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Marketstructure

CHoCH + FVG = Institutional Entry Point for Option Traders!Hello Traders! Today, we’re diving into one of the most powerful Smart Money Concepts — combining CHoCH (Change of Character) with FVG (Fair Value Gap) to identify high-probability institutional entry zones. This setup works brilliantly for both equity and option traders , especially when you want to catch the move before the breakout. What is CHoCH (Change of Character)? CHoCH occurs when the market shifts from a bearish to bullish structure or vice versa. It marks the first sign that market structure is shifting , and smart money is potentially stepping in. What is a Fair Value Gap (FVG)? An FVG is an imbalance between buyers and sellers. When price moves sharply in one direction, it leaves behind an area (usually 1-2 candles) with no trading activity — that’s the gap smart money fills later to enter or add positions. Why This Combo Works Like Magic CHoCH gives confirmation that market direction is changing. FVG gives the entry zone where big players are likely to buy or sell again. High Risk-Reward : You’re entering close to where institutions enter — not chasing breakouts. Ideal for Option Traders looking for momentum entries at discounted zones. How to Trade This Setup Wait for a CHoCH on the 5min/15min chart. Mark the FVG zone created after CHoCH. Enter near the FVG zone with confirmation (rejection candle, volume spike, or VWAP bounce). Place stop loss below the FVG and target swing high or based on option premium chart. Rahul’s Tip Don’t just chase the breakout. Learn to identify where smart money accumulates before the rally. CHoCH + FVG = sniper-level precision for option scalpers. Conclusion This setup is becoming a go-to for institutional-style intraday traders. It’s clean, logical, and extremely efficient when executed with discipline. Start spotting these patterns and backtest your entries — you’ll be amazed by the results! Have you tried CHoCH + FVG before? Let me know your experience in the comments!
NSE:NIFTYEducation
by TraderRahulPal
5
The Importance of Trading in a Higher Timeframe Context!Hello Traders! Are you stuck in choppy price action and fakeouts on smaller timeframes? It might be because you’re ignoring the higher timeframe structure . Today, let’s understand why trading in alignment with higher timeframe context is critical for consistent and confident trades. Why Higher Timeframe Analysis Matters Bigger Picture Clarity: Higher timeframes (like Daily or Weekly) show the overall market structure — trend direction, key levels, and momentum. Avoid Fake Breakouts: What looks like a breakout on the 5-min or 15-min chart could be a mere wick or pullback on the higher timeframe. Supports Better Risk-Reward: Identifying entries aligned with higher timeframe trends allows better positioning with less chop. Stronger Levels Hold Better: Support/resistance from higher timeframes are more respected and reliable. Improves Confidence: When your intraday trade aligns with the larger trend, you’ll trust your entry and avoid premature exits. How to Use Higher Timeframe in Your Trades Start from Top-Down: Begin with Weekly → Daily → 1 Hour → then your entry timeframe (15-min/5-min). Mark Key Levels: Identify strong support/resistance, swing highs/lows, and trendlines from higher charts. Align Direction: Look for trades in the direction of the higher timeframe trend. Avoid counter-trend setups unless there's a confirmed reversal. Watch for Confluence: If a smaller timeframe entry matches a higher timeframe level or pattern, it adds confluence and strength to the setup. Rahul’s Tip “Smart traders zoom out before they zoom in.” Always trade in the direction of strength. Let the higher timeframe guide your intraday story. Conclusion The higher timeframe is your GPS — it gives direction, structure, and clarity. Without it, you’re just reacting to noise. Start integrating top-down analysis into your daily routine, and you’ll see a big shift in your trade quality. Do you check higher timeframes before trading? Let’s talk in the comments!
NSE:NIFTYEducation
by TraderRahulPal
8
How I Find the Best Intraday Index Option Trades in Nifty?Hello Traders! Intraday index option trading, especially in Nifty, BankNifty, and FinNifty , offers huge opportunities — but only if you know where to look. Many traders get stuck in random trades with no direction or clarity. So today, I’m sharing my personal step-by-step process to filter high-probability intraday trades using logic, price action, and data — not guesswork. Step-by-Step Process to Find the Best Trades Step 1: Pre-Market Range Marking Mark the previous day’s high, low, close, and CPR levels . These zones are crucial for early directional bias. Step 2: First 15-Min Candle Clue Watch how the first 15-min candle forms. Break above/below with strong volume? Possible breakout trade setup. Inside range? Wait for confirmation. Step 3: Track OI Changes in Live Market Monitor real-time Open Interest build-up and shift on strikes near current price. If PE buildup rises and price sustains, it’s bullish. CE buildup with resistance? Bearish. Step 4: Volume + Price Confirmation Enter only when volume supports the breakout or reversal — especially around key levels like VWAP, PDH, PDL, or CPR . Step 5: Entry, SL & Target Entry: After confirmation candle (e.g., bullish engulfing above resistance) SL: Below the candle or technical level (not random) Target: Based on next resistance/support or 1:2 RR minimum Bonus Tips for Index Option Trading Avoid Mid-Day Chop: The best trades usually come between 9:30–11:30 AM or post 1:30 PM. Avoid Buying Options in Low VIX: Use ATM options when VIX is low. Go slightly OTM only if momentum is strong. Always Respect Trend Days: Don’t fight the trend. Use 5min + 15min structure to confirm bias. Rahul’s Tip Don’t chase price. Let it come to your level, show volume + structure, and then strike with confidence. Smart intraday trading is about planning, not reacting. Conclusion The key to finding great intraday index trades is structure + confirmation . Avoid impulsive trades, rely on price action, OI data, and volume analysis , and execute with proper risk management. That’s how consistent profits are built — not on luck, but logic. Do you have a personal rule for selecting intraday index trades? Let’s share and grow together in the comments!
