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Harmonic Patterns

One of my biggest lessons market taught me, read description.I always wanted more from the swing trades I took and I failed to recognise the right target for my trade which many times lead to the stock going down from a major resistance or a trend reversal because of the resistance zone because of which i had to lose a winning trade many times and with time and practice i realised what is best for me is to sell that stock in a major resistance if there is no sign if it will break the resistance such as accumulating volume, anyway i can buy the stock back if it manages to break the resistance , in the reference chart also we can see two major trend reversals because of the resistance.
NSE:GMDCLTDEducation
by Jayesh_chopra
2
Wyckoff Distribution Scheme - Catch early - Beat the Operators!A classic example of Wyckoff Distribution catching retail investors off guard in Olectra Greentech Limited over a couple of years. It is important to analyze the same chart through different time-frames. New patterns can emerge this way! Full Text Reference, highly recommended must-read - school.stockcharts.com PSY—preliminary supply, where large interests begin to unload shares in quantity after a pronounced up-move. Volume expands and price spread widens, signaling that a change in trend may be approaching. BC—buying climax, during which there are often marked increases in volume and price spread. The force of buying reaches a climax, with heavy or urgent buying by the public being filled by professional interests at prices near a top. A BC often coincides with a great earnings report or other good news, since the large operators require huge demand from the public to sell their shares without depressing the stock price. AR—automatic reaction. With intense buying substantially diminished after the BC and heavy supply continuing, an AR takes place. The low of this selloff helps define the lower boundary of the distribution TR. ST—secondary test, in which price revisits the area of the BC to test the demand/supply balance at these price levels. For a top to be confirmed, supply must outweigh demand; volume and spread should thus decrease as price approaches the resistance area of the BC. An ST may take the form of an upthrust (UT), in which price moves above the resistance represented by the BC and possibly other STs before quickly reversing to close below resistance. After a UT, price often tests the lower boundary of the TR. SOW—sign of weakness, observable as a down-move to (or slightly past) the lower boundary of the TR, usually occurring on increased spread and volume. The AR and the initial SOW(s) indicate a change of character in the price action of the stock: supply is now dominant. LPSY—last point of supply. After testing support on a SOW, a feeble rally on narrow spread shows that the market is having considerable difficulty advancing. This inability to rally may be due to weak demand, substantial supply or both. LPSYs represent exhaustion of demand and the last waves of large operators’ distribution before markdown begins in earnest. UTAD—upthrust after distribution. A UTAD is the distributional counterpart to the spring and terminal shakeout in the accumulation TR. It occurs in the latter stages of the TR and provides a definitive test of new demand after a breakout above TR resistance. Analogous to springs and shakeouts, a UTAD is not a required structural element: the TR in Distribution Schematic #1 contains a UTAD, while the TR in Distribution Schematic #2 does not.
NSE:OLECTRAEducation
by Wolf-AD7
2
Emotions You Also Have To Deal With !Hi Friends and Traders, Thought of sharing this interesting trade that really tested my patience and invoked all sorts of thoughts (that one has to control) to win over the markets. Perfect Entry Good Risk to Reward Market was not in the mood to reward me yet :-) Went completely sideways for almost 20 days Stuck with the trade as the price was in HH , HL formation and way above my SL levels As per my analysis 140 level was crucial and breakout above that was needed to sustain at higher levels Stock attempted multiple times and my conviction grew However as time progressed , movement became more sluggish Stock started making LH , LL Swing Highs started moving lower Crucial Support Zone started being tested by SELLERS multiple times No Matter What My Initial Exceptions Were - Market was NOW indicating that It has no Steam left to give me the MOVE I expected...Expiry was 2 days away and margin requirements would HIT THE SKY. IT WAS Time to Cut The Trade - All and All a PROFITABLE TRADE (approx. 