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07 Insightful approaches to learning cup & handle pattern ⭕ Price Action chart pattern similarity !!!⭕ Ranges candles shows the phase of accumulation or distribution It helps trader to track bearishness and bullishness of the chart, in this phase accumulation can be seen because of bull Bo. There is so many ways to approach chart patterns, everyone has different approaches and different insights. Some Examples of Cup & Handle pattern we have seen:- 1) 2) 3) 4) 5) 6) POST Your Findings in comment section any other stocks with some pattern you observed we can discuss as a community there !!! Happy To Learn here in TRADINGVIEW with charts #ThankU For Checking Out Our IDEA , We Hope U Liked IT 📌 🙏FOLLOW for more ! 👍LIKE if useful ! ✍️COMMENT Below your view !
NSE:KOTAKBANKEducation
by ReviveTraders
WAAREERTL VCP - The Concept and its formation This is educational article to show how VCP , Volatility Contraction pattern development and its breakout . The Volatility Contraction Pattern (VCP) is a technical chart pattern often used in share trading to identify stocks that are preparing for a breakout. Here i used the stock WAAREE renewable Technologies as an example- This is not a buy sell recommendation - only for study purpose . This stock corrected for almost 50 % from All-time high . Phase reversal started from 07 August 2024. I split the screen into two sections to explain the concept . Left side screen 1. VCP-1 20% , VCP-2 11 % and VCP -3 6% - a clear Contraction in Volatility. Right side screen 2. Steep reduction in volume - see yellow triangle 3. Lower High formation - see violet trendline 4. Volume profile 2.33 M /2.06M (buy/sell)from 7Aug to 12 Sep 5. See RSI bottom level lower high formation And the result is 25% profit within 5 trading days This is a classical example for VCP breakout . I hope this concept will help us in identifying similar breakouts in other stocks - Note : Both sections , i used the same candles from 7Aug to 12 Sep . Left side screen made little elongated to visualize VCP formation more clearly disclaimer :This is not a buy sell recommendation - only for study purpose .
BSE:WAAREERTLEducation
by faizalummmer
6
Unlocking Success: Your Guide to Profitable Trading### Market Analysis Report #### Market Structure Overview The current market structure shows a **bullish trend** characterized by higher highs and higher lows over the past few weeks. Price action has been supported by positive economic indicators, and we see robust buying interest at key support levels. However, it's essential to remain vigilant for potential turning points, as the market can shift rapidly. #### Support and Resistance Levels - **Support Levels**: Key support is identified around , where the price has previously bounced back. This indicates a strong buying interest at these levels. - **Resistance Levels**: The market faces resistance around . A breakout above this level could signal a continuation of the bullish trend, while a failure to break through could lead to a pullback. #### Turning Points Turning points are critical in identifying potential reversals. Watch for: - **Candlestick Patterns**: Look for reversal patterns (e.g., doji, engulfing) near support or resistance levels. - **Volume Confirmation**: A significant increase in volume at these levels can signal strong buying or selling pressure. #### Sitting on Hands Sometimes, not trading is the best strategy. On days without clear setups: - **Assess Market Conditions**: If there are no strong signals, it’s prudent to refrain from trading. - **Avoid Emotional Decisions**: Staying disciplined helps prevent impulsive trades that can lead to losses. #### Risk Management Effective risk management is crucial: - **Position Sizing**: Limit exposure to 1-2% of your trading capital per trade to mitigate risk. - **Stop-Loss Orders**: Implement stop-loss orders just below support levels to protect against adverse movements. #### Money Management A solid money management strategy includes: - **Diversification**: Spread risk across different assets to reduce exposure to any single position. - **Regular Review**: Continuously review and adjust your strategy based on market performance and changes in risk tolerance. ### Conclusion The current market exhibits a bullish structure, with identifiable support and resistance levels. While opportunities may arise, remember that sitting on your hands can be a wise choice on days lacking clear setups. Focus on risk and money management to protect your capital, ensuring you’re prepared for any market conditions. Stay disciplined, and trade smart! Happy Trading Follow the process profits will take care of you.
CAPITALCOM:US100Education
by rakeshreddym
1
Histogram(MACD) Divergence Trading Let us discuss the MACD indicator strategy and histogram. I know being a chartist you are familiar with this tool. Hence I hope this will be a revision for you. Assuming you already know this topic, you should know that MACD Histogram is derived from MACD. To me, it is the effect of MACD (cause), without which MACD Histogram would not have been born. I hope you can relate it to the previous paragraph. If not, no problem. Carry on reading. But before proceeding further I would request you to recapitulate MACD (moving average convergence divergence). Thanks for converging your thoughts with that of mine. I am glad. It will help me to explain this article without taking the additional burden. MACD Histogram Peak-Trough Divergence By now you must have understood how the histogram dances to the tunes of prices. If one looks at it closely then one can easily identify the divergences. You will notice that a peak and trough divergence is formed with two peaks or two troughs in the MACD Histogram. Usually, it can be segregated into two parts, i.e. bullish peak and trough divergence and bearish peak and trough divergence. Alright, I will explain you in short. Bullish Peak-Trough Divergence It is formed when MACD makes a lower low and on the contrary, MACD-Histogram makes a higher low. One thing you should keep in mind, i.e., well-defined troughs define the health of a bullish peak-trough divergence. bullish peak trough divergence Bearish Peak-Trough Divergence It is formed when MACD makes a higher high and on the contrary MACD Histogram makes a lower high. One thing you should keep in mind, i.e., well-defined peaks define the health of a bearish peak-trough divergence.
