend is valid or has been breached. c. Stop below/above the opposite line of breakout/breakdown. one can set a stop above the resistance line if the short-sell position is triggered. or set a stop below the support line if the long position is triggered. d. False breakouts: Shrinking volume on an upside/downside breakout. Hope you found this helpful and I sincerely hope you find a ton of good rectangle formations to trade-in! Happy Trading!
Editors' picks
NSE:TITANEducation
by SANJAYPATIDAR_
30
A layman’s guide to Support and ResistanceForeword: Support and resistance levels are a critical part of trend analysis because they are used to make specific trading decisions. The fact that these levels flip roles between support and resistance can be used to determine the range of a market, trade reversals, bounces, or breakouts. These levels exist due to the influx of buyers and sellers at key junctures. Support and resistance levels can be drawn using a variety of technical indicators such as Moving averages, horizontal levels, trendlines, etc. (which are freely available on TradingView) This post will shed some light on these questions: 1. What is a support level? 2. What is a resistance level? 3. What is their importance? 4. When & where to place Buy/Sell orders? Please remember this is an educational post to help all of our members better understand various concepts used in trading or investing. Support: Support is a zone where the price tends to find a cushion as it falls. In general, the price is more likely to “rebound” from this level rather than pierce through it. However, once the price breaks down from this level, it is likely to continue falling until meeting another support. Illustration: Exhibit 1: Exhibit 2: Resistance: It is a zone where the price tends to find resistance as it rises. In general, the price is more likely to “bounce back down” from this level. However, once the price pushes above this level it is likely to continue rising until it meets another resistance. Illustration: Exhibit 1: Exhibit 2: Role reversal/Change of polarity: A resistance level after a successful breakout turns into support and a support level after a breakdown turns into resistance. This is known as "Change of Polarity" and the zone is called a "Flip zone". Illustration: Exhibit: Sample trade setups: 1. Buying the support If after being rejected several times by the resistance, the price finally manages to break out. The right course of action can be to wait for a successful retest of this level, before going long. This is done in order to avoid fake breakouts/bull traps. 2. Selling the resistance If after being rejected several times by the support, the price finally manages to break down. The right course of action can be to wait for a successful retest of this level, before going short. This is done in order to avoid bear traps. Conclusion: A zone keeps on flipping roles between S/R. It serves as a support at times and a resistance at others. As a result, these zones should be regarded as possible support or resistance zones, as there is no guarantee that they will operate as desired zones. Pro Tip: Since there is an influx of buyers and sellers at the S/R level, hence there is a lot of liquidity around these points. Hence, it is not wise to place orders close to these levels. Always keep a buffer.
Editors' picks
MCX:CRUDEOIL1!Education
by TradingView
19
RELIANCE INDReliance has given breakout of resistance trendline on daily chart along with very good intensity of volume, also it has been closed above 20WMA (Weekly Mid Bollinger Band) in addition to this macd in weekly is about to turn positive and daily has done positive crossover few days back, which is now uptick above zero line. Possibly wave 3 of 3 can now unfold. On the way up, it can rise higher towards the upper end of the rising channel which is currently pegged at 2918 coincides wave 1 and 3 both will be equal at nearly at same level. On the way down, RK's stop line and 20WMA , currently pegged at 2416 and 2340, will provide support in forthcoming weeks. RK's Magic positive signals to go long breakout on daily time frame with good volumes weekly chart some findings are mentioned in snapshot macd in weekly uptick above zero line macd in daily positive rsi in daily chart uptick and now at 60. 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.
