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BLUEPRINT to a SUCCESSFUL TRADERIf you want to go from Delhi to Mumbai, there are many stations that come in between. Just like that, a trader has to pass through several stages before achieving success. Knowing which stage you’re in is crucial—it helps you stay on track, avoid frustration, and progress systematically. This Post May Sound Basic, But It’s Extremely Important Here are the 4 Stages of a Trader and how they define your journey: --- 1. The Excitement Phase - What It Feels Like: You’ve discovered trading, and it feels like the gateway to unlimited wealth. Every win feels like a step closer to “quitting your job,” and losses are dismissed as bad luck. - Reality Check: This is the honeymoon phase. Without a plan or risk management, you’re trading on emotion, not skill. Big losses often serve as a wake-up call here. --- 2. The Learning Phase - What It Feels Like: You’ve realized trading isn’t a game of luck—it’s a skill that requires discipline and study. You dive into books, watch tutorials, and experiment with strategies. - Challenges: - Information overload: Which indicator works best? - Doubt: Am I even cut out for this? - Outcome: Progress is slow, but this is where the foundation for mastery is laid. --- 3. The Frustration Phase (THIS STAGE LASTS LONGER THAN ONE CAN IMAGINE) - What It Feels Like: You’ve gained knowledge, but your execution isn’t consistent. Every win is wiped out by a bigger loss. Strategy-hopping becomes a vicious cycle. - Why Most Quit Here: The emotional toll of inconsistency is heavy. Many traders blame the market, their broker, or even themselves, concluding that trading “isn’t for them.” - The Breakthrough: This is a test of resilience. Traders who stick to the process and focus on discipline eventually push through. --- 4. The Mastery Phase - What It Feels Like: Trading becomes systematic—a business, not a gamble. You’ve developed an edge, trust your strategy, and prioritize risk management. - Key Characteristics: - Discipline: You follow your plan without hesitation. - Confidence: Losses don’t shake you because you know your edge works over the long term. - Sustainability: Trading isn’t just profitable—it’s consistent. - This Is True Success: You understand the market isn’t a money-making machine; it’s a test of probabilities and discipline. --- Why Knowing Your Stage Matters Understanding where you are in this journey is like knowing which station you’ve reached on the Delhi-to-Mumbai train. It helps you prepare for what’s ahead and keeps you focused on reaching the destination. So, ask yourself: Which stage am I in? Let us know in the comments, and tag a fellow trader who’s on this journey with you.
NSE:NIFTYEducation
by keshevdugar
10
Why PRO takes losses and everybody else LOSESTrading isn’t just about making gains—it's about managing losses like a professional. Here are some ideas on what separates amateurs from seasoned traders and how you can elevate your mindset: Shift from Emotion to Execution: Pros don't get attached to trades. They let data guide decisions, not emotions. Instead of celebrating a win or stressing over a loss, they focus on consistent execution. Tip: Try setting specific exit rules before you enter a trade, so you’re never swayed by market noise. Embrace Small Losses to Avoid Big Ones: Losing trades are inevitable, but pros keep them small. Amateurs sometimes hold onto losses, hoping they’ll recover, while pros cut losses early. Tip: Adopt a strict risk-reward ratio and stick to it. Think of it as a way to protect your capital for future trades. Every Loss is a Lesson: Professionals look at every losing trade as data, not failure. They analyze it: Was there an overlooked signal? Did the market behave unexpectedly? They use losses to refine strategies. Tip: Keep a trading journal. Record wins and losses along with your thought process. Patterns will emerge over time. See Trading as a Business: For pros, trading isn’t gambling; it’s a business. They’re less concerned with each individual trade and more focused on their overall strategy and risk management. Tip: Calculate your monthly performance, not just individual trades. Aim for consistent, steady growth. Stay Calm During Drawdowns: Market conditions change, and even the best traders experience drawdowns. It’s about staying in control, sticking to your plan, and trusting your process. Tip: Take a break if emotions start taking over. Sometimes stepping away can be the best decision you make. Remember: Trading is a journey, not a sprint. It’s not about winning every trade but about thinking long-term, focusing on learning, and developing resilience. Keep pushing forward, keep learning, and most importantly, keep trading smart!
NSE:NIFTYEducation
by keshevdugar
2
WHY DO TRADERS FAIL?Why Most Traders Fail: Common Psychological Traps Many beginner traders enter the market with a lot of enthusiasm but often leave disheartened after experiencing losses. One of the main reasons for this is not a lack of technical skills or strategy, but rather the inability to manage the psychological aspects of trading. Let’s dive into some of the most common psychological traps and how you can avoid them to become a more successful trader. 1. Fear of Missing Out (FOMO): FOMO is a powerful emotion in trading. It happens when you see a stock or asset rapidly rising, and you feel the urge to jump in late just because everyone else is. This often leads to entering trades at poor levels, where the risk of reversal is high. Why It’s Dangerous: You end up making emotional decisions, ignoring your strategy. How to Avoid It: Stick to your plan and predefined entry/exit points. Remind yourself that opportunities in the market are endless; chasing a missed trade could lead to a bad decision. 2. Revenge Trading: This occurs after a loss, where you try to win back the money immediately by placing irrational trades. Instead of accepting a loss, traders emotionally double down, hoping to recover quickly, often resulting in even bigger losses. Why It’s Dangerous: Trading becomes emotional rather than strategic, leading to a cycle of poor decisions. How to Avoid It: Accept that losses are a part of the game. Take a break after a significant loss to clear your mind, and only return when you can trade objectively again. 3. Overconfidence After a Win: After a string of successful trades, traders may feel invincible and start to ignore their risk management rules. They increase their position size without realizing that the market can turn at any moment. Why It’s Dangerous: Overconfidence leads to taking on more risk than you can afford, which can wipe out profits or even lead to significant losses. How to Avoid It: Stick to your trading plan regardless of recent success. Don’t increase position sizes without a valid reason and proper risk management in place. 4. Greed – Holding On for Too Long: Sometimes, traders hold on to winning trades far too long, hoping for even bigger profits. Instead of taking profits at their target, they let greed take over and end up losing a significant portion of their gains when the market reverses. Why It’s Dangerous: Greed blinds traders to the signals that it's time to exit. How to Avoid It: Set clear profit targets and stick to them. Use trailing stop-losses to lock in profits while allowing for potential additional gains. 5. Not Accepting Losses – Holding on to Losing Trades: Many traders struggle with cutting their losses because it feels like admitting defeat. They hold on to losing trades for far too long, hoping the market will turn in their favor, which often results in deeper losses. Why It’s Dangerous: Holding onto losing trades can drain your capital and emotional reserves. How to Avoid It: Have a strict stop-loss in place for every trade. Accept that small losses are part of trading and necessary for long-term success. Conclusion: In trading, your mindset and emotions can be as critical as your technical analysis or strategy. By recognizing these common psychological traps—FOMO, revenge trading, overconfidence, greed, and refusing to accept losses—you can manage your emotions better and make more objective trading decisions. Always remember: successful trading is not just about big wins; it’s about consistency, discipline, and emotional control. What psychological traps have you experienced in your trading journey? Share your experiences in the comments below and let’s learn together!
