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Idea: Important Lessons to be learntGreetings of the day...!!! Sharing one case where we almost paid the penalty of not listening to chart... Some days earlier we recommended a short in idea around 78 for targets of 76 and 74 Things were going good and our 1st target was achieved within hours.... Booking partial profits when target 1 was achieved was good but there after... There were some elementary mistakes that we should have taken care of and should have avoided... Here were some mistakes that we made... sharing so that one can learn and avoid those mistakes and make himself/herself a better trader .... 1. Should have trailed SL to 78.30 instead of keeping it at 79.60 Looking at the charts will suggest the importance of 78.30 The stock came out of the falling channel.... The message was clear....Chart was telling us loud and clear.... EXIT EXIT EXIT There was a clear indication and ample time to exit from short position at cost itself for balance position... but we did not obey what charts were telling us... Even at 79.60 we should have exited but were adamant and expecting the stock to fall because of bias of our postion may be & We almost paid the penalty as the stock went up to 83 thereafter but luckily for us, again charts were at rescue and suggested not to panic but add short position again and we did so around 82.25 And today we were able to book profit at 79.70 and 78.80 respectively (our avg cost of open position was 80.125) Lesson to be learnt If we are looking at charts for our trade we should Listen to charts completely... and not let our will / expectation / ego to come in between, beacuse our expectation always has a desire attached to it and we become bias which is not good .... ------------------------------------------------------------------------------------------------------------------------------------------------------------------ So yes, Although the trade has given good profits overall ...we r not happy with the way we earned but I sign off thanking and respecting charts for helping and bailing us out this time... Regards & Take care...!!!
NSE:IDEAEducation
by indiamarketoutlook
2
The Bear Market Psychology-Price Volume Analysis As this post is merely for educational purpose, let the stock remain anonymous for the time being. The analysis would not only be applicable to long term charts but also to smaller time frames. I have found two important phases of Panic Sell-off in a bear market. One in the beginning and one in the end. The former phase is good for sellers and the latter is good for buyers. As can be seen on the colored bars on left of chart, there is maximum erosion of capital (32%) in first phase (red bar). Then the downthrust reduces in successive breakdowns (10% and 9%) till the last phase (just assuming that its the last phase..read full post to understand this point) where it increased to 13%. The correction started with the break of Level 1, an important swing point low of the last leg of the bull move. At this level, big fund houses, swing traders and smart medium term traders are the first one to move out. On the same day a major swing low of the larger bull run was broken at 918. Majority of the long term investors would have sold their positions this point. You can notice huge volumes on this day. The sell-off In Candle ‘b’ might have been from investors who wait for confirmations. Candle 'a' and 'b' represent the ‘Panic Sell-off’ by traders and investors. Stock rallied from 'b' but the bear run continued. The stock consolidated at Level 2 for some time and broke that level too in candle 'c'. Candles 'c to e' made successive lows but look at the volume, there is dearth of supply. Stock made a nice rally form 'e'. Some optimism is seen in this rally as stock started to rally above Level 2 support. At this point a general conception would have been that the downmove was merely a correction and stock would rally. The areas marked with rectangle are where new traders and investors got trapped. Their stops might have been under Level 3. And then came the moment..Boom!! A gap down opening at 'f'. Level 3 lows are broken. All those who were trapped just sold off, and everybody agrees that the stock is in a bear market. Volume on that day was the heaviest so far in this bear run. Next day there was no continuation of downtrend. Heavy support came back at 'g' resulting passive rally. Buyers have less confidence in the stock. But still some buyers got trapped as stock consolidated for a considerable time above Level 4. The volume was bleak during this consolidation—which according to books is a good sign. But no one knew that its not over yet. Whooop!! Level 4 is also broken in candle 'h' and made successive lows in i, j and k. May be those who bought above level 4 sold in this move. But just look at the volume and compare to volume at a, b, c, d, e and f. Notice that there is very less supply now means buyers are not interested in selling at this price. They want to hold and sell high. At 'l' stock made a lower low but rebounded with increase in volume. Huge overhead supply came at 'm' but this supply is absorbed by the buyers resulting into a v-shaped rally. The volume at this stage are still average because buyers are waiting for confirmations and strength. It is the long term investors who are buying again at this stage. What next? Nobody knows yet if bear market is over. But minimum supply in last fall below Level4 and the absorption in the recent rally is the first sign of relief. However, there might be pull backs, shallow rallies, retest of lows or consolidation before the stock comes under ‘scanners’. Although I could not cover the whole chart bar by bar in my analysis (covered most important candles only) yet this brief summary of a bear market psychology would help investors and traders in future. Please hit 'like', follow and share if you found it interesting. #This is DivisLbs daily chart.
