Learning
Bearish Engulfing Pattern...For the bearish engulfing pattern, there are 3 criteria:
1. Market has to be an in an uptrend. The VRL price was in an uptrend until it reached its high and then the bearish engulfing pattern formed.
2. The second body of the pattern must engulf the prior real body. Here, both the engulfing patterns marked in the chart, display these characteristics.
3. The second body of the pattern must be the opposite color of the first body.
NIFTY Possibilities Compared With India VIXEven though the chart is self explanatory, I have tried to compare NSE:NIFTY with NSE:INDIAVIX
Blue line is NSE:INDIAVIX
Brown line is NSE:NIFTY
Dashed red line is trendline support and NF breaking above that
Light yellow line is support line for NSE:INDIAVIX
2 possibilities exist -
1) India Vix continues to trade below or near the support line, and we may see some price stability for NF. Before embarking on the next journey, we may inch higher or consolidate around these levels.
2) The India Vix rises again, and the price begins to fall from its current levels.
Another thing I noticed unfolding on both indices charts is this -
1) NF & BNF on DTF are almost at the upper end of Bollinger Band
2) Trading above 20/50 EMA
3) Both indices have a rising window candlestick gap on DTF ( July 6th and July 7th ) -
a) It is a bullish continuation candlestick pattern
b) A Rising Window candlestick pattern is a 2 candlestick pattern
1) There must be an empty space between the two candlesticks in the pattern where the prices do not overlap
2) Pattern is characterised by a price gap appearing between the first candle's high and the second candle's low
c) It is possible for the first of the two candlestick patterns to have a red coloured real body, however the most likely scenario is two green coloured candlesticks that
make up the pattern ( this has been established with the candles formed on both indices on July 6th and July 7th )
For July 8th, from my limited knowledge, 2 possibilities exist -
1) We fill the gap on the downside and close below the high of July 6th candle. This would nullify the pattern and price may head down again as bears have taken the control during this upmove
2) We go down and close just above the high of July 6th candle without completely filling the gap. If this happens, bullish momentum for the time being should continue
Let's see which way the story unfolds. Happy Trading!
Disclaimer -
- The view expressed here are my personal views. I am publishing this for my own records and what I see on charts.
- If you're referring to this, please consider this ONLY FOR educational & research purposes.
- Past performance is not a guarantee for future predictions
- Any decision you take, you need to take responsibility for the same. DO NOT consider this as an investment suggestion.
- It's your hard earned money. Treat it wisely
- Trade / Invest keeping in mind your trading style, goals and objectives, time horizon & risk tolerance
- Do your own analysis and consult your financial advisor before investing.
TIA!
Stage analysis of Delta Corp LtdThe stage analysis of my buying and selling of Delta Corp is to bring home the point that it is always good to sell when the stock is in strength.
I missed selling in strength and also my biasness caused me to delay the sell, even when the stock started showing signs of technical weakness after making a climax top.
Learning for trading: Book profit when the stock is strong and be ruthless when the technical parameters turn negative.
Control emotions during tradeIt is very important to control your emotions during trading, human emotions are a big hurdle in trading, you can not maintain discipline if you can not having control on your emotions. Without discipline you can make money in market but you can't retain it.
Here is 5 things you can adopt to improve your trading skill and control emotions.
SET ALERTS :
we use to watch market continuously and during watch we see so many trades which we should not take, it disturb our trade filtration and also affect out trading phycology, we should wait for our levels and what our set strategy giving trade not to enter early or fake trades, you should set alert according to your levels,chart pattern,breakout or breakdown, any of your trading strategy you are using, there is no need to watch screen constantly in this free time you can also paly any indoor game to keep you mind refreshing and active,
once your price alert hit come up on screen then you can go with your trade.
VOLATILE HOUR :
some time we find trades in sideways or less movementing market and it face us stop loss, no movement or very small target, it's better to took any trade in volatile hours so that trade can exactly work according to your strategy try to avoid trades which are generating in less market movement.
