ITC stock outlook on 9.12.21Chart is self explanatory.
Retest done and attempting to cross the resistance. With strength in the green candle and increased volume for the day, it is likely to move up to the level of Rs. 260/- very soon.
A simple chart prepared for self learning. Please feel free to suggest.
Educational
RSI RANGE SHIFT StrategyFor Beginners who don't know the real meaning of RSI
RSI---RELATIVE STRENGTH INDEX
As the name says it shows the strength of a particular stock or index.
More the RSI more the strength
RSI above 40 indicates very little strength
50/60+ RSI stocks indicates very good strength....But RSI above 80 indicates that the stock is little overbought and may consolidate but doesn't mean it will fall...
RSI below 40 stocks should never be bought...RSI below 40 is oversold but the stock might not bounce back as the strength is weak...So buying a stock with RSI above 50/60 is the best and SHORT selling below 30/40 is the best option...
RSI RANGE SHIFT STRATEGY:
It's a simple swing trading strategy
When RSI is falling and bounces back from 40...it is a buy for the stock once RSI is heading towards 60
It is a SHORT SELL if RSI 40 support is broken
This strategy has to be combined with PRICE ACTION to get a good RISK/REWARD ratio.
FOLLOW me for more such content ahead...Till then,
HAPPY TRADING :)
[Educational] Building Your Weekly Price Action WatchlistThis post helps you to understand how you can project any pattern formation in earlier stage. Also, It helps you to build your perfect weekly watchlist.
Create Your Price Action Weekly Watchlist in Following Sections:
1) Early Stage Price Action(Waiting Phase)
2) Mid-Stage Price Action(Reversal Entry Phase)
3) Final Price Action(Breakout/Breakdown Entry Phase)
Just spend few hours of your weekend and you don't required any screener to find perfect entry stock. You can build this watchlist according to your trading style.
Timeframe to be consider:
Intraday Positions: 5 Min, 15 Min, 1 Hour
Short Term Positions: 1 Hour, 1 Day, 1 Week
Long Term Positions: 1 Week, 1 Month
GXS/USDTBINANCE:GXSUSDT
Got around with a beautiful breakout.
Just wait with patience for a very good move.
I will advice you to do paper trading first if you are a fresher to this
I'm not a financial advisor.
You should take your risk according to your risk appetite.
GOLDEN CROSSOVER Golden Strategy INDICATORS USED:
EMA 4
EMA 9
EMA 18
TIME FRAME FOR ENTRY/EXIT: 5 min
WORKS VERY WELL ON BOTH NIFTY AND BANK NIFTY
As you can see on the chart that when EMA 4 crosses EMA 9 and EMA 18 together then the crossover of EMA 4 is golden crossover.
This is the bookish definition...Now let's look at the applications with complete trading setup
This strategy works well only on a trending day...
STRATEGY:
BUY once there is a golden crossover as shown in the post below:
SELL once there is a golden crossover as shown in the post below:
SOUNDS very simple and it is indeed but works well only if the day is trending...simple price action or anchored vwap strategy.
Let's look into the STOPLOSS and TARGET:
STOPLOSS:
Place stoploss BELOW EMA 18
TRAILING STOPLOSS:
EMA 4,EMA 9, EMA 18 acts as a good support...Place the trailing stoploss below any of them depending on your setup...(EMA 18 is preferred)
TARGET:
This strategy does not provide and fixed target...Keep trading until the trailing stoploss is hit. (Captures almost entire trend on a trending day...that's why it is best for trending days)
EXAMPLES:
SELL
As you can see on the chart how beautifully EMA 4/9/18 are respected by the market on a trending day...and 250 points of move was captured in NIFTY 50.
BUY
Similarly 230+ points were captured and the market again respected these moving averages
FALSE SIGNAL:
This strategy is not a holy grail...it will give many false signals in a non trending day...so using this strategy along with price action will make it a lot more accurate. DO KEEP IN MIND THAT ANY STRATEGY WHEN FOLLOWED WITH PROPER RISK MANAGEMENT AND POSITION SIZING WILL ONLY GIVE PROFITS IN THE LONG RUN...