NSE:DIVISLAB
by Bravetotrade
23
Sunday Special : TechM analysis & Waves !The concept lying behind this post is how to trade with Elliot waves and use it to our advantage, with simple known techniques. Many will have doubts on how Elliot Wave count is done.It's as simple as 1-2-3, I will explain step by step. This is gonna be Learn n Practice post, so with each step mentioned, you draw & analyze along with Me, So that you can learn more efficiently. Why I do this ? I'm completely loaded with pings on how to be successful & Nifty trade ideas boosted it up & All are very eager to learn, I really appreciate their effort to learn instead of losing money by taking Risk. So here it goes... I'm gonna share everything from Now on, to help every individual who aspires to taste success in trading... Very Important Step : Keep your charts clean. Remove all indicators, just keep candles only. We rarely use any indicators ( that's My Style ! ). Only Candles are Enough ! Step 1 : Open TechM & choose 1h charts... Just to make sure,Wiped your charts clean ? No, Indicators right ? Lets Proceed... Step 2 : Take a look at your left pane, there are awesome tools from tradingview & Click on 6th icon & choose Elliot Impulse Wave (12345). Step 3 : Identify any Swing High or Swing Low, Here our starting point is 512's(approx) @ 26-Jul-15 {Make a click with Elliott wave tool}. Why this point, not some other point you may ask, For Learner's easiness & to avoid confusion I keep it simple, so lets proceed. Step 4 : With Elliot tool in hand, all we need to do is identify & click on Swing Highs & lows alternatively. So, next swing low 476 {Wave 1}. Great ! You have drawn Wave 1 Successfully. Kudos to You :) Step 5 : Next swing high 509{Wave 2}, next swing low 448 , next swing High 483 {Wave 4}, Final swing low 449 {Wave 5}. Step 6 : Now check rules of Simple Elliot waves. Below rules are not perfect elliott rules, these are what I use. The 5 primary rules I use are below : 6a) Wave 2 Should not retrace fully over Wave 1 6b) Wave 3 will be Longest {minimum over 161.8% Fib extension of Wave 1} 6c) Wave 4 should not retrace more than 50% of Wave 1 {Not Elliots, just My Style of Filter} 6d) Wave 2 or Wave 4 should not be longer than Wave 3 6e) Wave 5 should be almost equal to Wave 1 Step 7 : Check rules mentioned above & if everything matches... Awesome Guys... You have drawn Elliot waves successfully. Kudos & Appreciate yourself :) Now analysis part, We have previous support in 448 zone right ? So possible Double bottom in same zone ? Yeah, it can happen. So ideal to get long on TechM with Elliot completion & Double Bottom if there is Bullish confirmation. Absolutely, sounds like we got Plan. Thats it..it's so simple ! I have marked rectangular pattern around wave 2 & its breakout and aggressive setup on Wave 3 end to catch wave 4, if I go on explaining past... I can do all day...But Past points & successful trades are worthless I feel. So straight to what's happening now... I don;t trade sharks alltime, so I drew that just for identification purpose here. I cut short this analysis part bcos There are lot of Sunday & Weekday Specials to come.. From simple candlesticks to Complex Elliot's,analysis... Everything with complete details from Patterns to Strategies, to make your trading career & life Successful :) On Fun Note : I hope other author's won't be in hurry to get ahead of Me in sharing Strategy's & Patterns setups. Even if they do what you get here will be Unique, I assure :) I don't want you guys to lose money, like I did some years before around 2009's. Thats why I share these to help you guys & to protect your hard earned money. Open charts, draw Elliots step by step on every chart , today is Sunday, Practice Hard. Don't say excuses - as you got movie to catch, got to sleep in afternoon, Losing Money will give you sleepless nights which is worse. So its good to learn n practice before trading. {if there are typo's/errs bear with Me}
NSE:TECHMLong
by InsiderB
13