NSE:NIFTYEducation
by keshevdugar
2
MILLIONAIRE TRADER'S advice"One Conversation Changed Everything" Recently, I had the privilege of speaking with a millionaire stock trader (NOT THE YOUTUBER MILLIONAIRE TRADER), and the insight I gained was both simple and profound: HE SAID ONE LINE "Pros take losses. Everyone else loses." This statement hit me hard. It’s a reminder that in both trading and life, it's not about avoiding failure—it's about managing it. The most successful people don't win by never losing; they win by knowing when to take a loss and move forward. It’s a lesson that goes beyond the markets. Whether in business or personal growth, knowing how to cut your losses is the key to long-term success. Would love to hear your thoughts on this powerful lesson! 👇 FOLLOW ME for more such content ahead
NSE:NIFTYEducation
by keshevdugar
6
Technical Analysis DOESN'T WORK anymore?"Does this really predict the market, or are we reading too much into it?" Technical Analysis is useless – Here's Why You Shouldn't Buy Into the Hype I've been in the trading world long enough to know one thing: technical analysis isn’t the holy grail that many claim it to be. Sure, charts, patterns, and indicators look fancy, and they give the illusion of certainty. But here’s the harsh reality: Markets don’t care about your patterns. If technical analysis worked the way it’s advertised, wouldn’t everyone be making easy money? The truth is, the market moves based on emotions, macroeconomic factors, and real-world events—not lines drawn on a chart. Successful traders don't rely on perfect predictions, they rely on managing their risk, adapting to market conditions, and learning from their losses. Don’t get me wrong, it’s great for understanding market sentiment to some extent, but if you’re betting your portfolio on head-and-shoulders patterns or the RSI alone, you’re in for a rude awakening. In the end, trading is about experience, discipline, and understanding human psychology. That’s where the real edge is. #stockmarket
NSE:NIFTYEducation
by keshevdugar
10
Data Base Trading Part = 4 #Institutions Options chain can be defined as the listing of all option contracts. It comes with two different sections: call and put. A call option means a contract that gives you the right but does not give you the obligation to buy an underlying asset at a particular price and within the option's expiration date. An option chain trading strategy can be formulated by seeing accumulations in OI (open interest) and volumes in various option strikes. You should note, here, that open interest implies the number that tells you how many options or futures contracts are presently outstanding/open, within the market.
NSE:BANKNIFTYEducation
by Optionclub
3
Linear Vs Logarithmic Chart. Which one to use ?NSE:ADANIENT Hello, Traders! 👋 I hope you’re all having a fantastic weekend! 🌟 Whether you’re sipping coffee, analyzing charts, or just enjoying some downtime, let’s make it even more productive. 📈💡 In today’s educational post, we’ll explore a concept that might have slipped under your radar or left you slightly puzzled. No worries—I’m here to shed light on it! Understanding Linear vs. Logarithmic Charts 🔹When it comes to visualizing data, two chart types stand out: linear charts and logarithmic charts. These seemingly simple charts can reveal powerful insights about trends, growth rates, and relative changes. Buckle up—we’re about to explore their differences and use cases! 📊🚀 What is a Linear chart? 🔹The Price plotted on a graph which we call charts, the price on the Y-axis shown will be consistent and uniformly scaled, which shows more significance to recent price action over old price action. 🔹Linear charts are great for showing absolute changes when each price has similar increments. 🔹Linear charts are easy to understand and you are already using them. What is Logarithmic Chart (Log Scale): 🔹A logarithmic chart, or log scale, depicts percentage changes, giving a more accurate view of relative movements. 🔹Logarithmic charts are especially useful when analyzing Long-term price data. They can show proportional relationships and percentage changes more effectively. 🔹As time goes by, the difference between linear and logarithmic charts becomes more pronounced. Log scales are often preferred for their accuracy. On this difference table, you can easily understand the uses and benefits of logarthmic charts. How to switch to a logarithmic chart? Just right right-click on the Price scale on the Tradingview chart and you will find log chart. or you can just hover your cursor at the bottom of the price scale you will see A and L (A - means arithmetic and L- Logarithmic). Note:- On short-term or recent price action these charts will not make any big difference but surely they impact longer-term data. Feel free to explore both chart types and choose the one that suits your analysis best! 📊🔍 If you’d like more examples or have other questions, just ask—I’m here to help! 😊🚀 Keep Learning, Happy Trading.
NSE:ADANIENTEducation
by SANJAYPATIDAR_
16
Stay Ahead: Essential Tips to Avoid Trading PitfallsHello TradingView Community! I'm excited to share some valuable insights on trading pitfalls and how to navigate them effectively. Trading in financial markets can be a challenging journey, but understanding common pitfalls and methods to avoid them can significantly enhance your success. Here are 10 pitfalls traders often encounter and actionable strategies to help you steer clear of them: Having No Trading Plan: Entering trades without a plan can lead to impulsive decisions. Develop a clear trading plan outlining your goals, strategies, entry and exit points, and risk management. Using Strategies That Don't Match Your Personality: Align your trading strategies with your personality, risk tolerance, and lifestyle. A good match helps you stay consistent and focused. Having Unrealistic Expectations: Set realistic goals based on your initial capital and risk tolerance. Trading is not a quick path to wealth, so be patient and persistent. Taking Too Much Risk: Avoid over-leveraging and using excessive position sizes. Implement risk management techniques like stop-loss orders and diversification. Not Having Rules to Follow: Create a set of trading rules to guide your decisions. These rules provide structure and help you stay disciplined. Not Being Flexible to Market Conditions: Adaptability is key in trading. Monitor the markets and adjust your strategies as conditions change. Failing to Take Responsibility for Your Results: Own your successes and mistakes. This mindset empowers you to learn, grow, and improve your trading. Being Addicted to Volatility: While volatility can be exciting, avoid chasing it for thrills. Focus on making well-reasoned decisions based on your plan. Not Having a Process to Keep Track of Your Performance: Maintain detailed records of your trades and their outcomes. Analyze this data to identify patterns and refine your strategies. Not Dealing with Your Emotional Risk: Emotions can cloud your judgment in trading. Practice emotional intelligence and techniques like meditation or journaling to stay composed. Neglecting Proper Research and Due Diligence: Relying solely on tips or rumors can lead to poor decisions. Conduct thorough research and due diligence on potential trades and investments. Overcomplicating Your Trading Strategy: Complex strategies may not always lead to better results. Simplify your approach to focus on proven methods and avoid overanalyzing the market. Ignoring the Importance of Continuous Learning: The markets evolve, and so should your knowledge and strategies. Stay updated on market trends and continuously educate yourself to stay ahead. There is no trade without a stop-loss: This point emphasizes the importance of having a stop-loss in place before entering any trade. It highlights risk management as a fundamental part of trading, ensuring that you have a clear exit strategy to limit potential losses. If you have to re-analyze charts after being in a trade, you might be going in the wrong direction: This point underscores the importance of trusting your initial analysis and trading plan. It warns against second-guessing or changing your plan mid-trade, which could indicate you may be heading in the wrong direction. By implementing these strategies, you can enhance your trading experience and improve your performance over time. Remember, successful trading is a journey that requires discipline, patience, and continuous learning. I hope you find these insights helpful. Feel free to share your thoughts and experiences in the comments. Let's continue to support each other and grow as a community! Happy trading! RK💕 I am not Sebi registered analyst. My studies are for educational purpose only. Please Consult your financial advisor before trading or investing. I am not responsible for any kinds of your profits and your losses. 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 and Risk Warning. The analysis and discussion provided on in.tradingview.com/u/RK_Charts/ is intended for educational purposes only and should not be relied upon for trading decisions. RK_Charts is not an investment adviser and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Charts does not share in your profits and will not take responsibility for any losses you may incur. So Please Consult your financial advisor before trading or investing.
