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BANKNIFTY Levels for Expiry Day !🛑in Yesterday market analysis i told that there's indecision between buyers and sellers at high level , and today also market is rejected from 38800 - 38900 levels and if you see the BANKNIFTY in Day frame chart we can clearly observe that it forming bearish candles at higher levels -in today market we can observe that there's is indecision between sellers and buyers at higher levels and Caution it is bull market (Showing that no more buying interest for Institutional traders and that can be confirmed by FIIs ,DIIs data these two were pulling out their money) -Bank nifty trading above all the moving averages those were 21 day, 50 day , and 100 day - Bank Nifty WEEKLY Pivot is at 38800 🛑 keys Levels to watch out for day traders - resistance is at 39450 - 39850 -with the stop loss of 39700 - we can see target of 40000 - Support Levels is at 39400-39300 - with SL of 39500 - we can see Target of 39000 if you like it ,do follow for more have a nice day
NSE:BANKNIFTYEducation
by agasthya_d
Trader's Queries - How to control over trading?Query 1 : I start the day with profit, but at the end of the day I am in loss. How to avoid it? Query 2 : My profit is going to brokerages only, I am not making enough profit. How to over come it? Answer : One of the biggest causes for a trader to lose money is over trading. The emotion which causes is nothing but greed. A fearful person who hesitates to place order wont over trade, but he do wrong trades. When a trader wants to recover his loss fast, or when he want to make big money in few days, or when he is not thinking about brokerages, or when he is over confident about his trade, or when he thinks he is risking small amount, or when he trade for thrill or when he is simply gambling or when he is addicted the trader over trades without thinking about consequences. Note : Write below in the comment why you over trade. Right, now we have seen the reasons for over trading. Each and every reason needs different way of approach to rectify it, but one major understanding about market can reduce your over trading. Do market have clear trend daily? Do you see one direction move in market daily? No, of course not. So when there is no clear trend, don’t trade. When you don’t understand the direction of the trend, don’t trade. Make a rule that the trades you take should have more technical reasons and no trade when market is not clear. This simple rule will help you to reduce your over trading habit.
CEducation
by vanathi
8
Indicator Free Analysis of Rounding Bottom Pattern- A Case StudyThe above chart is that of a Weekly Timeframe. Here we can see that a Rounding Bottom is formed at the top of Reliance when it is trading at all time high. Why a Rounding Bottom is formed? A rounding bottom marks a struggle between buying demand and selling pressure that is almost equal. In the first part of the formation, the sellers overpower the buyers thus bringing down the prices sharply until both buying and selling pressures equalize giving rise to a flat horizontal bottom. Eventually the buyers reappear and the stock edges higher. However the upward movement is not smooth and is riddled with several sharp upspikes accompanied by down spikes. As the stock reaches the previous high/ resistance, the selling pressure resumes and pushes the stock a little bit lower giving rise to a small handle i.e. forming a cup and handle pattern. However a cup may not be always formed. What does the Rounding Bottom Represent? A Rounding bottom can generally be seen as a form of consolidation after a strong bullish or bearish trend. What does the Rounding Bottom lead to? A Rounding Bottom can signal 2 changes in the stock: Continuation or Reversal. In most cases, it signifies continuation of the trend. Rounding bottom as a continuation pattern is mostly true for bull run. It signals reversal mostly in cases of bear run. However reversals are rare in Bull runs. How to Trade a Rounding Bottom? (Trading Psychology and Strategy) We shall discuss about the Trading Strategems keeping the above example as focus. We can observe that the previous trend was a bullish trend. Hence the Rounding Bottom formed in the chart is most probably a period of consolidation. The Rounding Bottom formation has formed over a period of 1 year. The recent weekly candle was a strong bullish green candle (Marubozu Candle) which has closed above the left lip of the rounding bottom/ previous high of the pattern. This shows a clear breakout scenario. Where to Enter? We can enter at the present market price of 2380-2400 . Where should be our Stop Loss? Our ideal Stop Loss should be below the recent swing i.e. around 2000-2100 . If the stock forms a handle, then our stop loss should be below the handle. What should be our target? In case of a Rounding Bottom Pattern or a Cup & Handle Pattern, the target can be gauged from the depth of the cup or rounding bottom. Here the depth of the rounding bottom comes to around Rs 550- Rs 600. Hence the target should be Rs 550- Rs 600 from the breakout levels of 2385 i.e. our target should be between Rs 2850-3000. Important Points to Remember: 1. Use or prefer weekly charts for identification of rounding bottoms since these patterns are formed over a long period of time. 2.Prefer trading the roundin bottoms in a bull market of if the previous trend of the stock is bullish since there is a higher rate of success and lower chances of breakout failure. 