BankNifty Intraday Trade Setup | 18th January 2022BankNifty opened flat and we saw huge volatility in the morning due to HDFCBank as expected. BankNifty lost all morning gains and closed in the red.
Trades we took today -
> Bought BankNifty 38300 CE at 370 which went above our Last Target 510 but due to fast movement, only a few Traders could take this Trade
> Bought BankNifty 38600 PE at 430 which made a high above our Last Target 550 and Traders booked profit in this Trade
> Bought BankNifty 38400 PE at 410 which we booked with 15 points loss due to slow movement
> Bought BankNifty 38300 CE at 310 which went above our First Target 350 and Traders booked profit in this Trade
> Bought BankNifty 38400 PE again at 380 which went near to our First Target 440 and Traders booked small profit in this Trade
Overall, Traders booked small profits on a choppy day.
Tomorrow, we may see a fast down-move if BankNifty breaks 38150 in the morning.
Expectations for Tomorrow: Range-bound Day.
Intraday Levels:
Buy Above 38400
Sell Below 38150
To motivate me, Please like the idea If you agree with the analysis.
Happy Trading!
InvestPro India Team
Community ideas
The Perfect Fibonacci Retracement ExampleHere is a stock with good cash flows and EPS.
RVNL made its previous all time high in January '21. Then, it went for a healthy correction at the end of the month. Getting retraced from the golden level of Fibonacci, then it consolidated till the 3rd quarter of the year. It skyrocketed to the new high at 44.80 in mid October.
In this situation, I drew the Fibonacci Retracement from the previous low to the previous high (in an uptrend). The previous low was at 20.60 on 22 December 2020 and the previous high was at 35.55 on 11 January 2021. After that, price went for a correction to 26.55 on 28 January 2021, got retraced. After the retracement, it consolidated between 26 to 34 till 18 October 2021, here price broke out of consolidation and went for a new high at 44.80, which was our desired target.
Understanding Fibonacci Levels
The theory of getting the 61.8 number is pretty amazing. If we start from 0 and 1 and keep adding the prior number to get a sequence like:
0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233...
Now, in this sequence, if we divide any number by its next number, we will always get 0.618, and if we divide 0.618 by 2, we will get 0.382. The 0.5 level is not officially a Fibonacci level, but it is a major level.
So, we come up with a conclusion that 0.618 is the golden ratio, and the golden zone is between 0.5 to 0.618 (between the red lines). This zone is the main point where the price reverses back. Fun fact is, you can also find the work of golden ratio of Fibonacci in the nature too. Read more about it on Google.
What should be the target after getting retraced?
The target should be always between -0.382 to -0.618 levels (market with black box). And, for further more targets, one should learn Fibonacci Extension.
Remember, that targets does not get hit just after getting retraced. After the retracement, price always consolidates before shooting up or down, in the direction of the Fibonacci made or in the direction of the trend. In this scenario, we are in a bullish trend.
Part 3: Elliott Wave Principle - Double three correction guideIt looks like mother Sumi has completed the 4th wave correction, and the ending point of the corrective wave (4) is the starting point of wave (5).
Wave (4) is occurring in double three corrections.
A "double three" consists of two corrective patterns, the first labeled W, and the second label Y, separated by a corrective pattern
on the opposite side, which is labeled X.
Wave formations:
Waves W is a zigzag correction pattern.
Wave Y triangle.
Wave X could form any correction pattern.
Wave X is smaller than wave W & Y.
Rules and objectives:
1. Double three is a corrective structure that includes more than one type of corrective pattern.
2. It consists of three waves, which are marked W-X-Y.
3. A triangle may occur only as wave Y in a double three.
4. In most cases, double threes are not deep corrections.
5. wave Y usually ends at 100% – 161.8% Fibonacci extension relative to wave W.
6. Wave Y should not go below the 161.8% Extension of Wave W. It shows that the corrective trend is strong.
7. There never appears to be more than one triangle.
What are the double threes?
Price picks up momentum when it starts an impulsive wave.
After accomplishing the impulsive wave, it corrects the previous move by a three-wave pattern.
These three waves were not enough to complete correction because of the high momentum & directional power of an impulsive wave.
Price creates another three-wave move to complete the correction by merging through intermediate wave X.
Let me make it easy by explaining and structuring examples.