NSE:NIFTYEducation
by RK_Chaarts
13
Falling Knife stocks-How to identify them?I have discussed in previous post about what exactly falling knife stock is with a case study. The next question would be how would an investor know that stock is a part of falling knife category? To identify such stocks, I feel you should know about 2 concepts/indicators which are Moving averages and Fibonacci retracement. I will try to make you understand these concepts and also the levels where averaging/investing can be started. 1. Fibonacci(Fib) is a mathematical concept which governs the entire universe, even our stock markets. I can't explain the entire scientific concept here so just sticking to stock market. Fib retracements help investors identify support and resistance for stock. There are 2 golden ratios which every investor must know, 38.2%(0.382) and 61.8%(0.618). When a stock is in uptrend, 38.2% is the level where most stocks retrace upto. 61.8% is considered as last ray of hope for bounce in retracement. Any stock which has fallen below 61.8% is considered weak. 2. Moving averages(MA) are indicators which are continuously changing with moving stock market. These are an average of prices over a time period, hence Time frame is important. There are many types of moving average, we use mostly simple and exponential. When I say 20 Day EMA, it is Exponential average of 20 days of closing price of stock or when I say 200 week SMA, it is simple average of 200 weeks closing price. Exponential is more used than Simple moving average which has scientific reason behind it so if you are curious, you can search for it. 200 Week moving average is considered as last ray of hope for investment. A fall below 200 Week moving average or 50 Month EMA indicates strong bearishness. 3. I have seen stocks reach from top to bottom and top again. Tata motors, HDFCAMC being few famous examples. Even, Most of real estate, PSU banks stocks are reversing. So, equity is beautiful, wild and highly unpredictable. However, A stuck investor should wait for monthly closing above 61.8% to start averaging in such stocks. Also, a closing above 200 Week EMA will slightly indicate return of bullishness and that's where reversal traders should think of investing I feel this much knowledge is enough for now. If you have got some enlightenment from above information, lets apply this knowledge on one stock where I know many many investors are stuck, Rajesh Exports. How do I know? I saw the shareholding pattern and that's where I was shocked to see the number of shareholders increase from 45000 odd to over 2 lakhs in the past 9 months! Starting with fundamentals, Rajesh Exports Ltd is 4 decade old manufacturer of Gold and Gold Products available at a PE of around 9 and sales growth of 20% in last 3 years. All the ratios feel nice to me except the operating margin which is below 2% consistently which has led to drop in EPS which is major concern in the stock. Technically, stock had a 52 week high of 1030 in Feb 2023 and it is now available at 360 odd which is more than 60% wealth destroyed. And as I said, the number of shareholders have grown 5x in the same time. (Note that FII, DII holding has reduced in same period). If i see now from a non-investors perspective(psychology explains that investor can never see the bearishness), the stock has formed a beautiful double top and broken its neckline which was 61.8% of fib retracement all ready for a further fall and I see no support till 270-300 zone(sorry investors). It is also below 200 week moving average-red wavy line(if you check monthly chart, it is below 200 month moving average as well). A perfect example of Falling knife. What next? If I were an investor, My last SL would have been 525 which is 50% retracement. Since, the stock is below 61.8% retracement , there is no chance of averaging at this moment. Hence, I feel investors should wait & watch until stock moves above 440 before averaging/entering. Don't jump in it. Wait for a big bullish monthly candle before averaging. Also.... As promised,, I am sharing you names of stock which i have identified to be part of this unloved category. As an homework, do check fundamentals and reversal levels based on what we have discussed above. The stocks are GRINFRA, TCNSClothing, Metropolis, Luxindustries, Polyplex, HLEGlasscoat, Deltacorp, Barbequenation. If you are a curious investor, even you can find such stocks and do let me know in the comments below. I would like to discuss any doubts regarding the concepts, idea or anything related to stock market so feel free to comment. Keep investing, keep minting. India has a very big future ahead so these are the best few years to invest in India.Be a smart investor because it is important that you choose the right stock to meet your financial goals.
NSE:RAJESHEXPOEducation
by chartistamey
10
NIFTY 50 (BULLs VS BEARs) Date - 13th March 2024 Time - 10:05 AM After seeing today's move of gap up opening and then filled the gap again. FIXED RANGE VOLUME PROFILE 1. This Volume indicator is more useful than ordinary horizontal and time base volume indicator. 2. Its Flexible to use and you can put wherever you want to identify at that particular time who are the dominators (BULLS OR BEARS), who made that particular move in market. 3. As we can see in chart, I have put 2 Fixed range volume tools for 2 different times, in that Red Lines come out it is showing POC (Point of Control) for that selected range. 4. If Current price is below POC line than we can say Bears are in Dominance , as per current situation in Nifty 50. 5. If Price roaming above POC line means Bulls are in all over Dominance so far. So, after using this tool we can identify within dark volume range (shown in chart) sluggish movement expected and Until Price won't break POC line and High-volume range either side strong and rational move should not expected. Lower the volume at any particular price faster the movement we can expect.
NSE:NIFTYEducation
by KRSCharts
A-Z About HEIKEN ASHI CandlesticksHEIKEN ASHI Strategy: 1.INTRODUCTION (WHY HEIKEN ASHI CANDESTICKS) Often trading on the trend gets difficult due to price action that makes trader exit trades early. (USELESS NOISE FORMED BY TRADITIONAL CANDLES) This mainly happens due to impact of one single candle or bar on Trader’s ability to hold positions. Through Heiken Ashi Candles , this problem is largely solved as Price Trend is clearly represented through these. LOOK at the difference between TRADITIONAL and HEIKEN-ASHI Candlesticks below: A) TRADITIONAL candlestick with a lot of noise during uptrend and downtrend which confuses most of the traders and forces them to exit early B) HEIKEN-ASHI with a smooth buttery experience while trading: -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 2.TYPES OF CANDLES Let us now come to the types of Heiken Ashi candles. In this chart, I have done 5 markings to explain the various types of candles in Heiken Ashi. a)The wide range yellow/green candles indicates good momentum and shows the stock shall be bullish for some more days unless and until there are signs of reversals b)The small body green/yellow candles represents the continuation of the trend although they show that the stock is not very bullish but is bullish c)SPINNING TOP- is formed when the body of the candle is very small (NOT A DOJI) and there is wick equal on both upper and lower side. d)The wide range red candles shows weakness in the stock e)INDECISIVE Candles- are formed when it is neither of the above candles (small body and irregular size wicks on up and down side) Always remember, size of body, shadows, and range of candle determines whether it Is bullish, bearish or neutral candle Do read futhur to understand -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 3) KEY RULES to follow There are broadly 5 rules that need to be followed when trading with Heiken Ashi Candles. DO HAVE A LOOK AT THE CANDLES SIMULTANEOUSLY Rule 1 – Green candles with no lower shadows indicate a strong uptrend: When you spot these on charts, be in the trade and don’t think about profit booking. You might want to add to your long position and exit short positions. Rule 2 – Candles with a small body with upper and lower shadows indicate trend change: These are indecision candles and require more confirmation. Rule 3 – Red/Black candles with no upper shadow indicates strong a downtrend: When you spot these on charts, be in the trade and don’t think about profit booking. You might want to add to your short position and exit long positions Rule 4 – Candles with long lower shadows represent Buying interest. Always take note of these candles and assess price action after you spot these candles. Rule 5 – Candles with long upper shadows represent selling interest and be cautious with existing long positions if you spot such Candles. -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 4) INITIATION AND CONTINUATION: You just need to know 2 types in trend analysis 1.INITIATION CANDLE 2.CONTUATION CANDLES 1.Initiation candle is one that sets the tone of Trend and defines underlying momentum for price. This is why Initiation candles are most important in Trend Analysis and Price action trading. 