Mastering Trade Setup with simplicity of dow theorySimplifying Trade Strategies with Dow Theory Wisdom
Welcome to the world of trading, where the Dow Theory can be your trusty guide. Let's break down an easy trade strategy that suits different market situations.
Dow Theory Insights
Dow Theory, a key tool in technical analysis, says understanding trends is crucial. Figuring out the trend is where we start, setting the stage for smart trade decisions.
Bullish View
If we're feeling positive
Higher Lows: Check if prices keep going up.
Near Support: Make sure prices are close to a support zone.
Reversal Signs: Look for any candle patterns signaling a turnaround.
Buying Setup:
Stoploss: Think of it like a safety net, set it at the recent lowest point.
Execute a buy trade when these factors line up, always keeping an eye on that stoploss.
Bearish View
If we're feeling negative
Lower Highs: Check if prices keep going down.
Near Resistance: Make sure prices are close to a resistance zone.
Reversal Hints: Look for any candle patterns signaling a potential shift.
Selling Setup:
Stoploss: Your safety measure, set it at the recent highest point.
Execute a sell trade when these conditions come together, always mindful of that stoploss.
Sideways View
For a market that's just hanging out
Draw Lines: Sketch lines above and below the current prices (Support and Resistence Trendlines)
Be Patient: Hang tight until prices break above or below those lines.
Only jump into a trade when the market decides where it's going.
In the lively world of trading, Dow Theory keeps us wise. By using these strategies, along with clever stoploss placements, you can navigate the markets with ease
This post is for educational purposes only. Trading involves risk, and past performance is not indicative of future results. Always do your research and consider consulting a financial advisor before making any investment decisions. 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...!
Hope this post is helpful to community
Thanks
RK💕
Disclaimer and Risk Warning.
The analysis and discussion provided on in.tradingview.com 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.
Trend Analysis
Option Trading By Professional's🤑💲💸✔✔👑Royal Trend👑
Topic Trading Things
Topic - Option Trade and Trading 💸💸💸💸👑🤑
#If u Buy stock without stop loss that mean U are weak in Physiology
#Train Your self To take small trade with Stop-loss
How to make Big Profit💸 With Small Account
In this video we try to Identify Trend and Entry By Big Bull👑🤑🤑💸💸
How market really work with number's
How important is option chain analysis?
The option chain analysis data provides a very comprehensive view for all the available options for any particular underlying asset. This helps in understanding and selecting the correct option for trading or investment purpose.
Difference between technical analysis and option trading
Technical analysis and options trading can go hand in hand. Many of the best practices for options trading come directly from technical analysis concepts. Technical analysis focuses on price. Fundamental analysis does not solely focus on price.
why we learn option chain?
Option chain is a chart that will give in-depth information related to all stock contracts available for Nifty stocks. The best thing about the option chain is that it provides valuable information about the current security value and how it will affect it in the long term.
What is the purpose of option chain?
It can be used in creating an option strategy at several strike prices. It can be used to analyse and draw noteworthy insights about the stock and its probable movements. It helps the traders in evaluating the liquidity and the depth of the option contract.
Technical trader
Technical trading is a broader style that is not necessarily limited to trading. Generally, a technician uses historical patterns of trading data to predict what might happen to stocks in the future. This is the same method practiced by economists and meteorologists: looking to the past for insight into the future.
NOTE
#We Are Not Promote Anything
#This channel Purpose to share market ideas.
Thanks for Watching🙏
BankNifty: RSI Divergence Impact on TrendsEarlier BankNifty experienced a trend shift, we can see it with respect to RSI divergence, pausing the downward movement and initiating an upward trend.
Caution advised now, as RSI indicates a possible sideways or downtrend until stabilization. Refer to the chart for details.
EMA, Envelope & Bollinger bands for Trend Trade with Small SLWhat is an EMA:-
An exponential moving average (EMA) is a moving average that measures the average price of a security and assigns more weight and meaning to the most recent data points. Compared to SMA, EMA responds more effectively to recent price changes and applies equal importance to all observations over the period.
What is an Envelope:-
Envelopes are technical indicators that are typically plotted over a price chart with upper and lower bands. The most common example of an envelope is a moving average envelope or an exponential moving average, which is created using two moving averages that define upper and lower price range levels.
What is an Bollinger Bands:-
A Bollinger Band is a technical analysis tool defined by a set of trendlines. They are plotted as two standard deviations, both positively and negatively, away from a simple moving average or an exponential moving average of a security's price and can be adjusted to user preferences.