Double three Structure:
Real Example:
Brent oil stays softer ahead of OPEC+ JTC, US ISM PMIBrent oil sees further downside after confirming short-term rising wedge bearish chart pattern the last week. However, oil traders turn cautious ahead of today’s OPEC+ JTC meeting and monthly print of the US ISM Manufacturing PMI. That said, a five-week-old horizontal area and 200-SMA, respectively around $77.20-76.80 and $76.25, restrict the immediate downside of the commodity ahead of today’s key events. In a case where the UK oil benchmark drops below $76.25, the mid-December swing low of $72.85 will be in focus.
Alternatively, recovery moves remain elusive below the recent tops surrounding the $80.00 psychological magnet. Following that, oil buyers can quickly rush towards the late November’s top surrounding $82.80-85 and then to the November 10 peak of $86.00 should return to the chart. However, a clear run-up beyond the $82.85 won’t hesitate to cross the 2021 high surrounding $86.70. To sum up, Brent oil sellers have firmer grips on the prices ahead of the key events that might turn out as a challenge for bears.
Real Time example - TRIPLE ZIGZAG (Bullish)Let's talk about each waves of Triple Zigzag:
Wave W (5-3-5) impulsive: ((a)) = ((b)) at 17709 which is close actual low 17613. Its a sharp zigzag.
Wave 1X corrective: Wave ((b)) 3-3-5, Running Correction which is little complex.
Wave Y (5-3-5) sharp: ((a)) = 0.786 ((b)) at 16824 which, is very near actual low as 16782
Our first question is, What is the Zigzag?
In chart, a, b and c is zigzag which very easy to understand by picture.
Its really easy to understand this wave counting if you read just below basic rules and Characteristics of Zigzags. The main question, What is going on in nifty? This Triple Zigzag is bullish pattern. Really market is follow this pattern? - Wait and Watch...
Characteristics of Zigzags:
— labeled a-b-c
— subdivide 5-3-5
— typically occur in wave 2 position
— ‘b’ wave does not approach ‘a’ wave origin
— ‘c’ wave ends beyond ‘a’ wave extreme
— belong to ‘sharp'
Rules:
- Wave A always subdivides into an impulse or leading diagonal.
-Wave A always subdivides into an impulse or leading diagonal.
- Wave B always subdivides into a zigzag, flat, triangle or combination.
- Wave C always subdivides into an impulse or diagonal triangle.
We can use channel for zigzag. The Wave C often ends upon reaching the extreme of the channel.
Simple Trade Setup | HDFCBANK | 29-12-2021 [INTRADAY]NSE:HDFCBANK
Observations:
1) On 1 day time frame, it closed just above 10DMA and still trading below 200DMA.
Please refer below chart : 1 day Time Frame.
2) Also on daily time frame, it made doji candle.
If it trades above today's high then it will be quick buy trade.
And if it trades below today's low then it will be quick short.
Please refer below chart : 1 day Time Frame.
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Trade Setup for Date: 29-12-2021
1) Don't Jump in to trade at the beginning of the market. Let it get settle for 15-20min first and judge the price action.
2) Everything is mentioned on the chart. I hope it is easy to understand.
3) All the levels will work as support, resistance, entry and exit w.r.t price action near that level.
4) Avoid gap up or gap down chase. Wait and trade between levels.
Please refer below chart for levels.
Hope I made it easy to understand it.
Do comment your doubt or suggestion.
Note: Trade with Strict SL. It may or may not hit all the levels. So one can book profit / loss at respective level considering how price action works near that level.
GBPUSD battles 50-DMA but bearish trend persistsGBPUSD bulls fail to cheer a clear upside break of the monthly horizontal resistance, now support, as the 50-DMA challenges immediate upside. Given the easing bearish bias of MACD and firmer RSI, the prices are likely to extend the corrective pullback beyond the 50-DMA level surrounding 1.3450. However, a broad bearish trend established since June remains intact until the quote crosses a six-month-old resistance line near 1.3645. Before that, 100-DMA close to 1.3570 will act as an additional upside filter.
On the flip side, the aforementioned monthly horizontal line, around 1.3370, restricts pullback moves. Should the cable pair drops below 1.3370, the 1.3270 level and the 1.3200 threshold will act as extra supports to watch before the quote challenges the yearly low of 1.3160. In a case where GBPUSD prices drop below 1.3160, the odds of witnessing an extended fall towards the 1.3000 psychological magnet can’t be ruled out.
Strategy : Buy in Dips using Support Zone & EMAIEX is an Indian Company in Power Sector.
