Mutual Funds investment mistakes in IndiaIntroduction
Investing in mutual funds has become popular for many Indian investors in recent years. It provides an opportunity to invest in a diversified portfolio of assets managed by experienced professionals, with potentially higher returns than traditional investment options such as fixed deposits or savings accounts. Mutual funds also offer flexibility, liquidity, and tax benefits, making them an attractive option for investors seeking financial stability and growth.
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'STATES' of 'MARKET' - forms in which market can existProbably all of you have might have heard of 'states' of 'matter', let me remind you once again "state of matter is one of the distinct forms in which matter can exist" but why am I talking about this stuff it's because the Market also has 'states' of 'market' you can define them in the same way " state of the market is one of the distinct forms in which market can exist".
I know many of you can't grasp it now but I can ensure you that by reading the entire article you would surely encounter one of the most striking observations.
As we all know fundamental states of matter are:-
-> Solid
-> Liquid
-> Gas
So what are the fundamental states of the market? let me recap the definition once again "state of the market is one of the distinct forms in which market can exist".
Okay, now I think many of you have figured out the 'states' of 'market', they are the following:-
-> Sideways
-> Downtrend
-> Uptrend
Yes, ' states' of 'market' are the trends cause the market can exist only in any form.
If I wanted to talk about trends I could have simply described trends but that's not the case cause this publication will establish a relation between the 'states' of 'matter' and 'states' of 'market'.
How are 'states' of 'matter' and 'states' of 'market' related?
Let me relate them by their properties-
-> Relation between Solid and Sideways
- Solid
The property of solids is they cannot move freely but vibrate due to strong intermolecular force.
Solid has a stable and definite shape and requires external force when it's to be molded.
- Sideways
The property of a sideways market is that in a sideways market price doesn't move freely but consolidates in a range due to strong calls and put writers who bound the price in a range.
The sideways market is stable and definite and requires an external buying/selling force to break the range in either direction.
-> Relation between Liquid and Downtrend
- Liquid
The liquid being a fluid tends to flow.
The density of liquid a quite high compared to gas hence it requires no external force while flowing downstream but requires a strong force to keep it flowing upwards.
The speed of liquid downstream is always greater than upstream due to gravity in action.
-Downtrend
In a downtrend price also flows down the same as a liquid flowing downstream without any external force.
Usually, the price plunges much faster as compared to the rise in price.
If somehow a rise is witnessed in a downtrend then it fades out quite fast because to keep the price flowing upward a huge buying force as compared to the selling force is required. This is also the case when liquid flows downstream.
-> Relation between Gas and Uptrend
- Gas
The gas being a fluid tends to flow.
The density of the gas is quite low hence it rises naturally but requires external pressure in a downward direction to keep it flowing downwards.
Gas has a very large intermolecular space hence its movement in a particular direction is quite slow and random.
- Uptrend
In an uptrend price naturally rises without any external force.
Usually, the price rises much slow as compared to the fall in price.
The nature of price in an uptrend is much similar to gas, as price movement in an uptrend is slow and random. Random because in an uptrend price gives more jerks as compared to a downtrend.
Phase/Trend Transition:-
Sideways <-> Uptrend (transition from sideways to uptrend market and vice-versa)
- RSI can be used to identify the transition, in a sideways market RSI usually trades in the band of 40 - 60, when RSI crosses above 60 along with breaking the range indicates the beginning of an uptrend.
- We can also term this transition as 'sublimation' cause the solid is changing to gas.
- Same for vice-versa just the term would be changed to ' deposition ' as the gas is changing to solid.
Sideways <-> Downtrend (transition from sideways to downtrend market and vice-versa)
- RSI can be used to identify the transition, in a sideways market RSI usually trades in the band of 40 - 60, when RSI crosses below 40 along with breaking the range indicates the beginning of a downtrend.
- We can also term this transition as 'melting' cause the solid is changing to a liquid.
- Same for vice-versa just the term would be changed to 'freezing' as the liquid is changing to solid.