If you have any doubts in this strategy do let me know in the comments...would love to answer them asap
FOLLOW ME for more such content ahead...Till then,
HAPPY TRADING :)
Why Do We Fall?Who Do We Fall?
So We Can Learn To Pick Ourselves Up!
- Thomas Wayne
Hey, In this post I am not going to predict the direction of the market. Cause it is tough to be 100% perfect in whatever it may be. It's better to talk about probability of the direction in which nifty is headed.
And is the Covid new strain the reason for the fall? Maybe, But I believe Nifty is intended to full despite the new strain.
So from the chart I believe that nifty has changed its trend from a more inclined channel to a less inclined channel. (Which means still in an uptrend, Though there may be a 6% fall)
Nifty has support at 15,900, where I believe the 200 Day MA will also coincide. Previously It acted as key support many times.
There is also a possibility of trend reversal, (Less probable) But for that nifty has to raise more than 2.5% in the next trading day i.e, Monday.
Happy Trading!
2025 MARKET CRASH?Many of the investors mistakenly believe that it is the best time to wait after the election results to buy shares.If PAPPU's party comes then the economy might not do good or if NaMo's party comes then the economy will boom...(JUST AN EXAMPLE...I AM NOT TARGETING ANY ONE HERE) People just believe that their favourite politician/party will take the economy ahead...Truth is totally different...No matter which party comes the year following the election is usually a disaster with very few as exceptions as in 2004.
1st year after the election ------BEAR MARKET/CRASH (2021)
2nd year after the election ------BEAR MARKET MAY CONTINUES TILL FIRST HALF the rest of YEAR 2 is bullish (2021)
3rd year after the election ------BEST YEAR AMONG THE 4 YEARS (2022)
4th year after the election ------CHOPPY ONE (1st half best and second half is little bearish (2023)
2024-ELECTIONS
2025-CRASH
Over the past 100 years this 4 year cycle is unfolding like as if a script is written by the politicians. lol
The year after the election is not good because whatever be the negatives immediately after the election and all the positives 2 years before the elections to get reelected and the markets behave the same way.
There are many historical datas which can be used to predict the way the markets might move based on the psycology of the humans which will never change like the price action patterns...months and days of a month where the market is most bullish/bearish like tue/wed are the most weakest days taking example for the past 1 year.
If you guys are interested in these kinds of historical data posts which might help in making good strategies for the market do let me know below in the comments
FOLLOW me for more such content ahead...TILL THEN
HAPPY TRADING :)
U-TURN Resistance converts into Support (EDUCATIONAL -AARTIIND) Aarti Ind. ltd. This stock has taken Resistance twice at same level, then it consolidated as a parallel channel at that same zone,
and then it given good breakout from parallel channel along with good intensity of volume,
Now it has retraced almost 78.6%, co-incidentally (1) same resistance zone, (2) Parallel channel's top, (3) Support trend line and (4) 200 DEMA, all are there at similar point location, All these 5 conditions met at same level that can provide good support. This scenario makes probabilities very strong each time. where stop loss is too low and Reward is too Good.
Overall scenario
Perfectly U-turn from valid fibonaccy level 0.786%
Daily macd line uptick and also converging towards positive
Good support zone
Support providing 100DEMA also at same responding zone
Parallel channel scenario
Support Trend line
Disclaimer
I am not sebi registered analyst
My studies are for educational purpose only
Consult your financial advisor before trading or investing
I am not responsible for your profits and losses
Stock Analysis of Gravita India Ltd.Price - 218.75 Dt. - 29.10.2021
Since 17th Aug. stock is facing resistance at 219 levels. On 29th Oct. stock tried to break the level but failed and closed at @218.75 with higher than average volume.
The stock also performed well when all indices decided to close in red. Looking at the buying volume we can safely say that the traders are expecting a good quarterly result which is scheduled to declare on 1st Nov.
If stock is above the 219 levels on Monday then it can give a good return in the short term. A good return is dependent on the company result, so keep the SL before initiating the trade.
