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Basic patterns of Elliott Wave Theory ExplainedTHE INTRODUCTION As you all know the waves always moves in zig zag fashion, either it moves up or it moves down, but the pattern always remains same i.e. Zig zag. So, the most important question is, with which method one can define the trend or some meaningful pattern, which can help anyone to plan his trade & other opportunities. There are multiple technical indicators available which can help to identify the patterns. However, the method which I use is The great Elliott Wave Theory. In this post I would like to summarize all of the basic Elliott Wave patterns. Here, in the Elliott Wave world, waves are always of two types. 1- Impulsive 2- Corrective CYCLE Whenever one impulse and corrective waves get combined one cycle is formed. Here, I have drawn the graphical representation of same. IMPULSIVE WAVES A Impulse is the combination of five wave structure, where all five waves are termed as: wave: 1,2,3,4 & 5 SUB STRUCTURE: Here, wave 1, 3 & 5 always sub divides into five smaller waves (*) (•)Waves 1 & 5 sometimes also gets converted into leading diagonal & ending diagonal. And, waves 2 & 4 always gets completed into a combination of three wave s structure. (structures could be simple or complex) (A separate topic) (also called as the corrective waves) CORRECTIVE WAVES ZIG ZAG Zig Zags are the pattern having the combination of three waves. (Wave a, b & c) Where, Wave A, subdivides into five waves , Wave B, sub divides into three waves and, Wave C, sub divides into five waves Here, I have drawn graphical representation of same. FLAT FLATS are the pattern having the combination of three waves. (Wave a, b & c) Where, Wave A, subdivides into three waves Wave B, sub divides into three waves And, Wave C, sub divides into five waves Here, I have drawn graphical representation of same. TRIANGLES A Triangle is the side ways price moves, bounded by converging trend lines. Internal wave in a triangle sub divides into 5 sub waves, named as A,B,C,D & E which further sub divides into 3 sub waves. Triangle often called as the terminating waves patterns, as it always terminates the big wave structure. LEADING DIAGONAL It consists of five sub-waves, labeled 1-2-3-4-5, Here, waves 1 & 4 always overlaps (exception) & Here, wave 1,3,5 sub divides into 5 sub waves & waves 2,4 sub divides into 3 sub waves. ENDING DIAGONAL It also, consists of five sub-waves, labeled 1-2-3-4-5, Here, waves 1 & 4 always overlaps (exception) & Here, wave 1,2,3,4,5 sub divides into 3 sub waves The patterns explained above are some of the basic patterns of " The Elliott Wave Theory" In future I would to cover separate topic in great detail.. Stay Tuned....
Education
by ShubhamKatiyar
3
Important types of chartsHey everyone! In this post, we are going to talk about different types of charts that are used in technical analysis. 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! Charts are used to illustrate change in prices over different time frames. It’s a graphical method of showing the historical price information. Charts are two-dimensional and have an x-axis (horizontal) and a y-axis (vertical). The x-axis generally represents time whereas the y-axis indicates the price. 👉 Line chart • “Line charts” are formed by connecting the closing prices of a specific stock over a given period of time. • It is particularly useful for providing a clear visualisation of the underlying trend. • It only considers the “closing value” of the stock and ignores the open, high, and low values. • Since it only uses the closing prices, hence it less noisy as compared to candlestick or bar charts. 👉 Bar chart • A bar shows the high price for the period at the top and the lowest price at the bottom of the bar. • Each bar displays the open, high, low, and close prices (OHLC). • Small lines on either side of the vertical bar serve to mark the opening and closing prices. • The opening price is marked by a small tick to the left of the bar; the closing price is shown by a similar tick to the right of the bar. 👉 Candlestick chart • A candlestick chart provide visual insight to current market psychology. • It displays the open, high, low, and closing prices (OHLC). • The rectangular section of the candles is called the real body, which is the range between the session’s open and close. • Bearish candle- When the close of the session is lower than the open. • Bullish candle- When the close of the session is higher than the open. • The thin lines on each side of the candle are called the wicks/shadows and they represent the session’s price extremes. 👉 Heikin Ashi chart • Heikin Ashi uses a modified formula of close-open-high-low (COHL). • Normal candlesticks keep changing colour depending on the OHLC even if the price is moving heavily in one direction. But the Heikin Ashi candles stay predominantly mono-coloured during trends. • Candles with no lower "shadows" indicate a strong uptrend. • Candles with no upper "shadows" indicate a strong downtrend. • Candles with a small body surrounded by upper and lower shadows indicate a trend change. 👉 Renko chart • A new brick is created when the price moves a specified price amount. The brick only forms on the chart once the price has moved the set amount. • A brick can be of any size (called the box size). Box size can be set manually or it can be calculated using the Average True Range (ATR). • There is a time axis on Renko charts, however, the time scale is flexible. This means that the bricks are not formed at an equal pace. • Renko charts typically only use closing prices and mitigate the noise to a higher extent, making trend identification easier. 👉 Kagi chart • When the price of the asset rises above the previous high price, a thick line is formed, signalling an increase in the demand. • When the price drops below the previous low, a thin line is formed to indicate an increased supply. • When there is a price reversal of a certain threshold amount, the chart starts to reverse the direction. • Swing highs are called shoulders and the swing lows are called waists. • Rising shoulders = Bullish. Falling waists = Bearish 👉 Point and Figure chart • A P&F chart is used to visualize price movements and trends without any dependence on time. • It makes use of columns made up of stacked Xs or Os, where each one stands for a specific amount of price change. • In general, X illustrates rising price, while O represents a falling price (Some people use the reverse too). • Point and Figures also emphasize on the closing prices only. Thanks for reading! Hope this was helpful! See you all next week. 🙂 – Team TradingView Feel free to check us out on Twitter , Instagram , and YouTube for more awesome content! 💘
NSE:LTFEducation
by TradingView
10