Uptrend <-> Downtrend (transition from uptrend to downtrend market and vice-versa)
- RSI can be used to identify the transition, when a divergence is witnessed in RSI and price chart this indicates the loss in strength of the internal force i.e. exhausting buying interest but still to confirm we could use 20 EMA if the price breaks below moving average with RSI divergence then it's quite possible a beginning of downtrend so what can we do is book our profits.
- Downtrend is only confirmed when RSI starts trading below 40 but we can't wait till then and let our profits vanish so as soon as you get an indication book your profits.
- We can also term this transition as 'condensation' cause the gas is changing to a liquid.
- Same for vice-versa just the term would be changed to 'vaporization' as the liquid is changing to gas.
In my prior post, I tried to relate "As above so below" harmony of nature with the market and now "States of Matter" with market trends this is all to make everyone know that 'Stocket' science is equally difficult as 'Rocket' science probably more cause here 'emotion' also comes in play which any other science lacks .
Now, answer yourself do you still have a fantasy about 'Rocket' science or 'Stocket' science is enough to fulfill anyone's
fantasy and do you know what's the best part of 'Stocket' science? it's everchanging .
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
What can financial ratios tell us?In the previous post we learned what financial ratios are. These are ratios of various indicators from financial statements that help us draw conclusions about the fundamental strength of a company and its investment attractiveness. In the same post, I listed the financial ratios that I use in my strategy, with formulas for their calculations.
Now let's take apart each of them and try to understand what they can tell us.
- Diluted EPS . Some time ago I have already told about the essence of this indicator. I would like to add that this is the most influential indicator on the stock market. Financial analysts of investment companies literally compete in forecasts, what will be EPS in forthcoming reports of the company. If they agree that EPS will be positive, but what actually happens is that it is negative, the stock price may fall quite dramatically. Conversely, if EPS comes out above expectations - the stock is likely to rise strongly during the coverage period.
- Price to Diluted EPS ratio . This is perhaps the best-known financial ratio for evaluating a company's investment appeal. It gives you an idea of how many years your investment in a stock will pay off if the current EPS is maintained. I have a particular take on this ratio, so I plan to devote a separate publication to it.
- Gross margin, % . This is the size of the markup to the cost of the company's product (service) or, in other words, margin . It is impossible to say that small margin is bad, and large - good. Different companies may have different margins. Some sell millions of products by small margins and some sell thousands by large margins. And both of those companies may have the same gross margins. However, my preference is for those companies whose margins grow over time. This means that either the prices of the company's products (services) are going up, or the company is cutting production costs.
- Operating expense ratio . This ratio is a great indicator of management's ability to manage a company's expenses. If the revenue increases and this ratio decreases, it means that the management is skillfully optimizing the operating expenses. If it is the other way around, shareholders should wonder how well management is handling current affairs.
- ROE, % is a ratio reflecting the efficiency of a company's equity performance. If a company earned 5% of its equity, i.e. ROE = 5%, and the bank deposit rate = 7%, then shareholders have a reasonable question: why invest equity in business development, if it can be placed in a bank deposit and get more, without expending extra effort? In other words, ROE, % reflects the return on invested equity. If it is growing, it is definitely a positive factor for the company and the shareholders.
- Days payable . This financial ratio is an excellent indicator of the solvency of the company. We can say that it is the number of days it will take the company to pay all debts to suppliers from its revenue. If the number of days is relatively small, it means that the company has no delays in paying for supplies and therefore no money problems. I consider less than 30 days to be acceptable, but over 90 days is critical.
- Days sales outstanding . I already mentioned in my previous posts that when a company is having a bad sales situation, it may even sell its products on credit. Such debts accumulate in accounts receivable. Obviously, large accounts receivable are a risk for the company, because the debts may simply not be paid back. For ease of control over this indicator, they invented such a financial ratio as "Days sales outstanding". We can say that this is the number of days it will take the company to earn revenue equivalent to the accounts receivable. It's one thing if the receivables are 365 daily revenue and another if it's only 10 daily revenue. Like the previous ratio: less than 30 days is acceptable to me, but over 90 days is critical.