NSE:NIFTYEducation
by TraderRahulPal
1
Don’t Trade Without Seeing This Indicator!Hello Traders! If you’ve ever placed a trade only to get stopped out just before the move you predicted actually happens — you’re not alone. What if I told you that using just one key indicator could dramatically improve your entry timing, confirmation, and overall win rate ? Today, we’ll break down an underrated but powerful indicator that can become your edge in the markets. The Indicator: Volume + Price Action Confluence Why It Matters: Volume shows real interest behind price movement . Without volume confirmation, price can lie — especially during fake breakouts or traps. When to Use It: Apply it when price is approaching key levels like support/resistance, breakouts, or trendline re-tests . Combine volume with candle confirmation to avoid traps. What to Watch For: High volume on breakout = strength Low volume breakout = trap Increasing volume in pullbacks = accumulation/distribution How to Use It for Better Trades Breakouts: Enter only when price breaks out with strong volume. Avoid low-volume moves — they often reverse. Reversal Zones: Look for climax volume candles with wick rejections . These often signal turning points. Trend Confirmation: Volume rising with trend = healthy move Volume fading = potential exhaustion or reversal Divergence with Price: Price making new highs but volume dropping? That’s a warning sign to not chase. Rahul’s Tip Volume is like a lie detector test for price action. Use it alongside your levels, patterns, and structure — it’ll save you from chasing fake setups. Conclusion Don’t trade blind. Whether you’re a scalper, swing trader, or positional investor, volume + price action is a game-changer when applied correctly. It filters noise, confirms intent, and gives clarity in chaos. What’s your favorite indicator and how do you use it? Let’s learn from each other — drop it in the comments!
NSE:NIFTYEducation
by TraderRahulPal
2
Smart Money Trendline Liquidity Trap Strategy!Hello Traders! Ever been stopped out right after a trendline breakout — only to watch the price reverse in your direction later? That’s not bad luck — that’s a Smart Money Liquidity Trap in action. Today, let’s uncover how big players use trendlines to trap retail traders and how you can flip the script using this powerful strategy. What Is a Trendline Liquidity Trap? The Setup: Smart Money knows retail traders love clean trendlines. So, they allow price to break above or below these lines, creating the illusion of a breakout. The Trap: Once breakout traders enter, Smart Money triggers liquidity grabs (stop hunts) to fill large orders at premium prices. The market then quickly reverses direction. The Confirmation: True move begins after fake breakout fails and price reclaims the trendline or breaks structure in the opposite direction — that’s your signal. How to Trade the Trap (Smartly) Mark the Trendline: Draw trendlines that connect at least 2–3 swing points. Watch for liquidity build-up above/below them. Wait for the Fakeout: Don’t jump in on first breakout. Let price break the trendline and observe for fast rejection or imbalance zone re-entry . Enter on Confirmation: Once the trap is clear, look for engulfing candles, FVG reactions, or BOS (break of structure) in the opposite direction. Risk Management: Keep SL above the trap high/low. Target liquidity zones on the other side — often you’ll get 1:2 or 1:3 RR setups . Rahul’s Tip Smart Money needs retail traders to enter first. Don’t be their liquidity. Instead, wait, watch, and enter when they’ve shown their cards. Conclusion The Smart Money Trendline Trap Strategy helps you stop trading like the crowd and start trading like the pros. By recognizing fakeouts and understanding liquidity manipulation, you’ll position yourself on the right side of the market moves . Have you experienced fakeouts on trendlines? Let’s talk in the comments and grow together!
NSE:NIFTYEducation
by TraderRahulPal
7
Nicholas Darvas: The Dancer Who Became a Trading Legend!Hello Traders! Imagine going from being a professional dancer to one of the most successful traders of all time! That’s the story of Nicholas Darvas , a self-taught trader who turned $25,000 into $2.25 million in just a few years using his famous Darvas Box Trading Strategy . His journey proves that you don’t need to be a Wall Street expert to make it big in trading! Let’s dive into his trading principles and strategy. 1. Who Was Nicholas Darvas? Darvas was a professional dancer who stumbled into the stock market while touring the world. He developed a technical approach to trading , known as the Darvas Box Theory , which helped him ride strong trends and avoid noise. Without any insider knowledge, he used chart patterns, price momentum, and volume breakouts to make millions in the market. 2. Darvas’ Key Trading Principles Follow the Trend: Darvas only bought stocks in strong uptrends. He believed in riding momentum rather than predicting reversals. Ignore Market Noise: He didn’t listen to news, tips, or opinions —only price action and volume mattered to him. Let Winners Run, Cut Losers Quickly: He never sold his winning stocks early and immediately exited losing trades without hesitation. Use Stop-Losses & Protect Capital: Darvas always set stop-losses below key levels to avoid deep losses. Only Trade High-Volume Stocks: He focused on stocks that showed strong volume spikes, as these indicated institutional interest. 3. The Darvas Box Trading Strategy Identify a Stock in a Strong Uptrend: Darvas looked for stocks that were consistently making new highs with rising volume. Draw a "Box": He identified support and resistance levels , creating a box around price action. Buy on Breakout: He entered only when price broke above the box’s resistance level, signaling a continuation of the uptrend. Set a Stop-Loss: His stop-loss was placed just below the support level of the box. Sell When the Trend Weakens: If price broke below the lower boundary of the box, he exited immediately. 4. What Traders Can Learn from Darvas Price Action is King: You don’t need complex indicators— price and volume are enough. Stick to Strong Stocks: Focus on high-momentum stocks rather than chasing random trades. Discipline Beats Emotion: Trade with a clear system , don’t rely on market opinions. Have a Risk Management Plan: Always use stop-losses and protect your capital. Trend Trading Works: The best profits come from riding big trends—not predicting tops and bottoms. Conclusion Nicholas Darvas’ journey from a dancer to a millionaire trader proves that anyone can succeed in the stock market with the right strategy, discipline, and risk management. His box trading strategy is still used by traders today, helping them ride trends and maximize profits while minimizing risk. Have you tried the Darvas Box strategy? Let’s discuss in the comments!