2.Continuation candles are ones that reaffirm the direction of trend and are useful to increase positions in the direction of trend. FREE TIP: When you begin price trend analysis, always look for initiation Heiken Ashi candles and then look for continuation candles. -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 5) IDENTIFYING STRONG TRENDS: In the chart below, let us see how a strong Up/Down trend looks like. In Heiken Ashi, we should be measuring strength of move based on Initiation Candles (Candles that represent strong trend). If you look at the chart, all markings that I have done are that of Strong Initiation candles on the downside and upside (BUY/SELL) When such candles are visible on the chart, invariably Price tends to move up/low. Always keep range of Candle in mind. It should be wide with no upper/lower shadows for uptrend and downtrend respectively. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 6) COMMON MISTAKES Most Common mistake when using Heiken Ashi Candles is to Enter or Exit Trades based on the color of Candle. Most beginners commit this mistake and this should be avoided at all times. Whether it is Heiken Ashi Candles or any other charting method, you need to understand the overall Market Trend and Context. Without this, you will find it difficult to Trade successfully over a longer period of time.(PRICE ACTION IS THE KING) This is just an additional filter like an indicator and should not be treated as the only parameter in your strategy...If trading was so easy then 90% wouldn't have lost their money in trading...Trading is like cooking you need to add the right ingredients in the right amount to taste a dish good.A pinch of salt less can ruin the entire hardword behind making the dish...Similar is trading...Will make a tutorial on risk management as well...Do let me know if you are interested only then it would be wise for me to proceed ahead. One of the main things you have to do is to analyze which candles contribute to Trend and which do not. This effective way of filtering out relevant candles from non relevant one’s is what will help you succeed with Heiken Ashi Candles. FREE TIP:(SAVES TIME DO READ) Always divide your Candles into two types; 1.Candles that have impact on Trend 2.Candles that have no impact This way, you will know which one’s to be focussed upon. -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 7)DISADVANTAGES: EVERY + HAS A - ELSE EVERY TRADER WOULD HAVE USED THIS STRATEGY TO MAKE TONS OF MONEY EVERYDAY The one main disadvantage that most traders refer to is that by the time Traders take positions based on Heiken Ashi Candles, the entire move is already over. While there is some merit to this, it is important to note that this mainly applies to short time frame charts. On higher time frame charts (30 Min to Monthly time frame), Heiken Ashi has tremendous benefits and Traders should try and incorporate these in their Trading arsenal. -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- I hope this tutorial as helpful for you to understand some basics of HEIKEN-ASHI candlesticks...There are many other types of candlesticks which have their own importance like RENKO and PnF candlesticks...Do let me know in the comments whether I should make posts on STOCKs that I Trade/EDUCATIONAL posts like this FOLLOW me for many more such content ahead...DO hit the like button...Till then, HAPPY TRADING :)
HEducation
by keshevdugar
166
How to find a BREAKOUT that has a high probability of success?The probability of a breakout getting failed is much higher than it's success rate.(A STOCK AT REST TRIES TO BE AT REST AND THE ONE IN MOTION TRIES TO BE IN MOTION like NEWTON's First Law Of Motion) But breakout trades are the most rewarding trades in stock market. So...if there was a method to find out a high probable successful breakout then it would have been a shade better to make money in the stock market. Here I am with a tried and tested strategy to differentiate a fake breakout and a successful one: FOLLOW the below steps: 1.Choose a stock from an up-trending sector (At present sectors like ENERGY, PSUs, REALTY, FINANCIALS AND AUTO (Just started) are examples of up-trending sectors). The reason for choosing a sector which is up-trending is that the liquidity is high in those sectors and thus increases the chance of the breakout by one shade. 2.The stock should be above 50 week EMA and above 200 EMA on a daily time frame and RSI should be above 60 (In daily time frame) This is the reason why HEROMOTOCORP Trade is struggling a lot as it is below EMA 200. 3.The stock should breakout from a consolidation of STAGE 1 structure. And if the stock is in prior uptrend followed by a consolidation and then a breakout again increases the chances like the recent one in RELAXO FOOTWEARS. 4.If the stock breaks out of multiple patterns like INVERTED HEAD AND SHOULDERS,TRIANGLE,STAGE,PARALLEL CHANNEL,TRENDLINE(The more the number of patterns being broken the better the breakout is) One example of this is TRIVENI ENGINEERING Trade that I shared 5.The breakout should be backed with high volumes (AT LEAST EXCEEDING 20 MA) 6.The closing of the breakout should be strong (NO long wicks) One more example I have is of INDIAMART Trade that I shared applying most of the concepts discussed above. NOTE: The above discussed method only increases the probability of a breakout to be successful as no strategy in the market gives 100% successful trades, so managing the risk is as important as the strategy and I will post a tutorial soon for this also. FOLLOW me to stay updated as soon as I upload it here. Till then, HAPPY TRADING :)
NSE:GRSEEducation
by keshevdugar
119
breakout trading !In technical analysis, a breakout refers to a substantial price movement of a financial instrument, such as a stock or commodity, surpassing a specific level of support or resistance. This occurrence is of paramount importance, as it frequently signifies the initiation of a new trend, offering traders and investors valuable insights for informed decision-making. Outlined below are key aspects related to breakouts in technical analysis: Definition: A breakout occurs when the price of an asset surpasses a well-defined level of support or resistance. The breakout can manifest as either an upward movement (bullish breakout) or a downward movement (bearish breakout). Significance: Breakouts carry significance as they indicate a shift in market sentiment, suggesting that the prevailing trend may be weakening or reversing, potentially giving rise to a new trend. Types of Breakouts: Bullish Breakout: This occurs when the price surpasses a resistance level, signaling potential upward momentum. Bearish Breakout: In contrast, a bearish breakout happens when the price drops below a support level, indicating potential downward momentum. Volume Confirmation: Successful breakouts are often accompanied by an uptick in trading volume, serving as confirmation of the robustness of the new trend. Volume analysis is instrumental in validating the legitimacy of the breakout. False Breakouts: It is important to note that not all breakouts lead to sustained trends. False breakouts can occur, wherein the price briefly breaches a support or resistance level but subsequently reverses. Traders commonly employ additional technical indicators or await confirmation before acting on a breakout. Measuring Target: Traders frequently use the height of the pattern preceding the breakout, such as a triangle or rectangle, to estimate the potential price target. This aids in setting profit targets. Common Chart Patterns Leading to Breakouts: Triangles: Symmetrical, ascending, or descending triangles often precede breakouts. Head and Shoulders: Both inverse and regular head and shoulders patterns can signal potential breakouts. Rectangles and Flags: Consolidation patterns like rectangles and flags can lead to breakouts. Role of Trendlines: Trendlines are commonly employed to identify potential breakout points. The intersection of a trendline with a support or resistance level is deemed a critical zone for a potential breakout. Risk Management: Traders typically incorporate risk management strategies, such as setting stop-loss orders, to safeguard against false breakouts or adverse market movements. In summary, breakouts in technical analysis are pivotal events offering valuable information to traders and investors about potential shifts in market trends. Effective breakout trading strategies involve confirmation, volume analysis, and meticulous consideration of various chart patterns.
