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Tata Motor - Runaway gaps or Exhaustion Gap (Learning) Runaway Gaps Good uptrend can have runaway gaps caused by significant news events that cause new interest in the stock. There is a significant increase in volume during and after the runaway gap. Recent Events - Tata AGM 2022 Exhaustion Gaps This Gaps formed near or the end of good uptrend. Identified by high volume with a large price difference between previous days close and opening price. This are quickly filled as prices reverse their trends. Please let me know if I am wrong or rights.
NSE:TATAMOTORS
by sarangmv
2
Breakaway GapWhat is the Breakaway gap? It occurs when the price goes above the resistance or below the support. It changes price direction from the existing chart pattern. Here, there was a price trend for 1 month where prices were trading in the ascending parallel channel. But on the 13th of June, it changed its direction. Impact of Breakaway gap? It creates a strong resistance. When it occurs on the downside, the probability of the gap getting filled is very low because market participants become fearful and a chain reaction kicks in. Whereas in an upside breakaway gap, it acts as support and there is a higher possibility of slight retracement because here participants become greedy and close their position. How to trade it? In the downside breakaway gap, consider the low of the previous candle as a point of exit and short the calls In the Upside breakaway gap, consider the high of the previous candle as a point of exit and short the puts
NSE:NIFTY1!Education
by OK_Rane
1
crazy gap down, simple expiry.What an expiry today, with interest rate fear taking nifty down. Look at the chart. There was a huge gap between the opening and the consolidation. Looking at the nifty 5 minute chart, there is a strong upward trend, supporting 50 EMA. Every time the Nifty is at the 50EMA,  good buying activity. At one point, it indicated that it was about to cross the 18000 mark. But as we saw, the channel was created with respect to Nifty, and yesterday it was above the line at 18,000. Price action is at an important level, and profit booking may begin from there. I was expecting that. In the coming days as well, I will closely watch the 18000 level. If it tests again, rejects, or consolidates below the level, it might break out from there again. But with a positive global clue, it's hard to bark at the 18000 level. Keep an eye on FII DII activity. If FII starts buying and DII is still buying, but if DII starts booking their profit, the power of the nifty might slow down. Let's keep an eye on all these activities. When it comes to my weekly option selling this week, I am in the green. But I haven't booked the loss for the 13th expiry (17300 PE). If I book the losses, my net profit and loss will be close to 2%. This 50EMA buying activity helped me to get out of huge losses this week. And I had 17650 PE and my 13th expiry (17300 PE) yesterday. I booked other positions with Profit. Because I was expecting a retest, I took this safe position. The day began with a gap down, which allowed me to exit with a good profit. On the PE side, there is a premium spike, and there is a massive spike on the 17550, 17600, and 17650. My plan for the 13th expiry (17300 PE) is to sell anything above it with a good premium to minimize the losses. I will keep adjusting on my call side as well. I hope I can manage a 2% loss while trying to keep the net P & L green.
NSE:NIFTY
by Manuadarsh
Technical Analysis & Trading- No confusion... gr8 combination 😀Nifty In morning when Nifty was trading well above 17600, this is what we had posted... We warned about possible downside based on simple understanding of Gaps... We did not get carried away with the positive momentum but simply went with what Technical Analysis indicated us. And boy oh boy... it did not disappoint us at all...😀 It gave us clarity to book profits in our Long position that we had taken earlier... and also gave us confidence to short at the higher levels. We shorted in morning when Nifty Spot was at 17617 and covered our position when it was at around 17450. A good swing opportunity captured with the help of Technical Analysis. No confusion.... great combination... 🙂 Happy trading...!!!🙂 Still need reasons to follow...!!! To trade with me... Direct Message me
NSE:NIFTY
by indiamarketoutlook
4
Nifty: 3rd Gap up opening. Would it lead to exhaustion in rally?Nifty In our previous post we had indicated a bullish stance based on the chart set up.... Accordingly we had shorted Nifty 17000 Put option for 30 Dec expiry around 100. Today we see Nifty opening with a big gap up and that chart set up analysis did helped us. We have duly booked profits in our trade. The current set up makes us feel... It's time to be cautious..!! Take care & safe trading...!!! Disclaimer - The view expressed here is my personal view - Past performance is not a guarantee for future predictions - Use this for educational purpose - Any decision you take, you need to take responsibility for the same - It's your hard earned money. Treat it wisely - Trade / Invest keeping in mind your trading style, goals and objectives, time horizon & risk tolerance - if trading in F&O, understand that F&O trading involves risk - Do take proper risk management measures - Do your own analysis and consult your financial adviser if need be
NSE:NIFTYShort
by indiamarketoutlook
Nifty: Traders with Plan and patience rewarded with minimum riskNifty In my previous post, it was mentioned that reduction in Open Interest does not augur well for Nifty's march towards 16K to continue. Profit booking was suggested accordingly without any bias expectations but based on study. Also for momentum play, a better strategy would be to wait for a gap zone to be taken out: either the resistance gap or support gap which ever side the gap is taken out expect a momentum in that direction. Both the above points were clues given by Technical Analysis and Derivatives Analysis and have been discussed here in my earlier post clearly. Today the results are in front of you... Do your study, Trade with a plan and increase your chances of winning trade... Follow for more such ideas But don't just follow me blindly, Learn to identify opportunities independently Regards Vaibhav Deshpande indiamarketoutlook
NSE:NIFTY
by indiamarketoutlook
Nifty: For fresh position Gaps might give the next signalNifty In my previous post when Nifty was at 15638 we had given a positive trading strategy and that was to Consider to sell 26 Aug expiry 15400 Put option around 150 However at current levels, there is no clarity once again. Why am I saying this? Usually when price increases, Open Interest in Futures should also increase. However, it was observed that the rise in price was accompanied with reduction in Open Interest by 8%. which fuels that yesterday's rally was led by short covering rally. Hence it is prudent to wait to see whether there is a follow up buying or not. Another way to look at it... We have a gap resistance zone on the upper side and gap support zone on the lower side. Both the gaps are not that far away... If the gap is taken out it would give clue where the strength lies. For fresh position, one can wait for Nifty to break either of these gap levels on hourly chart for a trade in that direction. Strategy update 15400 Put option CMP 74 recommended booking 50% profit at 72 and trail Stop loss to 90 for balance. This would ensure profitability in trade. Take care & safe trading...!!!
NSE:NIFTY
by indiamarketoutlook
TCS - Breakout Possible1. After a Breakaway gap with huge volumes last year, the stock made a good upside move. 2. For the past few months, the stock is forming an ASCENDING TRIANGLE PATTERN. 3. There is resistance at 3350, which it is trying to break. 4. There is a breakout on Daily chart with good volume. 5. However, let it sustain the breakout on the weekly chart as well and wait for the weekly close above 3350. Otherwise, you may be trapped in a breakout failure. 6. The stop loss can be at the break of ascending trendline (Purple in colour). 7. The target can be equal to the height of the triangle which is 460 points. This is to be calculated from the resistance level which is 3350. Also, note that the NIFTY IT is also making an upside move which should strengthen the move of individual IT stocks. Target : 3350 + 460 = 3810 (3800 round level) SL : At the break of Trendline Buy: 3350-3400 Time period: This can be a medium term target as the stock moves steadily. Disclaimer: This is purely an analysis for learning and sharing knowledge. This is NOT a buy/sell recommendation. Please do your own research and add value to it. Thank You.
NSE:TCSLong
by sacban89