Logic:-
We all have heard about Reversal trading based on "Bollinger Bands" and "Envelope" when upper and lower bands are far from the basis centre line. but these upper and lower bands can also be used for Breakout and Breakdown (Trend) trading with small/limited Stoploss.
Chart Timeframe:-
200 EMA is a standard EMA used by many traders and it can be used in any timeframe. 200EMA can be used in Envelope & Bollinger Bands also. I recommended to use it on 5 minute or 15 minutes chart on stocks or indices for intraday trading, on 4Hour or 1 Day chart on stocks for for Swing trading, on 1 Week chart on stocks for positional Trading.
//-------------------------------------------------------------------------------------------------------------------
Strategy 1:- (EMA high/close/low)
Three EMA's can be plotted with Length 200 for all three, but source different for all three high/close/low.
When price close above EMA (high) its a Breakout, Buy - keeping Stoploss as price closing below EMA (low) and Target as per 1:3 or 1:5 risk reward ratio.
When price close below EMA (low) its a Breakdown, Sell - keeping Stoploss as price closing above EMA (high) and Target as per 1:3 or 1:5 risk reward ratio.
//------------------------------------------------------------------------------------------------------------------
Strategy 2:- (Envelope - Upper Band/Basis/Lower Band)
Envelope can be plotted with Length - 200, Percent - 0.05 , Source - close, you may use Percent as per your risk reward and as per the setting which suits you. however i have used percent - 0.05 for 5 min and 15 minutes timeframe for intraday in index here in this idea.
When price close above upper band its a Breakout, Buy - keeping Stoploss as price closing below lower band and Target as per 1:3 or 1:5 risk reward ratio.
When price close below lower band its a Breakdown, Sell - keeping Stoploss as price closing above upper band and Target as per 1:3 or 1:5 risk reward ratio.
//-------------------------------------------------------------------------------------------------------------------
Strategy 3:- (Bollinger Bands - Upper Band/Basis/Lower Band)
Bollinger Bands can be plotted with Length - 200, Basis MA type - EMA , Source - close, StdDev - 0.3 you may use StdDev as per your risk reward and as per the setting which suits you. however i have used StdDev - 0.3 for 5 min and 15 minutes timeframe for intraday in index here in this idea.
When price close above upper band its a Breakout, Buy - keeping Stoploss as price closing below lower band and Target as per 1:3 or 1:5 risk reward ratio.
When price close below lower band its a Breakdown, Sell - keeping Stoploss as price closing above upper band and Target as per 1:3 or 1:5 risk reward ratio.
Note:- You may also keep Basis centre line as Stoploss in both Breakdown or Breakout trades but remember that in this case Stoploss will be smaller but will be more frequent as compare to the above situation when we are keeping upper and lower bands as Stoploss.
//-------------------------------------------------------------------------------------------------------------------
Like other technical indicators, These indicators also are not a holy grail. It can only assist you in building a good strategy. You can only succeed with proper position sizing, risk management and following correct trading Psychology (No overtrade, No greed, No revenge trade etc).
ABOVE SHARED EXPLANATION AND STRATEGIES OF EMA, Envelope, Bollinger Bands ARE ONLY FOR EDUCATIONAL PURPOSE ONLY. YOU MAY PAPER TRADE TO GAIN CONFIDENCE AND BUILD FURTHER ON THESE.
Coding Note:-
//you may do simple coding in tv to make an effective indicator with alerts using EMA/Envelope/Bollinger Bands.
//I feel Simple strategy or indicator is the best.
//As per me Indicator's are not good or bad. Its the Risk reward where most of the traders fail. Position sizing and Risk reward can make an indicator effective or ineffective upto an extent.
//Below is a simple code in "version 5" which can be coded.
//Condition (Amend conditions as per your requirement of Breakout/Breakdown trade).
Buy= ta.crossover(close,upperband)//Exit Sellposition//for Envelope or BB
Sell= ta.crossunder(close,lowerband)//Exit Buyposition//for Envelope or BB
or
Buy= ta.crossover(high,ema)//Exit Sellposition//for EMA
Sell= ta.crossunder(low,ema)//Exit Buyposition//for EMA
//Plot
plotshape(Buy,title='Buy',text='Buy',location=location.belowbar,style=shape.labelup,size=size.tiny,color=color.rgb(27, 130, 1),textcolor=color.new(color.white,0))
plotshape(Sell,title='Sell',text='Sell',location=location.abovebar,style=shape.labeldown,size=size.tiny,color=color.rgb(233, 7, 7),textcolor=color.new(color.white,0))
//Alerts
alertcondition(Buy, "Enter Buy Exit Sell", "Buy")
alertcondition(Sell, "Enter Sell Exit Buy", "Sell")
//For NonRepaint :
//you may use previous candle closing. So that indication appears on next candle. for eg. may use close.