Generally Indian market movement is
9:15 to 9:30 very volatile
9:30 to 10:00 volatile market
10:00 to 11:30 stable market
12:00 to 2:00 correction/stable/new/global market
2:30 to 3:00 volatile
3:00 to 3:30 last volatility
NEVER WATCH YOUR PROFIT & LOSS DURING TRADE :
when we see running profit loss in dmat it automatically affect psychology of trade and we start convening our self for exit, same side in profit and and loss also some time we more think to hold that trade either to exit.
we should took trade and either to see p&L we should watch only price and exactly exit according to our strategy do not exit too early do not exit too late if you took that trade according to your pattern, technical any strategy then you should also exit according to that strategy. watching price in compare of P&L helps a lot for long run.
STOP AFTER THREE CONSECUTIVE WINS OR LOSSES :
it is very important to stop at a point every day in trading, if you did 3 trades either continuously wining trade or loosing trade, at this point you should stop your trading for the day.
market is not for one day it will open again next day with same things. do not excited in profit and also in loss, if it was bad day not a problem close your terminal come again next day with fresh mind do not influence your fresh trade with old one .
TAKE BREAKS :
taking break in trading is very important to keep your mind happy active and fresh every time, as just we do keep our personal and professional life separate, do not mass up one with other.
take your self out on weekend do not think about your regular profit and loss take proper break that you need.
BankNifty Intraday Trade Setup for 19th May 22 (Trading Idea)After a huge Gap down, we have seen some buying happening and the market is moving slowly and steadily towards the upside, so what should be our trade plan for the day? Since today is Thursday and chances of Premium decay as well as volatile delta moves is very high, so we should wait for some time for the market to show us the right direction
Be active on this post to see my live positions and Trade
Do Support by Liking and Commenting on our Post as it motivates us to post more such ideas
The chart is for study purposes only!!
NSE:BANKNIFTY
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BankNifty Intraday Trade Setup for 17th May 22The market is likely to go sideways in the First half today, Not Expecting any Big moves
The Red Zone is the supply Zone and the Green Zone is the Demand Zone, I plan to buy in the Demand Zone (But not sure), so be active on this post to see my live positions and Trades
Do Support by Liking and Commenting on our Post as it motivates us to post more such ideas
The chart is for study purposes only!!
NSE:BANKNIFTY NSE:BANKNIFTY1!
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Expecting a Bullish Momentum in SAKSOFTAs per the 2 Hour Chart of SAKSOFT, we have witnessed a Formation of a “Bullish Engulfing” Pattern on the downside levels of the stock.
Therefore, we are expecting to witness a bullish momentum in the stock in the upcoming trading sessions. Wherein, the stock is being expected to face a resistance initially at around the levels of 753.60, 777.50, and 814. Whereas, on the other hand, on the downside levels, the stock may face a support at the level of 719, on closing basis.
Closing Price (as on 10.05.22) : 740
Disclaimer: No financial information whatsoever published here, should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for Educational and Information purposes only and under no circumstances should be used for making investment decisions. Viewers must consult their personal financial advisor before making any actual investment decisions, based on information published here. Any Investor or Trader taking decisions based on any information published here, does so entirely at its own risk. Investors and Traders should bear in mind that any investment in Stock Market is subject to unpredictable market-related risks.
Learning is extremely crucial investinglearning is the process of learning merely by observing our surroundings
life is too small to make every mistake and then learn from it. A smart person always learns from others mistakes.
Importance of Vicarious learning in investing
Profit booking: Behavioural scientists have often proposed that we feel the pain much more than pleasure. If we have had a bad experience of stocks in the past, then, we are pretty sensitive towards the pain. And, in that process, we may not prefer to sell bad performing stocks because we don’t want to incur any more losses. And, we may keep thinking about booking heavy profits from stocks while still holding on to bad stocks, but, is it going to work this way? So, vicarious learners learn that to incur good profits, it is important to critically evaluate bad performing stocks, and get rid of them at the earliest.
