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Nifty50

Basics of Option's Delta: With ExamplesOption's DELTA represents the change in price of an option with respect to change in price of an underlying. Let's understand briefly with the help of Nifty example. 1️⃣ In the above Nifty example, 17750 is an At the Money CE option. Delta of ATM CE is near 0.5 Which means that if spot moves 10 points, 17750 CE will move 5 points. Normally ATM options are highly volatile options. 2️⃣ 17700 is slightly In the Money CE. Delta is 0.7, means if spot moves up 10 points, the CE option will move up by 7 points. Volatility is fairly high in this one too but less compared to 17750. ⚡If you open the chart of the above options, you will see spikes with lot of wicks above and below the candles (if market stays around these levels). Also, there will be a lot of breakout/breakdown failures over the swing highs and lows in the intraday. This is due to highly volatile nature of ATM options. 3️⃣ 17650 and 17600 are deeper In the Money CE options. You can see that the delta is around 0.9 It means that if index moves 10 points, these CE option will move 8-9 points also. These options are less volatile compared to ATM options. ⚡The deeper the CE option, the higher would be the delta, but the value of Delta never exceeds 1. You should note that deep ITM options just behave like the underlying Futures. Means a 1-point movement in the underlying equals 1 point move in the option. So, if you don't want to trade futures for some reason, you can trade with deep ITM options. ⚡⚡Remember that Delta varies as the market moves. Ex if market moves down by 100 points, in this example, then Delta of 17650 CE will become 0.5 as it will be ATM at that point. This behavior along with higher Theta of ATM needs more attention. ⚡Needless to mention, the Delta of Out of the Money CE options remains less than 0.5 and it keeps on decreasing as we move deeper into OTM CE options. Ex Delta of 17900 CE is 0.05 while publishing this post on the expiry day. This is the reason that an OTM CE will have bare minimum movement with respect to movement in the underlying. Disclaimer: I don't call myself an option expert and I am not much into complex option strategies. But this is the least that one should know as an option trader. Do like for more informative posts in the future. Regards
NSE:NIFTYEducation
by Bravetotrade
21
Correlations between Nifty and DXY studyHello Friends, here we had shared just an observation on correlation between NIFTY and DXY which are clearly showing opposite directional runs from last couple of months, also we are assuming the wave counts on both, which are suggesting same patterns ahead along with good support by this correlation, this increases good chances of winning probabilities of our forecasting and analysis, this whole scenario helps in view building and analyzing charts. I'll mention that this is for educational purpose only, and this is not for trading purpose . Thanks Most investors treat trading as a hobby because they have a full-time job doing something else. However, If you treat trading like a business, it will pay you like a business. If you treat like a hobby, hobbies don't pay, they cost you...! Disclaimer. I am not sebi registered analyst. My studies are for educational purpose only. Please Consult your financial advisor before trading or investing. I am not responsible for any kinds of your profits and your losses.
NSE:NIFTYEducation
by RK_Chaarts
23
Nifty Future - Educational This Nifty Future Chart i have used in this Educational Tutorial is to summarize how many parameters keep playing in disguise on Daily Charts which is possible to track properly only in Short Term Trades . The Trade Setups for Longs / Shorts are those which i have personally Taken in markets in recent times for short term setups . The Overall Risk Reward is positive till date but not as expected due to high Volatile Markets in last 1 year XABCD Patterns used in this chart is a casual approach to show how things start making sense once the pattern is completed :) ABCD Pattern used is to Project Nifty Future Probable Target in coming days Ongoing Long Setup : Reason 1 : The Last Long Entry which was made around 15th of July is a case of Trend Change Expectation as per Time Cycle , If u notice the projected path of ABCD Pattern (from weekly chart) hasn't moved as expected but there was a price decay instead of time so this trade made a lot of sense Reason 2 : First Entered this trade around 15th of July which was clearly a Buy and i have published this idea under my profile during the day, but with following days Nifty Future hasn't even shown a single day of weakness on Daily Charts on closing basis. How i Projected Targets in advance: All Targets Projected in advance are Fibonacci levels of last swings i personally use 1.27 & 1.61 (to Project Initial & Profit Targets respectively) but if market keeps rolling