NSE:NIFTYEducation
by TraderRahulPal
Mastering Fractals: The Secret Weapon of Smart Traders!Hello Traders! Have you ever noticed that market patterns repeat across different timeframes? That’s where Fractal Theory comes in! Fractals are self-repeating patterns that occur at both micro and macro levels, helping traders spot trend reversals, breakouts, and entry points. Today, let's explore how to use fractals in price action trading to refine our strategy and improve accuracy! 1. What Are Fractals in Trading? Fractals are recurring price patterns that signal potential reversals in the market. These patterns consist of five or more candlesticks , where the middle candle is either the highest (bearish fractal) or lowest (bullish fractal) in a sequence. Fractals help traders identify support, resistance, and trend shifts with better precision. 2. How to Identify a Fractal in Price Action? Bullish Fractal: A price formation where the middle candle has the lowest low , surrounded by two higher lows on both sides. Bearish Fractal: A price formation where the middle candle has the highest high , with two lower highs on both sides. Multiple Timeframe Analysis: Fractals appear on all timeframes (from 1-minute to weekly charts), making them useful for scalpers, swing traders, and long-term investors. 3. How to Trade Using Fractal Theory? Trend Confirmation: Combine fractals with indicators like Moving Averages, RSI, or Fibonacci levels to confirm trend direction. Entry & Exit Signals: A bullish fractal near support may signal a buying opportunity , while a bearish fractal near resistance may indicate a potential sell signal . Breakout Trading: Use fractals to spot breakout zones —when price breaks a previous fractal high (bullish) or low (bearish), it can confirm a new trend direction. Stop-Loss Placement: Set stop-losses below bullish fractals (for buy trades) and above bearish fractals (for sell trades) to manage risk effectively. Combine with Smart Money Concepts (SMC): Fractals align well with liquidity grabs, order blocks, and institutional moves , making them even more powerful when used with smart money trading techniques. 4. Limitations & Risk Management Fractals are lagging indicators —they only confirm after the pattern has completed. False signals can occur , so always confirm with volume, trend structure, or additional indicators. Use risk-reward ratios wisely —never rely solely on fractals without a solid trading plan and stop-loss strategy. Conclusion Fractal Theory helps traders identify high-probability setups , confirm trend reversals , and improve trade entries & exits. By combining fractals with other technical analysis tools , traders can increase their accuracy and reduce market noise. Have you ever used fractals in your trading? Let’s discuss in the comments!
NSE:NIFTYEducation
by TraderRahulPal
2
Market Structure Shift: How to Spot Trend Reversals EarlyHello Traders! Spotting trend reversals early can be a game-changer in trading. A Market Structure Shift (MSS) occurs when price action transitions from an uptrend to a downtrend (or vice versa), giving traders a heads-up before major moves happen. Learning how to identify these shifts early can help you avoid traps and catch high-probability setups. Let’s break it down! 1. What is a Market Structure Shift (MSS)? A Market Structure Shift (MSS) is when price transitions from a clear trend into a potential reversal. It usually occurs when the price breaks a key level of support or resistance and fails to continue in the original trend. MSS is often confirmed when price action starts forming lower highs & lower lows (bearish shift) or higher highs & higher lows (bullish shift). 2. How to Identify a Trend Reversal Early? Break of Market Structure (BMS): When price breaks a recent swing high (in a downtrend) or a swing low (in an uptrend), it signals a shift in market sentiment. Liquidity Grab & Stop Hunts: Smart money often pushes price beyond key levels to trigger stop-losses before reversing the trend. Volume Confirmation: A real market structure shift is supported by increased volume , confirming strong buying or selling interest. Failure to Make New Highs/Lows: If a trend starts struggling to create fresh highs in an uptrend (or fresh lows in a downtrend ), it indicates a weakening trend. Moving Average Crossovers: When short-term moving averages (like 9 EMA or 21 EMA) cross below long-term ones (like 50 EMA), it can indicate a structural shift. Divergence in RSI or MACD: If price makes a higher high , but RSI/MACD makes a lower high , it suggests momentum is weakening , hinting at a potential reversal. 3. How to Trade a Market Structure Shift? Wait for Confirmation: Don’t enter immediately—wait for price retest or rejection at key levels. Use Stop-Loss Wisely: Place stop-loss above the previous high (for short trades) or below the previous low (for long trades) to manage risk effectively. Combine with Other Indicators: MSS is more powerful when used alongside support/resistance, volume analysis, and Fibonacci levels. Look for Retests: Often, price will retest the broken structure level before continuing in the new trend. This gives a better risk-to-reward entry. Trade with the New Trend: Once MSS is confirmed , look for pullbacks and enter in the direction of the new trend. Conclusion Understanding Market Structure Shifts helps traders stay ahead of trend reversals and avoid getting caught in bad trades. By combining price action, volume, and technical indicators , you can spot reversals early and execute high-probability setups. Have you ever used market structure shifts in your trading? Let me know in the comments! 👇
NSE:BANKNIFTYEducation
by TraderRahulPal
Database Option Trading Options are highly sensitive to market volatility. Significant price swings can lead to substantial gains or losses. A trader might buy a put option expecting a stock to drop. If the stock instead surges in price due to unforeseen events, the value of the put option plummets. Call options give buyers the right, but not the obligation, to buy a stock for a fixed price, on or before some date. Buying call options on a stock can be more profitable — but also more risky in percentage-change terms — than buying that stock itself.