Elliott Wave PatternsTried to capture Elliott Wave Theory Patterns:- Elliott Wave Theory is named after Ralph Nelson Elliott (28 July 1871 – 15 January 1948). 3 Cardinal Rules of the Elliott Wave Theory Rule Number #1: Wave 3 can NEVER be the shortest impulse wave Rule Number #2: Wave 2 can NEVER go beyond the start of Wave 1 Rule Number #3: Wave 4 can NEVER cross in the same price area as Wave 1 Wave 2 will develop into a zigzag, flat, or combination. Wave 2 cannot be a triangle in its entirety Wave 4 will develop into a zigzag, flat, combination, or Triangle. On rare occasions, Wave 5 will not move beyond the pivot of wave 3. This is known as Truncation Ratios:- Ratios for Wave 2 Fibonacci Rule for Wave 2: Wave 2 is always related to Wave 1. Common Ratios for Wave 2: Wave 2 = either 50% of Wave 1 or 62% of Wave 1 Ratios for Wave 3 Wave 3 is related to Wave 1 by one of the following: Wave 3 = either 1.62 x length of Wave 1 or 2.62 x length of Wave 1 or 4.25 x length of Wave 1 The most common multiples are 1.62 and 2.62. However, if the 3rd Wave is an extended wave, then 2.62 and 4.25 ratios are more common. Ratios for Wave 4 Wave 4 is related to Wave 3 by one of the following: Wave 4 = either 24% of Wave 3 or 38% of Wave 3 or 50% of Wave 3 The 24% and 38% are the most common ratios for Wave 4 Ratios for Wave 5 Wave 5 has two different relationships. Both are shown below. If Wave 3 is greater than 1.62 or extended, then Wave 5 ratios are as follows: Wave 5 either = Wave 1 or = 1.62 x Wave 1 or = 2.62 x Wave 1 Wave 5 Extended if Wave 3 is less than 1.62 X Wave One 5 = .62 X Length of 0 to 3 5 = 1 X Length of 0 to 3 5 = 1.62 X Length of 0 to 3 If Wave 3 is less than 1.62, Wave 5 ratios are as follows: When Wave 3 is less than 1.62, the 5th Wave overextends itself. From research, the ratio of Wave 5 will be based on the entire length from the beginning of Wave 1 to the top of Wave 3. Extended Wave 5 = either 0.62 x length (beginning of Wave 1 to top of Wave 3) or = length of (beginning of Wave 1 to top of Wave 3) or = 1.62 x length of (beginning of Wave 1 to top of Wave 3) Regards, SG
NSEIX:NIFTY1!Education
by subhagghosh
29
Types of participants in the derivatives marketHey everyone! Last week we talked about the basics of derivatives and what all different derivative instruments are available in the markets. In this post, we will talk about the types of people who use derivatives and why they exist. There are broadly three types of participants in the derivatives market: → Hedgers → Traders (also called speculators) → Arbitrageurs. An individual may play different roles at different times. Hedgers → They employ derivatives to mitigate the risk they suffer from fluctuations in the pricing of the underlying assets. → Institutions such as investment banks, central banks, hedge funds, etc. all use derivatives to hedge or reduce their exposures to market variables such as currency exchange rates, interest rates, equity values, bond prices, and commodity prices. Speculators/Traders → The speculators are primary participants in the futures market. → They try to predict the future movements in prices of underlying assets and position themselves accordingly. → Speculators can be individual traders, proprietary trading firms, hedge funds, or market makers. Arbitrageurs → Arbitrage is a deal that produces profit by exploiting a price difference in a product in two different markets. → Arbitrage occurs when a trader executes a simultaneous purchase and sale of the same asset in different markets in order to gain from tiny price differences between them. → The arbitrage trade is often short lives because the arbitrageurs would rush in executing these transactions, thereby closing the price gap at different locations. Thanks for reading! Hope this was helpful. See you all next week. 🙂 – Team TradingView Feel free to check us out on Twitter , Instagram , and YouTube for more awesome content! 💘
NSE:ADANIPOWEREducation
by TradingView
1
One chart, different trading systems!Hi all, hope you guys are doing well. We retailers spend a lot of time in searching for that "holy grail" in trading. The majority of the time our search is centered around different strategies. However, in my opinion, "Strategy is overvalued whereas risk management is undervalued" . A chart can be analyzed in different ways by different traders. A trader using patterns will analyze the same chart with a different perspective as opposed to a trader using pure support-resistance levels or a trader using indicators such as moving averages. The aim of this post is just to make you understand that you shouldn't run after different systems. Rather, focus on managing the risk. Exhibit 1: The Cup and Handle system Exhibit 2: The Support-Resistance system Exhibit 3: The Triangle pattern system Exhibit 3: The Moving averages system Thanks for reading. I hope you found this helpful! 😊 Disclaimer : This is NOT investment advice. This post is meant for learning purposes only. Invest your capital at your own risk. Happy learning. Cheers! Rajat Kumar Singh (@johntradingwick) Community Manager (India), TradingView
NSE:SOLARINDSEducation
by johntradingwick
32
ABC Pattern- Optimal Entry TechniquesHi, This idea is about the very promising ABC pattern and the most optimal ways to enter into this pattern. ✅ABC Pattern This is considered as a continuation pattern. There has to be a strong trend up/down in the background. Wave A: Minor correction against larger trend, usually not more than 5-10% Wave B: Another attempt to push the price higher but could not break the previous highs Wave C: breaks the low A but has less momentum than wave A. Weak stops are taken below A I am presenting four techniques of entering into this pattern, in the anticipation of a continuation of the prevailing trend. The techniques used, however, depend upon the traders' appetite and temperament. Let's start.. ✅Minimum Risk Entry >The entry point is near the low C >C should have less momentum than A >Price barely breaks the low A >There are wicks at the low of Candles at C >Stop is placed under the low of C, so less risk more reward potential ✅Confirmed Entry >Entry is at the break of swing high B >The price makes a higher-high so structural change is confirmed >The break often comes with good volumes & strong closing candles >SL under C is wider than 1 in this case >This technique is used when, in wave C, there are few weak candle closings below A ✅Trendline Entry >Entry is at the break of TL >The break often comes with good volumes & strong closing candles >SL is wider than 1 but lesser than 2. So less riskier >This technique is used when, in wave C, there are few weak candle closings below A ✅ABC-W Entry >A unique entry technique >The price breaks deeply below B and then retests at W >At this point it seems that price will continue down but >The price could not hold down and again breaks out of W, giving us a breakdown failure entry >You would see a usually sharper continuations as many traders, who entered short positions, would start exiting in a hurry Stop loss in all the cases is placed under the low of wave C and trailed as per traders' time horizon. These are relatively small corrective patterns so you can expect sharp continuations and take targets measured equal to the strong impulsive move in the background. I hope it was useful. Thanks for reading. @Bravetotrade
NSE:NIFTYEducation
by Bravetotrade
36
Basics of DerivativesEver wonder what derivatives are? Check out this handy guide! 😉 A derivative is a contract or a product whose value is derived from the value of some other asset known as underlying. A variety of underlying assets serve as the foundation for derivatives. These include: → Financial assets such as Shares, Bonds, and Foreign Exchange. → Metals such as Copper, Zinc, Gold, Silver, etc. → Energy resources such as Crude oil, Natural Gas, etc. → Agricultural products such as Wheat, Cotton, Sugar, Coffee, etc. Cotton Futures Gold Futures Derivative Instruments Forwards It is a contractual agreement between two parties to buy/sell an underlying asset at a certain future date for a particular price that is pre-decided on the date of the contract. Both the contracting parties are committed and are obliged to honor the transaction irrespective of the price of the underlying asset at the time of delivery. The terms and conditions of the contract are customized to cater to the needs of both parties. These are Over-the-counter (OTC) contracts, meaning they are a deal you make directly with a bank or a dealer. As a result, there is always counterparty risk involved. Futures Futures are standardized contracts similar to a forward contract, except that the deal is made through an organized and regulated exchange rather than being negotiated directly between two parties. The arrangements come with a fixed maturity date along with uniform