without correction then i am happy to hold with trailing Stops. This is my First Educational Content for my friends/followers , Tried my best to explain the rational on chart which you can practice by urself using Bar Replays and can find my Entry Reasons which are mostly retracements of last swings . Intraday Trade Setups are totally different as most of these patterns goes unnoticed due to scarcity of time ( attaching few NIFTY ideas i shared in last few days). I will try to make another tutorial for Intraday Trade setups which i mostly trade The downside is as you start trading lower time frames our/your success rate too keep diminishing but the game is to win only via Proper Risk Reward Management in each and every single trade :) which is the hardest task but not an impossible one Do Comment , share and "LIKE" if you find this info valuable to use . Attached below few Related Ideas posted under my profile in recent time. Happy Hunting , Chintamani Disclaimer. I am not SEBI registered analyst. My studies are for educational & General purpose only. Please Consult your financial advisor if you have plans of trading or investing. You yourself hold sole responsibility of profits and your losses arising of above shared info
NSE:NIFTY1!Education
by Chintamoney
Nifty: A Study through Time CyclesNifty is in consolidation phase. This may or may not lead to a bear market and let’s not discuss it as of now. I will try to analyze Nifty, on the basis of support and resistance levels and time cycles, for the next possible swing and its direction. Support and Resistance levels ------------------------------------- It can be seen on the chart that Nifty made a high in Oct21 and faced resistance, followed by a sharp reaction of 11%. It rallied till mid of Jan22 and again faced a sharp larger reaction of 14%. It then rallied 15% throughout Mar22, faced a trendline resistance and reacted 13% If we draw important support and resistance lines through this price action we get three major levels -Dynamic resistance level through the trendline -16780 to 16850 multiple support zone which is now a potential resistance zone -15670 to 15750 support zone which also coincides with a prior area of consolidation Time Cycles ---------------- If we look at peaks, there is a 62bar high cycle followed by 51 bar cycle. In this sequence, the next cycle could have been a 40bars for the market to test trendline resistance. But that is not the case and here the market is at 16780-16850 zone after 40 bar cycle. This clearly reflects some weakness in Nifty as it was able to cover roughly half the distance on the upside compared to January and March rallies, in almost same number of days. It’s clear that the prior support zone is acting as resistance. At the valleys, there are 53 and 43bar cycles. The next cycle could be a 33bar cycle where Nifty can either breaks the recent support 15670-17750 or retests it. The 33bar cycle coincides with June expiry so there is need to take a cautious approach on the upside until 16850 resistance is taken out. I hope this idea will help you to understand the markets another non conventional perspective. Keep liking and sharing your thoughts. Disclaimer: This post is for educational purpose only and not a trading/investment advice.
NSE:NIFTYEducation
by Bravetotrade
52
Studing Consolidation Phase This is hourly timeframe. This is how I analyze the consolidation only technically. From fibo. recent top to bottom, Nifty is taking resistance 0.38 fibonacci level. Let's pointout the short trend and understand each. 1] Nifty started consolidating 6th May 2022. It started falling, gone sideways for sometime and gave bounce back. 2] And it tested the 16400 zone. As it was a straight one side move, it was obvious it will give a retracement. 3] But it was again a one side move, this time downward, and tested the recent bottom. Here, we witnessed a sharp upmove from bottom to top and again to bottom. 4] Again from 20th May, a sharp upmove towards resistance. 5] Tested and fallback this week. 6] Bounce backed again and now near resistance zone. In all of these short term trends, we can see thick bullish and bearish candles in phase 1 and 5. Though bulls failed in these phase. Almost each phase has 1) bullish and bearish belt hold 2) bullish and bearish marubozu Except phase 2,6 no bearish candlestick of this type. These opposite candlestick patterns occurance multiple times tells us that market is now choppy, highly volatile. Outcome of analysis: In current market situation, bulls and bear are almost equally powerful. Choopy moves indicates the aggression and dominating will. This how I analyze a consolidation. Breaks it down in trend zones and study each, and keep in back of the mind each one's outcome, and try to anticipate, every possibility. And how much is the chance of taking it place by looking at bull and bears behaviour. Note : This is my own analysis and is for information purpose only.