NSE:BANKNIFTYEducation
by SkyTradingZone
2
"Hindenburg's Omen" to predict a stock market crash."Hindenburg's Omen" to predict a stock market crash. "Hindenburg's Omen" is a technical indicator in financial analysis designed to predict a potential significant decline or a stock market crash. Here are the main things to remember about this indicator: Definition and origin Introduced by Jim Miekka in the 1990s. Named after the Hindenburg airship disaster in 1937, symbolizing an unexpected disaster. How it works - Hindenburg's Omen is triggered when several conditions are met simultaneously on a stock market: - A high number of stocks reaching both new highs and lows over 52 weeks (usually more than 2.2% of stocks). - The number of new highs must not exceed twice the number of new lows. - The stock index must be in an upward trend (positive 50-day or 10-week moving average). -The McClellan Oscillator (sentiment indicator) should be negative. Interpretation -When these conditions are met, the Omen suggests underlying market instability and an increased risk of a significant decline. -The signal remains active for 30 trading days. Reliability -The indicator has correctly signaled some historical crashes, such as the one in 1987. -However, its reliability is questionable as it also produces many false signals. Usage -Generally used in conjunction with other forms of technical analysis to confirm sell signals. Traders can use it to adjust their positions or as an alert for increased market monitoring. It is important to note that, like any technical indicator, the Hindenburg Omen is not infallible and should be used with caution, in conjunction with other analytical tools. In the following photos, a harmonic "BLACK SWAN" pattern was detected on the DOW JONES, announcing a stock market crash or a strong correction!
CAPITALCOM:US30Education
by Le-Loup-de-Zurich
1
Finding Trade Setup using MTF with example of NIFTY 19-09-2024Here we will lean how to find trade setups, with help of Market structure and MTF. Follow your direction, be patient and don't fall far retracements. Pick any 3TF and stick to that. Let's see: NIFTY 19-09-2024 TIME FRAMES IN PLAY : D1 (Direction) /H2 (Control) / M30 (Entry) 1) We see Daily Break out. Confirm with Line chart closing price and then switch to candle stick. TradingView didn't allow me to add as I am a free member but you find the markings in the chart. How do we know it is Daily level, we drop time frame H2 (for Stocks).we see multiple H2 structures nested which gives us an idea that it is a Daily level. You can do same to identify you HTF level. TradingView didn't allow me to add as I am a free member but you find the markings in the chart. 2) Wee need to wait for Retracement/ Pull back. A valid pullback is from same TF small breakout of 1TF lower proper structure break. We drop to H2. And what do we see TradingView didn't allow me to add as I am a free member but you find the markings in the chart. We see H2 Direction or Structure is still in tact. Break and close below in H2 external, will tell us retracement to Daily has started. 3) So what can we do? We follow H2 as our direction. M30 as Control and M5 as Entry (same 3 TF) (H2/M30/M5). Until H2 Breaks. Take a look at M30. TradingView didn't allow me to add as I am a free member but you find the markings in the chart. 4) What is the use of Control time frame. It helps us giving confidence that price will continue to it’s direction now. Where price is at HTF key level (see my Market structure link to know key level. Where the market structure shift happened.), we switch 1 TF low and wait for structure break and then we look for entry . Some time later I will explain you the entries. Right now just focus on How it happens in MTF Market is Fractal, this is the true meaning. 5) Now price is a M30 Key level , because H2 is our direction as of now. Let drop to M5 to see. TradingView didn't allow me to add as I am a free member but you find the markings in the chart. M5 retraced back to after making structure and M30. Here we found entry setup. Now SL is your invalidation point. Where you entry timeframe breaks structure. Measure you Entry to SL point having some buffer and plan you position sizing. You will get many entries in one structure. Middle TF. If doing intraday need to be very strict with SL. For swing once you master this you can ride the trend. TP (take profit). Need to know that we have taken tade on middle TF (M30 in this case) so first we target the HTF high (H2 in this case), wait for it to break by H2 TF. If not that is our TP. Close. How do we know if it breaks or not. Same thing we follow middle TF (M30) , if it breaks low of M30 at H2 High, then it is indicating, it can not go further. Hope you will make this a practice. We will win to gather. Happy trading.!!
NSE:NIFTYEducation
by gameguru840
The "Head and Shoulders": Real success rates.The "Head and Shoulders": Real success rates. Inverted Head and Shoulders: WATCH volumes when the neckline breaks!! Here is what we can say about the success rate of the inverted head and shoulders pattern in trading: - The inverted head and shoulders pattern is considered one of the most reliable chart patterns to anticipate a bullish reversal. - According to some sources, the success rate of this pattern would be very high, with approximately 98% of cases resulting in a bullish exit. - More precisely, in 63% of cases, the price would reach the price target calculated from the pattern when the neckline is broken. - A pull-back (return to the neckline after the break) would occur in 45% of cases. - However, it should be noted that these very optimistic figures must be qualified. Other sources indicate more modest success rates, around 60%. -The reliability of the pattern depends on several factors such as respect for proportions, the break of the neckline, volumes, etc. A rigorous analysis is necessary. -It is recommended to use this pattern in addition to other indicators and analyses, rather than relying on it blindly. In conclusion, although the inverse head and shoulders pattern is considered a very reliable pattern, its actual success rate is probably closer to 60-70% than the 98% sometimes claimed. It remains a useful tool but must be used with caution and in addition to other analyses. __________________________________________________________________ Head and Shoulders: Here is what we can say about the success rate of the head and shoulders pattern in trading: -The head and shoulders pattern is considered one of the most reliable chart patterns, but its exact success rate is debated among technical analysts. Here are the key takeaways: - Some sources claim very high success rates, up to 93% or 96%. However, these figures are likely exaggerated and do not reflect the reality of trading. - In reality, the success rate is likely more modest. One cited study indicates that the price target is reached in about 60% of cases for a classic head and shoulders pattern. - It is important to note that the head and shoulders pattern is not an infallible pattern. Its presence alone is not enough to guarantee a trend reversal. - The reliability of the pattern depends on several factors such as respect for proportions, the breakout of the neckline, volumes, etc. Rigorous analysis is necessary. - Many experienced traders recommend using this pattern in addition to other indicators and analyses, rather than relying on it blindly. In conclusion, while the head and shoulders pattern is considered a reliable pattern, its actual success rate is probably closer to 60% than the 90%+ sometimes claimed. It remains a useful tool but should be used with caution and in conjunction with other analyses. _____________________________________________________________________________ NB: In comparison, the classic (bearish) head and shoulders pattern would have a slightly lower success rate, with around 60% of cases where the price target is reached.
