TVS MOTOR INV HEAD & SHOULDER BREAKOUT & RETEST STRATEGY TVS MOTOR CO
1. Inv Head & Shoulder Pattern
2. Breakout & retest strategy
3. Close within 52W high zone (2313.45)
4. Close above the previous day's high (2238.80)
5. High increase in 1 month (+9.6%)
6. High increase in 12 months (+72.3%)
7. Promoter holding 50.27 %
8. Pledged percentage 0.00 %
9. Change in Prom Hold 0.00%
10. FII holding 20.8 %
11. Chg in FII Hold 1.56 %
12. DII holding 20.3%
13. Chg in DII Hold -1.53%
14. Stock PE 63.4
15. Industry PE 63.4
16. ROCE 18.8%
17. ROE 27.4%
For Educational Purpose Only
Community ideas
Linear Vs Logarithmic Chart. Which one to use ?NSE:ADANIENT
Hello, Traders! 👋
I hope you’re all having a fantastic weekend! 🌟 Whether you’re sipping coffee, analyzing charts, or just enjoying some downtime, let’s make it even more productive. 📈💡
In today’s educational post, we’ll explore a concept that might have slipped under your radar or left you slightly puzzled. No worries—I’m here to shed light on it!
Understanding Linear vs. Logarithmic Charts
🔹When it comes to visualizing data, two chart types stand out: linear charts and logarithmic charts. These seemingly simple charts can reveal powerful insights about trends, growth rates, and relative changes. Buckle up—we’re about to explore their differences and use cases! 📊🚀
What is a Linear chart?
🔹The Price plotted on a graph which we call charts, the price on the Y-axis shown will be consistent and uniformly scaled, which shows more significance to recent price action over old price action.
🔹Linear charts are great for showing absolute changes when each price has similar increments.
🔹Linear charts are easy to understand and you are already using them.
What is Logarithmic Chart (Log Scale):
🔹A logarithmic chart, or log scale, depicts percentage changes, giving a more accurate view of relative movements.
🔹Logarithmic charts are especially useful when analyzing Long-term price data. They can show proportional relationships and percentage changes more effectively.
🔹As time goes by, the difference between linear and logarithmic charts becomes more pronounced. Log scales are often preferred for their accuracy.
On this difference table, you can easily understand the uses and benefits of logarthmic charts.
How to switch to a logarithmic chart?
Just right right-click on the Price scale on the Tradingview chart and you will find log chart.
or you can just hover your cursor at the bottom of the price scale you will see A and L (A - means arithmetic and L- Logarithmic).
Note:- On short-term or recent price action these charts will not make any big difference but surely they impact longer-term data.
Feel free to explore both chart types and choose the one that suits your analysis best! 📊🔍
If you’d like more examples or have other questions, just ask—I’m here to help! 😊🚀
Keep Learning,
Happy Trading.
Basic Understanding about Supply and Demand ZonesQ: What is a supply zone in trading?
A: A Supply Zone is a Price level or Area on a chart where Selling pressure is expected to be strong enough to overcome buying pressure, causing prices to fall.
It is typically identified by a concentration of previous price highs where sellers have historically emerged.
Q: What is a Demand zone in Trading?
A: A Demand zone is a Price Level or area on a chart where Buying pressure is expected to be strong enough to overcome selling pressure, causing prices to rise. It is usually identified by a concentration of previous price lows where buyers have historically stepped in.
Q: How can traders identify supply and demand zones on a chart?
A: Traders can identify Supply and Demand zones by looking for Areas where the price has previously made significant moves up or down. For Supply zones, they look for price peaks followed by sharp declines. For Demand zones, they look for price troughs followed by sharp increases. These zones are often marked by areas of consolidation or strong price rejection.
Q: How do Supply and Demand Zones integrate with other Technical Analysis tools?
A: Supply and Demand Zones can be used in conjunction with other Technical Analysis tools such as Trend lines, Moving Averages, and Candlestick Patterns.
For example, a Supply zone that aligns with a Resistance level can provide a stronger signal for potential price reversals. Combining multiple tools can enhance the accuracy of trading decisions.
Q: How can traders Manage Risk when trading Supply and Demand zones?
