Movingaveragecrossover
UPL respects its uptrend !UPL Has formed a beautiful double bottom pattern with its first support off the 200 EMA and second off the long term trendline.
UPL has given a double confluence
1. Rejection candle and respect of the long
term trendline
2. Golden Cross( Crossing of 50EMA and 200EMA)
A long position can be taken on break
of the resistance zone
Risk To Reward of 1:2 or a more riskier approach would be if trendline is broken.
Keep It Simple
Bharti Airtel Finally breakout Bharti Airtel is finally making a move, it approaches a long term resistance line on above average volume after forming a
beautiful double bottom on the long term support line and a long trade can be taken on break of this zone.
Stop loss below the recent king candle
Target near the High of the stock.
Keep It Simple
L&T with many confluences....LONGGLT has formed a complete double bottom move and hit an important resistance level forming a bullish flag pattern and a break of resistance level on above average could lead to a long trade.
Observe the moving average crossover and high Volume.
Targets of T1 and T2 could be taken
Stop Loss below the recent flag swing low.
Keep It Simple
5Paisa at its Strong support Level n Making its Right Shoulder5Paisa at its Strong support Level n one Possibility to Make its Right Shoulder You Can buy at support and Ride With Right Shoulder in One Day Time Frame... RSI also Giving us a Positive Divergence
Trade on Your Risk
= } Rule1 } you can take long position when 8 EMA Cross 21 EMA in 1Day Time Frame
First Target 230
Second Target 380
Stoploss 273
{ Follow Rule 1 }
Using the Moving Averages and RSI to optimize buying processIn this chart I have explained my rationale using Moving averages, relative strength and RSI to initiate a buy on this scrip.
I always use a weekly chart to check for overall trend and analysis and based on it will initiate a buy on a Daily chart.
Explanations are given on the chart. The idea is get the maximum conditions in our favour for a profitable trade. Hope it will be helpful.
Another important thing is to always define a stop loss if the trade does not go according to plan.
"Crossover" your limits with "Crossovers" !!!!Through series of educational posts we have got an elaborate knowledge of candlestick pattern which include both
reversal and continuation patterns and this post is somewhat different from candlestick it's all about moving average crossovers.
General concept of crossover is that a fast moving average surpasses slow one in any directional trend and could help you be in right side,
A moving average crossover occurs when two different moving average lines cross over one another,
Because moving averages are a lagging indicator, the crossover technique may not capture exact tops and bottoms. But it can help you identify the bulk of a trend.
A moving average crossover system helps to answer these three questions:
Which direction might the price be trending (if at all)?
Where might be a potential entry point for a trend trade?
When might a trend be ending or reversing?
All you have to do is plop on a couple of moving averages on your chart, and wait for a crossover.
If the moving averages cross over one another, it could signal that the trend is about to change soon, thereby giving you the chance to get a better entry. By having a better entry, you have the chance to have better reward.
-> Short term crossovers: it includes 5 DEMA crossover 20DEMA , this crossover is for daily timeframe i.e. for short term traders
5DEMA CROSS ABOVE 20DEMA
although some move was left out but then also the return was splendor NOTE: crossover give signal only on conformation so some move could be left out.
5DEMA CROSS BELOW 20DEMA
-> Long term crossovers: it includes some important crossovers i.e. Golden and Death crosses
GOLDEN CROSS:
here major moving average crosses each other i.e. 50DEMA cross above 200DEMA it signifies major uptrend in large time frame
though we have seen major fall in metal sector but still they are golden cross period
DEATH CROSS:
here major moving average crosses each other i.e. 50DEMA cross below 200DEMA it signifies major downtrend in large time frame
the major fall in nifty was predicted by me earlier with help of this cross
In summary, moving average crossovers are helpful in identifying when a trend might be emerging or when a trend might be ending.
The crossover system offers specific triggers for potential entry and exit points.
These triggers should be confirmed with a chart pattern or support and resistance breakouts
My Observation :- short term moving average crossovers could be confirmed with RSI i.e. if RSI is greater than 50 uptrend possible and if less than 50 downtrend possible if it is not the crossover could be false in that case wait for conformation.
long term moving average crossovers could be confirmed with RSI i.e. if RSI is greater than 60 uptrend possible and if less than 40 downtrend possible if it is not
the crossover could be false in that case wait for conformation.
Nifty: At important support levels- Nifty near its March bottom
- if holds on to 15680-15720 zone then it could be a case of Double bottom
- Target could be retest of 20 day EMA / 50 day EMA / 200 day EMA ( use charts to keep track of these levels as it changes with every trade day)
- trend line resistance around 16680 / 16800
Risk factor
- we see 50 day EMA crossing below 200 day EMA which is also referred as Death Cross
Can Nifty stage a comeback...?
or
are the Bulls down and out...?
Only time will tell...
Important levels have been given and different scenarios have been considered....
Given the set up,
My Trading strategy: Gone with a 26 May expiry 15300 Put short @ 107
- Strategy has a 9% profit potential on margin requirement
- it also gives protection for a fall up to 15193 till May expiry
Will consider to Exit / Review if Nifty closing is below 15680.
Take care...!!!