BITSTAMP:BTCUSDEducation
by Le-Loup-de-Zurich
1
real Market structure 1-0-1MARKET STRUCTURE 1-0-1 ----------------------------------------------- 1. I dentify recent Brekout (BO) 2. pick High or low 3. Anything in between ignore 4. wait for new (BO), 5. Next, if high breaks, the lowest point is new low 6. If low breaks the highest point befor BO is the new high These highest and lowest point are external. 7. How do we know if pull back started? if opposite break in the same TF or 1 TF below happens we follow same for internal structure and for market flow internals are alway priority to trade. but externals gives direction. for retracement trade we follow internal stucture and for trade in direction we follow external structure These areas are your real Support and Resistance Key levels to look for action or take trade. wait for price to come here and you will see a lot difference in trade. Then you can follow MTF (3 time frame) 1. HTF for direction. 2. 2TF for control of direction 3. LTF for entry confirmation
NSE:NIFTYEducation
by gameguru840
3
marking EG zonesI have just published an indicator for marking trend and inside candle. this chart will help in understanding marking EG zones. - EG system - Follow any 3 TF set (High (Direction), Middle (Confirm Direction), Low (Entry)) Forex MN1/W1/D1 W1/D1/H4 D1/H4/H1 H4/H1/M15 H1/M15/M5 M15/M5/M5 Stock MN1/W1/D1 W1/D1/H2 D1/H2/M30 M30/M5/M1 - Need to see same type EG in all Time Frame to place a trade. (EG BUY,EG BUY,EG BUY) For buy entry same is for sell Entry - Follow only new EG, created recently, CMP (current market price) -Price moves from EG to EG, zone to zone.
Education
by gameguru840
5
Advanced Divergence Trading"Welcome to SkyTradingZone " Hello Everyone 👋 Video Information - Hello , Everyone lets start the Journey of Advanced Divergence Trading In this video, we are going to look at divergence. What is divergence? Divergence is basically when the market is creating higher highs and higher lows, and the RSI is creating the opposite. (Divergence can happen in both downtrends and uptrends.) ---------------------------------------------------------------- Q What divergence does, it's basically telling you that the trend is weakening. This is in a downtrend, and the RSI, the divergence, is basically telling you that this downtrend is weakening and there could be a possible reversal soon. So normally when divergence is happening, you normally see The market creates basically a curve. ---------------------------------------------------------------- Structure is always key It doesn't matter the strategy you use, structure is always key. So what you want to see is that breaker structure to say that the trend is changing because structure changed. Note- Normal Tip From our side try to learn Liquidity and order block
NSE:BANKNIFTYEducation
by SkyTradingZone
2
Understanding the Round Bottom PatternThe Round Bottom Pattern, also known as a saucer bottom, is a bullish reversal pattern that typically occurs after a prolonged downtrend. It signals a gradual shift in market sentiment from bearish to bullish. Let's break it down: Key Features of the Round Bottom Pattern: Shape & Duration: The pattern resembles a "U" shape, indicating a smooth transition from a bearish phase to a bullish phase. It generally forms over an extended period, which can range from weeks to months, allowing the price to consolidate and reverse gradually Volume: In the early stages, volume is usually low as sellers dominate the market. As the price reaches the bottom and begins to rise, trading volume increases, confirming the reversal and the entry of buyers. Resistance Breakout: A critical point in the pattern is the breakout above the resistance neckline, marking the end of the pattern. After this breakout, the stock is expected to continue its upward momentum, leading to a price rally. Confirmation: The breakout should be confirmed by an increase in volume, validating that the buyers are in control. A strong breakout typically indicates the start of a new uptrend. How to Trade the Round Bottom Pattern: Entry Point: Once the price breaks above the resistance neckline, traders can consider entering long positions. Stop Loss: A stop loss can be placed just below the neckline or near the lowest point of the bottom curve to minimize risk. Price Target: The target price can be projected by measuring the depth of the pattern (from the neckline to the lowest point) and adding that to the breakout level. Conclusion: The Round Bottom Pattern is a powerful tool for traders looking to capitalize on market reversals. By understanding its structure and key indicators such as volume and breakout, traders can identify high-probability setups for successful trades. This pattern is currently observed in Kalyan Jewellers NSE:KALYANKJIL , as shown in the chart, where a breakout above the neckline suggests bullish potential ahead. For further analysis and updates, stay connected! Disclaimer: This post is for informational purposes only and should not be considered as investment advice. Please conduct your own research or consult a financial advisor before making investment decisions.
NSE:KALYANKJILEducation
by rajsharmatt
Mastering Investment Decisions: Mahindra ltdHello, To better understand how we can use Tradingview to make our investment decisions, today we shall be using an example of Mahidra & Mahindra. I shall follow the below steps and finally make an investment recommendation. Understanding the Business Before investing in any company, it’s essential to understand its business model, revenue streams, and market position. Mahindra & Mahindra Ltd. (M&M) is one of India’s most diversified conglomerates, operating across several sectors. Its core business revolves around two major areas: Automotive: M&M is a leading manufacturer of SUVs, commercial vehicles, and electric vehicles. Its stronghold in the automotive industry, especially in the SUV segment, has positioned it as a dominant player in the market. Farm Equipment: The company is a global leader in tractor manufacturing, making significant contributions to the agriculture sector both in India and abroad. Additionally, Mahindra has interests in other sectors such as: IT Services through Tech Mahindra, which provides technology solutions globally. Financial Services via Mahindra Finance, offering loans and leasing services. Real Estate development through its housing and infrastructure divisions. This diversification not only stabilizes M&M’s revenue base but also allows it to remain resilient in volatile markets. Revenue and Expenses When analyzing the company’s financials, it’s clear that M&M has maintained steady growth in revenue. This can be clearly seen on the charts right top. The Total revenue has increased since 2010. The Net income is also very key to watch as well as the diluted EPS. Below is a chart showing how all this metrics have perfored over the years. Technical Analysis Technical analysis provides valuable insights into stock price movements by studying historical data. Over the past 500 days, Mahindra & Mahindra’s stock has shown a consistent upward trend, supported by investor confidence and solid company fundamentals. Currently, the stock appears to be consolidating around its support level, and forming a flag pattern which is a continuation patten. Below the flag pattern is clearly identified and indicated. Target setting Once you have identified the pattern forming, next is to set the targets. I expect the target of this stock to be at IRN 3638 areas with a stop loss being around IRN 2426.80. Recommendation Based on the technical analysis and the company’s strong business fundamentals, Mahindra & Mahindra Ltd. presents a compelling investment opportunity at current areas. Buy: IRN 2656 Target 1: IRN 3021 Target 2: IRN 3638.75 Good luck!