- Inventory to revenue ratio . This is the amount of inventory in relation to revenue. Since inventory includes not only raw materials but also unsold products, this ratio can indicate sales problems. The more inventory a company has in relation to revenue, the worse it is. A ratio below 0.25 is acceptable to me; a ratio above 0.5 indicates that there are problems with sales.
- Current ratio . This is the ratio of current assets to current liabilities. Remember, we said that current assets are easier and faster to sell than non-current, so they are also called quick assets. In the event of a crisis and lack of profit in the company, quick assets can be an excellent help to make payments on debts and settlements with suppliers. After all, they can be sold quickly enough to pay off these liabilities. To understand the size of this "safety cushion", the current ratio is calculated. The larger it is, the better. For me, a suitable current ratio is 2 or higher. But below 1 it does not suit me.
- Interest coverage . We already know that loans play an important role in a company's operations. However, I am convinced that this role should not be the main one. If a company spends all of its profits to pay interest on loans, it is working for the bank, not for the shareholders. To find out how tangible interest on loans is for the company, the "Interest coverage" ratio was invented. According to the income statement, interest on loans is paid out of operating income. So if we divide the operating income by this interest, we get this ratio. It shows us how many times more the company earns than it spends on debt service. To me, the acceptable coverage ratio should be above 6, and below 3 is weak.
- Debt to revenue ratio . This is a useful ratio that shows the overall picture of the company's debt situation. It can be interpreted the following way: it shows how much revenue should be earned in order to close all the debts. A debt to revenue ratio of less than 0.5 is positive. It means that half (or even less) of the annual revenue will be enough to close the debt. A debt to revenue ratio higher than 1 is considered a serious problem since the company does not even have enough annual revenue to pay off all of its debts.
So, the financial ratios greatly simplify the process of fundamental analysis, because they allow you to quickly draw conclusions about the financial condition of the company, without looking up and down at its statements. You just look at ratios of key indicators and draw conclusions.
In the next post, I will tell you about the king of all financial ratios - the Price to Diluted EPS ratio, or simply P/E. See you soon!
A FEW PARAMETERS TO FILTER STOCKS FOR INTRADAY TRADINGThere are few things to be considered before selecting a stock for intraday such as,
1)Volume
2)Price
3)Mimicking Stocks
VOLUME:
Always Select a stock which has a high liquidity, which means the stock should have at least average daily volume of above 1 million (10 lakhs).
PRICE:
Many would not consider this as a important parameter. but it must be considered. Choosing penny stocks for intraday is not a good choice at all. Always prefer stocks trading above Rs.100 for intraday
MIMICKING STOCKS:
Look for the stocks which move in sync with the index.
So when the index moves upward/downward, there is a high possibility for the stock to go up/down similarly.
Few such examples are
1)Nifty & Reliance,
2)Bank nifty& HDFC Bank,
3)Nifty IT & TCS.
SUMMARY
#Make a List of 10 stocks, which have good volume (>10 lakhs) & price above 100
#Try to Pick stocks from F&O category as they are the most liquid stocks & these stocks can't be manipulated easily by the operators.
#Make sure the 10 stocks are from various industries. Because if we pick stocks from same industries, they are likely to move in tandem.
#As a beginner, one should trade within only those 10 stocks every single day for at least 6 months. The reason behind is, every stock has a certain behaviour of its own & when we trade same stocks for a long time, one will get to know the in & out of the stocks & eventually be better at trading.
#Another good reason is, every stock is subjected to move according to its corporate action ( Earnings, AGM, Dividends etc.,) So it becomes easy to pay attention to the news related to a particular company, when we trade very few stocks.
SAMPLE 10 STOCKS LIST:
Finance
1)SBI
2)ICICI
Pharma
3)SUNPHARMA
4)BIOCON
Auto
5)MAHINDRA & MAHINDRA
6)TATA MOTORS
IT
7)INFY
8)TECHM
Fmcg
9)HINDUNILEVER
Metal
10)TATA STEEL
Disclaimer :
These are not rigid rules. All the above said are the things which am using for long time successfully.
If you are successful with any other method, please continue that.