terms for all the parties involved. In simple language, futures are exchange traded forward contracts. The futures contract has little to no counterparty risk since the exchange is acting as a mediatory. Options An Option is a contract that gives the right, but not an obligation, to buy or sell the underlying on or before a fixed date and at a stated price. While the buyer of the option pays the premium and buys the right, the writer/seller of the option receives the premium with the obligation to sell/ buy the underlying asset if the buyer exercises his right. There are two types of options: → American → European American options can be exercised at any time prior to their expiration while the European options can only be exercised on the expiration date. In India, European options are used. Swaps A swap is an agreement made between two parties to exchange cash flows in the future according to a prearranged formula. A random variable (such as an interest rate, foreign exchange rate, commodity price, etc.) is used to determine at least one of these series of cash flows at the moment the contract is initiated. Swaps are, broadly speaking, a series of forward contracts. They help the participants manage risk associated with volatile interest rates, currency exchange rates, and commodity prices. Thanks for reading! Next week we’ll talk about the types of people who use derivatives and why they exist. Stay tuned! See you all next week. 🙂 – Team TradingView Feel free to check us out on Instagram , YouTube , and Telegram for more awesome content! 💘
NASDAQ:TSLAEducation
by TradingView
2
The Cup & Handle patternHey everyone! 👋 Today we are going to share an informative write-up about the “Cup and Handle” pattern along with a few exhibits that may help you solidify your understanding of this chart pattern. 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! The post will shed some light on the following topics: → Basics and identification of the pattern → Components → Important aspects What is a Cup and Handle pattern? • The Cup and Handle is a bullish continuation pattern that resembles a cup with a handle. • The cup is visualized as the alphabet "u" and looks like a rounding bottom pattern. • The handle is formed as a range or a smaller “u”. • The cup marks a consolidation phase whereas the handle has a slight downward move, which marks a retest phase. • The handle is meant to signal a buying opportunity. When this part of the price formation is over, the stock may reverse the course and resume the prior uptrend. Components of a Cup and Handle pattern: The cup and handle chart has 3 main components: • Cup • Handle • Neckline Important aspects: 1. Prior Trend: The cup and handle pattern is a bullish continuation pattern, hence the prior trend should be an uptrend. 2. Cup length : In general, the cups with longer and more "U" shaped bottoms that resemble a rounding bottom, provide a stronger signal. This ensures that the cup is a consolidation pattern with valid support at the bottom of the “U”. The perfect pattern would have equal highs on both sides of the cup, but this is not always the case. In general, cups with sharp "V" bottoms should be avoided because there is almost no consolidation in this case. 3. Cup depth: Normally, the cup should not be overly deep. In practice, the cup depth can be up to 60-70% of the last swing move. (This can vary widely, though.) 4. Handle: The handle can occur in the form of a flag, a pennant, or a rectangular consolidation. This is the final retracement phase before the impulsive move higher. By and large, the handle can retrace anywhere between 40-60% of the depth of the cup. 5. Breakout: Bullish confirmation comes when the pattern breaks above the neckline (made using the prior highs) with a good volume. 6. Volume: In general, the volumes should decrease during the formation of the base of the cup as well as during the formation of the handle. Conversely, the volumes should pick up when the stock begins to make its move higher, back up to test the previous high. 7. Target: Using the measurement objective, the target comes out to be equal to the depth of the cup. It can be measured by calculating the distance between the bottom of the base and the neckline. 8. Stop-loss: Ideally, the stop loss is placed at the lowest point of the handle. But if the price oscillated up and down a number of times within the handle, the stop-loss can also be placed below the most recent swing low. Exhibit: Cup and Handle pattern with a failed breakout 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 Twitter , Instagram , YouTube , and Telegram . 💘
NSE:APARINDSEducation
by TradingView
16
What is moving average?If you have been in the market for some time, you may have heard of an indicator called the “moving average”. Today we are going to take a deeper look at the indicator, along with a few examples of how pros use it. This post will also lay the groundwork for future posts about more advanced moving average topics. 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! The post will shed some light on the following topics: - What is a moving average? - How does moving average work? - Correct usage along with exhibits Introduction A moving average (MA) is a technical indicator that is commonly used to determine the direction of the trend. By continuously recalculating the average based on the most recent price data, a moving average assists in smoothing out the price data. This helps in reducing the impacts of random short-term variations of the price over a given period of time. Working with moving averages - Moving averages are typically calculated to determine the direction of the trend and are sometimes used as dynamic support and resistance levels for a given time period. Exhibit: Moving averages acting as a dynamic support Exhibit: Moving averages acting as a dynamic resistance - Since a moving average is derived using historical prices, it is a lagging indicator. - The lag increases with the length of the moving average. As a result, a 200-period moving average (which includes prices for the previous 200 periods), will lag significantly behind a 100-period MA. - Likewise, a moving average with a shorter period (faster MA) will be more sensitive to price changes as compared to a slower one. Usage - Faster moving averages are typically employed for short-term trading, while slower moving averages are more often utilized for understanding longer-term market dynamics. - Moving averages are applicable to all time frames. Therefore, experimenting and testing several settings over a range of time frames is the best approach to determine which one works for you. - A rising moving average indicates strength, while a falling moving average indicates weakness. Hence, in general, a stock is said to be in an uptrend if its moving average is increasing, whereas in a downtrend if MA is decreasing. - In general, a stock may show bullish momentum if there is a bullish crossover, i.e. when a faster moving average crosses above a slower moving average. - Conversely, bearish momentum may be expected on a bearish crossover, which occurs when a slower-moving average crosses below a faster-moving average. 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 Twitter , Instagram , and YouTube for more awesome content! 💘
NSE:RELIANCEEducation
by TradingView
17
Adding Custom Watchlists in TradingViewHi This is my first video idea on this website and this is about adding watchlists. I have tried to keep things raw and simple so that everybody understands it. There might be some other methods, of course, for this purpose but this is the one that I prefer to use. This method works in India and I have taken reference lists from the NSE India website. Excuse me about the background noise if any. I hope it will be useful for some users.