NSE:M&MEducation
by thesharkke
3
The “Fan Principle” is a powerful technique in tradingThe “Fan Principle” is a powerful technique in trading, using trendlines to predict price movements. Highlights 📈 Powerful Technique: The Fan Principle is formidable in technical analysis. 📉 Identifying Points: Drawing trendlines from three key points. 🔴 Trading Signals: Buy or sell signals can be identified depending on the pattern. 📊 Practical Examples: Analyzing price movements on charts to illustrate the technique. 💰 Profit Opportunities: Strategies can result in significant gains, up to 22%. 🛑 Risk Management: Importance of placing stop-losses to protect investments. 🔍 Additional Resources: Detailed information and charts will be shared to deepen understanding. Key Insights 📈 Technique Effectiveness: The Fan Principle helps identify clear trends using reference points, making the strategy both simple and effective. 📉 Importance of Confirmation: Validating trendlines with a third point builds confidence in trading signals, increasing the chances of success. 🔴 Warning Signals: Sell or buy signals, as shown in the video, can lead to strategic decisions based on historical analysis. 📊 Visual Analysis: Visualizing data on charts helps understand market movements, which is essential for technical analysis. 💰 Profit Potential: Trades based on the Fan Principle can provide significant profit opportunities, highlighting its effectiveness. 🛑 Protection Strategies: Placing stop-losses above resistance points is crucial to limit losses in the event of adverse market movements. 🔍 Access to resources: The information shared in the description and on other platforms offers ways to deepen the understanding of the technique and improve trading skills. __________________________________________________________________ The fan principle in trading is a strategy that consists of opening several positions on the same asset at different price levels. Here are the main aspects of this approach: How it works The idea is to open several positions (or "lots") on the same financial asset at different price levels, thus forming a "fan" of positions. These positions are opened at points considered as potential market reversals. The objective is to let these positions unfold like a fan or to close them gradually according to the evolution of the market. Advantages Risk diversification: By entering the market at different levels, the trader reduces the impact of a single bad entry. Movement capture: This approach allows to take advantage of different phases of a price movement. Flexibility: The trader can adjust his strategy by closing some positions while keeping others open. Complementary Tools The fan principle can be combined with other technical analysis tools to improve its effectiveness: Fibonacci Fan: This tool automatically draws trendlines at key levels (38.2%, 50%, 61.8%) that can serve as entry points for fan positions. Gann Angles: These lines, drawn at different angles (82.5°, 75°, 71.25°, etc.), can also help identify potential levels to open positions. RSI (Relative Strength Index): Some traders combine the fan principle with the RSI to confirm entry points. Important Considerations This strategy requires good risk management, as it involves opening multiple positions. It is crucial to set stop-loss and take-profit levels for each position in the range. Using this approach requires a thorough understanding of the market and significant trading experience.
BITSTAMP:BTCUSDEducation
by Le-Loup-de-Zurich
3
Breakout Book The Needed Things fot itHello friends, today we will talk about those important things which can be essential for a good breakout, so today I am sharing some information on this topic with all of you, I hope you all will like reading it and it will also help all of you breakout traders. The Key Components of a Successful Breakout on a Chart-:: A Breakout occurs when the price of a stock or other asset moves above a resistance level or below a support level with increased volume, signaling potential for a new trend. Identifying a successful breakout can be a lucrative trading opportunity, but it requires analyzing key components to ensure the breakout is genuine and sustainable. Let’s explore the critical components of a successful breakout on a chart. 1- Identifying Key Levels: Resistance and Support Breakouts are all about surpassing significant price levels. ✅Resistance-: A price level where the asset struggles to move above, due to selling pressure. ✅Support-: A price level where the asset tends to find buying interest, preventing it from moving lower. A breakout occurs when the price breaks through these key levels, often signaling a change in market sentiment. 2- Volume Surge One of the most important components to verify the strength of a breakout is volume. If a breakout occurs on low volume, it could be a false breakout or short-lived. Increased volume shows the conviction of traders behind the move, confirming it is likely to sustain. ✅High Volume-:Confirms market interest in the new price movement. ✅Low Volume-: Raises suspicion that the breakout might be weak or temporary. 3- Pre-Breakout Trend The trend preceding a breakout provides valuable context ✅Uptrend before a resistance breakout-: If the asset has been in an uptrend and breaks resistance, it suggests a continuation of the bullish trend. ✅Downtrend before a support breakout-: A bearish breakout may confirm a continuation of the downtrend if the price breaks a key support level. A sideways or consolidating market can also lead to a breakout, signaling the beginning of a new trend, which can be particularly strong. 4- Retesting the Breakout Level (Throwback/Pullback) ✅A breakout doesn’t always mean immediate momentum. Often, after breaking out, the price will return to test the old resistance or support level. This is called a throwback (when testing resistance) or pullback (when testing support). If the price holds above the previous resistance (or below the previous support), it confirms the breakout's strength. Failure to hold the breakout level may indicate a false breakout. 5-Breakout Candlestick Pattern The type of candlestick at the breakout level can provide insight into whether the breakout is strong or weak ✅Strong bullish candlesticks-: (like large green candles) show strong buying momentum. ✅Weak candles-: (small or indecisive candles) at the breakout point may indicate the move lacks strength, and traders should be cautious. 