Happy Profit Making,
Divyaa Pugal
Let's Know Top 10 Chart Patterns With Most Success RatesBefore it, let's learn about types of chart patterns because it's important to know that the pattern is a reversal or continuation because it will help us decide whether the market is making a reversal or a continuation pattern.
1. Continuation patterns : A Pattern which gives you an indication of continuation meaning continuing the trend.
For example :- flag patterns, wedges patterns or a pennant pattern can be classified into this.
2. Reversal Patterns : Patterns which give you an indication of reversal meaning if the market is going up and then a reversal pattern forms then it should go down.
For Example : Head and Shoulders Pattern, Double Top and Bottom Pattern can be classified into this.
Now Let's Learn about the Top 10 Chart Patterns With the most Success rates
1. Head and shoulders
2. Double top or bottom
3. J Pattern
4. Rounding bottom or Top
5. Cup and handle
6. Wedges
7. Pennant
8. Descending Triangle or Ascending Triangle
9. Bullish Flags or Bearish Flags
10. Symmetrical triangle or A Symmetrical Triangle
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1. Head and Shoulders :-
Traders use the head and shoulders pattern in technical analysis chart to anticipate likely changes in a price trend. After a bullish trend, it is common to see a bearish pattern emerge that is renowned for its accuracy in predicting a trend reversal.
There are three peaks in the pattern where the middle one is the highest and the remaining two are known as "shoulders" with similar and lower heights. Once the price passes over the "neckline," which is a trendline tying the lowest points between the peaks of the two troughs, the design is finished. The head and shoulders pattern indicates the end of an uptrend, causing traders to use it as a sell signal.
There is a possibility that a decline will occur afterwards. The pattern is utilized by certain traders as an indication to engage in short positions, while keeping a stop loss above the neckline. It should be kept in mind that the occurrence of a head and shoulders pattern does not necessarily guarantee a reversal, therefore traders should rely on supplementary technical analysis and implement risk management strategies before trading.
2. Double top or bottom :-
A double top pattern occurs when the price of a stock reaches its peak, declines, then surges back up to the peak level but is unable to surpass it before falling once more. A resistance level formed by two peaks is encountered by the price, which is unable to break through it. When the price drops below the valley level that existed in between the two peaks, the pattern is over. The double top pattern is thought to be a bearish sign, indicating a possible price decline. A double bottom pattern, on the other hand, is the polar opposite of a double top pattern and resembles a mirror image. The price decreases to a certain level, rebounds, drops back down to the same level, but does not surpass it, and subsequently recovers again. The support level created by the two valleys is a point that cannot be breached by the price. The pattern is only finished when the price surpasses the peak level that was established between the two valleys.
It is crucial to remember that depending solely on these patterns for trading decisions is not recommended, as they are only among several instruments applied in technical analysis. It is advisable for traders to take into account additional elements aside from technical analysis, such as fundamental analysis.
When making investment decisions, take into consideration both market trends and the management of risk.
3. J Pattern :-
The term "J pattern" denotes a distinct chart pattern that may manifest over a duration of time in the movement of a particular stock's price. The J-shaped trend seen in a company's stocks entails an abrupt decline in value that is succeeded by a more protracted rehabilitation.
The name of the pattern originates from its formation on a price chart, which bears a similarity to the letter "J". Frequently, this trend can be observed in shares that encounter adverse circumstances or updates leading to the first decline in value, and later, garner support as investors regain trust in the potential profitability of the stocks.
4. Rounding bottom or Top :-
In technical analysis of financial markets, there are two patterns referred to as rounding top and bottom.
The pattern on a chart known as a rounding top signifies a gradual transition in the market from an upward pattern to a downward one. A gentle decrease in pricing is followed by a gentle increase, resulting in a curved contour. The pattern reveals that the market seems to be losing its force, implying that there could be a potential drop in prices.
Conversely, a chart pattern known as a rounding bottom indicates a change in the market direction, from a downtrend to an uptrend. The observed trend exhibits a gentle decrease in values accompanied by a gentle growth, creating a curvilinear appearance. The indication is that the market is growing based on this trend.