NSE:NIFTYEducation
by AkshayAdak
Symmetrical Triangle - Full ExplanationA Symmetrical Triangle is considered a bullish signal, indicating that the current uptrend may continue. It is a bullish continuation pattern. It is a volatility contraction pattern. This means volatility in the market is shrinking and a sign the market is likely to breakout, soon. A Symmetrical Triangle shows two converging trendlines, the lower one is ascending, the upper one is descending. The formation occurs because prices are reaching both lower highs and higher lows. The pattern will display minimum two highs touching the upper (descending) trendline and minimum two lows touching the lower (ascending) trendline. This pattern indicates a phase of consolidation before the prices breakout. The symmetrical triangle pattern is different from a descending or ascending triangle pattern as both triangles’ lower and upper trend lines slope towards the center point. A horizontal upper trendline is formed in ascending triangles that predict a higher breakout. With a descending triangle, a horizontal lower trendline is formed that predicts a lower breakout. Formation Of Symmetrical Triangle Below is the formation of symmetrical triangle Identification a Symmetrical Triangle i) The sides of the triangle slope equally (that’s why it’s symmetrical) ii) The triangle has lower highs and higher lows – at least two of each iii) It looks like a funnel, with the price “squeezing” from the left towards the right iv)The bullish symmetrical triangle should be formed in an ongoing uptrend and the prices should breakout from the upper trend line. Below is the example of the bullish symmetrical triangle formed on the 15 Min chart of NIFTY. We can see how it is formed in an ongoing uptrend and prices breakout from the upper trend line in the direction of the prior trend. Entry Entry can be done after the breakout. Sometime, when the price breaks out of the Symmetrical Triangle, it might re-test the previous market structure. So, traders can enter on the pullback also. You should also look for any reversal candlestick pattern like Hammer , Bullish Engulfing in the pullback. pullback here is very small as it is in a small Time Frame (15 Min) Stop Loss :- The stop loss is placed right before the breakout point in a symmetrical triangle chart pattern. Previous low before the breakout is the stop loss. Trailing Stop Loss :- No one knows how high or low the market can go. And by trailing your stop loss, you allow the market to reward you as it moves in your favor. You can use the Exponential Moving Average (EMA) or Moving Average (MA) to trail your stop loss. You can use the 50 EMA to trail your stop loss. If the price closes below it, then you’ll exit the trade. Target :- The price target is equal to the distance from the high and low of the earliest part of the pattern applied to the breakout price point. i)Take the distance between the high and the low of the Symmetrical Triangle — the widest point of the pattern. ii)“Copy and paste it” at the breakout point iii)Exit your trade at the price projection level There is also a bearish symmetrical triangle which is a bearish trend continuation chart pattern. The bearish symmetrical triangle should be formed in an ongoing downtrend and the prices should breakout from the lower trend line. Hope you all learnt from this post. Share with the community if you liked it. Regards Omahto
NSE:NIFTYEducation
by Omahto
4
Market Cycles – Market Phases and Different TypesTypes of Market Phases There are 4 clear market phases, and all markets go through these phases in a repeated way: All markets go through 4 clear phases in a repeated way: 1.Accumulation Phase This phase occurs after the market has bottomed and early adopters begin to buy, figuring the worst is over. At this phase, valuations are very attractive, and general market sentiment is still bearish. Overall market sentiment begins to switch from negative to neutral. The end of an accumulation phase is typically marked by a breakout where trade sentiment moves towards neutral and traders start sniffing an opportunity. 2. Mark up Phase The market has been stable for a while and is beginning to move higher. The early majority are getting on the bandwagon. Traders, seeing the market is putting in higher lows and higher highs, recognize market direction and sentiment have changed. Markup phase begins with a breakout and tends to continue till there is a major pullback. Markets start trending upwards and more investors jump on the bandwagon as greed and the fear of losing out take over. 3. Distribution Phase This part of the cycle is identified by a period in which the bullish sentiment of the previous phase turns into a mixed sentiment. Prices can often stay locked in a trading range that can last a few weeks or even months. The distribution phase is a very emotional time for the markets, as investors are gripped by periods of complete fear interspersed with hope and even greed as the market may at times appear to be taking off again. This phase is marred with consolidations, breakouts and pullbacks at small scales, identifying trends become difficult. 4. Mark-down Phase The fourth and final phase in the cycle is the most painful for those who still hold positions. Many hang on because their investment has fallen below what they paid for it refusing to let go in the vain hope of being rescued. Timing the market correctly is the first step to making profits with TA. You would want to build a system that helps identify an entry point when the market is in the ‘mark up’ phase. The system should then also help you also identify when to exit once the asset is moving from the distribution to the ‘mark down’ phase.