NSE:NIFTYEducation
by Bravetotrade
35
Options - Best & Worst Trading InstrumentOptions (Index & stock) have been double edged sword. In the hands of experienced traders, it has resulted into multi fold growth of capital but at the same time for beginners or new traders, it has been capital killer. Over the last 5 years, I have had opportunity to speak to hundreds of traders most of which have lost their hard earned money by trading options. Some of them have even gone to extent that they borrowed money from friends or banks to trade and only to lose it all by gambling in options. Lets review some of important factors which has given helped experienced traders earn lakhs or even crore daily from options while most are just losing out their capital. Factors resulting in losses for New Traders. 1. Lack of Technical Knowledge Most of so called traders ignore the importance of Technical Analysis and directly jump into option trading. Most are either following news or tips from various platform with zero understanding of when to trade, when to book profit & most of all when to book loss. Its like jumping into water without knowing how to swim. Technical Analysis understanding is very important as it will give an edge to trader and help them analyze key factors related to entry, stop loss & target. Even though their is no 100% success formula in trading but having correct knowledge can increase your success chances from 50% to 70-80%. 2. Random Trading Random or boredom trading is also another factor for failure of most option traders. Market gives us 1-2 good trading opportunity but many of us are part time traders who want to earn from market based on our availability and do not wish to wait for right opportunity given by market. Some will start the day with proper plan and only to get bored after couple of hours and then they will start trading randomly. 3. No Risk Management The most key aspect for a good trader is risk management. But all new option traders will initiate trade first and then think about SL/Target. They have no knowledge about position sizing and will risk all the capital on a hero or zero trade on weekly expiry. Most of new traders will keep their losing trades with the hope of recovery while book small profits due to fear of losing. 4. Use of High Leverage Unfortunately their are new trading platforms which float rules set by SEBI and provide High Leverage to attract new clients. People with small capital of 10-20K can buy 2-5 lots on an index option which can erode their capital in just 1-2 trades. Leverage trading can accelerate your losses 5-10 times which is another blunder for new traders. 5. Social Media Influence Nowadays we regularly see people making lakhs or crores of profits on daily basis and all social media platforms are full of such screenshots. Many of them may be great traders who are actually making money and others may have just put a doctored screenshot but this influence/attract new traders to directly jump into Option trading with the hope that they will also replicate this success. New Option traders completely ignore the hard work, analysis & planned work done by most successful traders and they only focus on money aspect which is main reason for their downfall. 6. Get Rich Quick Mentality Every one of us want to earn money and have luxurious life. But most of us forget about hard work & practice which is required to reach their. Everyone is now directly jumping into Option trading with mindset to double or triple their capital in a short span without even putting a month of effort. When I have discussed expected monthly returns by most new Option traders, most common answer is 30-40% return on the capital in a month which translate into 350-500% return in a year. When we get 5-6% return in a year from fixed deposits, people are not happy with 5-7% return per month from trading. Experienced Traders on other hand have following attributes which makes them winner. 1. Technical Expertise All pro traders have a setup, strategy or proper knowledge of Technical Analysis which they have practiced over and over again for many years. It is not about having hundred strategies but have 2-3 strategies which you have practiced countless times in Live Market. 2. Trading Plan All good traders have a plan w.r.t. maximum number of trades in a day/week/month. Maximum loss or profit their are willing to take before they close the system. They have understood that it is important to stick to a plan for long term success in trading. 3. Only Trade Right Opportunities Patience is the key in trading and experienced traders knows this well. They wait for stock/index to come to their defined levels & form right setup before they initiate the trade. They are like sniper who patiently wait till all the factors are right to take the shot. 4. Focus on Risk Management Risk management is by far most crucial aspect of trading. Importance of Risk Management is only understood by those who have been in market for some time. Although most think that it is the winning strategy of setup which will earn your money but only few focus on psychology building which include not taking revenge trade, do proper position sizing so that you are not under influence of fear or greed. In the end, I only want to pass the message that Option trading is the last instrument which a new trader should jump into. Anyone starting trading should start with Equity as it has less volatility compared to Options and person can try their strategies for smaller risks. Do you resonate with any of the factors above? Share your inputs on how you have grown to be a successful Option Trader. Thanks Piyush Gupta Learn & Earn
NSE:NIFTYEducation
by study-learning-on-Price-Action
51
How to add alerts on TradingView?Hey everyone! 👋 Alerts are a key trading tool that every trader should know how to use. Check out this quick guide for more information and some secret tips! What are alerts? TradingView alerts are immediate notifications you can set for yourself when the market meets the custom criteria you create. For example, "Alert me if Nifty crosses above 16000". All users can get visual popups, audio signals, email alerts, email-to-SMS alerts, and also PUSH notifications that are sent to their phones. Pro, Pro+, and Premium users can also receive webhook notifications when an alert is triggered. You can also create alerts on prices, indicators, strategies, and/or drawing tools. There are 2 ways to create alerts: 1. Using the Right-click 2. Using the vertical scale Method 1: This is a pretty straightforward way. Go to the price level at which you want to add the alert, then right-click and select "Add alert". Voila! You are done. Method 2: The second way to add alerts is by using the vertical scale (Price scale). If you hover over the vertical scale, you will see a “+” sign. On clicking this sign, you will be greeted with the “Add alert” option. Just click on it and the alert will be set at the selected price level. You can also customise your alerts by using alert settings. Indicator Alerts You can also set indicator-based alerts with predefined conditions like "crossing up/down", "greater/lesser than", and "entering/exiting channel". You can also create your custom trigger settings by using the alertcondition and alert functions. Tip : The alerts can be accessed using the “Alerts” tab which is the second option from the top, on the right toolbar. Thanks for reading! Hope this was helpful! See you all next week. 🙂 – Team TradingView Feel free to check us out on Twitter and Instagram for more awesome content! 💘