NSE:MPHASISEducation
by pratik2358
2
Rahul's Road to Recovery: Battling Overtrading"Rahul's Redemption: Overcoming the Pitfalls of Overtrading" Once upon a time, in the bustling city of Mumbai, there lived a man named Rahul. Passionate about trading, Rahul was determined to make a fortune in the stock market. However, as the saying goes, "Too much of a good thing can be bad," Rahul found himself entangled in the web of overtrading. Rahul's journey began with zeal and promise, but his desire for quick gains led him down a perilous path. He succumbed to the allure of constant market action, making trades impulsively and without a solid strategy. The euphoria of potential profits clouded his judgment, and soon, the losses began to accumulate. In the depths of despair, Rahul realized he needed help. He turned to a mentor, an experienced trader named Aman, who empathized with his predicament. Aman had walked a similar path in his early days and understood the challenges Rahul faced. The Turning Point: Aman became Rahul's guiding light. He emphasized the importance of discipline and the dangers of overtrading. Together, they analyzed Rahul's past mistakes, identifying the triggers that led to impulsive decisions. Problem and Solution for Overtrading: - Problem: Overtrading occurs when a trader executes excessive transactions, often driven by emotions or the need to be constantly active in the market. - Solution: 1. Establish a Trading Plan: Define clear entry and exit points, risk tolerance, and profit targets before entering a trade. 2. Set Realistic Goals: Avoid the temptation of unrealistic profit expectations. Focus on consistent, sustainable growth. 3. Use Stop-Loss Orders: Implementing stop-loss orders helps limit potential losses and prevents emotional decision-making. 4. Regularly Review Trades: Analyze past trades to identify patterns and learn from mistakes. Keep a trading journal for self-reflection. With Aman's guidance, Rahul began to put these solutions into practice. He committed to sticking to his trading plan, embracing patience, and avoiding the impulsive urge to trade excessively. The Moral of the Story: Rahul's journey teaches us that setbacks are a part of the trading game, but learning from mistakes and seeking guidance can lead to redemption. The moral of the story is that discipline, a well-defined strategy, and mentorship are invaluable tools for overcoming the pitfalls of overtrading. As days turned into weeks and weeks into months, Rahul's efforts bore fruit. His trading approach became more disciplined, and he started to see consistent profits. The story of Rahul's redemption serves as an inspiration for every trader navigating the turbulent waters of the stock market. Remember, in the world of trading, it's not about the frequency of trades; it's about making the right trades at the right time.
BSE:SENSEXEducation
by iamrk7
3
The Ultimate Beginners Guide to Day TradingHello everyone My name is d3ffyduck I am today gonna post some cool and new tips For the beginners in Daytrading. I am gonna divide things in Chapters so you'll learn it with ease Read it till the end Hope You learn something Chapter-1 Timeframe selection The choice of the best timeframe for chart analysis in day trading can vary depending on a trader's strategy, preferences, and the market being traded. Different timeframes offer varying levels of detail and may suit different trading styles.For Example 1-Minute Chart: This timeframe provides very detailed information, showing price movements within one-minute intervals. I prefer Using it for precise entry and exit points In day trading 5-Minute Chart: Slightly less detailed than the 1-minute chart, the 5-minute chart still offers relatively short-term insights into price movements. I use to determine my momentum for the trade i want to hold for like 1-2hrs only 15-Minute Chart: This timeframe offers a broader view of the market compared to shorter intervals. I prefer it to determine my next day momentum of the market Chapter-2 Support and resistance Using RSI I know you all knows the basics for support and resistance but today i will show you the best way. Just open your chart and use RSI Indicator and we are going to mark the overbought areas high candle and oversold area lowest candle using it for different time frames. Just a note from my side do not mark those areas again if there have already a support or resistance line in different time frame and also you can remove those level of S&R which did not hold well in different time frames 1-day time frame=I have marked the regions where the RSI turned in the overbought or oversold areas. As you can see, I have not marked the support and resistance levels since they were already established from previous market overbought and oversold. 4-hour Time frame=In this timeframe, we will only identify the levels that are above 70 and below 30 in the RSI. We'll skip the R&S that are already marked on the daily timeframe. To reiterate, please refrain from marking those levels again if we can observe that our resistance and support levels have already been established on the daily chart. 1-Hour Time Frame = I've set my preferred timeframe to a maximum of 4 to 5 months. I don't want to go below this timeframe as it will create more noise. Additionally, I'll remove the support and resistance levels that didn't react well for buyers and sellers at this point to make the chart look cleaner Chapter-3 Determining the Trend Here in this chapter we are going to use only 2 Things to keep everything simple:- SMA+EMA 200= We are going to use simple indicator or just create yourself one indicator which plots both sma and ema with same 200 timeperiod. Rules are simple if below both ma look for short if above both ma look for long You can use it for 1hr and 15 min for day trading purpose Trendlines- Trendlines are your best friend.They are the building block for your Chart pattern look for trendlines in 15 min tf for day trading purpose Chapter-4 Significance of market opening closing,high,low This is one of the important chapter for day traders and i am going to tell you how an opening closing high and low effect the whole day trade. For Example 1-Open your Chart 2-Mark the opening ,closing highs and lows for previous 3-4 days 3-Those area are going to be area of interest Tip for the beginners. Do not take any trades for the first hour From the opening of the day For example if your market opens in 9:15 am dont take trades until 10:00-10:15 cause of high volatilty Another Tip for the beginners.If you prefer to take 2 trades a day close your previous 10:00 am trade At around 11:45am -12:15 pm and start looking for another one after that. the reason because i have seen this is the time for the most probable reversal or continuation of trend for the next leg of the day Chapter-5 Significance of Gaps in the market Gaps are one of the best way to decide what will be the market trend for the rest of the day There are two type of gaps in the market 1-Gap up 2- Gap down Tip for the beginners Only trade in the strong gap up or down and as i said before do not trade in the first hour of the opening Ill show you some scenarios of gap Trading with respect to opening of the day Scenario 1st strong gap up+ Stayed above above the gap and opening for the 1 hour(9 am-10am) We can see we had a strong opening stayed above the gap up and open for atleast 1 hour so after this the trend is decided Tip for the beginners Always follow strict Risk and Reward ratio like i use 1:1.5 Scenario 2nd strong gap up+ stayed below the gap and opening for the 1 hour(9 am-10am) We can see we had a strong gap up and opening but price stayed below the opening for 1 hour so we took the short as dropped below previous closing/high Similarly we can use this for gap down scenarios Final tip from my side are:- Do meditation for 15 min before trading hours Always use stoploss Use your preferred Risk Reward ratio like 1:1.5 Do not trade in opening Hour Gaps are like your friend Trends are like a path to success Do not overtrade Dont only rely on indicators there isnt any indicator which can make you rich Use only basic indicators such as Ema,Macd,Rsi and ATR PLEASE UPVOTE AND FOLLOW FOR MORE EDUCATIONAL CHARTS AND STRATEGIES
NSE:BANKNIFTYEducation
by D3ffyDuck
1
Mastering Demand Zones : A Deep-Dive !! Mastering Demand Zones: Advanced Techniques in Stock Market Analysis Introduction to Demand Zones: In the realm of technical analysis, demand zones play a crucial role in assessing price movement and making informed trading decisions. A demand zone, also known as a support zone, is a price range on a chart where a particular asset, such as a stock, has historically experienced buying interest and a halt or reversal in its declining price trend. Demand zones are essential tools for traders and investors as they provide valuable insights into potential price levels where buyers are likely to enter the market, thereby preventing the price from falling further. By recognizing demand zones and understanding their significance, traders can make more informed decisions, manage risk effectively, and capitalize on potential trading opportunities. However, it's important to remember that technical analysis is not foolproof, and market conditions can change rapidly, so using demand zones in conjunction with other analysis tools is advisable. Defination: (What is Demand Zone) In the stock market, a "demand zone" refers to a specific price range on a price chart where there is a higher likelihood of increased buying activity or demand for a particular stock or asset. It's a concept often used in technical analysis to identify potential areas of support where prices might reverse or bounce higher. Here's a simple explanation: Imagine a stock's price chart, and you notice that within a certain price range, the stock has consistently found buyers and reversed its downward movement. This range, where buying interest is