NSE:NIFTYEducation
by UnknownUnicorn7241612
60
Nifty 50 for the next week (Dec 13–17)On left hand side chart, there is an upward channel on weekly time frame since Sep 2020 and downward channel from mid October 2021. NSE:NIFTY On right hand side, downward channel formed since October 19, 2021 is focused on daily time frame. Observations: A) On weekly chart, Nifty has taken support at the lower band of upward channel. B) On daily chart, Nifty closed at the upper band of downward channel today (Dec 10, 2021). Conclusion: 1. If Nifty breaks the upper band of downward channel at (B), the central line of upward channel can play as key resistance at 18130-18220. (more likely scenario) 2. On downside, the lower band of upward channel can play as support at 16985 – 17050.
NSE:NIFTYEducation
by Rajesh_Ramchandani_Delta
RSI RANGE SHIFT StrategyFor Beginners who don't know the real meaning of RSI RSI---RELATIVE STRENGTH INDEX As the name says it shows the strength of a particular stock or index. More the RSI more the strength RSI above 40 indicates very little strength 50/60+ RSI stocks indicates very good strength....But RSI above 80 indicates that the stock is little overbought and may consolidate but doesn't mean it will fall... RSI below 40 stocks should never be bought...RSI below 40 is oversold but the stock might not bounce back as the strength is weak...So buying a stock with RSI above 50/60 is the best and SHORT selling below 30/40 is the best option... RSI RANGE SHIFT STRATEGY: It's a simple swing trading strategy When RSI is falling and bounces back from 40...it is a buy for the stock once RSI is heading towards 60 It is a SHORT SELL if RSI 40 support is broken This strategy has to be combined with PRICE ACTION to get a good RISK/REWARD ratio. FOLLOW me for more such content ahead...Till then, HAPPY TRADING :)
NSE:NIFTYEducation
by keshevdugar
6
Nifty - A short study using the various indicatorsLet's analyze the charts using different indicators that are commonly used so as to see what the different traders are looking at. Daily time frame 1. The RSI still has a potential for further selling. We are near the oversold territory. 2. There is no prominent support on the daily time frame until 15900-16000. 3. The 200 MA cluster is near 16100, which almost overlaps with the horizontal support at 16000. 4. So, it is safe to assume that 16000 should act as good support on the daily time frame. 4 hours time frame 1. Let's start with RSI and MACD. Both the indicators are showing that the price has been in the oversold region and there is still a good selling pressure. 2. There has been a confirmed breakdown of 17429 level, which was an important level since September. 3. An unfilled gap is present at 16764-16722. For those who don't know, gaps act as areas of support and resistance. Hence, it's highly likely that we fill this gap in the coming days. 4. There is an untested monthly pivot at 16700. 5. The price has closed below the 200 MA cluster. We may expect only 2 things: i> Either the trend has reversed and the market wants to go down. ii> Or the price is just hunting for liquidity at obvious levels and taking out the retail longs from the market. I am more inclined towards the 2nd case. We may hunt a bit more (about 2-3%) so that the bearish narrative is set, before resuming the uptrend. A weak support level is also available near 16350, which has been tested only once. Hourly time frame 1. Hourly time frame plays an important role since it is used by the swing traders for entry/exit. 2. There is a bullish divergence which may provide a dead cat bounce. 3. If there is a relief rally, then we may push till 17300-17400, before selling again. 4. This relief rally will be to trap the breakout longs along the trendline and to grab liquidity. TPO chart (Unavailable on Tradingview. If you want to see TPO chart of this post, check the PDF link under this post) If we look at the TPO chart on the daily time frame, we can notice the following things: 1. A single print between 16900-16740, which is expected to be filled. 2. An untested value area high from August near 16690, which may act as a support. 3. POC of August at 16337, which is expected to act as a support. 4. A prominent POC at 15757, which has a very high probability to act as a support. In simple words, we have plenty of interest zones from 16900-16300 that may act as support. But we cannot pinpoint the exact reversal point. Volume Profile (June-Present): 1. On the downside, the nearest high-volume node lies at 16600. The other high volume node lies at 16200. 2. On the upside, the nearest high volume node lies at 17400, which was already taken out. 3. The POC lies at about 15800, where a massive volume was traded. This should act as very strong support. Conclusion: In my humble opinion, we have plenty of supports from 16000-16500 as per different indicators/factors. It would be good if we sell-off till these levels so the market can find the bottom faster. P.S: Take this post with a pinch of salt. This is just my opinion and what I am able to conclude using my limited knowledge. You are free to do your own research. Also, if anyone is interested in getting a PDF version of this thread along with all the charts, 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