AEducation
by TradingView
12
Why It Is Hard To Hold A Winning Position. ?Why It is hard to Hold a winning position. ? ---------------------------------------- Suppose You took a trade ,bought 100 quantity at price 100 , with a SL : 80, and Potential target of 120, Now what happens it goes up to 105 (you think your analysis is good let us wait) Then it come back to 100 went further down till 90 (you thinks it is ok we have to give it room) Then it went up above your buying level till 115 (now your target is 120 you are just 5 points away, what will come into your mind?) Then suddenly sharp selling starts and you got your SL triggered. More or less the PnL whipsaw, take you to the moon and within seconds, it drop you down. The PnL whipsaw creates dynamic changing emotions into your mind. Am I correct or not till now, feel free to comment. ? --------------------------------------------- Let us more about some pre-set emotions which comes out and affect our decision making with open position. 1) Fear of Losing the open position’s profit : See everybody want to win nobody want to see himself of herself as a Loser in the mirror , when you take a trade you always think that it is going to give you profit (subconsciously), with such a biased mind the open position PnL affect your decision making. You get so much attached with the running profit that you start thinking like that it the profit you have already booked and feeling that it is your released profit, now you are “not willing to let it go” because you now attached to it emotionally (psychologically). This type of fear arises from our belief system and past experience developed over previous trades. The social culture, family atmosphere also can be the reasons. “If You think you are a risk taker than you must thanks God , because everybody do not have such brave heart.” Advice: “Let it go”, the open position’s PnL, is not yours, it is the released one that counts. Believe in your system and let the target hit or trailing SL get triggered (SL according to your strategy). 2) Past Experience (Fear intensifies when have a very bad experience earlier) Students approaching me for learning trading psychology ask me why you ask us about our past experience and track sheet, they do not want to recall, but their past experience and the track record tells their complete story , it tells everything what is the problem with their trading , what need to correct immediately what are the strong weak part of their psychology. But why: Because past experience shapes our psychology. If you have witnessed a series of trade where your target is missed by few ticks and you have to book SL. Then you start thinking about your exit style, you think is there any improvement needed. At this point of time you again shift from this strategy to that strategy. If you are trading from a while then you can understand the gains we make are not smooth sometimes great sometimes they are worse. If you think there is a holy grail strategy you will spent whole life searching it, but still remain empty hand. Advice: You have to realise that having continuous losses in a row can happen frequently as, you cannot avoid losing streak, even the professional traders have their losing streaks going for 2 , 3 weeks. You came here not to trade 1 week , 1 month or 1 year , you must have a long term view. 3) Lack Of Clarity : If you are among those traders who always have a very sceptic view about trading, have knowledge and experience but , do not see it as a sustainable business, thinking that you cannot rely on trading income. You will develop a tendency to book early. Because holding a winning position requires a courage which comes from clarity. I met a research analyst managing his client’s portfolio giving trading and investing recommendations to his clients on regular basis for more than 5 years. I asked him why you selling your valuable advice when you can profit from it. You know what he said to me, it is shocking for me he said , Nobody make money in trading. He do not believe in trading business even though having his bread and butter by selling his advice. It is worst how you can sell your recommendations when you personally feel that nobody can make money. Is it not contradictory? Advice: If you do not have clarity about your trading system, you cannot trade confidently and this one thing alone can derail you from your trading plan. So spent time reading, listening to various successful trader, know their story their style, the more you read listen the more you will get the knowledge and clarity. 4) Complacent with the Current profit : I think this is the worst problem happening with you because if you are very complacent you will end up booking very small and losing big ultimately your equity curve will go down slowly. This happen to novice traders who want to make some extra income, they see that open position profit is enough for their one day or two day expenses they close their positions immediately. Note: Have you seen people doing a mediocre job or their father’s small business even they have the potential for a bigger goals. Booking small profit frequently makes us convinced that what we are doing is great because we see a streak of winning trades. Reason: Simple reason of it is than, we tend to apply our day to day life logics here, we are unable to see the potential and avoid systematic approach. Advice: Your strategy is developed according to the profit potential, risk management not for your day today expenses or complacency level. Stay goal oriented make small, short duration goals and see a series of trade at a time not stuck your mind in single trade. 5) Lack of acceptance: When you do not accept loss you will always try to avoid it this is the main reason why people sit tight will their losing position but cannot hold their wining positions. Reason : Arrogance, Confusion, less belief. Advice : You can make profit or loss on a particular trade depends on market situations. Recall this before creating every new position. Just follow you system.