5. Cup and Handle The cup and handle pattern serves as a tool in technical analysis utilized in the stock market for detecting potential chances to purchase. This formation signifies the continuation of a bull market; it is observed after a stock has undergone a notable increase and then encountered a phase of stabilization.
The shape of the design, which resembles a container with a grip, is what the pattern is named for. A cup-shaped pattern forms when, following a strong upward trend in stock prices, there is a significant decrease that creates a rounded bottom resembling a U. The handle section on the chart emerges once the stock price remains within a tight range for several weeks or months without any significant rise, before finally breaking out and reaching new highs.
I Think That's too much we will continue the remaining 5 in the next one
I hope you learned something new if then pls do like and follow us
Thank you ♥
Protecting Your Mental Health by Prioritizing Risk ManagementIn the world of trading and investing, it's common to hear the phrase "risk management" thrown around. But what exactly does it mean, and why is it so important?
At its core, risk management is about protecting yourself from potential losses. This can include setting stop-loss orders, diversifying your portfolio, and carefully analyzing market trends before making trades. And while these practices are certainly crucial for preserving your capital, they're not the only benefits of prioritizing risk management.
In fact, one of the most important reasons to focus on risk management is for the sake of your mental and emotional well-being. Trading can be an incredibly stressful and emotional experience, and without a solid risk management plan in place, it's easy to fall prey to anxiety, fear, and even panic.
But when you take the time to establish a sound risk management strategy, you're not only protecting your investments - you're also safeguarding your mental health. By having a plan in place, you can make trades with confidence, knowing that you've taken steps to mitigate potential losses. And even if a trade doesn't go as planned, you can take comfort in the fact that you've prepared for the worst-case scenario.
Perhaps most importantly, prioritizing risk management can help you achieve long-term success and sustainability in your trading career. By minimizing losses and avoiding rash decisions, you'll be able to build a portfolio that's resilient and capable of weathering the ups and downs of the market.
So if you're looking to become a successful trader, don't overlook the importance of risk management. By taking steps to protect your capital and your mental well-being, you'll be setting yourself up for a lifetime of sustainable and profitable trading.
Automatically identify chart patterns using built-in indicatorsHey everyone! 👋
This chart showcases a few of the Automatic Chart Patterns indicators recently announced in this blog post . If you are a technical trader who relies on chart patterns to make trading decisions and hold a paid TradingView plan, check them out. They automatically identify these popular technical setups:
Bearish and Bullish Flags
Double Bottom
Double Top
Elliot Wave
Head and Shoulders
Inverse Head and Shoulders
Bearish and Bullish Pennants
Rectangles
Triangles
Triple Bottom
Triple Top
Falling and Rising Wedges
You can add the indicators to your chart from the "Indicators, Metrics & Strategies" search window by selecting "Patterns" from the "Technicals" tab in the left pane and choosing an indicator from the list:
Once you have selected a chart pattern, the indicator will automatically draw it on the chart for you when it detects the pattern.
The chart pattern indicators are easy to use and customize. You can alter the pattern detection criteria and visible attributes like colour, line thickness, and style of the lines.
We hope you enjoy these new indicators.
— Team TradingView ❤️
Feel free to check us out on Instagram , Telegram , and Twitter for more awesome content! 🙂
Financial ratios: digesting them togetherI hope that after studying the series of posts about company financial statements, you stopped being afraid of them. I suggest we build on that success and dive into the fascinating world of financial ratios. What is it?
Let's look at the following example. Let's say you open up a company's balance sheet and see that the amount of debt is $100 million. Do you think this is a lot or a little? To me, it's definitely a big deal. But can we say the company has a huge debt based only on how we feel about it? I don't think so.
However, if you find that a company that generates $10 billion in annual revenue has $100 million in debt (i.e. only 1% of revenue), what would you say then? That's objectively small, isn't it?
It turns out that without correlating one indicator with another, we cannot draw any objective conclusion. This correlation is called the Financial Ratio .
The recipe for a normal financial ratio is simple: we take one or two indicators from the financial statements, add some market data, put it all into a formula that includes a division operation - we obtain the financial ratio.