A: Traders can manage risk by using stop-loss orders just outside the supply or demand zone to limit potential losses. They should also consider the size of the zone and the volatility of the scrips when determining their position size.
Regularly reviewing and adjusting their zones based on market conditions can also help in managing risk effectively.
Keep Practicing & Learning Price Ac tion concepts
What Is India VIX & Its impact on the Market Q: What is India VIX?
Ans) India VIX, or India Volatility Index, measures the market's expectation of volatility
over the near term. It is often referred to as the "Fear Gauge" as it indicates
the level of fear or risk in the market.
Higher VIX values indicate higher expected volatility,
while lower values suggest lower expected Volatility.
Q: What does a High India VIX indicate?
Ans) A High India VIX indicates that traders expect significant volatility
in the market. This often corresponds with market uncertainty or fear,
possibly due to Economic Events, Political instability, or other factors that
might cause large price swings.
Q: What does a L ow India VIX indicate?
Ans) Low India VIX suggests that traders expect the market to be relatively
stable in the near term. This typically corresponds with periods of market
confidence and lower perceived risk.
Q: How do major events affect India VIX?
Ans) Major Events such as Elections, Economic Announcements, Geopolitical Tensions,
or Natural Disasters can significantly impact India VIX. These events often lead to increased uncertainty and Fear, causing India VIX to spike as traders anticipate greater market volatility.
These are some of the Basic information about the India VIX and its impact on the Market
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Types of Trading Strategies Hi mates and friends, Here i am sharing an educational post and it is about Various types of available trading Strategies in financial markets, So sharing some insight on this topic below mates and hoping the new entrants to trading and technical analysis will be able to learn something after reading this publication!
There are various trading strategies that traders employ based on their goals, risk tolerance, and market conditions. Here are some common trading strategies:
1- Scalping
Description: Involves making numerous trades throughout the day to capture small price movements.
Objective: Take advantage of minute price changes, often within seconds or minutes.
Tools: Requires high-speed trading platforms, real-time data, and often, automated trading systems.
Risk: High due to the large number of trades and potential transaction costs.
2- Day Trading
Description: Buying and selling financial instruments within the same trading day, avoiding overnight positions.
Objective: Profit from short-term price fluctuations.
Tools: Real-time data, technical analysis, and news feeds.
Risk: Moderate to high, depending on market volatility and the trader’s skill.
3- Swing Trading
Description: Holding positions for several days to weeks to capitalize on expected upward or downward market shifts.
Objective: Profit from medium-term price trends.
Tools: Technical analysis, chart patterns, and sometimes fundamental analysis.
Risk: Moderate, with exposure to overnight and weekend market movements.
4- Momentum Trading
Description: Identifying securities that are moving significantly in one direction on high volume.
Objective: Ride the momentum until signs of reversal.
Tools: Momentum indicators like RSI, MACD, and volume analysis.
Risk: High, as momentum can reverse quickly.
5- Trend Following
Description: Identifying and trading in the direction of the prevailing trend.
Objective: Enter trades in the direction of the trend and exit when the trend shows signs of reversing.
Tools: Moving averages, trend lines, and other trend indicators.
Risk: Moderate, as trends can persist for a long time but also reverse unexpectedly.
6- Reversal Trading (Mean Reversion)
Description: Identifying overbought or oversold conditions and trading on the expectation of a reversal.
Objective: Profit from the price reverting to its mean or average level.
Tools: Oscillators like RSI, Stochastic Oscillator, and Bollinger Bands.
Risk: High, as betting against the trend can be risky if the trend continues longer than expected.
7- Breakout Trading
Description: Entering trades when the price breaks above a resistance level or below a support level.
Objective: Capture the initial movement when the price breaks out from a range.
Tools: Support and resistance levels, volume analysis, and chart patterns.
Risk: Moderate to high, depending on false breakouts and market conditions.
8- News-Based Trading
Description: Making trades based on market-moving news, such as earnings reports, economic data releases, or geopolitical events.
Objective: Capitalize on the volatility following news announcements.
Tools: News feeds, economic calendars, and analysis of market sentiment.
Risk: High, as news can lead to unpredictable market reactions.
9- Algorithmic Trading
Description: Using computer algorithms to automate trading based on pre-defined criteria.