Quality Check: When it comes to mutual fund investment, the idea of staying invested for long works out for better. But, for an individual investor the same does not work in case the stock pricing go wrong due to some damaging cause such as fraudulent activities of the management. So, here waiting to see things turnaround wont make much sense. Thus, vicarious learning in stock investment teaches you to believe in value investing by deeply analysing the companies on varied fronts rather than simply investing for the heck of it.
Winning stocks: Many self-investors believe in keenly observing the winning stocks as they are still not able to decide whether they would want to invest in those stocks. Vicarious learning goes a long way in teaching investors to formulate a couple of strategies before blindly investing in winning stocks.
Correcting errors: Vicarious learning teaches us to correct our errors by observing other expert investors. Instead of limiting the potential to invest, it is rather imperative to learn from mistakes and keep investing. Fears take over investors only when they refuse to learn from the mistakes they have made in the past. So, vicarious learning plays a major role in correcting errors and overcoming the fear of investment.
Value investing: Vicarious learning teaches us a lot about not just investment but about approaching the life in a much better way. The legendary investors like Warren Buffet and Charlie Munger are the perfect examples of vicarious learners. They devised their own theories and strategies for investment with the valuable learnings they derived by being keen observers. And, now the entire world of investors has turned out to be vicarious learners trying to learn the investing psychology of Warren Buffet and Charlie Munger.
GMTUSDT is bullish in short termSupport zone and Resistance zone are mentioned in the chart. RSI is showing it's in the range market.
StepN is quite strong fundamentally. Right now it's in the correction phase. Soon it will be touching 4 $. Long term target is 6 $.
Entry Targets are mentioned in the chart (3.13 to 3.36). Take Profit targets are also mentioned in the chart(3.7 to 4.2).
SL should be set to 3 $.
DYOR before investing.
Good trade - ZEEL - 27-04-22.Hello Guys,
Sharing my todays trade just for a learning purpose for you all and myself too.
I missed the entry coz of my office work. But I got another entry point at retracement.
ANALYSIS & TRADE :
* Overall Downtrend so this stock is in my SHORTing list.
* And triangle pattern gives breakdown all went Acc. to my plan - BUT I MISSED THE ENTRY.
* Because of position sizing and RR wait for a good retracement and thanks to ZEEL its follow price action.
* I entered and this time set an alarm above the target price.
* I was busy with my office work and a HAPPY ALERT BEEP.
* Just starts trailing STOP LOSS and not much but some extra points benefit I took by trailing.
LEARNING :
- Never take entry in a FOMO.
- Its perfectly fine if we miss a trade, NEVER LOOSE MONEY.
- Stick to your trading plans - Never change them.
Thank you so much,
Same look a like trade i took in ABCAPITAL. there also i missed the entry ( Because of a MARUBOZU Candle) - I Never enter in MARUBOZU or parabolic moves. I wait and track the stock and I GOT A DIVERGENCE at next RESISTANCE.
Comment if you want ABCAPITAL trade setup also.
THANKYOU.
SOLARA ACTIVE PHARSOLARA ACTIVE PHAR was failed to take support from the levels of 913.55 and was a gap down on the next day on 10th Feb 2022. Now understand that, whenever the gap up or gap down occurs, the market always tries to fill it, as it is an empty space. Now Solara was a gap down and after that, Solara takes the support on 606.80 and now rushed up to the 769. Can go to the 900 levels to fill the empty space. This is a Tutorial Chart, but anyone can have a trade if they want to enjoy the rally.
Trade on your own risk management and trade management tool
As the market is showing no clear direction, be cautious for not just this trade, but with every trade.
If you are in profits, please maintain your Trailing Stop Loss.