Recently after forming a Bearish Bat, Share price fell by almost 20% from 303 to 235
The RSI of the company also reached 30 level - Key level for bounce back
After taking support at its previous low that is the W pattern low 1 at 236- 232 zone ( purple rectangle in chart ),
The share has shown a healthy bounce led by the Bullish Kicker and is trading at 254 now.
If it follows the trend of bouncing from EMA 100, one can look for targets at previous Highs of 300 and 317
In a rising market, EMA is a good tool to catch the Dip if price shows a healthy initial bounce.
Stop loss at 230 that is previous low will warrant a reward risk ratio of 5:2
The share fundamentals are strong and has a PEG Ratio of 1.8.
PEG ratio above 1 is generally considered good.
The EPS of the company has been on a rising trend and can be a good long term pick as well.
Thanks for reading!
I am pretty much self taught in Harmonics, so in case I missed something, let me know in the comments.
Note : This is purely for Educational purposes and not to be considered as an Investment Advice.
PART 4 : Risk ManagementThe majority of short-term trading results are just random. In the long term the money ends up with those that can trade and manage risk.
Why Risk Management is Important?
People who don’t follow Risk Management they can blowout their account easily.
For instance, they are taking 20 % risk of trading capital, then only 5 wrong trade can blow their account.
The 1 % Rule
Let’s say you have 10,000 rs in your account and as per 1% rule you can lose only 100 rs per trade.
For example, if you take 10 trade with 1:2 Risk Reward ratio and having winning percentage of 50 % then your P&L will be look like this.
1st trade: +200
2nd trade: +200
3rd trade: -100
4th trade: +200
5th trade: +200
6th trade: +200
7th trade: -100
8th trade: -100
9th trade: -100
10th trade: -100
Total P&L: +500
At the end of the day, you will take money in your account with proper risk reward ratio and money management.
Position Size Calculation:
Let’s say you want to long Reliance and having Stop Loss of 5rs with trading capital is 10,000 rs. So, Formula is
Position Size = (1% of Trading Capital) / (Stop Loss)
For our trade example, Position Size is = 100/5 = 20 Qty
Hence, we required 20 Qty to trade Reliance with 100 rs as a stop loss.
To conclude this post, trader should have (Min Loss, Max Profit, Breakeven). Whereas, Max Loss should be avoided to remain in trading career for long term.
Please check my Fibo Trading Strategy post to know more about Stop loss, I will link with this post.
TRENDLINES & S/R ZONES WORKS VERY WELL (EDUCATIONAL)Hello Friends,
Trendlines are one of the best part of technical analysis, see how resistances turns into supports, and supports turns into resistances.
One can start with practicing with Trendlines...!
1) Trendline is the base for all the technical patterns. So pls start practicing drawing trendline charts and then slowly move to next patterns.
2) Practice only few patterns and master in it rather than trying to learn all the patterns and techniques.
3) I would like to mention the quote of Bruce Lee here.
"I fear not the man who has practiced 10,000 kicks once, but I fear the man who has practiced one kick 10,000 times".
4) Do more and more practice on charts, more time you spend on charts, more friendship they made with you, you'll be able to understand the language of charts, because chart says everything...!
5)Best learning comes out of practice you do everyday and then you apply it in real market.
6) Books knowledge will not be use full, if you don't practice it particularly in real market, because it involves lots of emotions.
7) Spend at least one hour per day in identifying chart patterns and preparing your own charts.
8) Track your charts, Understand how the price moves once the support or resistance is broken.
9) Understand which method gives you better success rate and focus on it more to improve further.
10) Believe me, Nobody can stop you.
some examples are shared below
nifty spot chart example
gold chart example
silver chart example
techm chart example
A-Z About HEIKEN ASHI CandlesticksHEIKEN ASHI Strategy:
1.INTRODUCTION (WHY HEIKEN ASHI CANDESTICKS)
Often trading on the trend gets difficult due to price action that makes trader exit trades early. (USELESS NOISE FORMED BY TRADITIONAL CANDLES)
This mainly happens due to impact of one single candle or bar on Trader’s ability to hold positions.
Through Heiken Ashi Candles , this problem is largely solved as Price Trend is clearly represented through these.
LOOK at the difference between TRADITIONAL and HEIKEN-ASHI Candlesticks below:
A) TRADITIONAL candlestick with a lot of noise during uptrend and downtrend which confuses most of the traders and forces them to exit early
B) HEIKEN-ASHI with a smooth buttery experience while trading:
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2.TYPES OF CANDLES
Let us now come to the types of Heiken Ashi candles.