strong enough to halt or reverse a decline, is referred to as a demand zone. It's a level where traders believe the stock is attractively priced, leading to increased buying pressure. A demand zone typically forms because traders remember that the stock performed well in that price range in the past, making them more likely to buy if the price revisits that level. Traders often use demand zones as potential entry points for buying a stock because they anticipate that prices could rise from that area due to increased demand. It's important to note that demand zones are not foolproof predictors of price movements. They are just one tool in the arsenal of technical analysis that traders use to make informed decisions. The effectiveness of demand zones depends on various factors, including market conditions, overall trend, and the strength of buying interest. Overall, understanding demand zones can help traders identify potential support levels where buying activity might increase, but it's essential to consider other technical indicators and market factors for a comprehensive trading strategy. ---   Chapter 1: Fundamentals of Demand Zones In the vast landscape of the stock market, demand zones represent not only a point of intersection between price movements and investor psychology but also a nexus of potential trading opportunities. To comprehend demand zones is to unravel the intricate interplay of market dynamics and human behavior, a synthesis that lies at the heart of successful technical analysis. Central to understanding demand zones is recognizing the core economic principle of supply and demand. When a stock undergoes a price retracement during a downtrend, buyers perceive the lower prices as an invitation to participate. As buyers enter the market, their collective demand counters the existing selling pressure, creating an equilibrium and, consequently, a demand zone. This zone marks an area on the price chart where bullish sentiment prevails and offers an optimal juncture for traders to intervene. The historical evolution of demand zones is a journey that traverses time, reflecting the evolution of market psychology and trading practices. From the rudimentary interpretations of supply and demand in ancient markets to the sophisticated analysis enabled by modern technology, the concept of demand zones has evolved into a multifaceted tool in the arsenal of the astute trader. This chapter paves the way for an in-depth exploration of advanced technical analysis through the lens of demand zones lets take an example now, For Example; In the bustling realm of the Indian stock market, consider "ABC Ltd," a prominent company that has been experiencing a downtrend in its stock price. As the stock retraces and heads toward a crucial level of ₹1,500, a demand zone materializes. This zone represents a psychological and strategic juncture where buying interest has historically surged. The fundamentals of "ABC Ltd" remain strong, including positive earnings reports and market sentiment regarding the company's future prospects. The demand zone around ₹1,500 becomes a focal point as traders and investors anticipate a reversal in the downtrend. This illustrates the fundamental principle that demand zones encapsulate the equilibrium between supply and demand, acting as pivot points for price reversals. ---   Chapter 2: Technical Tools for Identifying Demand Zones Embarking on the quest to identify demand zones requires a comprehensive arsenal of technical tools, each contributing a unique facet to the intricate mosaic of price movements. Among these tools, support and resistance levels emerge as bedrocks of price action analysis. Support levels, often synonymous with demand zones, represent historical points where price declines were halted and reversals were initiated. Conversely, resistance levels demarcate zones where price advances were stymied, underscoring their importance as potential areas of market reversal. The Fibonacci retracement is another pivotal tool that elevates demand zone identification to a refined art. Derived from the Fibonacci sequence, these retracement levels mark potential demand zones by assessing the relationship between a price retracement and significant ratios. Overlaying these ratios on the price chart unveils previously hidden levels that might serve as demand zones. Volume analysis steps into the spotlight as a complementary tool, painting the canvas of demand zones with intricate strokes. Analyzing the intensity of trading activity within demand zones provides a nuanced understanding of the commitment behind each price point. These tools, when woven together, form a comprehensive tapestry of demand zone analysis that goes beyond surface-level identification to discerning the potential strength and impact of each identified zone. Lets take an example now, For Example; Applying technical tools to the case of "ABC Ltd," we find that the stock has consistently found support around the ₹2,000 mark in the past. Utilizing Fibonacci retracement levels, we note that the 50% retracement level aligns closely with this support level. This confluence underscores the potential demand zone at ₹2,000 as a significant area where buying interest could surge. Adding volume analysis to the equation reveals that historically, increased trading volume has accompanied price bounces near ₹2,000, suggesting heightened market participation and potential accumulation. Combining these technical tools provides a comprehensive view of the demand zone's strength and potential impact on price movements. ---   Chapter 3: Characteristics of Strong Demand Zones Recognizing the chasm between mere price levels and robust demand zones is the hallmark of a seasoned trader. Strong demand zones boast an array of characteristics that set them apart and signify their potential significance in the broader market landscape. "Multiple touches" emerge as a defining trait of potent demand zones. These are zones where the price has rebounded multiple times, highlighting the consistency of buying interest. The cumulative effect of these touches validates the zone's status as a significant level, indicating that it holds sway over market participants. Volume amplifies the impact of demand zones, turning the spotlight onto the intensity of market conviction. Heightened trading volume within a demand zone infuses it with a surge of energy, underlining the collective sentiment that bolsters the buying interest within that zone. Moreover, the entwining of psychological price levels with demand zones enhances their magnetism. When a demand zone coincides with a round number or a historically significant high or low, it resonates with traders, inviting their attention and potentially catalyzing buying activity. This chapter equips us with the acumen to sift through the market landscape and identify not just any demand zone, but those endowed with the attributes of strength and reliability. lets take an example now, For Example; For "ABC Ltd," the ₹1,200 level emerges as a robust demand zone. Over time, the stock has repeatedly bounced off this level, creating a trail of multiple touches. Each touch signifies consistent buying interest, validating the psychological significance of the ₹1,200 demand zone. Additionally, substantial trading volume has consistently accompanied these price bounces, indicating a broad market consensus on the importance of this demand zone. Furthermore, the demand zone aligns with a historically significant low point for the stock, reinforcing its strength. These characteristics collectively amplify the potency of the ₹1,200 demand zone. ---   Chapter 4: Advanced Confirmation Techniques Identifying demand zones is only the beginning; validation through advanced confirmation techniques lends an additional layer of assurance and precision to trading decisions. Among the most potent tools in this arsenal are bullish candlestick patterns. These patterns visually encapsulate the sentiment shift within a demand zone, transforming bearish pressure into bullish momentum. The engulfing pattern, a classic candlestick formation, encapsulates this sentiment reversal by engulfing the previous candle's range. This dramatic change in price direction within a demand zone signifies a shift in market dynamics. Divergence analysis adds a dimension of complexity to confirmation techniques. By comparing price movement with an oscillator like the RSI, traders gain insights into market behavior dynamics. Positive divergence, characterized by the price moving downward while the oscillator trends upward, hints at an impending reversal of bearish sentiment. Mastery of these advanced confirmation techniques equips traders with an artful finesse to separate true demand zones from fleeting fluctuations, positioning them to navigate the market with heightened accuracy. lets take an example now, For Example; In the scenario of "ABC Ltd," let's assume the stock price has approached the ₹1,800 demand zone. A bullish engulfing candlestick pattern emerges within this zone, marking a powerful shift from bearish to bullish sentiment. This visual confirmation is an indication that buyers have overtaken sellers within the demand zone. Moreover, the Relative Strength Index (RSI) exhibits positive divergence during this time frame. As the stock price trends downward, the RSI moves in the opposite direction, signaling potential upward momentum. This dual confirmation through candlestick patterns and divergence analysis boosts the credibility of the ₹1,800 demand zone as a potential reversal point. ---   Chapter 5: Risk Management Strategies Within the realm of trading, where volatility and uncertainty reign, effective risk management assumes paramount importance. Demand zones, while offering alluring opportunities, also carry inherent risks. Navigating these intricacies necessitates a comprehensive approach that encompasses various risk management strategies. Central