Stock Analysis of CanFin HomesPrice - 626.85 Dt. - 29.10.2021
It looks like the stock has completed the correction and is ready to resume the uptrend once again. The stock has made a Doji on the daily chart which indicates the reversal. RSI is also normal. If the stock closes in green with good volume on the next trading session then it will be a good candidate for the medium term.
Market Crash after a BULL MARKET? How to predict them?"HISTORY REPEATS ITSELF" is a very powerful mantra for success in STOCK MARKET.
Anyone can mint money in a bull market but THE ONE who protects his/her money before a market crash is the one who makes profits in the long run...
And the fun fact is that market gives enough chances to protect one's capital before the crash.
Here I am with one of the very few patterns which was common in both the major crash of 2008 and 2020 and in a mini crash of 1999.
This SETUP is very simple to read...yet a very powerful one
CONDITIONS TO QUALIFY IN THIS SETUP:
1.EMA 52 Slope should not be one directional upwards (CHECK IN BOTH DAILY AND WEEKLY TIME FRAME)
2.RSI-Sharp dip below 40
3.Triple Top as seen in the 1999/2008/2020 crash.
4.Breaking the bottom of the channel with gap down/low wick red candle.
LOOK AT THE MAGIC (1999 CRASH):
2008 CRASH:
2020 CRASH:
Now This was one such SETUP which was common in 2 MAJOR and 1 MINOR crashes in the data which is available on charts.
MARKETs can fell in many other bearish reversal setups like HEAD AND SHOULDERS as shown in the BEGINNING OF 2015 BEAR MARKET:
Many more reversal setups are there which are visible in most of the mini/major crashes that takes place in the market...I will look forward to share one by one all the possible reversal patterns to avoid confusion in reading and digesting the SETUPs...FOLLOW me to stay updated as soon as I upload them on my channel.
Till then,
HAPPY TRADING :)
TRADE PULLBACKS LIKE A PROAn Uptrending stock gives many opportunities to enter in it.
But...we miss many of them assuming it as a reversal or before we enter the stock moves much higher again and Risk/Reward ratio is unfavourable for our trade.
Here I am with another tried and tested strategy to find whether it's a pullback or trend reversal and the most IMPORTANT...enter before the stock moves much higher.
So let's discuss Step by Step from STOCK SELECTION to ENTRY,STOPLOSS,EXIT.
I will also be discussing about the candlestick patterns and indicators for better accuracy.
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1.STOCK SELECTION:
.Broader market has to be in a uptrend (BULL MARKET)
.The stock should be from an uptrending sector
.The stock has to be in a STAGE 2 uptrending structure to QUALIFY as a stock for pullback.
For detail explanation of STAGES I have linked a post below:
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2.MOMENTUM INDICATORS
.RSI-- It has to be above 50 to increase the accuracy of the trade
.EMA 50--Slope of EMA 50 has to be positive
.MOMENTUM--If it is positive then it's icing on the cake
.ADX--While the stock is falling ADX should also fall to give a shade better trade.
.VOLUME--Should be low when the stock is falling as compared to Going up
Keeping things simple : IF THE STOCK QUALIFIES ALL THE ABOVE CRITERIA OF SELECTION AND INDICATORS THEN IT IS NOT A TREND REVERSAL
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3.CANDLESTICK PATTERNS
.Low body red candles are a very good sign
.Long wick rejection from the bottom
.Very less big body red candle (NOT MORE THAN 2)
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4.ENTRY
The most important part of pullback trading is to enter before the stock moves very high and also not wait for months for it to move.
STEP-1: Mark the candle of previous high as '0' in daily time frame.
STEP-2:Keep counting the candles from 1-20 as shown in the below figure: (MIN 8 has to be there)
STEP-3: Now when the count is completed mark the lowest price of the stock within the pullback range as 'PIVOT'
STEP-4:Now switch the chart to 1hr time frame as shown on the chart of HDFC Ltd.
NOTE: Candle 0's high has to be the high within these candles (MIN 8)...if not then this strategy might not work well.