In TradingView you can find a lot of financial ratios in the section Financials -> Statistics .
However, I only use a few financial ratios which give me an idea about the financial situation of the company and its value:
What can you notice when looking at this table?
- Profit and revenue are frequent components of financial ratios because they are universal units of measurement for other reporting components. Just as length can be measured in feet and weight in pounds, a company's debts can be measured in revenues.
- Some financial ratios are ratios, some are percentages, and some are days.
- There are no financial ratios in the table whose data source is the Cash Flow Statement. The fact is that cash flows are rarely used in financial ratios because they can change drastically from quarter to quarter. This is especially true for financial and investment cash flow. That's why I recommend analyzing cash flows separately.
In my next post, I'll break down each financial ratio from this table in detail and explain why I use them specifically. See you soon!
Types of Alerts on TradingViewHey Everyone! 👋
While alerts have a ton of potential applications when it comes to trading, they are often underutilized because it can take some time and ingenuity to build a system where they can work well.
Alerts can turn the experience of trading from a constant search for ideas - and always feeling behind - into a relaxing job of waiting for your own pre-approved conditions to trigger before taking action. In short, alerts can make you much more well-prepared for the market’s ups and downs. 🔍
In this post, we will look at the two distinct types of alerts available on our platform.
Our alerts are categorized into two types based on resource requirements:
➡ Price alerts
➡ Technical alerts
Each alert type has a separate limit on the number of active alerts based on the subscription. We are happy to announce that we have recently doubled the combined limit for both alert types. 🎉
The current limits for active alerts are as follows:
As shown in the table, the Basic plan includes one price alert and one technical alert, while the Premium plan provides access to a much higher number of alerts. Specifically, users on the Premium plan can enjoy up to 400 price alerts and 400 technical alerts.
Now, you might be wondering about the distinction between price and technical alerts. What sets these two apart? Let's dive into the specifics of each type to gain a better understanding of their unique features and benefits.
💸 Price Alerts
An alert is considered a price alert when the following two conditions are met:
1. Only a symbol is used in the alert (for any type of chart: Bars, Renko, PnF, etc) and a price value
2. One of the following is selected as the trigger condition:
• Crossing
• Crossing Up
• Crossing Down
• Greater Than
• Less Than
For example , the following alert on a candlestick chart would be considered a price alert:
👨💻 Technical alerts
An alert is considered a technical alert if any of the following conditions are met:
1. The alert uses an overlay symbol, indicator, drawing or strategy
2. One of the following is selected as the trigger condition:
• Entering Channel
• Exiting Channel
• Inside Channel
• Outside Channel
• Moving Up
• Moving Down
• Moving Up %
• Moving Down %
For example , the following alert will be considered a technical alert since the trigger condition is set as “Moving up %”.
We hope that this post has provided you with a clearer understanding of the distinct types of alerts available on TradingView. However, if you require further assistance with setting up or managing your alerts, we recommend visiting our Help Center .
Thanks for reading! Hope this was helpful.
See you all next week. 🙂
– Team TradingView
Feel free to check us out on Instagram , and Twitter for more awesome content! 💘
TRAPPED ON TOPSThis chart is giving a perfect example of how Retail participants always stucked on the Tops because they buy in FOMO (fear of missing out) or some one always behind there to make a setup for them for this buying instead of this they should thought about the fair valuations and some more key ratios which can help out for getting good valuations while on the contrary smart money or visionary investors they studied before entering in stock because they always believe that they are going to buy a Business and valuations not only a stock in the mean time we saw that breakout traders come and do trades but actually they are very disciplined and always follow a good risk management concept with strict stop losses but ultimately these traders are working for Big investors indirectly for creating more FOMO by price spikes and retail get trapped because that thing he saw yesterday for example at 100 not it is trading at price of 120 with the gains of 20% and this move make them think to get some awesome returns overnight and got stucked, whereas from here big investors will start selling (distributions) because the value become high and they got some other good value options too because apart of investing they never stops studies.
💡Conclusion-: Always do your complete study on any of company in which you are going to invest for right valuations and always keep tracking the news and promoter holdings and star investors holdings always keep in mind Study more than trade or investing with proper decided risk management.