3. Try to select patterns whose breakouts are near all time high or year high. 4. The target is generally reached between 4 to 5 weeks into trade. Thus profit should be booked timely. However one can wait for long term targets to be achieved. 5. Prefer those patterns where the breakout occurs with good volume in a bull market with a clear cut breakout (like here the breakout was given with a strong Marubozu candle with good volume). Contribute to my efforts with cheers and coins (lol) if you learnt something valuable. Hope you guys learn and trade responsibly only after understanding the mechanics behind the pattern. Always try to keep the analysis simple and devoid of indicators. Indicators should only be used as supplementary tools for additional confirmation and not absolute trading tools. Maintain a strict SL to restrict and minimize your losses. Credits - Encyclopedia of Chart Patterns (2nd Edition) by Thomas N. Bulkowski Thank you.
NSE:RELIANCEEducation
by tksthathachari
3
Indicator Free Trading of Cup and Handle Pattern - A Case StudyThe above chart is the daily chart of Bharat Electronics . Here we can observe that the stock has formed a Cup and Handle Pattern. Now I shall elaborate in detail on how to trade the Cup and Handle Pattern with appropriate Trading strategy and Psychology. In the above chart, we can observe a stiff resistance at 160 levels for the stock. Hence it needs to be hit multiple times to make it weak and finally give a breakout. In case of a Cup and Handle Pattern, the resistance is hit a minimum of 3 times, before giving a breakout. In this case, we observe an ideal scenario which may not be the case always. How to Trade Cup and Handle Pattern? Trading Strategems: When to enter? There can be 2 fundamental ways to trade the stock. 1. Take Entry as as soon as stock breaks out of the pattern (Entry 1) i.e. at 161-163. Generally an experienced trader or a trader with good risk appetite takes entry here. Trading Tip - Even if you have good risk appetite, do not take trade as soon as the breakout occurs. Wait for a daily green candle to close above the breakout levels and enter the next day when the previous breakout candles's high is taken out. 2. Wait for Retest of previous resistance and then take an entry (Entry 2) i.e. at 173. Generally a beginner or a safe trader takes entry here. Trading Tip - Wait for a green bullish candle (ideally a bullish green hammer candle with a good tail) to form at the retest levels. Take entry on the next day, only when the previous bullish green hammer's candle's high is taken out. Where should be the Stop Loss? In every trade, we should give utmost and primary importance to Stop Loss rather than target. Only after calculating our Stop Loss, we can assess our Risk and accordingly plan the Reward or Profit. In this case, there can be 2 different SL levels for above 2 strategies: 1. For Entry 1, the stop loss should be a little below the handle i.e. 140. 2. For Entry 2, our stop loss becomes a bit less i.e at 160 Trading Tip - Do not give SL at exact levels from where the stock has bounced back. For example - In entry 1, it is better to give SL at 138 rather than 140 so that minor fluctuations do not hit our SL and then move upward. Similarly in entry 2, it is better to give Sl at 160 rather than 162. What should be the Target? In general, the target is calculated by calculating the depth of the cup. In this case, the depth of the cup ranges from Rs 120 - 160 i.e. Rs 40. Hence the stock will move up by Rs 40 from breakout ( or retest levels) i.e. from Rs 160 - 200. Hence our ideal target should be Rs 200 Trading Tip - In the present times, all traders use digital charts. Hence the whole world can see that a Cup and Handle Pattern has formed. Every trader knows the ideal target is Rs 200. Thus all FIIs, DIIs, automated trading systems, retail traders, etc. would have put huge sell orders at 200 levels. Hence the stock may fall sharply as soon as it touches Rs 200 due to heavy selling or heavy supply. Thus it is better to book profits at just below the target i.e. between Rs 195-198 so that you may not lose money. Thank you. Please like and share the idea if you learnt something..Cheer me up!