//Soon will be posting strategies on Supertrend, RSI etc. which are simple and easy to code.
//Tc Happy Trading and Happy Coding.
Mastering the Art of Diamond Pattern Trading in Crypto and StockWhat is a Diamond Pattern?
The diamond pattern is a unique formation characterized by two converging trend lines, creating a pattern that resembles a diamond or kite. Within this pattern, price movements oscillate, presenting traders with an opportunity to make informed decisions. However, to successfully navigate the diamond pattern, you need to understand its nuances and follow a disciplined trading strategy.
Trading the Diamond Pattern: A Step-by-Step Approach
1. Identifying the Pattern
The first step in diamond pattern trading is identifying the pattern on the price chart. Pay close attention to two converging trend lines between which prices fluctuate. This visual cue is crucial for decision-making.
2. Determining the Trend Direction
Once you've identified the diamond pattern, the next step is to determine the direction of the trend. The diamond pattern's context within the existing trend is essential:
If the diamond pattern forms during an uptrend, it is considered a bearish pattern. This suggests a potential reversal.
If it forms during a downtrend, it indicates a bullish reversal pattern.
3. Opening the Trade
After determining the trend direction, wait for a breakout from the diamond pattern to confirm your trade's direction. Your actions will differ depending on the type of pattern:
For a bearish reversal pattern, open a short trade as soon as the price breaks below the lower trend line.
For a bullish reversal pattern, open a long trade when the price breaks above the upper trend line.
4. Setting a Stop Loss
To limit potential losses, it's essential to set a stop loss order. For a long trade, place your stop loss just below the low of the breakout candle. For a short trade, position your stop loss just above the high of the breakout candle. This ensures that you are protected if the trade goes against your expectations.
5. Setting the Target
Determining the target for a diamond pattern trade is critical for managing your risk-reward ratio. The target can be calculated by measuring the height of the diamond pattern, from the highest to the lowest point, and adding this distance to the breakout point. Remember, the target can be adjusted to align with your risk tolerance and trading style.
6. Managing the Trade
As the trade unfolds, closely monitor price action and adjust your stop loss and take profit orders accordingly. If the trade is moving in your favor, consider taking partial profits or tightening your stop loss to lock in gains.
7. Avoiding False Breakouts
Diamond patterns are susceptible to false breakouts, where the price briefly exits the pattern but then quickly retraces. To minimize this risk, wait for the price to close outside the pattern before entering the trade. This extra confirmation can significantly improve your success rate.
8. Trading with Proper Risk Management
Just like any trading strategy, risk management is paramount. Only risk a small percentage of your trading account on each trade, and never invest more than you can afford to lose. Always use stop loss orders to protect your capital.
Additional Tips for Trading the Diamond Pattern
- Confirm with Other Indicators
While the diamond pattern can be a reliable signal, it's wise to confirm it with other technical indicators, such as moving averages, momentum indicators, or volume indicators. Seek additional signals that support the breakout direction.
- Pay Attention to Multiple Time Frames
To enhance your trade's probability of success, look for the diamond pattern on various time frames, including daily, weekly, and monthly charts. Trade only when it aligns with the larger trend, increasing your chances of a winning trade.
- Be Patient
Diamond patterns take time to develop fully. Rushing into a trade before the pattern matures can lead to false breakouts and unnecessary losses. Exercise patience and wait for the pattern to confirm before making your move.
- Practice with a Demo Account
Before risking real capital, practice trading the diamond pattern on a demo account. This allows you to refine your strategy, identify optimal entry and exit points, and gain confidence in your trading plan.
In conclusion, mastering the diamond pattern in your trading strategy requires a combination of technical analysis skills, a disciplined approach, and a commitment to risk management. The diamond pattern can offer valuable insights into potential trend reversals or continuations, but successful trading relies on careful observation and strategic execution.
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The Ultimate Beginners Guide to Day TradingHello everyone My name is d3ffyduck
I am today gonna post some cool and new tips For the beginners in Daytrading.