to this approach is the art of placing stop-loss orders. By situating these orders slightly below a demand zone, traders shield themselves from the specter of false breakouts. This strategic placement ensures that even if a demand zone fails to hold, potential losses are contained. Position sizing enters the equation as a cornerstone of risk management. Traders allocate capital in proportion to their risk tolerance and account size, preventing overexposure to a single trade. The principles of risk-to-reward ratios further contribute to a balanced approach, ensuring that the potential rewards of a trade are commensurate with its risks. In a realm where uncertainty looms, effective risk management strategies serve as the rudder that steers the trader's ship, guiding them through the ebb and flow of the market's tides. lets take an example now, For Example; Suppose you decide to trade "ABC Ltd" with the demand zone at ₹2,500 in mind. To manage risk effectively, you set a stop-loss order just below the demand zone, at ₹2,480. This buffer guards your trade against potential false breakouts and limits potential losses. Position sizing comes into play as well. You allocate a portion of your capital for this trade based on your risk tolerance and overall account size. This ensures that your exposure remains within acceptable limits and aligns with your overall portfolio strategy. By managing risk through these strategies, you protect your capital and minimize potential downsides. ---   Chapter 6: Demand Zones in Different Market Environments The dynamic nature of markets mirrors the shifting winds, prompting traders to adapt their strategies to different environments. Demand zones, as malleable indicators, respond in unique ways to various market conditions, underscoring their versatility. In a trending market, demand zones operate as veritable launchpads, propelling prices further in the direction of the trend. Here, demand zones transform into essential support levels that act as stepping stones for continued price movement. In contrast, the world of sideways markets presents a different challenge. Demand zones within a sideways range serve as both potential entry points and zones of caution. As prices oscillate within a confined range, demand zones offer traders the chance to participate in potential breakouts or capitalize on range-bound price action. Volatility ushers in a realm of both opportunity and danger. Demand zones become focal points of not only entry but also vigilance. In this environment, traders must remain nimble, ready to adapt their strategies in response to rapid market shifts. lets take an example now, For Example; Now consider "ABC Ltd" in various market environments. In a trending market, the ₹1,600 demand zone acts as a catalyst for trend continuation. As the stock retraces to this level, it offers an attractive entry point for traders looking to capitalize on the ongoing uptrend. During a sideways market phase, the ₹2,200 demand zone takes on a unique role. It acts as a pivot for price oscillations within the range, offering potential buy and sell opportunities. As the stock tests the upper or lower boundaries of the range, this demand zone could signal a potential breakout or reversal, highlighting its versatility. ---   Chapter 7: Incorporating Demand Zones into Your Trading Plan The culmination of demand zone mastery lies in the integration of this knowledge into a holistic trading plan. A comprehensive strategy that incorporates demand zones can serve as a compass, guiding traders through the tumultuous waters of the stock market. This chapter walks us through the process of crafting such a trading plan. Setting objectives is the first step, aligning trading goals with personal aspirations and risk tolerance. Establishing clear risk thresholds guards against unforeseen market shocks, ensuring that trading remains within predefined boundaries. The harmonious integration of demand zone analysis with other technical and fundamental tools is pivotal. This convergence results in a strategy that's not only robust but also adaptable, capable of navigating a range of market conditions. lets take an example now, For Example; Integrating demand zone analysis into your trading plan for "ABC Ltd," you set clear objectives. Your goal is to achieve a 1:2 risk-to-reward ratio for each trade. Considering the demand zone at ₹2,200, you set your stop-loss at ₹2,180 and identify a profit target at ₹2,260. This alignment between demand zone analysis, risk management, and profit-taking strategy ensures a comprehensive and calculated approach to trading. ---   Chapter 8: Case Study and Practical Example The true litmus test of knowledge lies in its application. This chapter dives headfirst into the practical realm by presenting a series of case studies that illuminate the effectiveness of demand zone analysis. Real-world scenarios—ranging from triumphant victories to humbling challenges—offer readers a firsthand glimpse into the art of demand zone trading. For example. Persistent Systems. In a recent case in the Indian stock market, "Persistent" encountered a demand zone around ₹4620-4760. The stock's price had been declining, but within this demand zone, a bullish pinbar candlestick pattern formed. This marked a shift in market sentiment, as buyers stepped in and overpowered sellers. Adding to the confirmation, the RSI displayed positive divergence, hinting at an imminent price reversal. Subsequently, "Persistent" rebounded from the demand zone, validating the power of demand zone analysis combined with advanced confirmation techniques in real-world scenarios. This case study unravels the dynamic interactions between demand zones and price movements, capturing the essence of trading in action. By observing the strategies employed and the outcomes achieved, we can gain an experiential understanding that transcends theoretical knowledge. Follow InvestYourAsset and boost your trading knowledge ! Please give it a like to motivate us if you appreciate the educational content.
NSE:PERSISTENTEducation
by InvestyourAsset
Mastering the Symmetrical Triangle chart patternHello Friends, Here we had shared Educational purpose post to understand & to master the Symmetrical Triangle chart pattern with real example on chart of the stock MARUTI. Symmetrical Triangle Chart Pattern A symmetrical triangle is a common chart pattern used by traders and investors to predict where the price of a stock or asset might go next. What It Looks Like Imagine two lines on a chart. One line is sloping up, and the other is sloping down. These lines meet at a point at the top of the chart. It looks like a triangle, where the lines squeeze together. What It Means Symmetrical triangles show that traders are unsure about where the price will go. It's like a coiled spring, ready to bounce in one direction. Why It's Important When the price breaks out of the triangle, either going up or down, it can be a signal of a big move. If it goes up, it's considered bullish (good for buyers). If it goes down, it's bearish (not so good for buyers). Trading Tips Wait for a clear breakout before making a trade. Don't rush. Watch the volume (how many shares are traded). A big volume increase during the breakout is a good sign. Be cautious of false breakouts – sometimes the price goes out of the triangle but then comes back in. If you already own the stock, hold onto it until you see which way the breakout goes. If you don't own the stock, consider buying after a reliable breakout in the direction of the major trend. In simple terms, a symmetrical triangle is like a pause in the market where everyone is waiting to see which way it will go next. Traders use it to make decisions about buying or selling stocks or assets. Setting Stop-Loss and Targets Stop-Loss A stop-loss is a predetermined price level at which you decide to sell your position to limit potential losses. When trading a symmetrical triangle pattern: Place your stop-loss just below the lower trendline if you're buying (bullish breakout). Place your stop-loss just above the upper trendline if you're selling short (bearish breakout). The stop-loss helps protect your capital if the breakout goes against your trade. Price Targets Price targets help you determine where the price may move after the breakout. You can calculate potential price targets using the triangle's height: Measure the height of the triangle (the vertical distance from the lowest low to the highest high within the triangle). After a bullish breakout, add the height to the breakout point for an upside target. After a bearish breakout, subtract the height from the breakout point for a downside target. These targets can help you set realistic profit objectives. Keep in mind that they are not guarantees, but rather potential price levels where the asset might move. Remember that trading involves Risk, and it's important to use risk management tools like stop-loss orders to protect your investments. Additionally, price targets provide guidance but don't guarantee specific outcomes, so it's essential to monitor the market's actual performance after a breakout and adjust your strategy as needed. I am not sebi registered analyst. My studies are for educational purpose only. Please Consult your financial advisor before trading or investing. I am not responsible for any kinds of your profits and your losses. 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...! Hope this post is helpful to community Thanks RK💕 Disclaimer and Risk Warning. The analysis and discussion provided on in.tradingview.com is intended for educational purposes only and should not be relied upon for trading decisions. RK_Charts is not an investment adviser and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Charts does not share in your profits and will not take responsibility for any losses you may incur. So Please Consult your financial advisor before trading or investing.
