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*Staying below 10632-30,nifty would seen 10587/10529 & more*Today's Market Rhythm :- given below... Day :- Technically day trend is "Down", with price staying below DLEma 10630 level. Weekly :- Technically week trend is "Sideways",with price staying below WHEma 10632 level. Month :- Technically month trend is "Sideways", with price staying below MHEma 10739 level. Trade Advice :- Traders can creat fresh position for sell side around 10640-60 level. Today's Strategy :- "Sell on Rise"
NSE:NIFTYEducation
by psdasila
*Some profit booking would seen, Today*Today's Market Rhythm :- given below... Day :- Technically day trend is "Up", with price staying above DHEma 10361 level. Weekly :- Technically week trend is "Up",with price staying above WHEma 10386 level. Month :- Technically month trend is "Up", with price staying above MEma 10356 level. Trade Advice :- Traders can close all long position and intiate fresh Short position once nifty manages to break below 10225-20 levels till than hold their long positions & if traders wants, they can add more position at around 10330-25 level for bull rally. Note :- Its my personal view.
NSE:NIFTYEducation
by psdasila
*Staying above 10293,prices heading 10400-450 & more *Today's Market Rhythm :- given below... Day :- Technically day trend is "Up", with price staying above DHEma 10329 level. Weekly :- Technically week trend is "Up",with price staying above WHEma 10377 level. Month :- Technically month trend is "Up", with price staying above MEma 10364 level. When trend in all T/Fs are aligned together, holding position for more rewarding and in conflict, keep booking partially. Trade Advice :- Traders can close all long position and intiate fresh Short position once nifty manages to break below 10225-20 levels till than hold their long positions & if traders wants, they can add more position or re-buy (which booked yesterday) at around 10300-295 level for bull rally. Note:- its my personal view.
NSE:NIFTYEducation
by psdasila
1
*Holding 10257 (DEma), prices head to 10361-10580 (W & M HEma)*Today's Market Rhythm :- given below... Day :- Technically day trend is "Up", with price staying above DHEma 10294 level. Weekly :- Technically week trend is "Sideways",with price stying below WHEma 10361 level. Month :- Technically month trend is "Sideways", with price staying below MHEma 10580 level. When trend in all T/Fs are aligned together, holding position for more rewarding and in conflict, keep booking partially. Trade Advice :- Traders can close all long position and intiate fresh Short position once nifty manages to break below 10230-25 levels till than hold their long positions & they can book profit in partially position @ 10370-75 levels. Today's Strategy :- "Buy on Dips" Note- its my personal view.
NSE:NIFTYEducation
by psdasila
1
*Close above 10275-80, it would head 10360,10420 & more*Today's Market Rhythm :- given below... Day :- Technically day trend is "Up", with price staying above DHEma 10210 level. Weekly :- Technically week trend is "Sideways",with price stying below WHEma 10329 level. Month :- Technically month trend is "Sideways", with price staying below MEma 10319 level. When trend in all T/Fs are aligned together, holding position for more rewarding and in conflict, keep booking partially. Trade Advice :- Traders can close all short position and intiate fresh long position once nifty manages to break above 10275-80 levels till than hold their short positions. Note--- The information available here is only to learn
NSE:NIFTY
by psdasila
Educational 21: Importance of Closing Price In the above chart, I have a drawn a closing price resistance line in blue indicating a highest candle close on the chart, now the price action needs to close above that previous resistance to indicate further upside movement in the stock therefore we need to wait for the daily price closing in order to determine and confirm the further movement. In this chart, the price action did go above the marked resistance level (in blue horizontal line) but failed to close above it which indicated selling pressure at higher levels and eventually if it failed to close above the resistance zone then it came down sharply. Therefore, a trader must wait for the closing of a candlestick in order to determine and confirm the big players further movement in the market. Lesson: Trade with the confirmation of closing price or candlesticks. Regards
BSE:RELCAPITALEducation
by NeeteshJain
4
How to Trade A Range and Potential BreakoutHello Traders, All of us want the price action to follow our direction of trade but that doesn't happen always. The price action has a natural tendency to move up and down; build ranges and develop patterns. Most of the ranges and patterns are like whipsaws and many traders stuck in these situations and lose money. The most effective ways to deal with such a price action is patience and a better strategy. When I say better strategy that means the one which keeps you ahead of the others. In this backdrop, I have tried to spot better entry points in case the price action builds a range after a nice up move and we are visualizing a potential breakout. Entry at these spots doesn't guarantee sure win but minimize our risk and increase the chances of reward. After an entry, stops can be placed below the range or below the prior swing low -- whichever suits the situation. Same strategy can be applied, in opposite direction, in case the overall trend is down and we visualize a potential breakdown after a range. Notes on the chart. Hit like for better educational publications in future. Comments are welcomed. Trade safe. Best Regards Bravetotrade