6-Market Conditions and Broader Trends Successful breakouts often align with broader market conditions ✅Bullish Breakouts-: Have higher success rates in a bull market or when the overall market is in a positive trend. ✅Bearish Breakouts-: Have more validity during bear markets or corrections. Analyzing the broader market trend gives context to the breakout and helps assess whether the move is likely to be sustained. 7- Relative Strength and Momentum Indicators Technical indicators can help confirm the likelihood of a successful breakout. Some popular ones include ✅Relative Strength Index (RSI)-: Helps gauge overbought or oversold conditions. A breakout occurring when the RSI is moving into the overbought range may suggest further upward momentum. ✅Moving Averages-: A breakout accompanied by a crossover of shorter-term moving averages above longer-term ones (e.g., 50-day moving average crossing above the 200-day) can provide confirmation. ✅MACD (Moving Average Convergence Divergence)-: A positive divergence between price and MACD can also confirm the strength of a breakout. 8- Timeframe Considerations Breakouts can occur across different timeframes, from intraday charts to longer-term weekly or monthly charts ✅Short-Term Breakouts-: May be more volatile and prone to false signals, especially during high-frequency trading periods. ✅Longer-Term Breakouts-: Tend to have more reliability, as they involve larger time frames and more data, reducing noise. 9- External Factors and News ✅Sudden breakouts are often triggered by news events, earnings reports, or macroeconomic developments. These external factors can fuel significant price movements and confirm a breakout’s success, especially if the breakout aligns with positive news or earnings surprises. Conclusion-: A successful breakout is characterized by a price movement above a key level, confirmed by high volume, solid market sentiment, and technical indicators. Traders should consider all the components together to avoid false breakouts and identify genuine trading opportunities. Moreover, it's important to understand the broader market context and ensure that the breakout aligns with the overall trend to increase the chances of success. Please like & share this publication if you enjoy reading this, Thanks in advance. Best regards- Amit
NSE:NIFTYEducation
by AMIT-RAJAN
13
UPL | Wyckoff Events & Phases Explained Wyckoff developed a price action market theory which is still a leading principle in today's trading practice. The Wyckoff method states that the price cycle of a traded instrument consists of 4 stages – Accumulation, Markup, Distribution, and MarkDown. 👉TEXTBOOK EXAMPLE Accumulation Schematic: Wyckoff Events and Phases👈 Price Action Analysis And this is the accumulation stage - 1) PS— Preliminary Support, where substantial buying begins to provide pronounced support after a continued down-move. - Volume increases and price spread widens, signaling that the down-move may be approaching its end. 2) SC—Selling Climax, the point at which widening spread and selling pressure usually in high point and heavy or panicky selling by the public is being absorbed by larger professional interests at or near a bottom. - Often price will close well off the low in an SC, reflecting the buying by these large interests. 3) AR—Automatic Rally, which occurs because intense selling pressure has greatly decline. - A wave of buying easily pushes prices up. - The high of this rally will help define the upper boundary of an accumulation. 4) ST—Secondary Test, in which price revisits the area of the SC to test the supply/demand. - If a bottom is to be confirmed, volume and price spread should be decline as the market approaches support in the area of the SC. - It is common to have multiple STs after an SC. 5) SOS—Sign Of Strength, a price advance on increasing spread and relatively higher volume. 6) LPS—Last Point Of Support, the low point of a reaction or pullback after an SOS. 7) BU/LPS- Backing up to an LPS means a pullback to support that was formerly resistant, on diminished spread and volume. All the phases of accumulation stage- Phase A: Phase A marks the stopping of the prior downtrend. -- Up to this point, supply has been dominant. -- The approaching cutback of supply is evidenced in preliminary support (PS) and a selling climax (SC). -- A successful secondary test (ST) in the area of the SC will show less selling than previously and a narrowing of spread and decreased volume, generally stopping at or above the same price level as the SC. -- If the ST goes lower than that of the SC, one can anticipate either new lows or prolonged consolidation. -- Horizontal lines may be drawn to help focus attention on market behavior, as seen in the two Accumulation Schematics above. Phase B: -- Phase B serves the function of “building a cause” for a new uptrend -- In Phase B, institutions and large professional interests are accumulating relatively low-priced inventory in anticipation of the next markup. --There are usually multiple STs during Phase B' -- Institutional buying and selling impart the characteristic up-and-down price action of the trading range. --Early on in Phase B, the price swings tend to be wide and accompanied by high volume. Phase C: -- It is in Phase C that the stock price goes through a final test of the remaining supply. -- this marks the beginning of a new uptrend, trapping the late sellers (bears). -- It indicates that the stock is likely to be ready to move up, so this is a good time to initiate at least a partial long position. -- The appearance of an SOS shortly after a spring or shakeout validates the analysis. Phase D: --During Phase D, the price will move at least to the top --LPSs in this phase are generally excellent places to initiate or add to profitable long positions. Phase E: --large operators can occur at any point in Phase E. --These are sometimes called “stepping stones” on the way to even higher price targets. -------------------------------------------------- Regards, Revive Traders ------------------------------------------------ Guys check out the related POST as well, it went FANTASTIC ! 🙏FOLLOW for more ! 👍LIKE if U find it useful ! ✍COMMENT your views & feedback !