STEP 5:Draw a stage structure (BASE) and our entry will be the breakout of this range (50%) and pullback to this STAGE (50%)
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5.STOPLOSS AND EXIT
STOPLOSS: The pivot point will be our stoploss
EXIT: After the stock has broken out of the stage EXIT after 20 counts (It sounds theoritical and funny...but it do works most of the time
Look at the EXAMPLE OF RELIANCE with the concepts mentioned above:
You can also see the EXAMPLE OF AIRTEL's previous pullback
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NOTE: Like all other strategies even this strategy is not 100% accurate.
I hope you liked this strategy of pullback trading and it might increase your chances to make profits in the market.If you have any doubts do let me know in the comment section below.
I will be posting a lot more strategies for trading/risk management in this channel ahead.
FOLLOW this channel to stay updated as soon as I upload it.
Till then,
HAPPY TRADING :)
Few learnings I want to share taking Adaniports daily chartFew learnings I want to share taking Adaniports daily chart as example:
EMA’s 13,50 and 200 are plotted in the chart. An ideal price should always be near to all EMA’s but due to demand and supply and various other factors, price revolves around the EMA’s. High demand or High supply will make these EMA’s move away from each other. But the fact is after some time they settle and come closer to each other. Smallest EMA moves faster and first than largest EMA which moves last and slow for all price action movements. These are the opportunities which traders need to profit buy entering at correct time to ensure appropriate and maximum profits are earned. It takes time, learnings, experience to understand these concepts for entry and exit.
From 2021 beginning the price is ascending constantly and taking 13 EMA as support. Instead of 13 EMA, 20 EMA can also be plotted. 13 EMA helps us for a day trading as well as for short and long terms, hence we used 13, 50 and 200 EMA to address the needs of all types of trading. When ever price goes far away from 13 EMA/20 EMA, it will comes back to test or take support before moving on. If 13 EMA/50EMA are above 200 EMA its considered as uptrend and if they are below 200 EMA, its considered as downtrend. In the current example since beginning of 2021, price is in uptrend hance 13 EMA is above 50 EMA and these two are above 200 EMA proving the uptrend. Once price reaches its high or demand lacks, price wont fall suddenly, it will consolidate for some time and then inches to touch the small EMA, here its 13 EMA and takes support (17th Mar) and then goes for a higher high (7th April 20201 example). If 13 EMA support is broken then price tends to go and touch 50 EMA and take support (22nd April) and then makes higher high (7th Jun). After this price couldn’t sustain but with a huge gap down it went and touch 50 EMA and skipped 13 EMA. These gaps will subsequently gets filled, in a few day or few weeks or few months but surely gaps get filled up (example 17th Oct and 18th Oct gap filled up). When price tends to go lower and if 13 EMA crossed 50 EMA from top then higher chances of price to touch 200 EMA or at least it will go very nearby to 200 EMA before reversing.
Flag pattern - Last two months (Mid Aug and Sep till Oct mid), we can see a flag pattern and it got broken on 13th Oct and price making highs covering earlier gaps. Now the probability of price touching earlier highs are very high. This is how we can use EMA’s to optimum and can have a proper entry and exit points for intraday, short term or long term trading.
Wicks – Now let’s talk about wicks, some people consider them and some won’t consider. Here we considered wicks and some learnings we want to share. When ever we see big wicks it means there are traders to buy or sell in that wick space. This means eventually that wicks will get filled up. Example, if you see 7th April/16th April there is a long wick on the up side and eventually it got filled up in over May
period. Color of candle doesn’t matter here when big wicks are made. Same way 14th Jun a hug wick on down side and got filled in couple of days.
Fibonacci – Two Fib levels are plotted to see how price respects them. 0.382 and 0.5 are crucial for a retracement and if support taken then price can move up. At the same time 0.618 if broken then the trend in retracement will continue.
Hope above information on EMA, wicks, Fib levels along with a flag break out example and also a trending up and down market we could learn from this example.
Disclaimer : This analysis 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!
Please do like and share this idea. Thanks