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Marketstructure

Nifty AnalysisHistory repeats itself and that is also true for the stock market technical analysis . In fact, much of the technical analysis revolves around historical patterns which repeats themselves time and again. We will discuss one such pattern in this analysis. Friday was a big day. Market opened with a gap and trended on the upside. How often has this happened in the background? I have gone not far back but till October 2021. In the last 1.5years I have looked for a few criteria. Market must be trending down that is, forming lower lows and lower highs. Market must break a minor or major swing high with a huge gap. The gap day must be 1.5% or higher in length and close strong (near the high of the day). I have found that these conditions were met only three times. The first was in May 2022. Market broke a minor structure at A with large gap and closed strong. But it could not follow through and just managed to fill a bearish gap on the left. Although there was a potential double bottom in the left, yet it just retested the breakout level and broke down to new lows. The second such event happened in July 2022 at B. Market broke a larger swing high with same conditions as above and rode vertically up to a previous resistance level . It was hell of a ride without any retest (which lately happed in September 2022). This rare pattern has repeated for the third time on last Friday. All the previous conditions were met. Now the question is that, can this event lead to a reversal or it is just another support bounce from September 2022 lows? I would say that the break of a minor structure point does not necessarily means a change in trend. Perhaps it would be too early to announce trend reversal. However, I do not negate some follow through till the gap zone on the left (17500-600) which will be the first area that may offer strong resistance to the market (as it did at A). Market needs to retest in order to check the strength of buyers and break above 18135 levels (which may take some time) to further clarify its desired direction. Thanks for reading. Do like for more such analysis in the future.
NSE:NIFTY
by Bravetotrade
6
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
Editors' picks
NSE:ITCEducation
by johntradingwick
22
Uptrend in RAMCOCEMBased on the analysis of RAMCOCEM's price movements, it appears to exhibit a bullish trend characterized by a series of higher lows and higher highs (L, H, HL, HH). Furthermore, after encountering the support trendline indicated by the yellow circle, the price has formed an inverted head and shoulders pattern, which is widely regarded as a bullish signal by technical analysts. Given these indications, it may be reasonable to infer that RAMCOCEM is poised for further upward movement.
NSE:RAMCOCEMLong
by anuragAnand321
1
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! 💘
Editors' picks
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
NIFTY WANTS TO GO UPWeaknesses is increasing in nifty day by day. As you see in chart nifty made all time high @ 18887.6. Also, Yesterday nifty tried to go up but it was a trap (we discussed it in my early post). Now, In chart you can observe that nifty has strong resistance which is indicated with red line. Today, nifty gave us false signal at point B. So, we can consider Yesterday's low as support which is confirmed by today's low @ 14:15PM candle. 18550-18525 (Blue box) is considered as resistance for tomorrow. At last point A is the most important. Volumes in both candles are almost equal but last candle can't break second last candle's high. In conclusion, Nifty is still in pressure.
NSE:NIFTY
by JatinSonara
Be Careful with Nifty50As I said in title that “Be Careful with Nifty50”. 9th December can be hard for some trader. If you are new try to avoid trad for tomorrow. As you can see in picture Point A was our first clue of trend. After touched Point A nifty made New Low @ 18577.90. Same situation in Point B, After Touched Point B it made new low @ 18564.5. Now, Point C is little bit tough. At Point C nifty can’t even break today’s low which is @ 18536.95. According to me, 18600-18650 is trap.
NSE:NIFTY
by JatinSonara
6
BPCL long opportunityNSE:BPCL Stock -> BPCL TimeFrame -> Weekly Hello all! BPCL has been moving in a channel since Sep 2017. Its came back to its lower trendline, took support, bounced off and now has broken trendline 1 with good volumes. This makes for a good opportunity to go long! Risk-averse traders should wait for a strong closing above the nearest swing high (yellow box). The stock will start trading above its 50-week EMA after it crosses the swing high and thus the probability of success would be much higher *NOT A CALL* #BPCL #technicalanalysis #stocktrading #swingtrading #nifty #markets #trading #investing
NSE:BPCLLong
by Traders_Town
1