Objective: Execute trades at high speed and efficiency, often exploiting small inefficiencies in the market.
Tools: Trading algorithms, high-speed data feeds, and advanced computing power.
Risk: Varies depending on the strategy coded into the algorithm.
10- Pairs Trading
Description: Involves trading two correlated securities, buying one and selling the other.
Objective: Profit from the relative movement between the two securities.
Tools: Statistical analysis, correlation studies, and historical price data.
Risk: Moderate, as the correlation between the two securities may change.
11- Event-Driven Trading
Description: Focuses on events like mergers, acquisitions, or other corporate actions.
Objective: Profit from price movements related to these events.
Tools: Fundamental analysis, event calendars, and news feeds.
Risk: Moderate to high, depending on the predictability of the event outcomes.
Each of these strategies requires a different skill set, tools, and risk management techniques. Traders often experiment with multiple strategies to find the ones that best suit their trading style and market conditions.
Hope you like my idea friends
Best regards- Amit
MIDCAP NIFTY DAILY.Midcap Nifty on daily TF rejected breaking 61.8% in 4/5 continuous trading sessions. It was again and again trying to bounce back from the levels, and it successfully bounces with major upside candle today. Trying to break out of the box upside too, if the buying follows up, we can see new highs on this index again.
Only for educational purposes. Do your own analysis before taking any trade.
Balaji Amines formed big positive candle after Q4 ResultsWithing 15 mins, the stock formed a significant candle of 12%
Increased volatility around stock earnings is a common phenomenon in financial markets.
As companies release their quarterly or annual earnings reports, big investors eagerly anticipate the results, which can lead to heightened trading activity.
Positive earnings surprises may cause a surge in buying activity, driving up stock prices, while negative surprises can trigger selling pressure, leading to price declines.
Consequently, during earnings seasons, markets can experience sharp movements in stock prices therefore short term trading becomes Risky around imp events.
Balaji Amines formed BIg candle after Q4 Results Wihin 30 mins, the stock formed a significant candle of 12%
Increased volatility around stock earnings is a common phenomenon in financial markets.
As companies release their quarterly or annual earnings reports, BIg investors eagerly anticipate the results, which can lead to heightened trading activity.
Positive earnings surprises may cause a surge in buying activity, driving up stock prices, while Negative surprises can trigger selling pressure, leading to price declines.
Consequently, during earnings seasons, markets can experience sharp movements in stock prices therefore short term trading becomes Risky
RELIANCE- Big Elephant of NIFTY forms Descending TriangleAnalyzing the Descending Triangle Pattern on RELIANCE Daily Charts
Introduction:
In the world of technical analysis, patterns often provide valuable insights into potential market movements. One such pattern that has caught the attention of traders is the descending triangle forming on the Reliance Industries Limited (RIL) daily charts. Let's delve into this pattern and explore what it could mean for RIL's future price action.
Understanding the Descending Triangle Pattern:
The descending triangle is a bearish continuation pattern characterized by a horizontal support line and a descending trendline. In this pattern, the price forms lower highs, indicating a potential weakening of bullish momentum. Meanwhile, the support line remains relatively flat, signaling a level at which buying pressure may be concentrated.
Analyzing RIL's Descending Triangle:
On RIL's daily charts, we can observe the formation of this pattern, with the stock consistently making lower highs since a recent peak. The horizontal support line is evident, showcasing a level at which buyers have historically stepped in.
Implications for Traders:
1. Bearish Bias: The descending triangle typically suggests a bearish bias, indicating that sellers may gain control as the pattern progresses.
2. Breakout Potential: Traders often look for a breakout below the support line as a confirmation of the pattern. A decisive move below this level could signal further downside.
3. Volume Confirmation: Volume plays a crucial role in confirming pattern validity. Traders should monitor volume trends, especially during a potential breakout.
Key Levels to Watch:
- Support: Keep a close eye on the support level of the descending triangle. A break below this level could signal further downside pressure.
- Resistance: The descending trendline acts as a resistance level. A break above this line may invalidate the pattern.
Risk Management:
As with any trading strategy, risk management is paramount. Traders should consider implementing stop-loss orders and position sizing strategies to protect against unexpected price movements.