NSE:NIFTYEducation
by Bravetotrade
8
The Bear Market Psychology-Price Volume Analysis As this post is merely for educational purpose, let the stock remain anonymous for the time being. The analysis would not only be applicable to long term charts but also to smaller time frames. I have found two important phases of Panic Sell-off in a bear market. One in the beginning and one in the end. The former phase is good for sellers and the latter is good for buyers. As can be seen on the colored bars on left of chart, there is maximum erosion of capital (32%) in first phase (red bar). Then the downthrust reduces in successive breakdowns (10% and 9%) till the last phase (just assuming that its the last phase..read full post to understand this point) where it increased to 13%. The correction started with the break of Level 1, an important swing point low of the last leg of the bull move. At this level, big fund houses, swing traders and smart medium term traders are the first one to move out. On the same day a major swing low of the larger bull run was broken at 918. Majority of the long term investors would have sold their positions this point. You can notice huge volumes on this day. The sell-off In Candle ‘b’ might have been from investors who wait for confirmations. Candle 'a' and 'b' represent the ‘Panic Sell-off’ by traders and investors. Stock rallied from 'b' but the bear run continued. The stock consolidated at Level 2 for some time and broke that level too in candle 'c'. Candles 'c to e' made successive lows but look at the volume, there is dearth of supply. Stock made a nice rally form 'e'. Some optimism is seen in this rally as stock started to rally above Level 2 support. At this point a general conception would have been that the downmove was merely a correction and stock would rally. The areas marked with rectangle are where new traders and investors got trapped. Their stops might have been under Level 3. And then came the moment..Boom!! A gap down opening at 'f'. Level 3 lows are broken. All those who were trapped just sold off, and everybody agrees that the stock is in a bear market. Volume on that day was the heaviest so far in this bear run. Next day there was no continuation of downtrend. Heavy support came back at 'g' resulting passive rally. Buyers have less confidence in the stock. But still some buyers got trapped as stock consolidated for a considerable time above Level 4. The volume was bleak during this consolidation—which according to books is a good sign. But no one knew that its not over yet. Whooop!! Level 4 is also broken in candle 'h' and made successive lows in i, j and k. May be those who bought above level 4 sold in this move. But just look at the volume and compare to volume at a, b, c, d, e and f. Notice that there is very less supply now means buyers are not interested in selling at this price. They want to hold and sell high. At 'l' stock made a lower low but rebounded with increase in volume. Huge overhead supply came at 'm' but this supply is absorbed by the buyers resulting into a v-shaped rally. The volume at this stage are still average because buyers are waiting for confirmations and strength. It is the long term investors who are buying again at this stage. What next? Nobody knows yet if bear market is over. But minimum supply in last fall below Level4 and the absorption in the recent rally is the first sign of relief. However, there might be pull backs, shallow rallies, retest of lows or consolidation before the stock comes under ‘scanners’. Although I could not cover the whole chart bar by bar in my analysis (covered most important candles only) yet this brief summary of a bear market psychology would help investors and traders in future. Please hit 'like', follow and share if you found it interesting. #This is DivisLbs daily chart.
NSE:DIVISLAB
by Bravetotrade
23
DMART IPO - How to play such events ? ( Educational ) Today, as we all know D-Mart had a blockbuster opening. Many of us couldn't get any shares alloted. Still, we could trade once it opened. But how do we trade such events ? Here's how I like to do it. It's quite close to the 'opening range breakout' strategy. So, the rationale behind this is we know there's some huge one side momentum and we can expect extremely good moves even after strong gap-ups. Hence, whenever we see such a bias in the market, such as today, where this happened : 1 Min Chart We can do similar trade to this, Here, you can see see the high of the opening candle was a crucial followed by another attempt of going higher which couldn't . So we get to know that if price surpasses the opening high again, surely there's some huge buying interest. So we should buy the high breakout with very sensible stop loss; in this case, the swing 2 high or else the close to give more room. Risking few to gain the Reward of the disequilibrium. The only thing to worry about in this strategy is sudden price drop, which does happen at times. If you build a strategy around this, it could mint you good money even in future. :) Cheers !!