NSE:BELEducation
by tksthathachari
4
3-Tricks : Where to start Elliott Wave counting on the chart? I get a lot of questions about Elliott Wave but a particular question often received from the followers: Where to start wave counting on the chart? How do I begin/start wave counting on the chart? How do you do Wave Counting? I’m going to introduce working 3-tricks which are used by me while establishing Elliott Wave Counting on a chart. These are my steps/processes or tricks that can help you to start counting waves. ----------------------------------------------------------------- T rick 1 : Begin with an Extreme High and Low ----------------------------------------------------------------- Key thing: you can actually begin the wave counting over the Extreme Low or Extreme High . It doesn’t matter if you start from extreme low or high. I am going to start Impulsive Wave Counting from Extreme Low in the middle of 2001. The Wave Counting is quite simple on this chart with Wave 1,2 and nice acceleration in wave 3 that moves more confidently, wave 4 pullback and five-wave advance impulsive again. Now corrective phase, flat A, B, and C correction. This is a very easy and clear chart to identify wave counting. ----------------------------------------------------------------- T rick 2 : Recognize the Pattern ----------------------------------------------------------------- Just simply ask yourself “Do I recognize the Pattern?” The answer is NO, then Okay Next, ask yourself, Do I see a motive or corrective wave? Elliott Wave classification in two phases, Motive, and Corrective phases. If it’s a motive-phase (wave 1,2,3,4 and 5) then, you have two patterns to work with: 1. Diagonal and, 2. Impulsive waves. Suppose to, its Corrective-Phase (A,B, and C) then, you have 3 patterns, 3. Flat, 4. Zigzag and, 5. Triangle. This is a counter-trend move(Corrective Phase) having Zigzag Pattern A, B, and C. ----------------------------------------------------------------- T rick 3 : Start in the middle and move forward ----------------------------------------------------------------- I don’t know what is going on but, in Aug 2013, the price moved 201 points from 69 to 271 which is a very strong upward move in a short period of time . This is a clean and clear sign of the 3rd wave . If this move is Impulsive wave 3 then prior swing low can be labeled as wave (2) and prior swing high can be labeled as wave (1). Basically, it is Wave (1), (2), 1,2,3,4, and 5, (3), (4), and (5) motive phases. More often, we may see gaps and price surges in a short period of time in Wave 3. DON'T WORRY IF YOU ARE NEW IN WAVE ANALYSIS OR ELLIOTT WAVE. I CAN HELP YOU.