Accumulation and DistributionThis is how a typical accumulation and distribution phase works in stocks
Usually, we are thought about how to trade moving average cross overs, but actual cinema runs behind the picture is that there is a whole lot of accumulation that goes on by big boys, and a typical breakout scenario is created by distributing which is reflected in chart patterns please go through public and others holdings to understand more,
Retailers lack patience and capital and this is the only key for big players to accumulate for long periods
Swing Trade for Long Position Near Resistant If CESC Sustain above 93.05 and closes then there is a good chances of achieving the TG1 95.80-96 & TG2 98.35-98.70 with the stop Loss of 90.80-90.60 which ever is suitable according to you
And if you see Weekly Candle then it closed above 92.15 which is a good signal, My prediction is that if it breaks 93 then we will see a good move with in few days. even RSI looks good.
But The last candle formed on 14 jan is hammer and it a sign of trend reversal as well so dont get trapped.
Note: I Dont have mastery in technical analysis, do your own Analysis as well i am just sharing my view. I'm open to new ideas and flaws in my analysis, so please do comment and share your Views.
Disclaimer: This is for demonstration and educational purpose only. This is not buying or selling recommendations. I am not SEBI registered. Please consult your financial adviser before taking any trade.
Thank You
Understanding patterns - PART 1Patterns have been in use for as long as technical analysis have existed and are working today also, traders all over the world try to find patterns in chart to anticipate the possibility of the next move for any Index or stock. Pattern have a reason for working this greatly because all the patterns have an underlying psychology behind it and all these are driven by none other than the human emotions that lie behind them.
What are patterns?
According to John J Murphy "Price patterns are pictures or formations, which appear on price charts of stocks or commodities, that can be classified into different categories, and have a predictive value."
Putting it simply these are formations of candles which take a special shape when seen together and give you an idea of the future possible move of any script.
Why do patterns work?
Patterns work because they are the depiction of human emotions in the market and clearly shows what the traders in the market want a stock or commodity to do in a particular timeframe, now it must be odd and you may be thinking that how can a simple pattern or movement of the candles can tell you what is going inside the minds of people. Let me give you an idea so that you understand what is it that I mean by reading the minds of the traders using pattern and understanding what they want a particular stock or commodity to do.
The chart that you see above is hindalco which is listed on NSE.
To understand this let me tell you about the white lines you see, these are called trendlines and are made by connecting highs to highs or lows to lows to get an idea of the trend on current ongoing move or to make a pattern.
The pattern you see above is called ascending triangle pattern and is a bullish structure that when gives a breakout the stock or commodity gives a run for the upside.
Now the answer to the the question why ascending triangle pattern is bullish and how we get to anticipate the future movement lies in the human emotion or psychology that made this pattern in the market and it will also explain how you understand the human emotion in the market depicted as pattern.
This ascending triangle pattern is made by joining two line which I have named as trendline 1/resistance & trendline 2/support.
Trendline 1/Resistance shows us that the bears are not willing to let the price go beyond the levels of 470 and are shorting the stock near that price. Bears are wanting the stock to remain below the 470 price level.
Trendline2/Support tells us that the bulls are buying the stock on higher prices again and again that's the reason the trendline is inclined, bulls are wanting the stock to go up.
Now all of this tells us that right now bulls are more aggressive than the bears as bears are not willing to short below the price of 470 but bulls are ready to buy the stock at higher price and are the reason the price keeps surging up.
There comes a time when both the lines meet and there is no buffer space left between buyers and sellers and the price can now only go in single direction now, so bulls being more aggressive breaks the resistance of 470 and the price moves above it. Now there are two things that are going to happen:
1. More buyers will come in to buy as the resistance is broken making the price rally even more.
2.Short positions will have to be covered for, which will yet again make the price move up.
So that is how a mere pattern of a triangle joined by two line made you see the emotions of the traders inside the market and thus anticipate the future movement of price. Now this concept applies to all of the patterns there are in the market, some will be as simple as this one while others being more complex but all of these will make you a better trader letting you anticipate the movement.
This was the end of Part one of this series in which I'll be trying to make you understand patterns and trade more effectively using them.
The Next part will be the two main categories of pattern which will be in more depth and will actually help you anticipate the prices and add these pattern into your trading style.
If you have read it far enough so please give it a like and do follow me for the next part which I'll try to drop on the next weekend.