In this chart, I have done 5 markings to explain the various types of candles in Heiken Ashi.
a)The wide range yellow/green candles indicates good momentum and shows the stock shall be bullish for some more days unless and until there are signs of reversals
b)The small body green/yellow candles represents the continuation of the trend although they show that the stock is not very bullish but is bullish
c)SPINNING TOP- is formed when the body of the candle is very small (NOT A DOJI) and there is wick equal on both upper and lower side.
d)The wide range red candles shows weakness in the stock
e)INDECISIVE Candles- are formed when it is neither of the above candles (small body and irregular size wicks on up and down side)
Always remember, size of body, shadows, and range of candle determines whether it Is bullish, bearish or neutral candle
Do read futhur to understand
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3) KEY RULES to follow
There are broadly 5 rules that need to be followed when trading with Heiken Ashi Candles.
DO HAVE A LOOK AT THE CANDLES SIMULTANEOUSLY
Rule 1 – Green candles with no lower shadows indicate a strong uptrend: When you spot these on charts, be in the trade and don’t think about profit booking. You might want to add to your long position and exit short positions.
Rule 2 – Candles with a small body with upper and lower shadows indicate trend change: These are indecision candles and require more confirmation.
Rule 3 – Red/Black candles with no upper shadow indicates strong a downtrend: When you spot these on charts, be in the trade and don’t think about profit booking. You might want to add to your short position and exit long positions
Rule 4 – Candles with long lower shadows represent Buying interest. Always take note of these candles and assess price action after you spot these candles.
Rule 5 – Candles with long upper shadows represent selling interest and be cautious with existing long positions if you spot such Candles.
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4) INITIATION AND CONTINUATION:
You just need to know 2 types in trend analysis
1.INITIATION CANDLE
2.CONTUATION CANDLES
1.Initiation candle is one that sets the tone of Trend and defines underlying momentum for price. This is why Initiation candles are most important in Trend Analysis and Price action trading.
2.Continuation candles are ones that reaffirm the direction of trend and are useful to increase positions in the direction of trend.
FREE TIP:
When you begin price trend analysis, always look for initiation Heiken Ashi candles and then look for continuation candles.
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5) IDENTIFYING STRONG TRENDS:
In the chart below, let us see how a strong Up/Down trend looks like.
In Heiken Ashi, we should be measuring strength of move based on Initiation Candles (Candles that represent strong trend).
If you look at the chart, all markings that I have done are that of Strong Initiation candles on the downside and upside (BUY/SELL)
When such candles are visible on the chart, invariably Price tends to move up/low. Always keep range of Candle in mind.
It should be wide with no upper/lower shadows for uptrend and downtrend respectively.
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6) COMMON MISTAKES
Most Common mistake when using Heiken Ashi Candles is to Enter or Exit Trades based on the color of Candle. Most beginners commit this mistake and this should be avoided at all times. Whether it is Heiken Ashi Candles or any other charting method, you need to understand the overall Market Trend and Context. Without this, you will find it difficult to Trade successfully over a longer period of time.(PRICE ACTION IS THE KING) This is just an additional filter like an indicator and should not be treated as the only parameter in your strategy...If trading was so easy then 90% wouldn't have lost their money in trading...Trading is like cooking you need to add the right ingredients in the right amount to taste a dish good.A pinch of salt less can ruin the entire hardword behind making the dish...Similar is trading...Will make a tutorial on risk management as well...Do let me know if you are interested only then it would be wise for me to proceed ahead.
One of the main things you have to do is to analyze which candles contribute to Trend and which do not. This effective way of filtering out relevant candles from non relevant one’s is what will help you succeed with Heiken Ashi Candles.
FREE TIP:(SAVES TIME DO READ)
Always divide your Candles into two types;
1.Candles that have impact on Trend
2.Candles that have no impact
This way, you will know which one’s to be focussed upon.
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7)DISADVANTAGES:
EVERY + HAS A - ELSE EVERY TRADER WOULD HAVE USED THIS STRATEGY TO MAKE TONS OF MONEY EVERYDAY
The one main disadvantage that most traders refer to is that by the time Traders take positions based on Heiken Ashi Candles, the entire move is already over. While there is some merit to this, it is important to note that this mainly applies to short time frame charts. On higher time frame charts (30 Min to Monthly time frame), Heiken Ashi has tremendous benefits and Traders should try and incorporate these in their Trading arsenal.