12
GOLDEN CROSSOVER Golden Strategy INDICATORS USED: EMA 4 EMA 9 EMA 18 TIME FRAME FOR ENTRY/EXIT: 5 min WORKS VERY WELL ON BOTH NIFTY AND BANK NIFTY As you can see on the chart that when EMA 4 crosses EMA 9 and EMA 18 together then the crossover of EMA 4 is golden crossover. This is the bookish definition...Now let's look at the applications with complete trading setup This strategy works well only on a trending day... STRATEGY: BUY once there is a golden crossover as shown in the post below: SELL once there is a golden crossover as shown in the post below: SOUNDS very simple and it is indeed but works well only if the day is trending...simple price action or anchored vwap strategy. Let's look into the STOPLOSS and TARGET: STOPLOSS: Place stoploss BELOW EMA 18 TRAILING STOPLOSS: EMA 4,EMA 9, EMA 18 acts as a good support...Place the trailing stoploss below any of them depending on your setup...(EMA 18 is preferred) TARGET: This strategy does not provide and fixed target...Keep trading until the trailing stoploss is hit. (Captures almost entire trend on a trending day...that's why it is best for trending days) EXAMPLES: SELL As you can see on the chart how beautifully EMA 4/9/18 are respected by the market on a trending day...and 250 points of move was captured in NIFTY 50. BUY Similarly 230+ points were captured and the market again respected these moving averages FALSE SIGNAL: This strategy is not a holy grail...it will give many false signals in a non trending day...so using this strategy along with price action will make it a lot more accurate. DO KEEP IN MIND THAT ANY STRATEGY WHEN FOLLOWED WITH PROPER RISK MANAGEMENT AND POSITION SIZING WILL ONLY GIVE PROFITS IN THE LONG RUN... If you have any doubts in this strategy do let me know in the comments...would love to answer them asap FOLLOW ME for more such content ahead...Till then, HAPPY TRADING :)
NSE:NIFTYEducation
by keshevdugar
29
Market Crash after a BULL MARKET? How to predict them?"HISTORY REPEATS ITSELF" is a very powerful mantra for success in STOCK MARKET. Anyone can mint money in a bull market but THE ONE who protects his/her money before a market crash is the one who makes profits in the long run... And the fun fact is that market gives enough chances to protect one's capital before the crash. Here I am with one of the very few patterns which was common in both the major crash of 2008 and 2020 and in a mini crash of 1999. This SETUP is very simple to read...yet a very powerful one CONDITIONS TO QUALIFY IN THIS SETUP: 1.EMA 52 Slope should not be one directional upwards (CHECK IN BOTH DAILY AND WEEKLY TIME FRAME) 2.RSI-Sharp dip below 40 3.Triple Top as seen in the 1999/2008/2020 crash. 4.Breaking the bottom of the channel with gap down/low wick red candle. LOOK AT THE MAGIC (1999 CRASH): 2008 CRASH: 2020 CRASH: Now This was one such SETUP which was common in 2 MAJOR and 1 MINOR crashes in the data which is available on charts. MARKETs can fell in many other bearish reversal setups like HEAD AND SHOULDERS as shown in the BEGINNING OF 2015 BEAR MARKET: Many more reversal setups are there which are visible in most of the mini/major crashes that takes place in the market...I will look forward to share one by one all the possible reversal patterns to avoid confusion in reading and digesting the SETUPs...FOLLOW me to stay updated as soon as I upload them on my channel. Till then, HAPPY TRADING :)
NSE:NIFTYEducation
by keshevdugar
13
TRADE PULLBACKS LIKE A PROAn Uptrending stock gives many opportunities to enter in it. But...we miss many of them assuming it as a reversal or before we enter the stock moves much higher again and Risk/Reward ratio is unfavourable for our trade. Here I am with another tried and tested strategy to find whether it's a pullback or trend reversal and the most IMPORTANT...enter before the stock moves much higher. So let's discuss Step by Step from STOCK SELECTION to ENTRY,STOPLOSS,EXIT. I will also be discussing about the candlestick patterns and indicators for better accuracy. -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 1.STOCK SELECTION: .Broader market has to be in a uptrend (BULL MARKET) .The stock should be from an uptrending sector .The stock has to be in a STAGE 2 uptrending structure to QUALIFY as a stock for pullback. For detail explanation of STAGES I have linked a post below: -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 2.MOMENTUM INDICATORS .RSI-- It has to be above 50 to increase the accuracy of the trade .EMA 50--Slope of EMA 50 has to