Editors' picks
NSE:AUROPHARMAEducation
by Trade-Technique
74
Helpful Questions to Ask Yourself.The quality of our life depends upon the quality of the question we ask. I think it's the same with trading also, successful traders ask better questions, and as a result, they get better answers. They get answers that help them to know exactly what to do in any situation to produce the results they desired. Below are the 5 questions that will help you to stay focused and will make sure you do the right things. 1-Did I get in before the market broke? One thing traders do that hurts them is to anticipate breakouts that never amount to anything. Instead of waiting for the market to break, they rush in to buy when it is at the top of its resistance level, hoping for the breakout. You shouldn’t anticipate a breakout every time the market approaches the support or resistance area, but you should be prepared to act if it does. 2-Am I getting in too late? Suppose a breakout happens with a huge candle showing a 6-8% move. We always feel that if we don't act immediately, we could miss a great trade. It’s not always easy for a trader to walk away from a tempting trade, but this is the difference between a high probability trader and a low probability trader. You will be better off missing a few good trades while removing out the mediocre ones as you wait for the trades that have a higher probability with a better risk/reward ratio. 3-Did I use volume or any other indicator to see if the breakout was a high probability one? To increase the probability of a breakout trade working, one can do a few things. By looking at different time frames to see the market more clearly, adding indicators such as the ADX or stochastics to time trades better, using volume to see if a move is substantiated, or adding filters to keep from rushing into a trade, one can improve the odds of capturing a breakout. 4-How much room does it have to go? When a market breaks out of a trading range, a trader should try to estimate the potential move so that he can measure the risk if the trade goes sour. Without a good mix between the two, no trade should be taken. It doesn’t make sense to make a trade with a 100rs potential profit but with a chance of losing 300rs. You need to have realistic ideas on how much each market or stock can give you or cause you to lose on a trade. Use the size of the previous wave, range, or congestion to measure the next move. 5-Should I wait for a retracement? By waiting for the market to test the old resistance line at Point Y one can make a higher probability trade than by chasing it at point X. By waiting for retracement you can trade with a better risk-reward ratio. Sometimes when the volume is strong, the initial move can be stronger and the chances of it retesting the breakout level are diminished, and so one has to let go of that trade. Your goal should be to take the trade with a better risk-reward ratio. Short Summary 1-Be prepared to do something when the market approaches a potential breakout area. 2-Use other indicators to help determine the chance of a breakout working. 3-Use the size of the previous wave, range, or congestion to measure the next move. 4-If the current R: R is good then enter & if not then wait for the pullback.
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NSE:HINDUNILVREducation
by Indrajit08
6
Trader's Queries - TataSteelQueries are in the chart. When you enter/take any trade, you should know your stop loss, targets and duration to carry on with the trade. The direction of the price wont affect your capital if you have a proper plan about the trade. It will save your capital and will make you profitable in long run. No one knows how long a trend will have strength, how many days/weeks the same trend will remain. But everybody knows price will retrace or reverse. So when the trade you took works well & if it is moving beyond your targets, book partial profit and trail the profit for the remaining position. This will help you to get maximum profit from the market. When the trade you took is not moving as per your expectation & reversing means, book loss at the decided stop loss. Dont hesitate at that time. It will generate huge loss if the price has reversed.
NSE:TATASTEELEducation
by vanathi
4
How to Execute the Trend trading system?Look for Low risk, High reward, and High Probability setups. – Richard Weissman Scenario Many traders get destroyed by fighting the trend, insisting that the market is due to reverse itself or they try to chase the market. They may try to catch short-term countermoves in hopes of making a few quick points, or they may always look to catch tops and bottoms in hopes of capturing the big moves. All these traders end up trading against the longer-term trend and against the odds. How to find low risk, high reward, and high probability setups? Use of Trend Following indicators for High Probability trading A-Use of Moving average. If you just jump into trades because the market is trending, you will be guilty of chasing the market. You have to remember that the market will never go in one direction nonstop, the market typically congests or retraces after a strong move. When the market is trending and you are looking for a place to get in, wait for it to retrace to one of the moving averages or trendlines. When the price is just riding on the moving average or trendline, your downside risk is smallest because you know you will be out as soon as it breaks the line. B-Use of ADX (only for conformation) The ADX does not tell you the direction of the trend; it only tells you if there is a trend and measures how strong it is. On its own, the ADX lags price action and is not a great indicator, and so one should not use it to trigger trades. Instead, it should be used as a way to get confirmation of whether the market is trending or choppy and how strong it is . The level between 20 and 30 is considered neutral. The higher the level, the stronger the trend. When it is rising, one should trade only in the direction of the trend. When the ADX is below 20, you can consider the market to be choppy and range-bound, and a trending system will not work well, resulting in whipsaws. Things to Remember while Trading with the Trend 1. Know what the trend is. 2. The best trades are made in the direction of the trend. 3. Assume that the main trendline or moving average will hold. 4. The longer the moving average is, the better it defines the trend. 5. Wait for the pullback. 6. Don’t chase the market. 7. Don’t fight the market. 8. Even in the strongest trends there should be some retracement. 9. The closer the market is to the trendline, the better the risk/reward ratio is. 10. Use ADX to determine the strength of the trend. 11. Higher the level of ADX, the stronger the trend, below 20 consider the market to be choppy 12. Hold trades longer in a strong trend. 13. Wait for confirmation of a trendline breaking before reversing position. 14. Know where the Support levels are. 15. Place stops outside the Support levels. Closing Words- A successful trader will trade primarily in the direction of the major trend, waiting for retracements to get in.