NSE:BANKNIFTYEducation
by TRADEWITHFUN247
26
How and when should apply which Option's strategyHey everyone! 👋 This post is just for sharing knowledge about Future and Options strategies, First of all, one should build view (bias) on market direction, it may be bullish, bearish, sideways, or there may be some events too, like budget day or quarterly results seasons or may be something else, once view is built then what are the ways to apply futures and options strategies are shown in this post. Options trading may sound risky or complex for beginner investors, and so they often stay away. Some basic strategies using options, can help a novice investor protect their downside and hedge market risk. Options trading is meant to provide a process that defines the selling and buying of options by a trader. The options trading strategies are what make up the options trading. There are various ways that a trader can use the options trading strategies to their advantage. Options trading is a great way to increase your returns as an investor. You will be able to generate profits when the market goes up or when it goes down. However, with so many options trading strategies on offer, you may find it difficult to know which one to choose. This post is showing ideas of the different options strategies and help you choose the right one based on your views. What Are Options Strategies? Options are one of the most flexible and powerful way for investing in the stock markets. Investors can utilize stocks in many ways, including buying and holding onto them to long-term appreciation in value or short-term trading to make a quick buck. However, the stock market is huge, and investors can utilize many sophisticated strategies. The first complex strategy is called a call option. Call options are contracts that enable the holder to purchase a stock or other asset at a specific price within a specific time frame. If the price goes above the strike price, the owner can buy the stock at a lower price and then sell it at a higher price. This can result in a great return, but a loss is possible if the stock doesn't move or move in opposite direction. Types of Options Strategies There are four ways to trade options strategies : call, put, spread, and straddle. First, let's start with the call and put. A call is a contract that gives the owner the right to buy a stock at a specific price on or before the option's expiration date. On the other hand, a put is a contract that gives the owner the right to sell a stock at a specific price on or before the option's expiration date. Spreads and straddles are both strategies used to manage risk. A spread is created by buying the same type of option with the same expiration date but with a different strike price. The strike price is the underlying stock price when the option is exercised. A straddle is created by buying an option with a lower strike price and an option with a higher strike price with the same expiration date. Pros and Cons of Options Strategies Just like selecting a stock to trade or invest in, selecting an options strategy can be a difficult task with risks and potential payouts. The pros and cons of options strategies help you decide which is best for your investing style. Pros: - Lower investment costs​ - Stock options can be used as a way to hedge your investment or portfolio risk Cons: - High risks and losses can occur if you don't research your options strategy​ - Options can only be exercised at the expiration date​ Conclusion Traders can use Options strategies to take advantage of both rising and falling prices of stocks. We hope you have gained a deep understanding of what options strategies are this post. See you all next week. 🙂 RK_Charts 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.
NSEIX:NIFTY1!Education
by RK_Chaarts
125
How to add images to your charts?Hey everyone! 👋 Do you know that you can add images to your TradingView charts? That’s right! We have prepared this visual guide to help our awesome users customize their charts by adding images! Sounds good? Let’s get started. 🚀 There are 2 ways to add images to your charts: 1. The good old copy-paste method 2. Using the “Image” upload option Method 1: 1. Open the image that you want to add to your chart. 2. Copy it and open the chart window where you want to add this image. 3. When you are at the chart window, right-click and you will see the “paste” option. You can also use the keyboard shortcuts as per your operating system. (Ctrl + V for Windows OR Cmd + V for Mac) 4. Once you are done pasting, the image will appear on your chart. Method 2: 1. Go to the toolbar on the left side of the screen and select the 5th option from the top. 2. Once you click on it, you will see plenty of options. Just select the “image” option. 3. This option will provide you with an upload window. All you have to do is just click on “choose image”, select the file, and click open. . 4. You can change the opacity of the image using the “transparency” option. If you still need help, try watching this short video tutorial that we made out for you. Thanks for reading! Hope this was helpful! See you all next week. 🙂 – Team TradingView Feel free to check us out on Twitter and Instagram for more awesome content! 💘
NSE:TITANEducation
by TradingView
5
Why Most Traders Fail? Practical ReasonsAs per my personal experience the following are the most primary reasons for failure in trading - applicable to all types of new traders and all the markets. Well! this is not an exhaustive list but the most reasonable one. 🚩 No Plan of Action Trust me on this one, most traders fail to build a plan of action and fail. It is not only true for new traders but also to those who have been in this market for several years. Even if the latter have ever formulated such a plan, they would have never executed it with dedication. A couple of failures and all planning just vanishes in thin air. The trader needs answer to the following questions: What to trade? How much to trade? When to trade? Why to trade? Is it for intraday or swing trade? How much is the risk? Is risk tolerable? Is risk reward ratio favorable in this trade? Is the trade in the direction of primary trend or against it? If he answers all these questions in advance, he will not have to regret after entering the trade. This would also bring confidence 🦾 in him. 🧐 Tip Seekers New entrants would always look for tips from friends, business channels, broker or paid service providers. I don’t want to get into how this tip system works but I have never seen any tip seeker to be a successful trader. Rather I have seen many traders who lost their entire capital, even before their paid subscription was over. The harsh truth is that there is no shortcut to success in trading. Even seasoned traders have to work hard for making money. So, learning 👨‍🎓 is the first step for novice traders to approach what they seek. 🤑 Get Rich Quick Policy Everyone wants to be rich overnight so that he doesn’t have to work for the rest of his life. This attracts traders to buy penny stocks. What is more attractive than anything, with these stocks, is the quantity that can be bought. A larger number of shares with the available capital. The other thing is profit potential. Buy at 2 and sell at 4, money doubled overnight. Unfortunately, that doesn’t happen very often. Traders buy such stocks for day trade or swing trade but then they keep it for years for one simple reason that these stocks never attracted large portfolios, for some valid reason. For such traders, investment in a sound company would have been a better option 😆 Another very popular instrument which lures traders and has the potential to destroy a trader’s capital at much faster pace is 'Options', especially weekly index options. I have seen people at broker’s floor loosing millions in just few minutes. New traders should stay away from Options and always start small, may be in cash segment. 🥵 Overtrading Overtrading works like a currency shredder machine. Whatever goes in, never comes out in one piece. Its a very common practice among tape readers or those who trade on one-minute chart or less. Remember that you can either take one trade in a day or you can take 50 trades in a day. If you lose the former at tolerable risk, it would not harm your capital much. But if you make small profit after 50 trades, consider it a loss due to costs involved. If you are unable to control this habit, then just start shifting to a higher timeframe after taking the trade. It will help. 🚦 Inconsistency Say you have a plan but you are not executing it on every single trade. Your plan was to take a 1:2 risk-reward trade but sometimes you are taking 1:1 while the other times 2:1. A consistent trader would have a back-tested plan that he executes daily on every trade that he takes, no matter if that’s for a small profit every time. The trader needs to show some consistency in making small money every day/week. If he is consistent in it, then he can increase his position size for more profits and so on. All the above reasons combine together to develop indiscipline. But if you will take care of the above habits, one at a time, as discussed then rest assured that you are on the right track. Thanks for reading. I hope this was helpful 😉 Keep liking and comment for more such posts in future.