Conclusion:
The descending triangle pattern forming on RIL's daily charts presents an interesting opportunity for traders to monitor. While patterns provide valuable insights, it's essential to wait for confirmation signals such as a breakout with increased volume before making trading decisions. Keeping risk management in mind can help traders navigate potential opportunities while minimizing downside risks.
Disclaimer: This analysis is for informational purposes only and should not be construed as financial advice. Traders should conduct their own research and consider their risk tolerance before making any trading decisions.
SPARC - BO FAIL, IMPORTANT RISK MANAGEMENT LESSONHello Community,
today i will talk about the importance of risk management in stock market, why its important to respect risk in stock market with proper stoploss method you should have as per your risk apetite with example. We have talked much about the BO stocks which had made good money for us but still in market there are lot many examples where good BO got failed at later stage.
I was looking at the chart of sparc which i traded before as a 52 WEEK BO but since after my entry it stalked a little bit so i booked my profit as i got other opportunity to make money and keep the alerts at BO points to reenter later. Now to day while scanning my multiyear bo watchlist i saw that a BO Faliure with gaps in the chart at weekly time frame. Rest details are on chart.
That's why i say everytime profit booking is also very improtant at every level, you can always reenter in any stocks becoz booking profit is better than the looking profit.
Remember: I am a Price Action Trader and use Price and Volume together with different Timeframes, including RSI, and market conditions. To get best result always wait for confirmation. Focus on Risk Management and Position sizing.
I use Trading view for my Analysis and charts Repositories. I could have Or Couldn’t have positions in Sharing Ideas.
Treat trading like a business and it will pay you like a business…..!!
Hope this post is helpful to community
Thanks
RastogiG
Price Action vs Indicators : A Fresh PerspectivePrice Action vs Indicators: A Fresh Perspective
The comparison between price action and indicator trading has been a topic of debate for a long time. In this article, I aim to debunk some popular beliefs and provide traders with a new outlook on this ongoing argument.
1. Price Action is Better Than Indicators
Price action traders often claim that their method is superior. However, both price action and indicators rely on the same historical price data. The only difference lies in how this information is processed. Indicators apply a specific formula to the price data, but they do not alter what is seen on the charts. When interpreting price action, traders are essentially doing the same mental processing.
2. Indicators are Lagging – Price Action is Leading
Critics argue that indicators lag behind price action, but this misconception stems from a lack of understanding. Indicators utilize past price action based on their settings and display the results after applying a formula. Similarly, traders who analyze pure price patterns also examine past price action that has already moved away from potential entry points. Both methods rely on historical data and can be considered "lagging." To minimize lag, traders can adjust the indicator's time settings or analyze fewer past candlesticks. However, it's important to note that reducing data may result in less meaningful analysis.
3. Price Action is Simple and Better for Beginners
It is often believed that price action is simpler and more suitable for beginners. However, in trading, simplicity does not always equate to effectiveness. Both price action and indicator trading require a solid understanding and correct usage of the chosen tools. Personal preferences and how traders utilize their tools play a more significant role than the debate between price action and indicator trading.
In conclusion, the comparison between price action and indicators should not be seen as a competition between superiority and inferiority. Both methods have their merits and can be valuable tools for traders. It is crucial to grasp the underlying principles and use them appropriately to achieve success in the dynamic world of trading. So, choose wisely.
Thanks
Simranjit Singh Virdi
What do you think of this swing trading approach?Hi TV community.
This view is based on my own approach to swing trading.
METHOD
Select 60 PSU stocks
Trade only on the Weekly Timeframe
Exit trade when price hits 6.8% over entry price. (The 6.8% corresponds to one year FD interest rate of SBI)
There is no concept of stop loss with this approach as we give 52 weeks time for the stock to hit TP level of 6.8%. In most cases, TP level will be hit well within that period.
OPPORTUNITIES
After taking out all trading holidays there are 50 weeks of opportunities every year. So, with 60 stocks you will have hundreds of opportunities in 50 weeks.
I have personally experienced that this presents ample opportunities for regular trades. Since I trade only on PSUs, even if price slips for a couple of months, then also there is no stress because I know I will get dividend while waiting for price to hit my target price.