NSE:MARUTIEducation
by RK_Chaarts
15
Turbo Breakout Setup: High-Probability Trades with Precision.NSE:CNXFINANCE Hello Traders, In this video, I have explained a Breakout trading setup that will generate only high-probability breakout trades, that have high success rate than another breakout. The setup is based on a pure price action structure and does not require any indicators just we are using volume as a confirmation tool. Why does this setup work? The logic is very simple let's talk about the 1st variation of this setup:- Fake Breakout as you can see in this setup most of the time the structure completes after a fake breakout. So that fake breakout means the short sellers in the correction phase trying to defend there stop loss and make prices go down but what do you think for how long they will be able to defend that zone when buyers' strength is increasing? so after that when buyers push the price a little above-failed breakout zone the price hits short sellers stop losses and include new buying at that level to push prices toward the sky. What about scenario 2nd:- NO failed breakout but horizontal range inside trend resistance line. When the trend Resistance line and horizontal line break at the same price point it invites many traders to put a limit order above that horizontal line and most of the short sellers also have put their stop loss when that zone hit the price again and start moving towards the sky. Other factors and detailed setup have been explained in the video. Any setup is useless without a pre-defined stop loss cause you need to focus on capital protection first then you can aim for profits. Always take calculated risks and use proper position sizing. This is only for educational purposes only. Always trade with stop-loss. I hope you found this idea helpful. Please like and comment. Share with Your Friends. Keep Learning, Happy Trading!
NSE:CNXFINANCEEducation
by SANJAYPATIDAR_
9
Zig Zag corrective pattern and the Case study of Natural GasHello Friends, Here we had shared some major points and characteristics of Zigzag Correction pattern of Elliott waves. Also we had shared real example chart study of zigzag pattern as a case study of NaturalGas, in which their are some principles and guidelines, which are perfectly going through in chart of NaturalGas. Principles and Guidelines of Zigzag correction pattern 1) Zigzag correction pattern is a 3 waves structure which is labelled as A-B-C 3) Subdivision of wave A and C is 5 waves, either impulse or diagonal 4) Wave B can be any corrective structure as 3 subdivisions 5) Zigzag is a 5-3-5 correction structure Fibonacci measurements Wave B is always contra trend which generally retraces near 50% or 61.8% of wave A, and can also retraces up to 85.4% to 90% of wave A Wave C can generally be expected near 100% of wave A, but sometimes if it is extended then it can show 123.6%, 138.2% or up to 161.8% also. Sometimes if wave C is truncated then it can be near 61.8% of wave A. But ,If wave C is going more than 161.8% of wave A, then we should be cautious, because it can also be some kind of impulse wave instead of corrective wave. Case Study of Natural Gas Natural Gas almost done as expected till now as per zigzag corrective pattern, it would not be wonder if it looks to be doing a double correction higher in wave (ii) bounce & can see 2.786 level sometimes in next week before turning down as a wave (iii) of 5 of (C), On lower time frame if it doesn't crosses high of March 2023, then it can show some down moves to complete wave (iii), (iv) and (v) of 5 of bigger degree wave (C). After big correction as zigzag pattern which had already reached extreme levels in wave (C) which is more then 123.6% of wave (A), so now anytime it can start fresh impulse moves towards north directions, so instead of finding selling opportunities, one should try to find buying opportunities only after confirmation, and confirmation is price crossing high of march 2023, once its crossed peak point of march 2023 then no selling is recommended, then its only buy on dips with invalidation levels of Low of April 2023 as a stoploss, because it must be ending the bigger correction from last year peak, and can be taken as fresh impulse is started. I am not Sebi registered analyst. My studies are for educational purpose only. Please Consult your financial advisor before trading or investing. I am not responsible for any kinds of your profits and your losses. 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...! Hope this post is helpful to community Thanks RK💕 Disclaimer and Risk Warning. The analysis and discussion provided on in.tradingview.com/u/RK_Charts/ is intended for educational purposes only and should not be relied upon for trading decisions. RK_Charts is not an investment adviser and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Charts does not share in your profits and will not take responsibility for any losses you may incur. So Please Consult your financial advisor before trading or investing.
NEducation
by RK_Chaarts
4
Pattern Identification by Considering Safety in Analysis!Pattern Identification on any Timeframe! Importance of the Factor of Safety in Projected Target To avoid the Losses! How to identify Patterns and Project the Target on the chart! I have selected NVDA weekly chart for Technical Analysis. Here the Head and Shoulder pattern formed on the Top. We can see the previous trend of NVDA was an Uptrend so the probability of high that trend will get reversed after the neckline breakdown and the price has given breakdown to the neckline and it went down. I have projected the downside target by projecting the head to neckline length below the neckline. But we all know that, the things which are given in a theory doesn't work 100% all the time. So to avoid the buffer between Theory and Practical I have projected the line parallel to the neckline from the projected taregt so we should exit our position without waiting for the Theoretical projected target. This is my personal view to exit from our existing position without waiting till the end. Most of the time what happens is price reversed before our projected target. That's the reason i am sahring this Educational Idea to achieve maximum profit by considering Factor of Safety or You can exit your trade by achieving 80% - 90% of your projected profit. If you like this Educational Idea then Comment Below! Thank you!
NASDAQ:NVDAEducation
by Avinash9087
3
Determining trend and consolidation through wave cycles.MCX:GOLD1! In past, we have discussed how to know the quality of a trend and how to know a chart pattern's extrinsic nature according to the market phase. If you haven't read that then I want you to read that before to have a better understanding of this idea. Let's get started!! How to determine the trend or consolidation through the wave cycles and degrees. The trend moves in 3 different wave degrees:- For example , think of it like a multi-timeframe analysis. 1. Higher wave cycle (HWC) - This is a 1-month time frame trend. 2. Medium wave cycle (MWC) - This is a 1-day time frame trend. 3. Lower wave cycle (LWC) - This is 30 min time frame trend. So Without knowing which wave cycle is being traded one can encounter these problems:- 1. Inability to select consistent breakout levels. 2. Inability to select effective stop loss levels. 3. Inability to apply effective stop sizing. 4. Inability to distinguish between trend and consolidation mode. 5. Inability to determine the direction of the predominant trend. How can we eliminate these complications? 1. Consolidation and Trend Action in Terms of Wave Cycles and Degrees. A market may be both in trend and consolidation modes at the same time, depending on the wave cycle being observed. 2. We may also define breakouts via the degree of the wave cycles. Different degrees of waves help in determining whether a breakout will gonna be valid or not as a range formation near the higher wave cycle resistance zone will likely fail. In the above figure:- we have breakouts based on waves of lower, medium, and higher degrees. In other words, the breakout level will depend on the wave degree being traded. Being aware of the wave degree being traded will allow the trader to size the stop-loss effectively, according to the average wave amplitude and volatility associated with that particular wave degree. 3. Significance of higher wave degree reversals When big market trends change direction, it affects smaller trends as well. This is because all the smaller trends are part of the bigger trend. So, when the big trend changes, the smaller trends also change in the same direction. This is important to understand because it means that when you see a change in a big trend, it's a sign that many smaller trends are also changing. However, smaller trends changing doesn't necessarily mean the big trend will change too. Conclusion:- Always know which wave cycle you are trading and at what point you stand in that wave cycle. Note: In upcoming Ideas, we will cover how Waves are used in the Elliott Wave concept. I hope this short idea on trend or consolidation determination has added some knowledge and helped in improving your trading. please like and comment with your views on this idea. Keep learning, Happy trading. Thank you for reading.
MCX:GOLD1!Education
by SANJAYPATIDAR_
6
lets understand support and resistance in detail support and resistance they play a truly crucial role in trading If you want to trade like a pro, there's something you should know: Support and resistance, they're the stars of the show! this can be understood from the below:- Support is like a floor, it holds prices up high, Resistance is a ceiling, prices can't seem to fly. When prices hit support, they tend to bounce back, And when they reach resistance, they often lose track. These levels are key, they're a trader's best friend, They help you to enter, exit, and defend. So pay attention to support and resistance, my friend, They'll help you make profits and trade till the end! volume confirmation along with breakouts are beautiful
NSE:ANURASEducation
by pratik2358