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NSE:WIPROEducation
by Indrajit08
61
The best trades work almost right away.A breakout trade will work almost right away from the start, if the breakout happens with huge momentum and then you see Doji candles or hammer then there is a problem with follow-up. A bullish breakout must always be accompanied by a good follow up, else it cannot sustain. Bullish breakout needs good bullish candles, not Doji. Note-As soon as you enter a breakout trade it has to work within 15-20 days. If it does not move with huge momentum then exit it after 15-20days with whatever the result may be, don't wait for the stop loss to hit or for your target. The above rules apply only to Swing trade and breakout trading.
NSE:DIVISLABEducation
by Indrajit08
2
What is Inverse Head and Shoulders Pattern?Inverse Head and shoulders Pattern is the mirror image of head and shoulders pattern. Read about Head and Shoulder Pattern here: Inverse H&S Pattern is bullish reversal pattern. Signals the traders to enter into long position above the neckline. Volume play a major role in both H&S and Inverse H&S Patterns. Usually the spike in volume on breakout is considered as a great signal for bullish entry. Again a suitable target can be obtained by measuring the distance between head and neckline of the pattern and using same distance to project the target . After the neckline breakout there is also a probability that prices can be retrace again to neckline due to lack of demand . Prices can only rise if again there is more demand which will lead to bullish uptrend. Also if the neckline slopes slightly upward that is the sign of greater market strength thus gives further conformation to go bullish on Inverse H&S Patter . Let us know what do you think about Inverse H&S Pattern? Please comment your views/doubts! As always nothing works every time in markets. Please do your research before taking any position. This is only for Educational Purpose. We are covering all Major Reversal and continuation patterns in this series. Follow to get updated with all the informative and educational trading ideas. Next Pattern we will cover: Round Bottom Pattern
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COINBASE:BTCUSDEducation
by Coinlog
6
📚 Leveraged & Margin Trading Guide + Examples ⚖️ Leveraged trading allows even small retail traders to make money trading different financial markets. With a borrowed capital from your broker, you can empower your trading positions. The broker gives you a multiplier x10, x50, x100 (or other) referring to the number of times your trading positions are enhanced. Brokers offer leverage at a cost based on the amount of borrowed funds you’re using and they charge you per each day that you maintain a leveraged position open. For example, let's take EURUSD pair. Let's buy Euro against the Dollar with the hope that the exchange rate will rise. Buying that on spot with 1.195 ask price and selling that on 1.23 price we can make a profit by selling the same amount of EURUSD back to the broker. With x50 leverage, our return will be 50 times scaled. With the leverage, we can benefit even on small price fluctuations not having a huge margin. ❗️Remember that leverage will also multiply the potential downside risk in case if the trade does not play out. In case of a bearish continuation on EURUSD , the leveraged loss will be paid from our margin to the broker. For that reason, it is so important to set a stop loss and calculate the risks before the trading position is opened. ❤️Please, support this idea with a like and comment!❤️
OANDA:XAUUSDEducation
by VasilyTrader
3
Consistent Trader - Chapter 4Lets start this week’s chapter with the story of “rabbit & tortoise” Rabbit & tortoise decided to have a running race. Race 1 : In between the race rabbit slept & tortoise won. Moral of race 1 : You should take continuous efforts to become a successful trader. Race 2 : This time rabbit did not sleep and won. Moral of race 2 : No strategy will work 100%. Accept that fact. Race 3 : Tortoise wanted to win the race & changed the strategy. So it challenged the rabbit to reach the other side of the river. Rabbit ran along the border of the river & took more time to reach the other side. Tortoise just swam across the river & reached the other side. Tortoise won. Moral of race 3 : Select the strategy as per the market situation. Adapt fast when market