NSE:UPLEducation
by ReviveTraders
2
Why Closings are Important in BreakoutsHello friends, today I am sharing an educational idea with all of you in which we will try to understand how important closing is for any breakout and what benefits we can get from it, so I have tried to explain it in the description written below, I hope you all will like it and everyone will also like my publication. ⚡ The Importance of Closings in Breakouts Breakouts, whether in financial markets, creative processes, or even in personal development, are moments of significant change or transformation. They represent a departure from the usual patterns or constraints and can lead to new opportunities and outcomes. However, the success of a breakout often hinges on how well the transition or change is managed, and this is where the concept of "closings" becomes crucial. ⚡ Defining Closings in the Context of Breakouts-: In any scenario involving a breakout, a closing refers to the completion or formalization of a phase before moving on to the next stage. This could mean closing a trade in financial markets, wrapping up a project in a creative process, or ending a particular chapter in personal development. The closing serves as a point of reflection, consolidation, and preparation for what comes next. ⚡ The Role of Closings in Confirming Breakouts-: In the world of trading, a breakout occurs when the price of an asset moves beyond a defined level of resistance or support, often signaling the start of a new trend. However, for a breakout to be considered valid, it must be confirmed by a strong closing price. Here’s why: 1- Confirmation of Strength-: A breakout without a strong closing can be a false signal, leading traders to enter positions prematurely. A solid close above the resistance (or below support) indicates that the market participants are committed to the new price direction, reducing the risk of a reversal. 2- Volume Consideration-: A breakout accompanied by high trading volume and a strong closing price suggests that the move is backed by significant interest and participation, making it more likely to sustain. 3- Setting Future Expectations-: The closing price in a breakout helps set expectations for future price movements. Traders often look at where the price closes in relation to the breakout level to determine potential entry or exit points. ⚡Finalizing a Phase Before Moving Forward In creative endeavors, breakouts often happen when an artist, writer, or creator moves beyond previous limitations or conventions. However, before fully embracing the new direction, it's important to properly close the previous phase: 1- Reflection and Learning-: Closing a phase allows creators to reflect on what worked and what didn’t. This reflection helps in carrying forward valuable lessons and avoiding past mistakes. 2- Emotional Closure-: Creativity is often tied to emotions. Properly closing a project or phase helps in emotionally detaching from it, making it easier to embrace new ideas and directions without being weighed down by the past. 3- Organizational Clarity-: Closing out a creative phase means tying up loose ends, finalizing details, and ensuring that everything is in order before moving on. This clarity is crucial for maintaining focus and avoiding distractions in the new creative direction. ⚡Personal Development-: The Need for Closure Before Growth In personal development, breakouts often signify a significant shift in mindset, habits, or life direction. However, for such changes to be effective and sustainable, proper closure of the old phase is necessary: 1- Addressing Unresolved Issues-: Before embracing a new direction, it's important to address any unresolved issues from the past. This might involve forgiving oneself or others, letting go of old grudges, or resolving lingering conflicts. 2- Mental Preparation-: Closing a chapter in personal development allows for mental preparation. It provides the space to process what has been left behind and what lies ahead, making the transition smoother. 3- Building a Solid Foundation-: Closures help in consolidating gains from the past and building a solid foundation for future growth. It ensures that the individual is not carrying unnecessary baggage into the new phase of life. Conclusion-: The Critical Role of Closings in Breakouts In summary, closings are a critical component of any breakout, whether in financial markets, creative processes, or personal development. They serve as a checkpoint to confirm the validity of the breakout, consolidate gains, and prepare for future challenges. Without proper closings, breakouts can be incomplete, leading to potential setbacks or failures. Thus, understanding and executing effective closings is essential for achieving long-term success and growth. Hope you like my this Publication if you like my work please boost it. Best Regards- Amit
NSE:NIFTYEducation
by AMIT-RAJAN
21
5 Important Lessons to Learn From the MarketsYou Can Never Outsmart the Market Detailed analysis 🧐and strategies are not enough to survive in the market. There are several other economic or geo-political factors that may influence the movement of the market. If market is flying higher due to positive factors, there is no point in going reverse and shorting stocks or indices. Conversely if the market is going down, its good to wait and watch rather than going all in. A popular saying that mostly works in the markets is that a trend🚀 may last longer than you can expect. Its Stock Market, Not Casino A few elements like risk management, position management, diversification, research etc. differentiate the Markets from Casino🤑. However, most new traders enter the market with a dream of overnight richness. Social media influencers add fuel to this fire and soon this fire🔥evaporates the entire capital of new traders. One needs to realize that the stock market is a business which will develop and grow gradually. Stock Market as Primary or Secondary Source of Income? People from mediocre business or salary class come to the market, make some money with beginner’s luck, become confident, keep increasing capital and become more and more confident😵. Ultimately, they start thinking of quitting their job or ignoring their business. But finally, the dooms days follow, and they start losing and losing till they lose it all. One may think of stock market as a primary source of income if one is profitable for at least a year (3 years would be good though🤔). Secondary sources of income are must because all traders lose in their initial phase. In fact, keep the market as a secondary source for 1-3 years. Stock Tips Will Burn Your Fingers Relying on stock tips from friends, news sources, or social media can be risky. Most tips are randomly picked without any research. Blindly following them without conducting your own research would lead to poor investment decisions and must financial losses. Most people have time⏳ constraints, but they must first learn the market nuances by using small capital and making small losses. Improve their knowledge for at least 3-6months and then go for some reliable advisory service. Do your own research on their tips rather than blind👩‍🦯 faith. Your Portfolio May Lag in a Bullish Market Rising market would not always lead to rise in your portfolio. Your portfolio performance may still be stagnant👎 even when the market is up by 15%👍. It all depends upon the performance of your stocks. Its always good to keep blue-chip or good midcap stocks in your portfolio. Generally, they will perform in-line with the indices. Investing in penny stock hoping for a lottery might be highly disappointing and may lead to further worst decisions in future. Self-education📕 is the best investment. I hope this small effort would help some new traders. All views are personal. Keep boosting 🚀for more educational content in future.