RULES THAT I FOLLOW
My capital is always 1,00,000 per trade.
Profit target is always 6.8%.
ADVANTAGES
This approach ensures that trading is very organised and systematic as the universe of stocks consists of fundamentally strong ones. As trading is on weekly time-frame, it helps in relaxed trading. Trading rules ensure that reward and waiting period are known in advance - so expectations are always grounded. Because the trades are only on PSUs, bigger capital can be deployed per trade with confidence. This discipline ensures that trading is approached with a business-like mindset.
So, as an ex-Banker, I always approach every trade with safety in mind and found that only trading PSUs as per the approach outlined above has helped me be profitable in the stock market.
Hope this idea makes sense and appeals to some of you.
All the best with your trading.
Want to avoid big losses in trading? Here's how:Apne Profits Ko Bachao: Pro Tips to Avoid Bade Nuksan in Indian Stock Market Trading
Introduction:
Stock market trading mein, profits ke sapne dekhte hue, bade nuksan ka khauf bhi hota hai.
Har trader ki tamanna hoti hai ki unki kamayi badhe, lekin sachchai yeh hai ki bade nuksan sabse badi rukawat hote hain.
Par ghabrao mat, dosto! Sahi strategies aur thoda sa market ka gyaan lekar, aap apne hard-earned capital ko surakshit rakh sakte hain. Aaiye, hamare saath judiye jab hum Indian stock market ke dynamic landscape ke liye practical tips aur real-world examples ka raaz kholne ja rahe hain.
1. Ride the Wave: Trend Analysis Ki Chamak
Imagine karo, Aap market mein stocks ko dekh rahe hain, agle badi opportunity ke liye. Achanak, aap ek trend dekhte hain - ek strength jo stock ko dheere-dheere upar le ja rahi hai. Is upward trend mein saath chalne se, aap na keval potential profits ka maza uthate hain, balki bade nuksan ke toofano se bhi apne aap ko bachate hain.
2. Timing is Everything: Smart Entry, Smarter Exit
Trading ki tej raftar duniya mein, timing hi sab kuch hoti hai.
Socho Reliance Industries Limited (RIL) ko, Indian stock market ka ek titan. Jab RIL ka stock price asman se uchhalta hai, bahuton ko use lene ka mauka milta hai. Lekin samajhdaar traders sabr ka istemal karte hain. Ve sahi mauke ka intezaar karte hain - shor machaane se pehle ek temporary rukh apni entry price ki taraf ka . Aise me trade me enter hone se bade nuksan ki probability se bachte hain.
3. Stop Loss: Tumhara Kavach Trading Maidan Mein
Ah, stop-loss order - ek trader ka gupt hathiyar, bade nuksan ke khilaaf.
Socho ki tumne Infosys ke shares khareede hain, umeed hai ki unka stock price badhega. Magar, market ke alag iraade hain, aur Infosys ka stock ek dam neeche jaata hai. Lekin ghabrao mat! Ek achhe se lagaye gaye stop-loss order ke saath, tum gracefully trade se bahar nikal jaate ho, apne nuksan ko simit karte hue aur apna capital aane wale trade ke liye bachate hue.
4. Size Matters: Position Sizing ki Kala
Imagine karo, Tum apna agla trade size karte hue, risk aur rewards ko dhyan se calculate kar rahe ho.
Jab tum apne position ka size decide karte ho, toh yaad rakho: kabhi bhi ek hi trade par poora risk na lo. Chahe tum Tata Motors ya HDFC Bank ki taraf nazar daalo, apna position size apni risk tolerance aur account size ke anusaar set karo. Is important niyam ka palan karke, tum apne portfolio ko bade nuksan se bacha sakte ho aur stock market ke hamesha badalte daur mein lambi umar ke liye ashray bhi le sakte ho.
Conclusion:
Stock market trading ki romanchak kahani mein, safalta ki yatra mein ghoomte-ghoomte bade kathinayein aati hain. Par, trend analysis, strategic timing, stop-loss ki maharat, aur prudent position sizing ke saath, aap bhi market ke saath chal sakte hain aur apne Profit ko surakshit rakh sakte hain.