Disclaimer
- The view expressed here is my personal view
- Past performance is not a guarantee for future predictions
- Use this for educational purpose
- Any decision you take, you need to take responsibility for the same
- It's your hard earned money. Treat it wisely
- Trade / Invest keeping in mind your trading style, goals and objectives, time horizon & risk tolerance
- if trading in F&O, understand that F&O trading involves risk
- Do take proper risk management measures
- Do your own analysis and consult your financial adviser if need be
Affle - ascending triangle pattern Affle is constantly making higher highs and higher lows. Price is forming an ascending triangle, which is form of a bullish set up.
Interpretation: Price moving high in a narrow range, increase in share price means that buyers are interested in buying a stock even at increasing price, which indicates a bullish anticipation in buyers.
Price is also showing 2 more bullish signs:
1. Price taking support from key moving average: 20 Day EMA
2. Key moving average cross over : 20 day Ema has crossed 50 day EMA from below, on 31st march.
Keep an eye on stock and add to your watch list. Any close above 1295 can lead to potential target of 1340, 1412, 1480 in order. Check your risk appetite and pick safe targets accordingly.
**********
Chemcon speciality chemicals is about to breakout the channel?Chemcon is consolidated between a price range, which forms a channel pattern.
Upper line is Resistance line and lower line is Support line
You can see many times the support & resistance tested as well.
In such patterns we can take positional entry at the breakout point. How to calculate the target?
I have marked resistance and support points namely A & B respectively. So the difference between them will give us target after breakout.
Target points = A - B = 467.70 - 400.10
Target points = 67.60
Adding this to point at resistance line that is 467.70 we will get
Target Price = 467.70 + 67.60
Target Price = 535.30
Roughly we get the Target price of Rs. 535.30 which is close to the price from previous resistance.
So this is how the channel breakout pattern works.
Time to achieve the Target : 1-2 Months
Positive signs for breakout :-
Stock has bullish momentum
RSI is above 60
MACD is about to give Buying signal
20,50 & 100 SMA crossover
If stock fails to breakout, it will take support around 432.
What is your opinion on this? Drop into comment section.
Disclaimer : This is my personal analysis about Chemcon. Do your own analysis before taking any position. I am not responsible for any profit or loss.
NIFTY TRADE SETUP -SGX NIFTY IS SHOWING A GAP UP OF 45 POINTS
-THIS SHOWS A POSSIBLE OPEN ABOVE YESTERDAY HIGH
-BEST PART IS NIFTY HAS BROKEN ITS 200-EMA ON DAILY CHART AND MANAGED TO CLOSE ABOVE 10550
-AND IF THE MARKET SUSTAINS ABOVE THAT WE CAN SEE BIG MOVES ON NIFTY
-A " BUY ON DIPS" RECOMMENDATION
-CRUCIAL SUPPORT AT NOW AT 10550
-MARKET IS LOOKING TO REASON TO RALY EVERYTIME
-KEY THING TO WATCH OUT IS THE FOMRATION OF A NEW TRENDLINE ON 30-MIN CHART
-PREMIUM WAS IN DISCOUNT THE FUTURE INDEX HAS CAUGHT WITH THE SPOT RATE
-THIS SHOWS THE SHORT COVERING YESTERDAY
-NIFTY NEXT TARGETS 10620-10740
-NIFTY INDEX CAN LOOK TO TEST ITS 200-SMA PLACED AT 10890
"BIG MOVES CAN BE EXPECTED"
"HINT IS IF MARKET OPENS ABOVE 200-EMA PLACED AT 10513"
"SUSTAINS FOR A THE FIRST 30-MINS AND CREATES A NEW MORNING HIGH"
"NIFTY THEN IF MANAGES TO CLOSE ABOVE 10540 THEN WE WILL SEE 10740-10810"
"PLEASE NOTE THE ABOVE READING IS BASED ON PRICE ACTION TO BE EXPECTED"
"PLEASE WAIT FOR CONFIRMATION"
"ALL PROVED TO BE RIGHT YESTERDAY"
NIFTY RESISTANCE FOR THE DAY
10620-10700-10740
NIFTY SUPPORT FOR THE DAY
10550-10520-10480
!!PLEASE NOTE THE ABOVE INFORMATION IS FOR KNOWLEDGE ONLY!!
!!TRADE ACCORDING TO YOUR RISK PROFILE!!
!!SUGGEST OPTION TRADES TO NAVIGATE VOLATILITY!!
!!HAPPY TRADING!!
READ OLD POST ON INDEX AND SEE HOW WE ARE POSITIONED IN THE INDEX
YELLOW LEVELS ARE CRUCIAL SUPPORT ZONES
YELLOW LEVELS ARE CRUCIAL SUPPORT ZONES
NIFTY INDEX VIEWNIFTY TRADE
STUDY IS BASED ON SPOT RATE
PLEASE ADJUST FOR FUTURE LEVELS
CONDITION:-
INDEX SHOULD CLOSE ABOVE 20-DMA @11111
A CLOSE ABOVE 1140 IS NEED FOR CLOSING ABOVE SUPPLY ZONE
RESULT:-
IF THE ABOVE CONDITIONS ARE MET NIFTY WILL TEST LEVELS OF 11255-11332-11358
NIFTY WEEKLY VIEW WILL BE POSTED ON FRIDAY