NSE:HDFCBANKEducation
by Optionclub
Option Trading with Option chainOption chains provide specific data related to options contracts, including strike prices, expiration dates, implied volatility, and open interest. Traders use this data to construct options strategies, manage risk, and profit from price movements in the underlying asset. Top options trading strategies Covered call. A covered call is a popular options strategy where you own a stock and simultaneously sell a call option on the same stock. ... Married put. ... Bull call spread. ... Bear put spread. ... Protective collar. ... Long straddle. ... Long strangle. ... Long call butterfly spread.
MCX:CRUDEOIL1!Education
by Optionclub
Technical Trading The technical trades programs offer more than just technical skills, students are exposed to the necessary business and technology programs used in today's current job market. Students gain the essential knowledge to operate, oversee and assist with operations. There is virtually no limit to the profit potential of technical analysis. Profitability within the discipline largely depends on the trader's expertise, adherence to tried and tested strategies, and the amount of risk undertaken and capital employed by the trader.
NSE:BANKNIFTYEducation
by SkyTradingZone
3
Market Architecture By 👑Royal Trend👑👑Royal Trend👑 In this video we try to understand the Market Architecture. How market really work with number's Difference between technical analysis and option trading Technical analysis and options trading can go hand in hand. Many of the best practices for options trading come directly from technical analysis concepts. Technical analysis focuses on price. Fundamental analysis does not solely focus on price. why we learn option chain? Option chain is a chart that will give in-depth information related to all stock contracts available for Nifty stocks. The best thing about the option chain is that it provides valuable information about the current security value and how it will affect it in the long term. What is the purpose of option chain? It can be used in creating an option strategy at several strike prices. It can be used to analyse and draw noteworthy insights about the stock and its probable movements. It helps the traders in evaluating the liquidity and the depth of the option contract. How important is option chain analysis? The option chain analysis data provides a very comprehensive view for all the available options for any particular underlying asset. This helps in understanding and selecting the correct option for trading or investment purpose. NOTE #We Are Not Promote Anything #This channel Purpose to share market ideas. Thanks for Watching🙏
NSE:NIFTYEducation
by Optionclub
The Ultimate guide to Market structure with 30+ Charts! Hey everyone!👋 In this post, we'll delve deep into market structure, presenting insightful examples to enhance your understanding of this concept. Introduction: ✅ Market structure is a framework for comprehending the movements and behaviour of markets. In layman's terms, it is a basic form of understanding how markets move. ✅ It can be seen as the flow of the price between a series of swing highs and swing lows. ✅ The market moves in trends, which are the result of various patterns and structures that form and evolve over time. Exhibit: Various structures and patterns evolving over time into different trends The market structure allows you to be in sync with the market and avoid counter-trend trading, which enhances the probability of your setups. Exhibit: Market structure favouring longs There are broadly 3 types of structures: 1. Bullish (Uptrend) 2. Bearish (Downtrend) 3. Ranging (Sideways) Illustration: Bullish market structure Illustration: Bearish market structure Illustration: Range market structure 📈 What is an uptrend? ✅ Characterised by a bullish market structure. ✅ Formation of higher highs followed by higher lows. ✅ For an uptrend to stay intact, it must preserve its ascending structure - higher highs must follow higher lows. 📉 What is a downtrend? ✅ Characterised by a bearish market structure. ✅ Formation of lower highs followed by lower lows. ✅ For a downtrend to stay intact, it must preserve its descending structure - lower highs must follow lower lows. ✅ Lower highs are allowed if the price goes into compression or re-distribution. ⚡ What is a range? ✅ A range is a zone where the price finds itself bouncing between two levels. ✅ These levels are - range high and range low. ✅ The size of the range is dependent on different factors such as asset class, demand-supply, volatility, etc. A lot of times, the structure won’t be as clear as you want it to be. Conversely, sometimes the structure will replicate the textbook. Hence, you need to be flexible in your approach. Sometimes, trading in range-bound markets can be challenging due to the choppiness in price movements. However, when the price action is more defined, some traders may prefer to trade the range by executing breakout trades or mean reversion trades from the range high to the range low or vice versa. It is better to combine market structure with other concepts/indicators for better results. Exhibits: Bullish market structure ATUL Industries Tata Consultancy Services Rain Industries Indian Hotels Navin Fluorine Delta Corporation Gujarat Gas Page Industries Titan Company ITC Exhibits: Bearish market structure Birla Soft Tech Mahindra Indiabulls Housing L&T Housing Grasim Industries Biocon Tata Power Canara Bank NMDC Bharat Petrol Exhibits: Ranging market structure Granules ITC Syngene Hindustan Copper Thank you for taking the time to read this. I hope you found it to be informative and useful. Much love, ❤ Rajat Kumar Singh (@johntradingwick) Community Manager (India), TradingView
NSE:ITCEducation
by johntradingwick
23
Trend Identification: Utilizing Higher Highs and Higher LowsTechnical Indicator - William Fractal Setting - 20 period About the Indicator : William Fractal is a technical analysis tool used by traders in financial markets to identify potential turning points and trends. It is based on the concept of fractals, which are self-similar patterns that repeat themselves on different scales. The William Fractal is formed when there is a series of five bars, with the middle bar having the highest high and the lowest low in comparison to the surrounding bars. Traders use this pattern to determine potential buy and sell signals, as a fractal forming at the bottom of a downtrend could signal a potential reversal, while a fractal forming at the top of an uptrend could signal a potential trend continuation. The William Fractal can be used in combination with other technical indicators to improve trading decisions. Benefits of using William fractal indicator Easy to Identify : The William Fractal is a simple and straightforward pattern to spot, making it accessible for traders of all skill levels. High Accuracy : The pattern is based on the concept of fractals, which have a high degree of accuracy in identifying trend reversals. Confirms Trend Strength : By highlighting areas of potential trend reversal or continuation, the William Fractal can help traders confirm the strength of a trend. Improves Timing : By using the William Fractal in conjunction with other technical indicators, traders can improve the timing of their trades and increase the chances of success. Identifies Key Turning Points : The William Fractal can help traders identify key turning points in the market, allowing them to make informed trades and take advantage of market movements. Works in All Markets : The William Fractal is applicable across different financial markets, including stocks, forex, and commodities, making it a versatile tool for traders Try this out and let me know your thoughts in the comment section.