structure changes. Race 4 : Both rabbit & tortoise became friends. They decided to take turns in winning the races. Moral of race 4 : Success/profit will sustain when there is no or less ego. In trading when your stop got hit, accept it & close the trade. Dont do revenge trading. Think different than other traders to be profitable. Profit does not depend on fancy indicators or techniques. It depends on how you manage your emotions during trading & execute the trade. The rabbit had good speed, but in race 1 it lost because of wrong execution. Similarly a good strategy or good trade set up which is not executed properly can take away your profit. (To be continued next week...)
CEducation
by vanathi
6
Trader's Mindset !The Pyramid showing how successful traders identifies their strength in the world of professional trading. Numbers may not be the perfect one but the idea behind this pyramid is to understand that most people spend most of their time in finding the best strategy which we know that does not exist. Strategy : - The top of the pyramid is strategy, which is really important but not as much as we think. off course we have to have a rule for entry, exit, and take profit. Risk Management: - We put risk management in the middle of the pyramid which shows that this is the 2nd most important thing that needs to be discussed. We must control our risk on each and every trade. Mindset/Psychology: So, we have put the trading psychology in the bottom of pyramid which means the trader's mindset is the foundation of his/her successful trading career. This trading education series around these three pillars will be continued ........ :)
OANDA:XAUUSDEducation
by thebullstreet07
Consistent Trader - Chapter 2Market is dynamic. You cannot predict market will behave in a certain way. Market movement is based on probability and your trading reflects it. The price movement gives the information about the trend. From that we form perception/view about market. Our perception is the basis for the trading. Changing the perception becomes a problem for some people. For example “Person A” has bullish view about the market before it opens. Market opened gap up and shows the sign of reversal. If “Person A” do not change his perception by understanding the reversal signs, he will lose money. Similarly changing the view often is also not good. If you change your view about the trend for each and every candle formation, then you won’t get clarity about market trend. Now lets come to the important point. How to overcome it? Have high probability trade set ups and trading strategies. Trade only when your trade set ups form. You will have more clarity and confidence when you follow the tested trade set ups and trading strategies. Do you want to reduce the intermediate phase duration? Avoid taking random trades. Always have a plan about handling market movements. Once the market opens, your emotions will be highlighted and at that time processing the information, planning the trade and deciding what to do becomes tough. How you perceive the market with your trade setups and trading strategy decides your success. (To be continued next week...)
CEducation
by vanathi
14
How To Add Emojis To Your ChartIf you publish a lot of research from your TradingView account, emojis will give readers another way to engage with your work. Emojis are recognized globally and can help others better understand how you're thinking or feeling. They can also be used as quick reminders or notes. Here's how you can add emojis to your chart: 1. Copy and paste an emoji directly into the text box tool like this 👋. If you need help finding an emoji to copy and paste, there are several websites that make this easy to do. You can add emojis to any text box or drawing tool that supports text. 2. The second method is to use the Signpost tool. The Signpost tool is located in the Annotation Tools menu on the left-side of the chart. Select the Signpost, place it on the chart, and then open its settings to add an emoji. The Signpost tool can be used to leave detailed notes at specific price levels. It is easy to use, fully customizable, and it can be dragged to any point on your chart. We've included a few examples on the chart above where we've also customized the background color of each Signpost. 😎🐻 🥶🐂 Thanks for reading! Let us know if you have any questions or comments. Our team is always listening and waiting to help.