10 K Per Lot) Lots of Learnings that a starter should take from this : NEVER EXIT YOUR UNLESS YOU HIT STOP LOSS OR TARGET PROFIT DO NOT LET YOUR THOUGHTS MAKE YOU DO TRADING ERRORS DO NOT OVER ANALYSE THE TRADE ONCE YOU ENTER TRADE WHAT YOU SEE AND NOT WHAT YOU THINK CONTROL YOUR EMOTIONS (FRUSTRATION , PANIC , ANGUISH , GREED ) P.S: ROLLOVER TO JULY ON THE CARDS
NSE:IGLEducation
by FourSTechnicalAnalysis
SENSEX : to correct 10% from here ?SENSEX after the index had a spectacular rally for more than one year from 2020 ( march ) covid crash low of 25000 levels to 52300 in 2021 ( june ) is heading towards major resistance , and can have a correction of 10% from here , due to many valid factors factor 1 : bearish harmonics pattern ( monthly ) factor 2 : fibonacii reversal zone 1.618 factor 3 : resistance & upper resistance trend line factor 4 : stochastic RSI at overbought zone of 100 factor 5 : highly stretched valuation from CMP 52300 can correct up to with targets : 49100 / 47740 / 46160 / 44315 stop loss of 53875 closing above trend line
BSE:SENSEXEducation
by HARMONICSANAND
1
BANK NIFTY POSITIONAL | LOSING TRADE | BREAKDOWN AND SETUPHi Traders, Everything seemed Perfect for this positional Trade. Price attempting to breakout resistance for the 3rd time Build up at resistance Price moving in an Uptrend Support taken from Trendline Hammer like formation showing buying presence Entry on 7 Jun Exit on 10 Jun LOSS PER LOT - INR 7500/- PROFIT PER LOT : INR 23000/- This Futures position was hedged with a PE of the index. Though we had multiple confluences , I never trade without a stop loss Now in the case of bank nifty , the daily volatility is in the range of +-300 points , hence it did not make sense purchasing naked futures and maintaining a Stop LOSS Trigger as any normal move of bank nifty could trigger a stop loss A PE was purchased to CAP the maximum loss per lot to 7500 /- Now if you notice on the charts , without PE , I would've been stopped out immediately on the same day Because the position was HEDGED , I was able to carry the trade for 4 days Also note the margin requirements for a HEDGED position reduces significantly (Almost 1/4th) Respect the Markets and Trade with a strict stop loss. LIVE ANOTHER DAY !! Keep This Information Handy and Happy Trading. NOTE : HAD THIS BEEN A NAKED FUT TRADE , THE PAIN OF SEEING A NEGATIVE P&L OF 20000 /- PER LOT WOULD MAKE TRADERS TAKE EMOTIONAL AND IRRATIONAL TRADING DECISIONS. ALWAYS TRADE WITH STOP LOSS AND ENJOY WHAT THE MARKET OFFERS :-) ******* KEEP A CLOSE WATCH FOR A BREAKOUT ABOVE THE LEVEL OF 35500 AGAIN FOR BUY *****
NSE:BANKNIFTYEducation
by FourSTechnicalAnalysis
1
Harmonic PatternsHarmonic Patterns in any Markets. Harmonic price patterns take geometric price patterns to the next level by using Fibonacci numbers to define precise turning points. Unlike other common trading methods, Harmonic trading attempts to predict future movements. (Investopedia) The patterns were introduced to the trading world by Harold McKinley Gartley in 1932. Gartley created a pattern which he named after himself and outlined in his 1935 book, Profits in the Stock Market. These patterns used for turning points or completion of one swing move. See BEL charts Pattern completed on 19 may 2021. Price not reversed but took some time. Anyone wants to learn may clear the doubts.
NSE:BELEducation
by cup_handle
3
NMDC 30% MOVE CAPTURED | PRICE ACTION | PRACTICE AND PATIENCEHi Friends, Wanted to share this learning of SIMPLE PRICE ACTION Techniques that once practiced with patience yields results !!! #FANOFTRIANGLES #PRICEACTION #SWINGANDPOSITIONAL PRICE ACTION USED BREAKOUT FROM DESCENDING TRIANGLE IN DAILY RETEST IN DAILY FORMING SUPPORT BREAKOUT AND RETEST IN HOURLY FORMING SUPPORT ENTRY Thanks For Your Time. Feel free to reach out to me for any queries. Join me as I teach and impart my learnings on my channel..
NSE:NMDCEducation
by FourSTechnicalAnalysis
1