NSE:HCLTECHEducation
by vnagaraj0803
Introduction to market structureHey everyone!👋 In this article, we'll dive into market structure, providing insightful examples to enhance your understanding of this concept. Please remember this is an educational post to help all of our members better understand concepts used in trading or investing. This in no way promotes a particular style of trading! Market structure is a basic form of understanding how markets move. It can be seen as the flow of the price between a series of swing highs and swing lows. The market moves in trends. These trends are nothing but a combination of different structures. The market structure allows you to be in sync with the market and avoid counter-trend trading, which enhances the probability of your setups. There are broadly 3 types of structures: 1. Bullish (Uptrend) 2. Bearish (Downtrend) 3. Ranging (Sideways) Illustration: Bullish market structure Illustration: Bearish market structure Illustration: Range market structure 📈 What is an uptrend? ✅ Characterised by a bullish market structure. ✅ Formation of higher highs followed by higher lows. ✅ For an uptrend to stay intact, it must preserve its ascending structure - higher highs must follow higher lows. ✅ Lower highs are allowed if the price goes into compression or re-accumulation. 📉 What is a downtrend? ✅ Characterised by a bearish market structure. ✅ Formation of lower highs followed by lower lows. ✅ For a downtrend to stay intact, it must preserve its descending structure - lower highs must follow lower lows. ✅ Lower highs are allowed if the price goes into compression or re-distribution. ⚡ What is a range? ✅ A range is a zone where the price finds itself bouncing between two levels. ✅ These levels are - range high and range low. ✅ The size of the range is dependent on different factors such as asset class, demand-supply, volatility, etc. A lot of times, the structure won’t be as clear as you want it to be. Conversely, sometimes the structure will replicate the textbook. Hence, you need to be flexible in your approach. Sometimes, trading in range-bound markets can be challenging due to the choppiness in price movements. However, when the price action is more defined, some traders may prefer to trade the range by executing breakout trades or mean reversion trades from the range high to the range low or vice versa. It is better to combine market structure with other concepts/indicators for better results. Thanks for reading! As we mentioned before, this isn't trading advice, but rather information about a tool that many traders use. Hope this was helpful! See you all next week. 🙂 – Team TradingView Feel free to check us out on Instagram , and YouTube for more awesome content! 💘
NSE:ITCEducation
by TradingView
6
Beginners Guide to Market StructureMarket Structure is the most fundamental aspect of analysing charts, mastering it goes a long way in increasing one's reading of price. It provides us with a narrative with which to look at price. At a glance market structure looks quite simple but when studied in depth it has many nuances & can provide with very valuable information. Market structure is fractal in nature which means that the same pattern of price making higher highs & lower lows or vice versa repeats on all time frames. A bullish market structure on a higher time frame can have a bearish market structure on a lower time frame in its retracement leg. To analyse market structure a Top Down approach is used in which we start out by marking the structure on a higher time frame & then move down to lower time frames repeating the same process till we know where price is presently.
NSE:NIFTYEducation
by BharatAsani
Market Phases - Every trader must knowMarket Phases -Stock prices may appear random, but there are repeating price cycles, which are predominantly driven by the market participation. Below are the four types of market phases that occur. Phase 1: Accumulation - The accumulation phase is a stage of consolidation. There is no clear trend, and the stock is usually trading in a range. It's a span of time in which traders and institutions are slowly accumulating shares, but the market has not broke out yet. Trend traders finds difficulty to trade. Phase 2: Advancing - During the advancing phase, price breaks out of range (comes out of the accumulation phase) and begins a sustained uptrend. This stage is when the price begins moving up. The big money has established a position and retail investors are now invited to join in the profit party. This is the most profitable time to own the stock – an opportunity to let your profits run. Phase 3: Distribution - The distribution phase begins as the advancing phase ends and price enters another range period. The shares are being sold over a period of time—the opposite of accumulation. This time, the sellers want to maintain higher prices until the shares are sold. Phase 4: Declining - During the declining phase, price breaks out of the range (comes out of the distribution phase) and begins downtrend. This stage comes after distribution when price begins moving down. Now lets understand them one by one in detail :- 1.)Accumulation phase where trend traders find difficulty to trade Accumulation usually occurs after a fall in prices and looks like a consolidation period. Characteristics of accumulation phase: It usually occurs when prices have fallen over the last 6 months or more It can last anywhere from months to even years It looks like a long period of consolidation during a downtrend Price is contained within a range as bulls & bears are in equilibrium The ratio of up days to down days are pretty much equal The 200-day moving average tends to flatten out after a price decline Price tends to whip back and forth around the 200-day moving average Volatility tends to be low due to the lack of interest Examples of Accumulation - How To Trade Accumulation ?? 1.)Sell At Resistance 2.)Buy At Support Do not go blindly short at resistance, wait for any reversal candle or look for any negative price action in smaller TF. Look for reversal candles Never buy blindly on support. Look for reversal candles. Switch to smaller Time-frame find a bullish price action/ bullish chart patterns. Never Ever Trade At Midpoint In A Range Market. You never no where it will head, to the the support area or to the resistance area. 2.)Advancing phase which trend traders love — Best trading strategy is to long the uptrend After price breaks out of the accumulation phase, it goes into an advancing phase (an uptrend) and consists of higher highs and lows. Characteristics of advancing phase: It usually occurs after price breaks out of accumulation phase It can last anywhere from months to even years Price forms a series of higher highs and higher lows Price is trading higher over time There are more up days than down days Short term moving averages are above long-term moving averages (e.g. 50 above 200-day ma) The 200-day moving average is pointing higher Price is above the 200-day moving average Volatility tends to be high at the late stage of advancing phase due to strong interest Examples of Advancing How To Trade Advancing ?? 