Editors' picks
NSE:RELIANCELong
by RK_Chaarts
26
NIFTY:TIME CYCLE INVERSIONConcept of Time Cycle: #A cycle is something that influences the price movement of a financial market to move up towards a peak, and then to move down towards a trough (or low point). #It repeats that action on a fairly regular basis or exist in continuous time. #There are multiple cycles which influence the price movement of any financial market.The multiple cycles that influence price movements combine in a very particular way. #This multiple cycle low's are synchronized as low are made on the back of "fear/panic" and psychologically human tends to experience fear in mass hence different cycle lows are concentrated where as high's of different cycles are scattered as high's are driven by "GREED" which is rather more subjective. #J.M.HURST inventor of cycle theory has given a nominal model which states comman cycle's that are found in financial markets. #Due to multiple cycle going on at the same time,we can see variation in it's wave length(Cycle period). Observation over here: Since January 2021 we are seeing Nifty following 20-days time cycle there by making important pivot low's near vertical line showing cycle period day on most of the occasions till January 2022. Since January 2022 we are seeing inversion happening in the time cycle meaning instead of catching or making important pivot low near cycle period day we are seeing market making important pivot high post which we have seen significant market fall on last 2 occasion of cycle period day. Next cycle period day is on 17/03/2022.Hence going by this logic we can expect current up move to continue till 17/03/2022 post which we can see fall. Although this time in the current up move we have seen price breaking upper channel rasistance and has also managed to close above it and also above its previous pivot closing high of 16793(16800) in today's trading session,which in itself is bullish sign suggesting next target of 17050-80 on the upside,however from here risk reward is not favorable for taking long trade. Although channel rasistance is broken,from last 2 cycle we are seeing Nifty making pivot high's post which we have seen nifty falling and continuing on this logic post 17/03/2022 we can see fall in Nifty till at least previous pivot low of 15670 in order to confirm double bottom. Trade Setup 1)Need reversal candle near cycle period,price being at gap(17050-80) or previous price action zone(17340-400). 2)Next day market should trade below reversal candle low for atleast first hour in order to initiate trade. Stop-loss should be reversal candle high for short trade and target would be 15670. Disclaimer:This are just my views on the index,no position should be squared off or initiated on its basis.Posting this for my future reference.
Editors' picks
NSE:NIFTYEducation
by UNDERDOG-29
34
Bank Nifty:Plan of Action & What FOLLOWED( +18.52% OR +7298 pts)We witnessed an awesome planned fall in Bank Nifty, hope you all enjoyed and made money with the idea. Lets look at the Plan of Bank Nifty & Nifty My Favourite Bank Nifty first & Nifty Lets dig deep into the structure & my thought process behind it First thing First "KEEP IT SIMPLE BABY'' Model 1 (ABC(Elliott ABC)/Pole & Flag/ABCD Harmonic Pattern) what ever you call it, its the simplest of the pattern to recognise & trade Elliott Wave (ZigZag) - ZigZag is a 3 waves ''Corrective'' structure in bigger 5 wave "Impulse" - Subdivision is 5-3-5 - Wave B can be any corrective structure ie zigzag-flat-triangle Fibonacci Relationship between waves are - Wave C = 61.8%, 100%, 127.2% or max 161.8%(need to be careful while labeling wave C as wave 3 is 161.8% of wave 1) - Wave B = 50%, 61.8%, 78.6% or 86% Pole & Flag - Basically Flag is a pattern which forms after market has moved some distance - Flag is a consolidation pattern used to participate in the previous move, that can be up or down - Basic & Logic of the flag is as simple as, any consolidation which is in-between parallel channel - Trade can be initiated on break of parallel channel - Fibonacci relation for the flag can be specified in 2 reversal points(Profit Taking Zone) 1) 61.8% projection of first leg, which should end in the range of 'CENTER LINE REVERSAL'' of parallel channel 2) 100% projection of first leg, in this case, price reverse from bottom of the parallel channel Harmonic Pattern( Bullish ABCD) In Harmonic Pattern (Bullish ABCD) it is labelled as ABCD, instead of ABC of Elliott wave and all the harmonic patterns are derived form understanding ABCD structure, Fibonacci Relationship of all legs BC= 61.8%-78.6% of AB CD=127.2%-161.8% of BC CD=AB CD=127.2%-161.8% of AB Now lets come back to Bank Nifty Plan As per the above study, we can easily identify Impulse and Corrections Points were considered while planning - the rally following 20 Dec 21:1300 hrs was not Impulsive in nature - Price was struggling to rise above 61.8%-78.6% fib retracement resistance level & hovering in the range - 12 Jan-02 Feb-10 Feb formed ''TRIPPLE TOP" with narrow range of 1.38% - for the said pattern we witnessed a breakdown on 24 Feb 22 on opening candle Now the some important points to consider from ''Elliott Wave Principles'' - Wave B structure As per Elliott Wave, Wave B can be a ZigZag, Flat or triangle(TO KEEP IT SIMPLE - not to go in complex corrections) Possibilities of Correction Case 1(Zigzag) Case 2(Flat) Case 3(Triangle) Now from the above two patterns we can eliminate which doesn't fits the pattern Case 1(flag) eliminated we are not left with case 2 & 3 or say Possibiltiy 2 & 3 As per possibility 2 (flat) we get As per possibility 3 (Triangle) we get Both of the labeling stated Bank Nifty & Nifty are heading lower We will wind up this, you can keep sharing & liking the effort of the author so that I can come up with more in future Wish You Happy & safe trading Views are for ‘’EDUCATIONAL PURPOSE ONLY’’ trade at your own risk. "Always Respect Risk" Happy Trading Jai Hind -
Editors' picks
NSE:BANKNIFTYEducation
by DhirajSinghBais
18
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 --------------------------(((((LIKE)))))-------------------------------
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NSE:NIFTYEducation
by Niftydirection
18
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.