NSE:DMART
by dravya
8
Weekend Education: IMPORTANCE OF BACKUP ( For Day Traders )One of the most ignored risk in trading is the failure of the equipment you are using to trade. If you have traded long enough, you'll know what I'm talking about. As day traders, when there's a lot of money involved, you shouldn't save a few bucks risking a lot. Let me explain with this list : Backup device : You shouldn't rely on just one mobile or computer to trade. There are multiple reasons why they can stop working ( battery failure, hard disk crash, virus,etc ). Always keep a secondary device to easily switch to that in case of a primary device breakdown. Backup Internet : So you've decided to buy on the open and your internet stops working at 9:00 AM . What do you do ? Leave the trades , nah ! Another source of internet will safeguard you and aid you in not missing any trade when you want to get in or out badly. Backup broker : So now you think, so what, all this never happens to me and I'll manage somehow. But what if your broker's server has some issues. You have bought 2000 shares and now want to exit but cannot because the broker's web,mobile and app all have stopped working for a while. You are stuck and it's not even your fault. This can prove to be very crucial at times, trust me !! Always keep accounts with at least 2 different brokers with sufficient funds in each to manage your positions. Data Backup : You have a written set of rules and strategies, saved charts, along with your trading journal that contains trade records and your thoughts. Isn't it invaluable to you? What if you lose them due to a virus or accidental delete ? Do you have a backup ? Please do . As day traders, time is very important. Don't wait to call up your broker and do fire-fighting. Instead be pro-active and take care of these non-market risks beforehand. I've been through all of this and it's frustrating. So before they all catch up with you too, better insure them already. A 'little' effort in this can help save you from a 'lot' of mishaps. Cheers and Happy Trading :)
NSE:NIFTYLong
by dravya
13
Popular Demand / Results : ITC Idea + Positioning EducationHi friends, ITC results came out on Friday. I'd go short on ITC for 3 reasons : 1. Risk Reward is much better. 2. If the news couldn't make the stock go higher intraday, makes it more probable to go down further. 3. Volumes And also I have drawn my lines to illustrate levels which are significant according to me. So, as for now, I'd go short CMP - 257.5 With a stoploss of 260-262 And immediate target of 253, and a good break below it , positional target of 230 with a trailing SL of 255 Rupees and further riding the trend until an upmove of 5 Rupees. So, let me explain all this to make it more clear. All of the above target points are to be taken into consideration. but actual trading will be done when the market opens, right ! So, if it gaps up above 260, we don't enter itself. Risk Reward isn't favourable, as for me,so, I wouldn't like to go long on an over extended uptrend. But if it opens below CMP or near it, I would go short and I'd keep my SL between 260-262 according to how it moves, judging the strength of the move. If it goes correct, that is downwards , I would watch how it behaves near 253, a clear rejection from those levels or a decisive break. A clear rejection would be a signal to exit. but if it breaks well, I would bring down my SL to 255 and wait for it close on intraday. You might think, why I am not keeping any target ? Pro traders have taught that ride your winners and cut your losers , and I believe in it. Who are we to judge to what extent will it fall ? Intraday done ! Now comes the turn of positional and swing traders, as mentioned, you should trail your stop loss by 2% or % Rupees for this stock. That is, suppose ITC goes to 245, should you hold or book ? suppose it goes to 240, should you hold or book ? This question always remains. The answer to this according to my style is, keep holding until it reverses 2% or 5 Rupees in this case. By this, what is happening is, we are allowing ourselves to ride a strong trend, and get ourselves out when it gets weaker. We ride the car until it gets slower and starts reversing ;) That's all for today. This was the weekend educational post + popular demand idea on how to trade ITC. I hope I was able to convey how I manage my positions. and I hope you benefit from it and gain knowledge. Regards. Happy Trading !!!! Yours sincerely, Dravya Raj.
NSE:ITCShort
by dravya
36
COLOR GUIDE FOR EXPLODING MOMENTUMHi fellow traders, I have published a new script to assist you in trading. As day and short term traders, we need strong movement, hence, to save our time and allow us to trade only when we expect a lot of movement, I have built this script. Simple Rule : Trade when it enters green zone. That's it. Avoid trading when in red zone and preferably, blue zone too. You can find the script and further explanation when you click on the picture below. Also, you can find it in related ideas mentioned. You can use this by 2 ways : 1. Copy Paste the code on the script page in 'Pine Editor' and select 'Add to Chart'. 2. Select Indicator on your chart, and search for ADX Color Easy. Note : On the main chart of the index in this idea, I have marked the time when ADX entered the Green Zone , with vertical blue lines . Entry and Exit strategy is according to you, the objective of this is to instantly identify trend strength without any effort. Thanks. Glad to help.