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I hope this tutorial as helpful for you to understand some basics of HEIKEN-ASHI candlesticks...There are many other types of candlesticks which have their own importance like RENKO and PnF candlesticks...Do let me know in the comments whether I should make posts on STOCKs that I Trade/EDUCATIONAL posts like this
FOLLOW me for many more such content ahead...DO hit the like button...Till then,
HAPPY TRADING :)
Bullish market structure - Illustrations + ChartsRecap
Market structure is simple and a basic form of understanding, how the markets move. The Price Action is how the market moves based just on price, without the consideration of trends and how they may continue. But the market structure is focused mainly on the trend. The market structure is formed using swing highs and swing lows. You may have already heard about the formation of higher highs and higher lows in a bullish trend or the formation of lower highs and lower lows in a bearish trend. This is what is called as market structure.
What is a Bullish market structure?
Like I said above, a bullish market structure is a structure that constitutes of formation of a series of higher highs and higher lows. In simple words, when the price is making new highs and higher lows, it is said to be forming a bullish market structure.
Exhibit: Bullish market structure
What is the use of identifying a Bullish market structure?
Identifying any market structure plays a crucial role in entry and exit. In the case of a bullish market structure, the previous highs are often seen as support zones where an entry can be made with an expectation of higher price movement. When the price returns to or near the previous high, it is often seen as a buying opportunity, commonly known as buying the dip”.
Exhibit: Pullback in a bullish market structure
Similarly, as soon as the price breaks the previous low and creates a new low, the trader must become cautious because a trend change may be underway or it may just consolidate before resuming the original trend or it may very well be a bear trap. If a trend change is confirmed, the trader may exit longs and look for the trades on the short sides.
So, after the formation of a new low, there are only 3 scenarios that can arise.
1. Trend reversal
2. Consolidation and continuation
3. Bear trap
Exhibit 1: Creation of a new low
Exhibit 2: Trend reversal
Exhibit 3: Consolidation and Continuation
Exhibit 4: Bear Trap
These are the only structure that can form in a bullish trend and they will occur time and again. Hence, all these concepts are valid on all time frames.
This is all you need to know about a bullish market structure. Now, open any random chart and back test the concepts. The more you practice, the better you will become. Whatever strategy you use, understanding the structure will always make you more confident in your trades.
I spend a lot of time creating these educational posts, illustrations, charts, and PDFs. Please be appreciative of that and leave a like and comment if you found these helpful. It will help me to know that people are reading these posts. Also, if anyone is interested in getting a PDF version of this thread, then you can check the links under this post.
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)
SUPPORT AND RESISTANCE WORKS VERY WELL - EDUCATIONAL PURPOSEOnly for Educational purpose.
This stock TCS is right now in good area where buying could be initiated, we have noticed that the price is right now at lower point of parallel channel in daily time frame, where demand zone is also co-incidentally matches and 200DEMA is also at same level of that area zone, but its not confirmed yet to go long, if any type of bullish candle pattern is seen in lower time frame like 30 minutes or in hourly then it could be an opportunity to go long after checking all parameters are aligned or not for trade, with stop loss of last swing low, don't jump directly to buy, do your own studies these types of scenarios on regular basis, check how they works check the probabilities of price directions or price actions. as per previous price action targets are mentioned and stop loss is also mentioned.
Thanks.
Support and resistance view
Parallel channel view along with 200 dema
Morning star candle pattern
Stop loss and targets are mentioned in chart
Disclaimer.
I am not a 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 type of your profit s and losses
Quess Corp moving in Narrow RangeQuess Corp is moving in narrow range.
After drop in volume. Volumes are picking up week on week basis.
Price is sideways in 980 & 840 Range.
Basically Stock is in contraction phase, which will be followed by expansion phase in which breakouts occur.
Drop in volume is a sign of big move. As the buyer n seller fight has settled & the price will move in the direction in which the price & volumes goes.
Since the price is sideways there are other signals of a up-move
Breakout of a Major Resistence/Neckline
Healthy higher high & higher low structure
Combining the volume & price movement. A breakout on upside is highly probable.
On a weekly basis Keep SL at 775
Double Bollinger Band Strategy :Double Bolliger band Strategy :
Tried to put in best easy way in the chart and simple explanation below :
What we need :
Two Bollinger Bands
1. Length 20 and StdDev 1
2. Length 20 and StdDev 3
Confirmation with indicators should be in same trend with candle stick trend
1. RSI (For trend identification)
2. Stoch (Entry and Exit confirmations / Overbought and Oversold confirmations)
Risk Reward Ratio : 1:2 or 1:1.5 or as per your risk appetite, above ones shown with 1: 2 RR
Rules of the game :
When ever candle stick crosses above/below BB with StdDev 1, that’s the entry. Any candle after this should be used as entry point above the earlier candle which crossed BB with StdDev 1, stop loss should be the candle stick (candle stick which crossed) high or low (sell/buy respectively) or middle line of Bollinger band which ever are nearer. Take profit is 1 : 2 or as per the risk appetite.