NSE:NIFTYEducation
by Bravetotrade
8
Unlocking Options Trading : The Power of Demand and Supply Part1The Indian options market has experienced a remarkable growth of nearly 8 times since the pre-COVID era. This surge in volume and transactions has created new opportunities for retail traders and investors. While the NSE initially traded only Nifty and Bank Nifty, it now offers a wider range of indices like Midcap Nifty, Nifty Financial Services, Sensex, and Bankex. Despite increased participation, liquidity remains a concern for some instruments. This article explores how the Demand and Supply strategy can be applied to options trading. I have been personally trading demand and supply strategy for over 13 years and have seen the power of this strategy working for any asset class for that matter be it the Indian markets or even the Global markets. Now the question arises can we use the Demand and Supply strategy for trading options and the plain simple answer is “Absolutely Yes!!”. Today I am going to show how we can combine demand and supply and Options together to gain a superlative edge. Let us basically talk first about what is a demand zone? A demand zone is an area on the price chart where price has significantly moved to the upside creating a footprint of “Strong Buyers” and a supply zone is an area on the price chart where price has moved down significantly creating a footprint of “Strong Sellers”. As you can see in the above chart I have plotted the demand zone(Green) and supply zone(Red). These are the areas on the price chart where one can expect the price to turn. Now if one want to switch gears and trade options what are the options that are available for a trader. a. Upside Movement( Demand Zone) b. Sideways Movement ( Middle of Demand & Supply) c. Downside Movement( Supply Zone) So the trader first needs to identify where the price is in context of the Demand and Supply zones. If the price is closer to Demand one can plan a bullish trade, if price is closer to supply zone one can plan a bearish trade and if prices are in the middle one can plan a sideways trade. As per the above example price is closer to a supply zone on the BNF so it will be more prudent for the trader to setup a trade in Options with a bearish perspective based on the demand and supply strategy. In the world of options there are 2 types : 1. Call Options 2. Put Options Buying Calls gives the right to buy and buying puts give the right to sell however one can even sell options and when one does that he has the obligation to sell in case of calls and obligation to buy in the case of puts For an absolute layman this makes the process of understanding options a lot harder than what options actually are so we are going to breakdown these 4 positions and corelate these 4 positions with demand and supply. As an options trader one can create 4 positions. 1. Buy Call 2. Buy Put 3. Sell Call 4. Sell Put We are going to break down these 4 positions into simple mathematical signs to arrive at a decision that out of the above 4 options strategies which is to be implemented in Demand Zone and which one is to be implemented in a Supply Zone. Let us break down these 4 positions as follows : Buy --> “+” Calls-->“+” Sell --> “-“ Puts -->”-“ 1. Buy Calls => + * + = + Since the outcome is positive, we always implement a positive position at a Demand Zone therefore Buy Call as a strategy should be implemented only at Demand and cannot be implemented at Supply 2. Buy Puts ==> + * - = - Since the outcome is negative, we always implement a negative position at a Supply Zone therefore Buy Put as a strategy should be implemented only at Supply and cannot be implemented at a Demand Zone 3. Sell Calls --> - * + = - Since the outcome is negative, we always implement a negative position at a Supply Zone therefore Sell Call as a strategy should be implemented only at Supply and cannot be implemented at a Demand Zone 4. Sell Puts --> - * - = - Since the outcome is positive, we always implement a positive position at a Demand Zone therefore Sell Put as a strategy should be implemented only at Demand and cannot be implemented at Supply Thus by using simple mathematical signs we have made a complex understanding easy to follow where now a demand and supply trader knows and understand that which are the two strategies he can implement at a Demand Zone and which are the two strategies that can be implemented at a Supply Zone Based on these calculations, we can determine the appropriate options strategies for different price levels: • Demand Zone: Buy Call or Sell Put • Supply Zone: Buy Put or Sell Call I hope you found the previous explanation clear. Now that you understand how to connect demand and supply with options, let's discuss how to determine whether to buy or sell options. Is the Demand and Supply strategy enough or are there other factors to consider?". We will talk about that in Part 2 of Unlocking Options Trading : The Power of Demand and Supply Strategy
NSE:BANKNIFTYEducation
by VishalSubandh
2
Bitcoin Crash Incoming? | Elliott Wave Theory Market ForecastGreetings, fellow traders, In this post, I employ "Elliott Wave Theory" to analyze and predict Bitcoin's price movements. The decision to utilize this theory stems from its robust framework for interpreting market cycles, which is essential for precise forecasting in the volatile cryptocurrency market. 1️⃣ The value of an asset directly reflects the sentiment of investors participating in the market. 2️⃣ When investors are optimistic, increased demand naturally drives prices up, while fear among investors leads to price declines. 3️⃣ Prices are a direct representation of investor sentiment, and the "Elliott Wave Theory" is a framework that patterns these price movements. ✅ Conclusion By applying the "Elliott Wave Theory," it is possible to anticipate Bitcoin's next move. Therefore, let's now dive deep into the "Elliott Wave Theory" to both predict Bitcoin's next movements and gain a thorough understanding of this theory. — ✔️BTCUSDT.P / BINANCE / 8H This chart review covers the period from January 24, 2024, to March 14, 2024. During this timeframe, a rare "Double Extended Impulse Wave" pattern appeared, characterized by an extended 5th wave. The supporting evidence for this pattern is as follows: 1️⃣ A breakout from the 1-3 trendline. 2️⃣ The 3rd wave extended beyond 1.618 times the length of the 1st wave. 3️⃣ The 5th wave extended beyond 1.618 times the length of the 3rd wave. 4️⃣ The 4th wave took longer to develop compared to the 2nd wave. I will explore these points in greater detail with the accompanying chart analysis below. — ✔️BTCUSDT.P / BINANCE / 8H This chart includes the evidence discussed earlier, specifically the first point mentioned. (Reference: 1️⃣) In wave analysis, trendlines play a crucial role. A break in the trendline often signifies the end of a wave or highlights the unique characteristics of that wave. In this post, we'll focus on the waves marked on the chart, so please pay close attention to the attached chart. The extension of the 5th wave is significantly influenced by the trendline connecting the peaks of the 1st and 3rd waves. This trendline is especially important in the context of a "Double Extended Impulse Wave." A "Double Extended Impulse Wave" indicates a strong buying momentum in a bull market or a strong selling momentum in a bear market. Therefore, it is expected that the upper trendline (the 1-3 trendline) would be breached as the wave progresses. (leading to a sharp rise in a bull market or a steep fall in a bear market). Please refer to the chart provided above. There are five instances of "Over shooting" , indicating a strong bullish market. This example shows how a single trendline can help identify the market's strength, weakness, and the type of wave pattern in play. Now, let's move on to the next chart. — ✔️BTCUSDT.P / BINANCE / 8H This chart includes the evidence discussed earlier, specifically the second and third points mentioned. (Reference: 