Toh, dosto, is gyaan ka palan karo, trading ke bazar mein vishwas se sail karo, aur apne arthik samriddhi ki khoj mein jeet haasil karo. Trading ki duniya mein, jiske paas samajhdari hai, wahi jeetne ke laayak hota hai.
Magic Of Technical Analysis - NATIONAL ALUMINUM This post is only for Educational Purpose.
Just to remind you all the Power of technical Analysis.
What a picture-perfect move by National Aluminum with,
- Wave Theory
- Bullish Continues Divergences with MACD
- Double Bottom & Top Chart Pattern
- Tringle Pattern Breakout with Retest
- Reversed Bullish Divergence with RSI
All these together works perfectly here.
What is Swing Trading Let's Know Hi mates and friends, Here i am sharing again an educational post and this time it's all about Swing trading as you might have guessed after reading the title so sharing some insight on this topic below mates !!
Swing Trading: A Strategy for Riding Market Waves
Swing trading is a popular trading strategy utilized by investors seeking to profit from short-to-medium-term price movements in financial markets. Unlike day trading, which involves rapid buying and selling within a single trading session, swing trading typically spans a few days to weeks. This publication delves into the fundamentals of swing trading, its strategies, advantages, and considerations.
Understanding Swing Trading:
Swing trading capitalizes on "swings" or price movements within an established trend. Traders aim to identify and exploit price fluctuations, buying at low points and selling at higher points, or vice versa in a bearish market. This strategy relies on technical analysis, which involves studying price charts and indicators to forecast future price movements.
Key Strategies:
1. Trend Identification: Traders analyze price charts to identify the prevailing trend, whether it's bullish (upward), bearish (downward), or ranging (sideways). Swing traders typically avoid counter-trend trading and focus on aligning their positions with the dominant trend.
2. Entry and Exit Points: Swing traders seek entry points near support levels (for buying) or resistance levels (for selling) within the trend. They often use technical indicators such as moving averages, Fibonacci retracements, and oscillators like the Relative Strength Index (RSI) or Stochastic Oscillator to pinpoint these levels.
3. Risk Management: Effective risk management is crucial in swing trading. Traders establish stop-loss orders to limit potential losses and employ position sizing techniques to manage risk exposure. The risk-reward ratio, which compares potential profit to potential loss, is carefully considered for each trade.
4. Trade Duration: Unlike day traders, swing traders hold positions for several days to weeks, allowing trades to develop and capture larger price movements. This approach requires patience and discipline to withstand short-term fluctuations.
Advantages of Swing Trading:
1. Flexibility: Swing trading can be pursued alongside other commitments, as it doesn't require constant monitoring of the markets.
2. Profit Potential: By capturing intermediate price movements, swing traders have the potential to generate significant profits compared to day traders.
3. Reduced Noise: Swing traders focus on higher timeframes, filtering out intraday noise and false signals often encountered in shorter-term trading.
Considerations and Risks:
1. Market Volatility: Swing trading carries inherent risks, particularly during periods of high volatility or sudden market reversals. Traders must adapt their strategies accordingly and be prepared for unexpected price movements.
2. Overtrading: Impulsive trading or excessive trading frequency can erode profits and increase transaction costs. Maintaining discipline and adhering to a predefined trading plan are essential to avoid overtrading.
3. Psychological Factors: Emotions such as fear, greed, and overconfidence can influence decision-making and lead to poor trading outcomes. Effective risk management and emotional discipline are critical for success in swing trading.
In conclusion, swing trading offers an alternative approach for investors looking to capitalize on short-to-medium-term price movements in financial markets. By combining technical analysis with effective risk management, traders aim to profit from the ebb and flow of market trends while managing inherent risks and challenges.
If you like my publication do boost my post, Thanks in advance.
Best Regards-: Amit
Price and Volume Bonding and Conclusions Hello mates, friends and Trading community today i am sharing an Educational post on Price and Volumes relationship, The relationship between price and volume in trading is a fundamental aspect that traders analyze to gain insights into market dynamics and potential trading opportunities as volume is often used as confirmation of coming price movements, possibilities of price direction, trends and reversals. Overall, Price-Volume Theory is used by traders to analyze market dynamics and make informed trading decisions. So sharing below some key details about this relationship friends.