💡I am not saying that even after doing this we will not get trapped but at least we will not get trapped on exactly high values.
𝐑𝐞𝐠𝐚𝐫𝐝𝐬-: 𝐀𝐦𝐢𝐭 𝐑𝐚𝐣𝐚𝐧
What is Bump and Run and How to trade it Hi everyone, today we are going to look at the bump and run pattern and find out what the bump and run pattern is and how to trade it
So let us get started
The bump-and-run pattern is a technical analysis pattern commonly used in financial markets, especially in stock trading. The pattern is well known for its high success rates as you can see on the chat above also it is used to predict potential changes in the trend of a stock. The pattern three phases: the initiation phase, the breakout phase, and the run phase. Each of the phases plays a critical role in identifying the pattern and predicting future market movements.
Traders can use the bump-and-run pattern to identify potential entry and exit points for their trades. If a trader sees that a stock exhibits the bump-and-run pattern, he can enter a long position during the entry phase or sell his position during the bump phase. Conversely, if a trader sees a stock exhibiting the run phase, he can sell his position or enter a short position.
The introduction phase of the bump-and-run pattern occurs when the stock moves in a narrow channel with a steady uptrend. This phase usually lasts for an extended period of time and is characterized by low volatility and low trading volume. Traders usually monitor this phase to identify potential trends and support levels for the stock.
The bump phase of the bump-and-run pattern is the critical phase when traders look for signals of a trend reversal in the stock. This phase is characterized by a rapid rise in price, often triggered by a sudden increase in trading volume. The bump phase usually forms a steep rise in the stock price that resembles a parabolic curve. This phase is often the result of speculation, which can lead to an overvaluation of the share.
The run phase of the bump-and-run pattern occurs after the bump phase and is characterized by a decline in the stock price. In this phase, traders observe the behavior of the stock and look for potential support levels where the stock's price decline can be stopped. The Run phase is usually the result of the overvaluation that occurred during the Bump phase and represents a correction in the stock price.
One of the main characteristics of the bump-and-run pattern is the "bump" itself. The "bump" is a significant increase in the stock price that usually occurs quickly and unexpectedly. This sudden rise in price is often the result of speculation and can lead to overvaluation.
The bump-and-run pattern can occur in a variety of financial markets, including stock, commodity, and currency markets. Traders familiar with this pattern can apply it to a wide range of financial instruments to identify potential trading opportunities.
One of the challenges of trading the bump-and-run pattern is that it requires precise timing. Traders must be able to accurately identify the different phases of the pattern and determine the appropriate entry and exit points. This can be difficult because the pattern can change quickly and unexpectedly.
Overall, the bump-and-run pattern is a useful tool for traders who want to identify potential changes in a stock's trend. When traders understand the different phases of the pattern and their implications, they can make informed trading decisions and potentially profit from changes in the market.
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Sadhna Broadcast - How Price Action & Dow Theory shows the scamThis is why it is important for Price Action traders to exercise caution and not rely solely on historical price movements. While price action analysis can still be effective in predicting market movements, it may be less reliable in scenarios where unexpected news or events can impact the market.
The third tenet of Dow Theory states that trends have three phases – accumulation, public participation, and distribution.
In the accumulation phase, smart money enters the market and begins buying shares.
In the public participation phase, the general public begins to participate in the trend, driving prices higher.
In the distribution phase, smart money begins to sell shares to the public, leading to a decline in prices.
Nickel and Illiquidity Here is a special case of a snapshot of Nickel Futures. It is entirely illiquid but from our naked eye, We can see a pattern here.
A range of machine learning algorithms and statistical models are employed to detect such underlying patterns.
From our naked eye, We can spot tradeable opportunities as shown in the dotted lines in the above chart.
How to trade the Diamond PatternHey Everyone, as we all have at least traded a Diamond pattern and if not at least we have heard a lot about it but what does this pattern refers to bullish or bearish and in this post we will also learn how to trade it, where to take stoploss, where to take position in it and where and how to identify the target so pls do like and follow.