2️⃣3️⃣) Additionally, this chart illustrates the internal Fibonacci ratios of the extended impulse wave. The characteristics of the internal Fibonacci ratios for an extended 5th wave in an impulse wave are as follows: (Satisfied: ✔️ / Not Satisfied: ✖️) ✔️ The 3rd wave rises between 100% and 261.8% of the length of the 1st wave. ✔️ The 5th wave rises 161.8% of the (0-3) length, measured from the end of the 4th wave. (It should be shorter than 261.8%.) ✔️ The 5th wave is longer than the shorter of 100% of the (0-3) length and 161.8% of the 3rd wave. Since this wave satisfies all the above conditions, it is highly likely to be a Double Extended Impulse Wave with an extended 5th wave. — ✔️BTCUSDT.P / BINANCE / 8H This chart represents the external Fibonacci ratios of the extended impulse wave. (For an impulse wave with an extended 5th wave, the external ratios are considered more reliable than the internal ratios.) The characteristics of the external Fibonacci ratios for an extended 5th wave in an impulse wave are as follows: (Satisfied: ✔️ / Not Satisfied: ✖️) ✔️ The length of the 5th wave, measured from the end of the 3rd wave, forms at 100%, 161.8%, or 261.8% of the (0-3) length. Since this wave satisfies all the conditions, it is highly likely to be a "Double Extended Impulse Wave" with an extended 5th wave. (The author also considers the external ratios to be highly reliable.) — ✔️BTCUSDT.P / BINANCE / 8H This chart includes the fourth piece of evidence mentioned earlier (Reference: 4️⃣). One of the most essential concepts in "Elliott Wave Theory" is "The Rule of Alternation." This principle is foundational to understanding market movements and is critical to the rules governing wave progression. Without it, Elliott Wave Theory would lose much of its practical value. "The Rule of Alternation" is most clearly demonstrated in the period of corrective waves. In the chart provided above, you’ll notice a comparison between the length of the 2nd wave and the 4th wave. Typically, before an extended wave appears, the market tends to undergo a longer or deeper correction. In this case, the 4th wave is noticeably longer than the 2nd wave, which satisfies this condition. This observation significantly increases the reliability of the wave pattern. — ✔️BTCUSDT.P / BINANCE / 1D Now, let's discuss the potential future direction. If the low point of the 5th wave within the extended impulse wave breaks, it is likely that this impulse wave marks the final wave of a larger wave pattern. In simpler terms, the 5-wave extended impulse wave we've discussed so far may represent the last wave of the current upward trend. To put it even more clearly, if the price falls below the $50,922.5 level, there is a high probability that the market has transitioned into a downtrend. Please refer to the following chart for further details. — ✔️BTCUSDT.P / BINANCE / 1D Based on the assumption that the market has transitioned into a downtrend, I’ve constructed the following scenario. It appears that a Corrective Wave (Flat) has already occurred, and the market is currently experiencing a correction in response to this wave (indicated by the red dotted line). According to this scenario, even if the price experiences an upward movement, it is likely to be a technical rebound within the broader context of a continuing downtrend. — Conclusion Today, we applied the Elliott Wave Theory to the actual Bitcoin chart to analyze the market. I made every effort to maintain an objective perspective. I am aware that many traders and investors are anticipating a continued upward trend. However, my intent in presenting a bearish scenario was not to gain attention, but rather to analyze the market as objectively as possible. It’s important to approach the market rationally, rather than simply calling for a rise without substantial evidence. I encourage you all to remain wise traders and investors who do not succumb to 'FOMO' (Fear of Missing Out) and always maintain an objective view of the market. Thank you for taking the time to read this post. If you found this analysis helpful, I would greatly appreciate it if you could give it a "boost." Should there be significant interest in this post, I'll consider creating follow-up analyses.
Education
by Killer_Whales
2
Rsi and Rsi Divergence #NSEThe Relative Strength Index (RSI) is a widely used momentum oscillator in technical analysis that helps traders identify overbought or oversold conditions in a market. Here’s a brief overview: Interpretation: Overbought: An RSI above 70 suggests that the asset might be overbought and could be due for a pullback. Oversold: An RSI below 30 indicates that the asset might be oversold and could be due for a bounce. Usage: Traders often use RSI in conjunction with other indicators to confirm signals and make more informed trading decisions..
NSE:BANKNIFTYEducation
by Optionclub
Understanding the Cup and Handle Formation in Technical AnalysisThe Cup and Handle pattern is one of the most well-known and reliable chart patterns used by traders to predict bullish continuations. Understanding this formation can give you a valuable edge in identifying potential breakout stocks. What is the Cup and Handle Pattern? The Cup and Handle is a bullish continuation pattern that usually forms during an uptrend. It resembles the shape of a tea cup, with a rounded bottom followed by a slight pullback (the handle). Cup: The cup is a rounded bottom, forming after a downtrend or consolidation. It indicates that the stock is finding support and gradually regaining momentum. Handle : After forming the cup, the price pulls back slightly, creating a handle. This handle represents a period of consolidation before a breakout. How to Identify a Cup and Handle Formation? Prior Uptrend: The pattern typically forms after an established uptrend. Rounded Bottom: The "cup" part should have a smooth, rounded bottom, indicating that the stock has gradually built support and is preparing for a bullish move. Handle: The handle forms as a small pullback or consolidation, often at the upper end of the cup. This is where sellers temporarily outnumber buyers, but the selling pressure is limited. Breakout: The breakout occurs when the price moves above the resistance level at the top of the handle, often accompanied by increased volume, signaling a continuation of the uptrend. Example: DOLAT ALGOTECH LTD DOLAT ALGOTECH LTD displayed a classic Cup and Handle pattern on its chart, signaling a potential bullish breakout. Here’s a breakdown of the key elements of the pattern: Prior Uptrend: The stock was in a strong uptrend before entering a consolidation phase. Cup Formation: The price formed a rounded bottom, creating the cup, showing a gradual recovery after a pullback. Handle Formation: After the cup, the price consolidated and slightly pulled back, forming the handle. Breakout: The stock has recently broken out of the handle with increased volume, indicating a potential continuation of the uptrend. Key price targets based on the breakout: First target: ₹202.53 (+17.82%) Second target: ₹251.25 (+46.25%) This real-world example demonstrates how the Cup and Handle pattern can be used to identify potential bullish breakouts in stocks. Why is it Important? The Cup and Handle pattern is considered reliable because it reflects a period of accumulation (cup) followed by a mild correction (handle), before the price resumes its upward movement. Traders often use this formation to identify potential buying opportunities before a breakout. Key Points to Remember: Pattern Duration: The cup can take several weeks or even months to form, while the handle usually takes a shorter time. Volume Confirmation: A volume increase during the breakout is a strong signal that the pattern is valid and that the uptrend is likely to continue. Risk Management: While this pattern is reliable, no technical analysis is foolproof. Always use stop-loss orders and manage risk properly. NSE:DOLATALGO
NSE:DOLATALGOEducation
by rajsharmatt
2