NSE:NIFTY
by dravya
5
Weekly Educational Series - PART 2 ---------- Continued from Weekly Educational Series - PART 1 ; ---------- 3. Expectancy So, now we have got our risk reward ratio and winrate. We move on to calculate the expectancy of our trading strategy. The formula is, Expectancy = (Probability of Win * Average Win) – (Probability of Loss * Average Loss) So, in our scenario, where, Risk Reward Ratio = 2:1 Winrate = 60% we get, Probability of win = 60 % = 0.6 Average win = Reward = 3 Probability of loss = 40 % = 0.4 Average loss = Risk = 1 Putting these values in the formula, we get ; Expectancy = ( 0.6 * 3 ) - ( 0.4 * 1 ) = 1.8 - 0.4 = 1.4 Here, we get an expectancy of 1.4 , that is 1.4 is the average rupees you can expect to win per rupee at risk. {Example : you do 10 trades with 3:1 Risk Reward Ratio ; you win 60 % - earn 6 trades * 3 Rupees (18) you lose 40 % - lose 4 trades * 1 Rupee (4) you end up earning 14 Rupees even when you were right just 6 out of 10 times } This is a positive expectancy model, which we seek, to ensure that we will earn money in the long run. Professional traders aren't worried if their trade hits stop loss, because of this reason , that they know they will earn money ultimately. --------- NOTE : So, after learning all these concepts, what I want you to do is, from now on, pull out your charts and journal, see what works and what doesn't, set a specific strategy, determine the Risk Reward Ratio suitable to it, paper trade / real trade / past data - have a look and find out the winrate Calculate expectancy. What answers do you get ? Is it positive or negative ? How much can you expect to earn in the long run? -------------- Ok, so that was the first post, the essential basics of trading, and utmost requirement of a trading plan. I would like to hear from you all 3 things, 1. Whether you were able to understand and found it helpful ? 2. Whether you want more posts like these ? If yes, on what topics? 3. What does your expectancy come out to be ?
NSE:NIFTYEducation
by dravya
17
Weekly Educational Series - PART 1 For the benefit of other traders, I am starting a weekly educational series where i will be covering lots of topics related to trading which everyone should abide by. It will be in simple language and easy explanation so that everyone can understand. There will be further detailed explanation of nuances if required by the members. So, starting with the first post, BASICS OF TRADING | PART - 1 Technical analysis is a part of trading. It doesn't make money in itself, but how you actually use that analysis and then trade, is what makes money. Many traders believe the myth of timing, and hope that one day they will be perfect in analysis and start making money. But trading is not hope, it's math. We come here, to earn money, and how we do that consistently ? By using math. Let me explain you how. No matter what indicator you choose, what timeframe you trade in, you trade options, futures or commodities; basically, anything you do in trading, you should remember these 3 things which will help you be profitable in the long run. ---------- 1. Risk Reward Ratio : How much are you risking to get estimated reward ? Are you risking 5 Rupees to gain 15 Rupees ? Then your ratio would be 3:1 . ( Remember this is a R multiple and not rupees So, a 3:1 ratio can be any of these, risking 10 to get 30 risking 100 to get 300 risking 500 to get 1500 ) Easy ? Just calculate how much you want to risk for every reward you hope to get. Be it, 2:1 3:1 5:1 doesn't matter, according to your trading style, determine this. ---------- 2. Winrate : So, once you have decided, how are you going to trade, and fixed your risk reward ratio, then you take only those trades which fit the Risk Reward Ratio criteria. Then, do, at least 25-30 trades, on paper or for real, as suitable. Analyze your results. What percentage of the trades were winners and hit target ? and what percentage of the trades were losers and hit stoploss ? Assuming you followed the risk reward ratio criteria properly, let's say, you find out that, 18 out of 30 trades , you achieved your target ; and , 12 out of 30 trades, you hit your stop loss. This, gives us a 60% of winrate. (18/30) * 100 , that is, ( no. of winners/ total no. of trades) * 100 Once you have got the results of this, we move on to the third step. ---------- Continued on Part 2 . There's a limit on description length. I''ll link it below. Thanks.
NSE:NIFTYEducation
by dravya
4
#Educational 01: Chart pattern spotting Head & shoulderHi, After some request planned to share few TA related stuffs which could help ppl to trade successful. As the famous quote in Trading community "give a man a fish and you feed him for a day, teach a man catch fish and you feed him forever" so what i m doing is teach you fishing. sometime you will catch big fish, sometimes small fish, sometimes no fish, and sometimes your fishing equipment might itself get damaged. But remember everything is part of Trading. you must accept the risk involved and do the right stuffs.. doing right stuffs doesn't mean guaranteed profits. sometimes even after doing right stuffs we need to accept loss as what we do is business and not gambling. So trade wise.
NSE:NIFTY
by koolshanin