Some common questions that arise in everyone's mind :-
What is a Diamond Pattern ?
Technical chart patterns such as diamond patterns indicate a possible trend reversal or continuation. Diamond-like patterns are formed by two converging trend lines between which prices oscillate.
Below is a trading strategy for trading diamond patterns:
Identify the pattern: the first step in diamond pattern trading is to identify the pattern on the price chart. Look for a pattern that has two converging trend lines between which prices oscillate.
Determine the direction of the trend: once you have identified the pattern, you need to determine the direction of the trend. If the diamond pattern forms during an uptrend, it is considered a bearish pattern. If it forms during a downtrend, it is a bullish reversal pattern.
Open the trade: Once you have determined the direction of the trend, wait for a breakout from the diamond pattern to confirm the direction of the trade. If the pattern is a bearish reversal pattern, open a short trade as soon as the price breaks below the lower trend line. If the pattern is a bullish reversal pattern, open a long trade when the price breaks above the upper trend line.
Set a stop loss: To limit possible losses, place a stop loss order just below the low of the breakout candle for a long trade and just above the high of the breakout candle for a short trade.
Set the target: The target for the diamond pattern trade should be the height of the diamond pattern, measured from the highest point to the lowest point added to the breakout point. This target can be adjusted according to the trader's risk tolerance and trading style.
Manage the trade: As the trade progresses, monitor the price action and adjust the stop loss and take profit orders accordingly. If the trade moves in your favor, you can take partial profits or tighten your stop loss to lock in profits.
Avoid false breakouts: diamond patterns are prone to false breakouts, where the price breaks out of the pattern but then quickly retraces. To avoid false breakouts, wait until price closes outside the pattern before entering the trade.
Trade with proper risk management: As with any trading strategy, it is important to trade with proper risk management. Risk only a small percentage of your trading account on each individual trade, and do not risk more than you can afford to lose. Always use stop loss orders to limit possible losses.
Here are some additional tips for trading the diamond pattern:
Confirm it with other indicators: although the diamond pattern can be a reliable trading signal, it is always advisable to confirm the signal with other technical indicators such as moving averages, momentum indicators or volume indicators. Look for additional signals that support the direction of the breakout.
Pay attention to multiple time frames: To increase the probability of a successful trade, it is helpful to look for the diamond pattern in multiple time frames. Look for the pattern on daily, weekly and monthly charts and trade only if it is consistent with the larger trend.
Be patient: it may take some time for a diamond pattern to form. So be patient and wait for the pattern to fully develop before entering the trade. Rushing to enter a trade before the pattern has fully formed can lead to false breakouts and unnecessary losses.
Practice with a demo account: Before risking real money, it is always a good idea to practice trading the diamond pattern with a demo account. This way you can test your strategy, refine your entry and exit points and gain confidence in your trading plan before risking real money.
Trading the diamond pattern requires a combination of technical analysis skills and patience. The diamond pattern is a reversal pattern that forms after a long uptrend or downtrend. The pattern looks like a diamond or a kite and indicates a consolidation phase before a possible trend reversal. Traders can use the diamond pattern to identify potential entry and exit points for trading.
In order to trade the diamond pattern, you must first correctly identify the pattern. Once you have identified the pattern, you should look for confirmation of the pattern. This can be done by waiting for a breakout above or below the support or resistance levels of the pattern. Traders can take long positions if the breakout is above the resistance level, or they can take short positions if the breakout is below the support level.
The stop loss should be placed just below the support level of the pattern for long positions and just above the resistance level for short positions. The stop loss should be placed at a level where the trade will be invalidated if the price moves against the expected direction. The target for the trade can be calculated by measuring the distance between the highest and the lowest point of the pattern and projecting this distance from the breakout point. Traders can also use other technical indicators to determine potential price targets.
It is important to note that trading the diamond pattern can be risky, and traders should manage their risks effectively. One way to do this is to use proper risk management techniques, such as position sizing and limiting risk capital. In addition, traders should be patient and wait for confirmation of the pattern before entering a trade. Rushing into a trade without proper analysis and confirmation can result in losses.