🚀 In trading, "price increase with volume" typically refers to a scenario where the price of a financial asset, such as a stock, increases as trading volume rises. This can signal increased buying pressure and investor & traders interest in the asset. In other words, as more shares are being bought and sold, the price tends to rise, reflecting higher demand and indicates that this uptrend is clearly supported by volume or potentially signaling a trend continuation or a breakout. (Conclusion- Good for fresh buying opportunities or can hold profitable positions for more time)
🚀 In trading, "price increase with volume decrease" When you observe a price increase accompanied by a decrease in trading volume indicates lack of conviction price increase with low volume suggests that there may not be strong conviction behind the move and It could be driven by a small number of traders or lack significant interest from the broader market. This scenario can indicate a potential reversal in the current trend. If the price is rising but fewer people are participating in the market, it could mean that the trend is losing momentum and might reverse direction soon. Overall, while a price increase alone might seem positive, when coupled with a decrease in volume, it's essential to consider the broader context and potential implications for the market trend. (Conclusion- Time to unwind long positions)
🚀 In trading, "price decrease with volume increase typically indicates Bearish Sentiments where Investors or traders may be selling off their positions and It refers a rising selling pressure with higher trading volumes with decreased price. due to negative news, poor financial performance, Traders may be taking profits after a period of price appreciation, and assuming market sentiment shift A change in market sentiment can lead to increased selling activity, causing prices to drop as more investors exit their positions. Overall, a decrease in price accompanied by a rise in trading volume typically indicates increased selling activity and could suggest a potential downtrend in the security's price. (Conclusion- Good to find out fresh selling opportunities)
🚀 In trading, "price decrease with volume decrease when you see a price decrease accompanied by a decrease in trading volume this could indicate a lack of interest or conviction in the current price trend., it could imply several things in trading for example Consolidation, weakening momentum or potential reversal and where buyers and sellers are in equilibrium, resulting in lower trading activity and potentially a sideways movement in prices or prevailing trend is losing strength, and a reversal might be imminent. (Conclusion- Good time to unwind the running short positions in market)
However, Apart of price and volume analysis it's essential to consider other factors such as market conditions, news events, and fundamental analysis to understand the full picture.
Regards-: Amit
Happy Trading mates, Thanks for reading hope you like this publication friends.
“Sheer will and determination is no substitute for something that actually works.” - Jason Klatt
Stay Ahead: Essential Tips to Avoid Trading PitfallsHello TradingView Community!
I'm excited to share some valuable insights on trading pitfalls and how to navigate them effectively. Trading in financial markets can be a challenging journey, but understanding common pitfalls and methods to avoid them can significantly enhance your success. Here are 10 pitfalls traders often encounter and actionable strategies to help you steer clear of them:
Having No Trading Plan:
Entering trades without a plan can lead to impulsive decisions. Develop a clear trading plan outlining your goals, strategies, entry and exit points, and risk management.
Using Strategies That Don't Match Your Personality:
Align your trading strategies with your personality, risk tolerance, and lifestyle. A good match helps you stay consistent and focused.
Having Unrealistic Expectations:
Set realistic goals based on your initial capital and risk tolerance. Trading is not a quick path to wealth, so be patient and persistent.
Taking Too Much Risk:
Avoid over-leveraging and using excessive position sizes. Implement risk management techniques like stop-loss orders and diversification.
Not Having Rules to Follow:
Create a set of trading rules to guide your decisions. These rules provide structure and help you stay disciplined.
Not Being Flexible to Market Conditions:
Adaptability is key in trading. Monitor the markets and adjust your strategies as conditions change.
Failing to Take Responsibility for Your Results:
Own your successes and mistakes. This mindset empowers you to learn, grow, and improve your trading.
Being Addicted to Volatility:
While volatility can be exciting, avoid chasing it for thrills. Focus on making well-reasoned decisions based on your plan.
Not Having a Process to Keep Track of Your Performance:
Maintain detailed records of your trades and their outcomes. Analyze this data to identify patterns and refine your strategies.
Not Dealing with Your Emotional Risk:
Emotions can cloud your judgment in trading. Practice emotional intelligence and techniques like meditation or journaling to stay composed.