NSE:NIFTYEducation
by Bravetotrade
49
Trading Performance PsychologyThe greater the difficulty, the more glory in surmounting it. Skillful pilots gain their reputation from storms and tempests. - Epictetus. Hey everyone! 👋 This week, we thought it would be interesting to dive into a less-commonly discussed topic: performance psychology - and discuss how it relates to Trading. Specifically, we're going to look at the following question: What actually drives outperformance from one trader to the next? From a process standpoint, there are lots of things that aspiring traders can take from other performance disciplines (like sports) in order to better understand the necessary steps to get where they would like to be. Let's jump in! Time is the common element to expertise ⏰ Mastery is built over time. First through exploration, then knowledge building, then well-structured practice. To invest the great amounts of time and effort required for mastery, an individual typically bonds emotionally with the field, creating a long-term relationship. Present in almost all extremely high performing traders is an inherent, intrinsic love of trading itself. This means a love for analyzing charts, working on strategies, looking at markets, and trying to fit the pieces together in one's head. In this frame - Trading isn't a job, it's a CRAFT. If you just love the status, the lifestyle, or the income, then it's likely that you won't reach the true heights of the profession. The highest performing traders spend hours and hours working on their trading; not because they WANT to, but because they LOVE to. Finding a niche ❤️ The greats do not become great by working hard; they work hard because they find a great niche: a field that captures their talents, interests, and imagination. The best pitcher in the world might make a terrible hitter. If you're early on in your journey (or lost), something to consider is trying to find a niche that you truly resonate with. A great deal of importance is placed on niches in other professions and institutionally within finance, as hospitals and banks have rotational programs to expose newcomers to different types of experiences. Why then, don't individual traders do this? A great way to center your thinking is by constructing a rotational program for yourself. Here's a list of the most popular asset classes & trading styles. Give each a google , or look for ideas here on TradingView, and see what you resonate with most strongly. Set yourself up for long term mastery by actually finding something you love doing day in and day out. Liquid Asset Classes: -Stocks -Currencies -Cryptocurrencies -Futures -Fixed Income -Volatility Styles (Timeframe): -Intraday - holding time is seconds to hours -Swing - holding time is days to weeks -Position - holding time is weeks to months Which holding style fits with your temperament? What topics do you like learning about? The Learning Process ✅ In trading and in life, we often hear that "Practice makes perfect". A better saying may be "Perfect practice makes perfect". How practice time is structured makes the difference between a performer who has five years of experience and someone who has one year of experience repeated five times over. So; how should you structure your practice? In performance psychology, there's a concept known as a "learning loop". It has three parts. Performance -> Feedback -> Learning (repeated). This is crucial because feedback is the key to improvement. Trading is a solo sport, which means that figuring out how to incorporate a feedback process that allows for reflection is absolutely critical. P/L is feedback, but there can be some problems with it singularly as your feedback mechanism. Even the best traders who execute the best looking trades can be on the opposite side of variance on given days. The process is king. Get feedback from your performance that doesn't have to do with P/L so you can track the inputs to your decision making. Some traders take copious notes, some record their screens, and some record data points that aren't P/L related (hours slept, hydration, mood, etc). (We have a "notes" feature built into the charts you can use for this purpose.) If you gather up all of these items together to create a long-term blueprint for building mastery, it should look something like this: 1.) Find out what you truly love about trading 2.) Explore it more deeply 3.) Stick with it through time and allow your intrinsic enjoyment to motivate you through the ups and downs 4.) Structure your performance through that time in such a way that you can generate feedback for yourself 5.) Incorporate that feedback to continually improve your process. Allow learning loops to be your engine of long-term performance. Hope you enjoyed reading, and stay safe out there! - Team TradingView
NSE:NIFTYEducation
by TradingView
7
Using the Moving Averages and RSI to optimize buying processIn this chart I have explained my rationale using Moving averages, relative strength and RSI to initiate a buy on this scrip. I always use a weekly chart to check for overall trend and analysis and based on it will initiate a buy on a Daily chart. Explanations are given on the chart. The idea is get the maximum conditions in our favour for a profitable trade. Hope it will be helpful. Another important thing is to always define a stop loss if the trade does not go according to plan.