Avoid when :
• Long wicks or long candles which crossed the BB with StdDev 1
• If the candle stick trend is not matching with RSI/Stoch (all should be in following same trend path)
• If we don’t get entry within 2 candle sticks after the candle stick which crossed above/below BB with Std Dev 1
Stop Loss : Stop loss is the key here, please do not enter unless you understand how to calculate stop loss. Calculate Stop loss first before entry and it should be minimal say not beyond 40 points in Nifty as an example / acceptable loss in above example chart.
Result : Out of 7 entries 1 hit SL while 6 won. 7 wins with 80 points each vs 1 SL with 40 points make to 520 points gain overall.
Please do let me know if you have any questions would be happy to respond.
Please do like and share this idea. Thanks
Disclaimer : This analysis/strategy is only for educational purpose and not be considered as any trading idea/tip. Please consult your financial advisor before you take any trade and we are no way responsible for your profits/losses. Thank you!
SEPARATING LINES PATTERNSeparating Lines
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Its a rare 2 candlestick pattern. Basically a continuation pattern but sometimes can also be seen at the end of a pullback.
In an uptrend, you will observe a strong bearish day with poor closing but next day the stock opens at the open of the prior bearish day. Thus it negates all the bearishness of the previous day and forces bears to cover their positions. A strong closing completes the pattern. Yes, a strong close on the second day, near the highs, is important.
The opposite is true in case of a downtrend.
Some variations relating to the second day are possible:
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It may open above the open of prior day, hence more bullish. It may open slightly below the previous day open, but still qualifies for the pattern if confirmed by the closing.
A low risk entry technique:
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On the second day, the stock will have a strong rally at the market open, suggesting bulls are back. Then the stock gyrates till the later half of the day before shooting up again. The afternoon consolidation may provide ample opportunities to enter at lower risk for a swing trade.
I just hope that this information would be useful to you.
Do like, comment and share to encourage further writing.
Regards
JJSingh
IDFCWait And Watch ??
Look for Low risk, High reward, and High Probability setups-
Things to Remember while Trading with the Trend
1. Know what the trend is.
2. The best trades are made in the direction of the trend.
3. Assume that the main trendline or moving average will hold.
4. The longer the moving average is, the better it defines the trend.
5. Wait for the pullback.
6. Don’t chase the market.
7. Don’t fight the market.
8. Even in the strongest trends there should be some retracement.
9. The closer the market is to the trendline, the better the risk/reward ratio is.
10. Use ADX to determine the strength of the trend.
11. Higher the level of ADX , the stronger the trend, below 20 consider the market to be choppy
12. Hold trades longer in a strong trend.
13. Wait for confirmation of a trendline breaking before reversing position.
14. Know where the Support levels are.
15. Place stops outside the Support levels.
Thank You..
Breakout - Shriram Transport FinanceHello All,
I have brought in another good set up.
SRTF has broken it's consolidation range. Prior to the breakout day the volumes were building up and the breakout candle has witnessed the largest volume in the last few months which is a good sign.
Now how to trade it:
First of all do not let FOMO overpower you to take a trade in haste. Observe the price for a few days(analyse it as per your setup), as per candle formed on the breakout day there is some rejection seen at higher price (the upper wick is big), it calls for just a caution sign that we need to observe the price action. The stock may come for a retest and I guess that would be an apt entry.
All said, just analyse the setup first, see how price behaves. Do not agree to me forcefully or just because I have posted an analysis. Take your own call and that would generate a lot of confidence in you.
Let's make money together! Happy Trading :)
PNB: Weekly Breakout with volumeIdea is self explanatory... In weekly chart stock is giving breakout with good amount of volume. I have provided SL along with 3 targets. Keep in mind book partial profit with every target and 3rd target may take time with few consolidations.
Note: I'm new to technical analysis, do your own maths. I'm open to new ideas and flaws in my analysis, so please do comment and collaborate.
Disclaimer: This is for demonstration and educational purpose only. This is not buying or selling recommendations. I am not SEBI registered. Please consult your financial adviser before taking any trade.