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NASDAQ:COINEducation
by TradingView
13
Know When To Stop Trading !!!!🎯When to Stop Trading? We have spoken up to now about when to stop trading on a particular day. However, it is important to know if you should stop trading altogether – in other words, quit. It is not simple to find the right time to quit because often people quit when the going gets tough, but this may be just before success arrives. However, there are times when quitting is important: --You can’t see any possible positive outcome for a trading --You constantly feel overwhelmed and negative about your trading --Trading takes preference over your health or your family --Your financial situation is negatively impacted by your trading so that your family is suffering or your mental health is impacted. These are all red flags. At a minimum, take a break from trading in order to rest, relax and recharge. Save up some trading capital, assess your goals and reflect on your failures and successes. Use this to formulate a new trading strategy, while working on your perspective and objectivity. You may then be ready to try again. The markets are certainly not going anywhere if you need a break and quitting does not need to be forever.
NSE:NIFTYEducation
by ReviveTraders
6
Stair Steps Pattern | ULTRACEMCO 🎯The stair steps pattern overview The stair steps pattern forms along with the trend .It shows an uptrend where the price rises and falls abruptly. The graph reminds the stairs, thus a name of the pattern In the uptrend, you may notice long consecutive bullish candles. Then, the price adjustment takes place and the cycle starts all over again. The price correction areas create new levels of resistance which soon will be broken again so the uptrend continues. Best of luck!
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NSE:ULTRACEMCO1!Education
by ReviveTraders
57
Entry Techniques : Ambush vs Retest vs ThresholdBackground: Kindly see my Asian Paint Short Trade Idea (Linked Below). Asian Paints was making Lower Lows and Lower Highs and was moving towards its long-term trendline. Hence, I was eyeing a short opportunity in this trade. However, my entry and exit were not great. So I have analyzed different entry techniques (credit to Franklin O. Ochoa - PivotBoss): My Entry (@2395): My idea was that the trend line was already broken and I should enter the trade. Price reversed the next day to make one more lower high. But my entry was too soon and without any confirmation. Ambush Entry: It is very Risky. The idea behind this technique in this context is that when the stock has broken the trendline it will go up again near the line joining the lower highs for a test. There a trigger order shall already be waiting for entry. It's risky because a trend reversal may also occur. this technique is to be used when we are absolutely sure about the levels. Retest Entry: Moderately Risky and the best entry technique. Franklin says that how many times you have seen that the moment you have made an entry, the trade goes against you. The retest entry allows us to avoid this (mostly). The idea is that once we have identified the confirmation candle we place an order for the next day at (High+Low)/2 of the previous day (confirmation day). This would allow us to enter the trade at the wick of the candle (most of the time). This method is less risky and one of the best. Threshold Entry: It has the lowest risk. The idea behind this is that once you have identified your confirmation candle you place a trigger order higher (or lower in case of a short trade) than the close price of the confirmation candle. This allows you to enter into the trade only if the price is moving in your direction. Retest entry would have allowed us to enter the Asian Paints Short Trade at a price of 2440. The best thing about retest entry is that it allows us to enter a trade much lower to our stop loss which was 2500 for me in this case. Compare it with my entry. SL with my entry was 105 points away i.e Rs. 31500. But for a retest entry, the SL would have been only 60 points away i.e Rs. 18000. And in trading every rupee matters and every point counts. Hope this doesn't seem boring :). Best of luck and happy trading.
NSE:ASIANPAINTEducation
by arunkrmishra2000
7