Neglecting Proper Research and Due Diligence:
Relying solely on tips or rumors can lead to poor decisions. Conduct thorough research and due diligence on potential trades and investments.
Overcomplicating Your Trading Strategy:
Complex strategies may not always lead to better results. Simplify your approach to focus on proven methods and avoid overanalyzing the market.
Ignoring the Importance of Continuous Learning:
The markets evolve, and so should your knowledge and strategies. Stay updated on market trends and continuously educate yourself to stay ahead.
There is no trade without a stop-loss:
This point emphasizes the importance of having a stop-loss in place before entering any trade. It highlights risk management as a fundamental part of trading, ensuring that you have a clear exit strategy to limit potential losses.
If you have to re-analyze charts after being in a trade, you might be going in the wrong direction:
This point underscores the importance of trusting your initial analysis and trading plan. It warns against second-guessing or changing your plan mid-trade, which could indicate you may be heading in the wrong direction.
By implementing these strategies, you can enhance your trading experience and improve your performance over time. Remember, successful trading is a journey that requires discipline, patience, and continuous learning.
I hope you find these insights helpful. Feel free to share your thoughts and experiences in the comments. Let's continue to support each other and grow as a community!
Happy trading!
RK💕
I am not Sebi registered analyst.
My studies are for educational purpose only.
Please Consult your financial advisor before trading or investing.
I am not responsible for any kinds of your profits and your losses.
Most investors treat trading as a hobby because they have a full-time job doing something else.
However, If you treat trading like a business, it will pay you like a business.
If you treat like a hobby, hobbies don't pay, they cost you...!
Disclaimer and Risk Warning.
The analysis and discussion provided on in.tradingview.com/u/RK_Charts/ is intended for educational purposes only and should not be relied upon for trading decisions. RK_Charts is not an investment adviser and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Charts does not share in your profits and will not take responsibility for any losses you may incur. So Please Consult your financial advisor before trading or investing.
Stock Selection Based on ATH/52 Week Stock and Relative strengthHello community
Here I will be talking about the process for picking up the stocks based upon the All Time High (ATH)/52 Week BO Stock and RSI . As this is known to everyone but only few are getting benefited by applying it in real trading. The stock represents strength if it breaks its ATH Level and comes from Weekly BO Base. Most of the gains are made with the stocks breaking its ATH and Coming from Weekly Base BO and once it is combined with the RSI and Price Volume this can do wonders and improve trading style.
In my earlier write up i also talked about the use of RSI with Screener from Tradingview only. Since i used this as my repository so save all my write up here only and can be viewed.(Stock Selection Based on Relative StrengthEDUCATION)
Screener for Stock Selection in Trading View:-
- Go to Stock Screener Tab at bottom in the Tradingview.
- Go to Filters
- Symbol Type - Common Stock
- Select New 52 Week High-
- Select New All Time High
- Select Relative Strength Index (14) >=75
The above will filter out stocks based on ATH and 52 Week High stocks and RSI. You can add more filters according to your requirements and make your stock list more refine and Make a list and look for opportunities.
I use the above filter to filter out stocks every weekend and mix it with Price and Volume to get Maximum Benefit.
As I am a Price Action trader I mix Price/Volume,Trend and ride the momentum.
You can try it and submit your feedback to me. Also, Tell me if you find something else which can be useful to the community. Together we can help each other in Learning and excel in our profession.
Remember: I am a Price Action Trader and use Price and Volume together with different Timeframes, including RSI, and market conditions. To get the best result, always wait for confirmation. Focus on Risk Management and Position sizing.
Treat trading like a business and it will pay you like a business…..!!
Hope this post is helpful to community
Thanks
RastogiG
Disclaimer and Risk Warning.
I am not a Sebi registered analyst. The analysis and discussion provided on in.tradingview.com intended for educational purposes only and should not berelied upon for trading decisions. RastogiG is not an investment adviser andthe information provided here should not be taken as professional investmentadvice. Before buying or selling any investments, securities, or preciousmetals, it is recommended that you conduct your own due diligence. RastogiGdoes not share in your profits and will not take responsibility for any lossesyou may incur. So Please Consult your financial advisor before trading or investing.