TEducation
by TheUnlearningOne
25
Circadian Rhythm For TradingHello traders 👋 how are you? As we know it is not just chart analysis or strategies that bring success in trading but there are other physical-psychological 🦾 factors also that silently act in the background and can enhance trading efficiency. In this post I have tried to throw some light on the daily schedules ⏰ that can help traders to improve their trading performance ✈ ✅ After-Market Slow Down 😌 >>Traders burn their veins watching every single candle and every tick on the chart. This leads to eye strain as well as brain fatigue. >>A two-hour rest after the market close is essential to rejuvenate yourself for family keeping. ✅ Evening Preparation 👀 >>Its difficult to search and plan your trades during live market. Therefore you need an hour or so to look into your charts, before supper. >>You may take help of screeners or shuffle through every chart on your watchlist to plan your trades. ✅ Deep Slumber 😴 >>Sleeping improves memory, boosts immune system, strengthens heart and increase productivity. >>For having a sound sleep of 7 hours or so, stay away for your mobile and laptop screens after 9 O'clock. Spend quality time with your family and kids. ✅ Overnight Adaptations 🙃 >>Wake up early and move out in the fresh air if possible. >>Do some jogging, stretching, exercising. >>After morning activities, watch out for any change in sentiment that happened overnight due to western markets and see if you need to modify your plans. ✅ Meditation 👼 >>Now that everything is almost done and there are still 15minutes or so in the market open, just sit in a relaxed physical state and concentrate on your breathing. >>Meditating this way for a few minutes may help for more effective execution of your plans. ✅ Plan Execution 🤺 >>The market opens and its now time to put your plan into practice. >>If your analysis was correct, there should not be any hesitation in executing your trades. >>Always mind trade management and risk management. Thanks for reading. Hope this was helpful!! Do like and comment for more such posts in the coming days 🙂 Bravetotrade
NSE:NIFTYEducation
by Bravetotrade
9
What is Fibonacci extension?Hey everyone! 👋 Last time we explained some of the basics to know when it comes to understanding the Fibonacci retracement tool. If you haven’t read that post, be sure to check it out here: In this post, we are going to look at the Fibonacci extension along with a few exhibits that may help you solidify your understanding of this unique trading tool. Please remember this is an educational post to help everyone better understand investing and trading tools. In no way are we trying to promote a particular style of trading! Table of Contents: 1. What are Fibonacci extension levels? 2. What is the significance of extension levels? 3. How to find extension levels? 4. Difference between the Fibonacci retracement and Fibonacci extension Without further ado, let’s jump in! What are Fibonacci extension levels? A Fibonacci extension is a tool that can be used to find price targets or estimate how far a price may move after the retracement/pullback is over. Extension levels are also possible areas of interest where the price may stall or reverse. It can be used to find projected areas of support or resistance when the price is moving into an area where other methods of finding support or resistance are not applicable or evident. Fibonacci extension levels can be calculated to give the trader ideas on profit targets. Significance of Fibonacci extension levels Different traders use this tool differently but the most common usage is as follows: Fibonacci extensions can be used for any timeframe and in any market- stocks, commodities, cryptocurrencies, etc. Fibonacci extension levels indicate a price area that will be significant for the stock after the pullback/correction is over. Extension levels can be drawn on different price waves over time. When levels from these different waves converge at one price, that could be a very important area. For example , A stock may be in an uptrend. After a move up, it retraces to the 61.8% level. Then, it starts to go up again. In this case, the extension tool can be used to find the optimal targets after the price moves above the swing high level (100% level). How to find Fibonacci extension levels? In order to find the Fibonacci extension levels, you have to find the recent significant swing high and swing low and then plot the Fibonacci extension accordingly. For uptrend: First, select the swing low and then the swing high. Then go to the Fibonacci settings and select reverse. For downtrend: First, select the swing high and then the swing low. Then go to the Fibonacci settings and select reverse. Exhibit: Fibonacci extension in an uptrend Exhibit: Fibonacci extension in a downtrend Difference Between Fibonacci Retracements and Fibonacci Extensions Fibonacci retracements provide levels for a pullback whereas Fibonacci extensions provide levels in the direction of the existing trend. For instance, a stock goes from 50 to 100 and then falls back to 75. The move from 100 to 75 is a retracement. If the price starts rallying again and goes to 150, that is an extension because the price moved past the previous swing high which is 100 in this case. Conclusion: Adding Fibonacci analysis with other common methods of technical analysis can be useful for adding confluence to a trade. Thanks for reading! Hope this was helpful! See you all next week. 🙂 – Team TradingView Feel free to check us out on Twitter and Instagram for more awesome content! 💘
NYSE:SNAPEducation
by TradingView
18
A beginner's guide to trading - Chapter 4This question has been asked before. It has been asked now. I will be asked in future. What question is that? It is nothing but, “How to select stocks to trade?” From beginners to expert traders, everybody knows stock selection is important. Especially for intraday it is very important as same stock won’t give movement daily. There are two methods. One is to trade on active stocks and another is selecting a stock which has formed trade set up as per your strategy. Ok, now how to select stocks? For intraday, the stock you trade should be an active stock. If the price is above 400 rs means, generally the movement will be good. The price will move with momentum & show trend strength. The stocks you select should be -- Active -- Above 400 Rs -- No spikes in movement (very long upper & lower wicks). Let us take an example. Beml is in my active stock list. In the above chart on June 9th price was narrowing within a narrow range forming a symmetrical triangle. It means we can expect break out any side. I selected this stock to trade on June 10th. Next step is to prepare a trading plan. Bearish below 1330, I can go short if the price showed bearish strength with 10 points as stop. Bullish above 1350, I can go long if the price showed bullish strength with points as stop. When you have a list of active stocks, you can filter them by pattern formation like the above example and trade. Below is another example. In the above example, I have selected the stock because of the consolidation. I have expected consolidation break out once the price moves out of the zone. The levels are marked in the chart. Another method to select stocks is based on the strategy you use. I have posted the strategy used already. Please refer the link below if you have not read it. This trade set up forms in live market. So you have to wait for 15 minutes to know whether your trade set up has formed. These are just examples. Your strategy and trade set ups can have unique features depending on your trading style. It does not matter whether it is intraday or short term trading, always trade on stocks which is active and which forms the trade set up as per the strategy you use.
NSE:CNXPHARMAEducation
by vanathi
11
Nifty: A Study through Time CyclesNifty is in consolidation phase. This may or may not lead to a bear market and let’s not discuss it as of now. I will try to analyze Nifty, on the basis of support and resistance levels and time cycles, for the next possible swing and its direction. Support and Resistance levels ------------------------------------- It can be seen on the chart that Nifty made a high in Oct21 and faced resistance, followed by a sharp reaction of 11%. It rallied till mid of Jan22 and again faced a sharp larger reaction of 14%. It then rallied 15% throughout Mar22, faced a trendline resistance and reacted 13% If we draw important support and resistance lines through this price action we get three major levels -Dynamic resistance level through the trendline -16780 to 16850 multiple support zone which is now a potential resistance zone -15670 to 15750 support zone which also coincides with a prior area of consolidation Time Cycles ---------------- If we look at peaks, there is a 62bar high cycle followed by 51 bar cycle. In this sequence, the next cycle could have been a 40bars for the market to test trendline resistance. But that is not the case and here the market is at 16780-16850 zone after 40 bar cycle. This clearly reflects some weakness in Nifty as it was able to cover roughly half the distance on the upside compared to January and March rallies, in almost same number of days. It’s clear that the prior support zone is acting as resistance. At the valleys, there are 53 and 43bar cycles. The next cycle could be a 33bar cycle where Nifty can either breaks the recent support 15670-17750 or retests it. The 33bar cycle coincides with June expiry so there is need to take a cautious approach on the upside until 16850 resistance is taken out. I hope this idea will help you to understand the markets another non conventional perspective. Keep liking and sharing your thoughts. Disclaimer: This post is for educational purpose only and not a trading/investment advice.
NSE:NIFTYEducation
by Bravetotrade
52