1.)Breakout Trading - Where you above the highs 2.)Pullback Trading - Where you buy support which was earlier a resistance. This is called change in polarity. Avoid Trading against the trend. If you trade then take small profits. You will get max with the trend. 3.)Distribution phase- - Distribution usually occurs after a rise in prices and looks like a consolidation period. Characteristics of distribution phase: It usually occurs when prices have risen over the last 6 months or more It can last anywhere from months to even years It looks like a long period of consolidation during an uptrend Price is contained within a range as bulls & bears are in equilibrium The ratio of up days to down days are pretty much equal The 200-day moving average tends to flatten out after a price decline Price tends to whip back and forth around the 200-day moving average Volatility tends to be high because it has captured the attention of most traders Examples of Distribution :- How To Trade Distribution ?? 1.)Sell On Resistance 2.)Buy On Support Do not go blindly short at resistance, wait for any reversal candle or look for any negative price action in smaller TF. Look for reversal candles Never buy blindly on support. Look for reversal candles. Switch to smaller Time-frame find a bullish price action/ bullish chart patterns. Never Ever Trade At Midpoint In A Range Market. You never no where it will head, to the the support area or to the resistance are. 4.Declining phase - Best trading strategy is to short the downtrend After price breaks down of the distribution phase, it goes into a declining phase (a downtrend) and consists of lower highs and lows. This is the stage where traders who do not cut their loss become long-term investors. Characteristics of declining phase: It usually occurs after price breaks out of distribution phase It can last anywhere from months to even years Price forms a series of lower highs and lower lows Price is trading lower over time There are more down days than up days Short term moving averages are below long-term moving averages (e.g. 50 below 200-day ma) The 200-day moving average is pointing lower Price is below the 200-day moving average Volatility tends to be high due to panic and fear in the markets Examples of declining :- How To Trade Declining ?? 1.)Breakdown Trading - Where you sell below the lows 2.)Pullback Trading - Where you sell on rise after a breakdown. Supports turned into resistance. This is called change in polarity. Avoid Trading against the trend. If you trade then take small profits. You will get max with the trend. Hope you all learnt from this post. Share with the community if you liked it. Regards Omahto
NSE:NIFTYEducation
by Omahto
21
The Types of Market Days - Ultimate guide to trading daysHi, today we are going to see one of the most important concepts for day trading. I have taken all the content from the book “Secrets of a Pivot Boss” and added illustrations and charts, so that you don’t have to read the book. I am merely a presenter of the original content written by Franklin Ochoa. But the charts and illustrations are all done by me (If you want to download the PDF version of this post, you can checkout the links below the post). There are six types of market days that we will cover. These types of days are repeatedly seen in the market, but no two days are ever identical. As such, these categories should be used more as guidelines, rather than seeing them as etched in stone. Again, your ability to recognize the pattern of the day accurately will be a huge step toward successfully engaging the market 1. Trend Day Exhibit: • The Trend Day is the most aggressive type of market day. • On a bullish Trend Day, the open usually marks the day's low, while the close usually marks the day's high, with a few ticks of tolerance in either direction. • On a bearish Trend Day, the open will usually mark the day's high, while the market will usually close near the session's low. • The market will typically start fast on this type of day and the farther price moves away from value, the more participants will enter the market, creating sustained price movement on increased volume. • Initiative buying or selling is the culprit on this type of market day, as these participants are confident they can move price to a new area of established value. • Price conviction is strongest during a Trend Day. Market will start strong right out of the gate and will usually maintain a unidirectional stance throughout the day, never calling into question the day's direction or conviction. • This type of day has the highest price range (high price minus low price), meaning it can be quite costly if you are positioned against the market or if you fail to recognize the pattern early enough to enter alongside the market. • These types of days only occur a few times a month, but catching these moves can certainly make your month, in terms of profits. • The Trend Day is usually preceded by a quiet day of market activity, which is usually a day with a small range of movement. Coincidentally, this type of market behaviour will usually follow a Trend Day as well. 2. Double-Distribution Trend Day Exhibit: • While this day is a trending day, it in no way has the confidence or conviction of a Trend Day. • Instead, this type of day is characterized by its indecisive nature at the outset of the session. • During this type of day, the market will usually open the session in a quiet manner, trading within a fairly tight range for the first hour or two of the session, thereby creating an initial balance that is narrow. • The initial balance is traditionally defined as the price range of the first hour of the day. • If the initial balance is too narrow, price will break free from the range and auction toward new value, creating range extension, which is any movement outside the initial balance. • After the initial balance of the Double-Distribution Trend Day has been defined, price will break out from the range and auction toward new value, where it will form a second distribution of price. This is the market's attempt at confirming whether new value has indeed been established. • Double-Distribution Trend Day opens the session quietly, trading within a tight range that can be viewed as the day's "warm up" period. Eventually, price breaks free of the range and begins trending toward new value, igniting initiative buying or selling. • Once the market finds new value, it then builds out another range before ending the day. • The ranges formed at both the beginning and end of the day is where the term "double-distribution" comes from, as the bulk of the day's volume resides at one of these extremes, essentially forming a double distribution of trading activity. • The initial balance is the base for any day's trading and is extremely important to the Double-Distribution Trend Day. • A narrow initial balance is easily broken, while a wide initial balance is harder to break. The fact that the initial balance is narrow on this type of day indicates that there is a good possibility of a breakout from the initial range, indicating that you will likely see a move toward new value. • The narrow initial balance at the beginning of the Double-Distribution Trend Day indicates that either buyers or sellers will eventually overwhelm one side or the other. • Once direction is decided, price will freely move toward a new area of value since it is being driven by initiative market participants. 