Editors' picks
NSE:BAJAJFINSVEducation
by Trade-Technique
121
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.
Editors' picks
NSE:TATASTEELEducation
by vanathi
81
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
Editors' picks
NSE:DUCONEducation
by DhirajSinghBais
10
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
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NSE:BANKNIFTYEducation
by Omahto
17
Analysis of GNFC : Multiple Entry Point & Momentum ConfirmationThe stock is fundamental strong and technically given multiple confirmation & entry point. The analysis given below : a) Falling Wedge: The price structure was in HL-LL and given a resistance breakout with volume. b) Inverse Head & Shoulder: After the breakout and making new high, price was consolidating in range with neckline acting as resistance. c) Neckline resistance broken with surge volume, confirm the breakout. d) Retest Level: The price retrenched to neckline level and acted as support base. The inverse hammer was formed at retest level (giving sign for reversal). e) Entry Level: The correct entry level was above high of wick in inverse hammer candle. f) The stock got a momentum and confirmed with volume. g) RSI Divergence and Fib Support from golden ratio. Thanks
Editors' picks
NSE:GNFC
by Indieconomic
15
SAILSAIL has marked oct top as X and then an ending diagonal, which should now be complete as prices have come back inside the wedge, wave E of wave Y is a shortest in the pattern even as it is a 'Under throw' below lower line, we can say like a fake breakdown, Now macd in hourly has turned positive along with macd in daily is converging towards north, also one trendline is broken on chart with good intensity of volume. it looks good to go long. breakout with good intensity of volume support from support area macd in daily is converging towards north macd in hourly positive rsi in daily is uptick near 46 rsi in hourly above 60 Disclaimer I am not sebi registered analyst My studies are Educational purpose only Please consult your Financial advisor before trading or investing
Editors' picks
NSE:SAILLong
by RK_Chaarts
16
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. Language The Public Library is common to all language versions of TradingView. In order for all members to benefit from all published scripts, English must be predominant. Titles must be English-only. Other languages are welcome in descriptions, but English must appear first. Originality and usefulness Your script's description is your opportunity to explain to the community how it is original and can be useful. If your description does not allow TradingView moderators to understand how your script is original and potentially useful, it will be moderated. Rehashing of old ideas, slight color changes, different combinations of MAs, or a slightly modified version of a popular indicator like WaveTrend are not considered useful. 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 Tips for script authors: www.tradingview.com Pine user manual: www.tradingview.com 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 💘
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NSE:NIFTYEducation
by TradingView
4
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 . . So, Lets See How To Not Trade A Breakout And Avoid Fake Breakouts... . . . 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. **************************** Look For These Things To Make Your Breakout Successful Candlestick Pattern Volume RSI Indices Support And Resistance . . . 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 . . . 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 . . . . 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 . . 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
Editors' picks
NSE:HDFCBANKEducation
by himanxu_yadav
117
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!
Editors' picks
NSE:RGLEducation
by sandeepbalachandran
33