be positive .MOMENTUM--If it is positive then it's icing on the cake .ADX--While the stock is falling ADX should also fall to give a shade better trade. .VOLUME--Should be low when the stock is falling as compared to Going up Keeping things simple : IF THE STOCK QUALIFIES ALL THE ABOVE CRITERIA OF SELECTION AND INDICATORS THEN IT IS NOT A TREND REVERSAL -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 3.CANDLESTICK PATTERNS .Low body red candles are a very good sign .Long wick rejection from the bottom .Very less big body red candle (NOT MORE THAN 2) -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 4.ENTRY The most important part of pullback trading is to enter before the stock moves very high and also not wait for months for it to move. STEP-1: Mark the candle of previous high as '0' in daily time frame. STEP-2:Keep counting the candles from 1-20 as shown in the below figure: (MIN 8 has to be there) STEP-3: Now when the count is completed mark the lowest price of the stock within the pullback range as 'PIVOT' STEP-4:Now switch the chart to 1hr time frame as shown on the chart of HDFC Ltd. NOTE: Candle 0's high has to be the high within these candles (MIN 8)...if not then this strategy might not work well. STEP 5:Draw a stage structure (BASE) and our entry will be the breakout of this range (50%) and pullback to this STAGE (50%) -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 5.STOPLOSS AND EXIT STOPLOSS: The pivot point will be our stoploss EXIT: After the stock has broken out of the stage EXIT after 20 counts (It sounds theoritical and funny...but it do works most of the time Look at the EXAMPLE OF RELIANCE with the concepts mentioned above: You can also see the EXAMPLE OF AIRTEL's previous pullback -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- NOTE: Like all other strategies even this strategy is not 100% accurate. I hope you liked this strategy of pullback trading and it might increase your chances to make profits in the market.If you have any doubts do let me know in the comment section below. I will be posting a lot more strategies for trading/risk management in this channel ahead. FOLLOW this channel to stay updated as soon as I upload it. Till then, HAPPY TRADING :)
NSE:BHARTIARTLEducation
by keshevdugar
16
Ross Hook pattern (simple) explanation using Bank Nifty D ChartRoss Hook pattern (simple) explanation using Bank Nifty Daily chart : We tried to explain Ross Hook pattern in a very simple way here taking Bank Nifty Daily chart as example. Ross Hook pattern can be termed as an extension/correction/advancement (as per me) to 1-2-3 pattern. The difference which can be noticed is hook kind of formation after point 3 where there can be couple of small candles which are formed to give a confirmation for momentum or price action. These small candle formation are termed as hook in simple terms and any upside (Bull pattern) or downside (Bear pattern) movement from these candle sticks will give good momentum and good risk reward. SL need to placed just below/above these small candles as per Bull/Bear formation respectively. Entry just above the candles/below the candles for Bull/Bear formation respectively and exit can be planned with a risk reward ratio of 1:2,3,4,5. In the given chart there are 4 Bull patterns (A,C,D,E) AND 1 Bear pattern (B) for your reference. For confluence the entry points need to looked along with RSI/MACD/Bollinger bands etc. Identification of hook is the key in this strategy. Once it is identified then the RR can be very good. Please do a back testing to identify these hooks so to get a good hold of understanding. Also ample time will be there when we notice these hook formation candles to make entries. Please do not get into entries with long candles formation as it might not be hook formation and we should avoid those entry points. SL is the key and it should be smaller, if this is kept in mind then identification of hook formation in candles can be easily identified. Some times point 3 can also be used for SL but we avoid taking that huge risk and want to move out when our analysis is wrong or the trend is in our opposite direction of our thought process with a small SL. Market gives us abundant opportunities and its believed that for every 8 minutes there would be an opportunity for every one to enter. Hence identify only those trends with small SL opportunity for planning an entry. This strategy works for all time formats and please remember identification of SL (which should be small) is the key (reiterating again) and will lead us to entry and exit points. Disclaimer : This analysis is only for educational purpose and not be considered as any trading idea/tip. Please consult your financial advisor before you take any trade and we are no way responsible for your profits/losses. Thank you! Please do like and share this idea. Thanks
NSE:BANKNIFTYEducation
by AdhigamaTrading
2