3. Typical Day Exhibit: • The Typical Day is characterized by a wide initial balance that is established at the outset of the day. • On this type of day, price rallies or drops sharply to begin the session and moves far enough away from value to entice responsive participants to enter the market. • The responsive players push price back in the opposite direction, essentially establishing the day's trading extremes. The market then trades quietly within the day's extremes the remainder of the session. • The opening rally or sell-off is usually sparked by reactions to economic news that hits the market early in the day. This opening push creates a wide initial balance, which means the day's "base" is wide and will likely go unbroken. • A wide base during the first hour of the market will likely mean that the day's extremes will also remain intact, or unbroken. • During this type of day, you will usually see price trade back and forth within the boundaries of the opening range, as fair trade is easily being facilitated. 4. Expanded Typical Day Exhibit: • Similar to the Typical Day in that it usually begins the session with early directional conviction. However, price movement at the open is not as strong as that seen during a Typical Day. • The initial balance is wider than that of a Double-Distribution Trend Day, but not as wide as that of the Typical Day. Hence, it is susceptible to a violation later in the session. • Eventually, one of the day's extremes is violated and price movement is seen in the direction of the break, which is usually caused by initiative buying or selling behaviour. • During an Expanded Typical Day, both the upper and lower boundaries of the initial balance are susceptible to violations. On any given day, you will see one, or both, of the boundaries violated, as buyers and sellers attempt to push price toward their own perceived levels of value. 5. Trading Range Day Exhibit: • Both the buyers and sellers are actively auctioning price back and forth within the day's range, which is usually established by the day's initial balance. • On this day, the initial balance is about as wide as that of a Typical Day, but instead of quietly trading within these two extremes throughout the day, buyers and sellers are actively pushing price back and forth. • This type of day is basically like a game of tennis. The players stand on opposite sides of the court and take turns volleying the ball to one another throughout the match. • Likewise, buyers and sellers will stand at the extremes of the day and will enter the market in a responsive manner when price reaches the outer limits of the day's range. • Responsive sellers will enter shorts at the top of the range, which essentially pushes price back toward the day's lows, while responsive buyers will enter longs at the bottom of the range, which pushes price back toward the day's highs. • This type of market day offers easy facilitation of trade and gives traders amazing opportunities to time their entries. 6. Sideways Day Exhibit: • On this type of day, price is stagnant, as both buyers and sellers refrain from trading. This type of session usually occurs ahead of the release of a major economic report or news event, or in advance of a trading holiday. • There is no trade facilitation and no directional conviction. • The initial balance is rather narrow, which at first indicates the potential for a Double-Distribution Trend Day. However, the initiative buying or selling required for a Double-Distribution Trend Day never enters the fray, which leaves the market terribly quiet the rest of the session. • The Trading Range Day and the Sideways Day sound similar, but the difference lies within the participation levels of both buyers and sellers. So, with this, we are done with all types of the trading days. Remember, each of these types of days is not set in stone. While every market day is similar to a day from the past, similar does not mean "exactly." You must be able to snuff out the subtleties of each new day as it relates to a day from the past. Steadfast practice creates valuable experience. I spend a lot of time creating these educational posts, illustrations, charts, and PDFs. Please be appreciative of that and leave a like and comment if you found these helpful. It will help to know that people are reading these posts. Also, if you need a PDF of this post with all the charts and illustrations, check out the links below this post. Disclaimer: This is NOT investment advice. This post is meant for learning purposes only. Invest your capital at your own risk. Happy learning. Cheers! Rajat Kumar Singh (@johntradingwick)
NSE:NIFTYEducation
by johntradingwick
46
Bearish market structure - Illustrations + Structure typesThis is the third post on market structure. Do check out the previous 2 posts if you haven't already. Recap Market structure is simple and a basic form of understanding, how the markets move. The Price Action is how the market moves based just on price, without the consideration of trends and how they may continue. But the market structure is focused mainly on the trend. The market structure is formed using swing highs and swing lows. You may have already heard about the formation of higher highs and higher lows in a bullish trend or the formation of lower highs and lower lows in a bearish trend. This is what is called as market structure. What is a Bearish market structure? A bearish market structure is a structure that constitutes of formation of a series of lower highs and lower lows. In simple words, when the price is making lower lows and lower highs, it is said to be forming a bearish market structure. Illustration: Bearish market structure What is the use of identifying a Bearish market structure? Identifying any market structure plays a crucial role in entry and exit. In the case of a bearish market structure, the previous lows are often seen as resistance zones where new shorts can be entered with an expectation of lower price movement. When the price returns to or near the previous low, it is often seen as a selling opportunity, commonly known as “selling the rip”. Exhibit: Pullback in a Bearish market structure If a stock is moving in a bearish trend but the price prints a new higher high, the trader must become cautious because a trend change may be underway or it may just consolidate before resuming the original trend or it may very well be a bull trap. If a trend change is confirmed, the trader may exit the shorts and look for the trades on the long side. So, after the formation of a new high, there are only 3 scenarios that can arise. 1. Trend reversal 2. Consolidation and continuation 3. Bull trap Exhibit 1: Creation of a new high Chart example: Exhibit 2: Trend reversal Chart example: Exhibit 3: Consolidation and Continuation Exhibit 4: Bull Trap These are the only structure that can form in a bearish trend and they will occur time and again. Hence, all these concepts are valid on all time frames. This is all you need to know about a bearish market structure. Now, open any random chart and back test the concepts. The more you practice, the better you will become. Whatever strategy you use, understanding the structure will always make you more confident in your trades. I spend a lot of time creating these educational posts, illustrations, charts, and PDFs. Please be appreciative of that and leave a like and comment if you found these helpful. It will help to know that people are reading these posts. Disclaimer: This is NOT investment advice. This post is meant for learning purposes only. Invest your capital at your own risk. Happy learning. Cheers! Rajat Kumar Singh (@johntradingwick)
NSE:NIFTYEducation
by johntradingwick
11
Bullish market structure - Illustrations + ChartsRecap Market structure is simple and a basic form of understanding, how the markets move. The Price Action is how the market moves based just on price, without the consideration of trends and how they may continue. But the market structure is focused mainly on the trend. The market structure is formed using swing highs and swing lows. You may have already heard about the formation of higher highs and higher lows in a bullish trend or the formation of lower highs and lower lows in a bearish trend. This is what is called as market structure. What is a Bullish market structure? Like I said above, a bullish market structure is a structure that constitutes of formation of a series of higher highs and higher lows. In simple words, when the price is making new highs and higher lows, it is said to be forming a bullish market structure. Exhibit: Bullish market structure What is the use of identifying a Bullish market structure? Identifying any market structure plays a crucial role in entry and exit. In the case of a bullish market structure, the previous highs are often seen as support zones where an entry can be made with an expectation of higher price movement. When the price returns to or near the previous high, it is often seen as a buying opportunity, commonly known as buying the dip”. Exhibit: Pullback in a bullish market structure Similarly, as soon as the price breaks the previous low and creates a new low, the trader must become cautious because a trend change may be underway or it may just consolidate before resuming the original trend or it may very well be a bear trap. If a trend change is confirmed, the trader may exit longs and look for the trades on the short sides. So, after the formation of a new low, there are only 3 scenarios that can arise. 1. Trend reversal 2. Consolidation and continuation 3. Bear trap Exhibit 1: Creation of a new low Exhibit 2: Trend reversal Exhibit 3: Consolidation and Continuation Exhibit 4: Bear Trap These are the only structure that can form in a bullish trend and they will occur time and again. Hence, all these concepts are valid on all time frames. This is all you need to know about a bullish market structure. Now, open any random chart and back test the concepts. The more you practice, the better you will become. Whatever strategy you use, understanding the structure will always make you more confident in your trades. I spend a lot of time creating these educational posts, illustrations, charts, and PDFs. Please be appreciative of that and leave a like and comment if you found these helpful. It will help me to know that people are reading these posts. Also, if anyone is interested in getting a PDF version of this thread, then you can check the links under this post. Disclaimer: This is NOT investment advice. This post is meant for learning purposes only. Invest your capital at your own risk. Happy learning. Cheers! Rajat Kumar Singh (@johntradingwick)
NSE:NIFTYEducation
by johntradingwick
70
Introduction to market structre Market structure is one of the most undervalued topics in trading. People don't spend enough time learning about it. In this thread, I'll try to touch on all the important aspects of market structure. Introduction Market structure is simple and a basic form of understanding, how the markets move. The Price Action is how the market moves based just on price, without the consideration of trends and how they may continue. But the market structure is focused mainly on the trend. The market structure is formed using swing highs and swing lows. You may have already heard about the formation of higher highs and higher lows in a bullish trend or the formation of lower highs and lower lows in a bearish trend. This is what is called as market structure. How to draw and find market structure? Finding a market structure is an easy task. All you have to do is connect the recent swing highs and swing lows and identify how the price is moving. If the price is forming a series of higher highs and higher lows, then it is a Bullish market structure. Similarly, if the price is forming lower highs and lower lows, it is a bearish market structure. I’ll post separate threads on various market structures at a later point in time. Types of market trend The market trend in 3 different directions at any given time and understanding when a shift occurs based on the timeframe you watch is pivotal to successful trading. The 3 types of market trends are: 1. Bull trend 2. Bear trend 3. Sideways trend Type of market structure There are 5 types of market structures. 1. Bullish market structure 2. Bearish market structure 3. Ranging/sideways market structure 4. Change of trend from bullish to bearish 5. Change of trend from bearish to bullish Exhibit 1: Bullish market structure Exhibit 2: Bearish market structure Exhibit 3: Ranging/sideways market structure Don’t worry I’ll cover all these topics in separate threads. This was just an introductory thread on market structure. Read the post a few times and you will be able to understand everything. If anyone is interested in getting a PDF version of this thread, then you can check the links under this post. Disclaimer: This is NOT investment advice. This post is meant for learning purposes only. Invest your capital at your own risk. Rajat Kumar Singh (@johntradingwick) NSE Certified Technical & Fundamental Analyst Happy learning. Cheers!
BITSTAMP:BTCUSDEducation
by johntradingwick
21
TCS EDUCATIONAL CHART COMBINING MARKET SRTUCTURE & ACCUMULATIONtoday we'll discuss about market structure and accumulation range bound market the price started a bearish trend by making lower highs then the price sustained to go any lower the market then came in range bound structure and with breakout we saw huge volumes now for the future analysis- === the strength of impulse waves is declining so we might see some consolidation/distribution phase SORRY FOR THE VOICE _/\_ if u have any doubts feel free to ask in comments section
NSE:TCSEducation
by profitpujari
4