I am gonna divide things in Chapters so you'll learn it with ease
Read it till the end Hope You learn something
Chapter-1 Timeframe selection
The choice of the best timeframe for chart analysis in day trading can vary depending on a trader's strategy, preferences, and the market being traded. Different timeframes offer varying levels of detail and may suit different trading styles.For Example
1-Minute Chart: This timeframe provides very detailed information, showing price movements within one-minute intervals. I prefer Using it for precise entry and exit points In day trading
5-Minute Chart: Slightly less detailed than the 1-minute chart, the 5-minute chart still offers relatively short-term insights into price movements. I use to determine my momentum for the trade i want to hold for like 1-2hrs only
15-Minute Chart: This timeframe offers a broader view of the market compared to shorter intervals. I prefer it to determine my next day momentum of the market
Chapter-2 Support and resistance Using RSI
I know you all knows the basics for support and resistance but today i will show you the best way. Just open your chart and use RSI Indicator and we are going to mark the overbought areas high candle and oversold area lowest candle using it for different time frames.
Just a note from my side do not mark those areas again if there have already a support or resistance line in different time frame and also you can remove those level of S&R which did not hold well in different time frames
1-day time frame=I have marked the regions where the RSI turned in the overbought or oversold areas. As you can see, I have not marked the support and resistance levels since they were already established from previous market overbought and oversold.
4-hour Time frame=In this timeframe, we will only identify the levels that are above 70 and below 30 in the RSI. We'll skip the R&S that are already marked on the daily timeframe. To reiterate, please refrain from marking those levels again if we can observe that our resistance and support levels have already been established on the daily chart.
1-Hour Time Frame = I've set my preferred timeframe to a maximum of 4 to 5 months. I don't want to go below this timeframe as it will create more noise. Additionally, I'll remove the support and resistance levels that didn't react well for buyers and sellers at this point to make the chart look cleaner
Chapter-3 Determining the Trend
Here in this chapter we are going to use only 2 Things to keep everything simple:-
SMA+EMA 200= We are going to use simple indicator or just create yourself one indicator which plots both sma and ema with same 200 timeperiod.
Rules are simple
if below both ma look for short
if above both ma look for long
You can use it for 1hr and 15 min for day trading purpose
Trendlines- Trendlines are your best friend.They are the building block for your Chart pattern look for trendlines in 15 min tf for day trading purpose
Chapter-4 Significance of market opening closing,high,low
This is one of the important chapter for day traders and i am going to tell you how an opening closing high and low effect the whole day trade.
For Example
1-Open your Chart
2-Mark the opening ,closing highs and lows for previous 3-4 days
3-Those area are going to be area of interest
Tip for the beginners. Do not take any trades for the first hour From the opening of the day For example if your market opens in 9:15 am dont take trades until 10:00-10:15 cause of high volatilty
Another Tip for the beginners.If you prefer to take 2 trades a day close your previous 10:00 am trade At around 11:45am -12:15 pm and start looking for another one after that. the reason because i have seen this is the time for the most probable reversal or continuation of trend for the next leg of the day
Chapter-5 Significance of Gaps in the market
Gaps are one of the best way to decide what will be the market trend for the rest of the day
There are two type of gaps in the market 1-Gap up 2- Gap down
Tip for the beginners Only trade in the strong gap up or down and as i said before do not trade in the first hour of the opening
Ill show you some scenarios of gap Trading with respect to opening of the day
Scenario 1st strong gap up+ Stayed above above the gap and opening for the 1 hour(9 am-10am)
We can see we had a strong opening stayed above the gap up and open for atleast 1 hour so after this the trend is decided
Tip for the beginners Always follow strict Risk and Reward ratio like i use 1:1.5
Scenario 2nd strong gap up+ stayed below the gap and opening for the 1 hour(9 am-10am)
We can see we had a strong gap up and opening but price stayed below the opening for 1 hour so we took the short as dropped below previous closing/high
Similarly we can use this for gap down scenarios
Final tip from my side are:-
Do meditation for 15 min before trading hours
Always use stoploss
Use your preferred Risk Reward ratio like 1:1.5
Do not trade in opening Hour
Gaps are like your friend
Trends are like a path to success
Do not overtrade
Dont only rely on indicators there isnt any indicator which can make you rich
Use only basic indicators such as Ema,Macd,Rsi and ATR
PLEASE UPVOTE AND FOLLOW FOR MORE EDUCATIONAL CHARTS AND STRATEGIES
Important Video For All Traders 👑🤑👑💸💸💸💸👑Royal Trend👑
Topic Trading Things
Topic - Option Trade and Trading 💸💸💸💸👑🤑
#If u Buy stock without stop loss that mean U are weak in Physiology
#Train Your self To take small trade with Stop-loss
How to make Big Profit💸 With Small Account
In this video we try to Identify Trend and Entry By Big Bull👑🤑🤑💸💸
How market really work with number's
How important is option chain analysis?
The option chain analysis data provides a very comprehensive view for all the available options for any particular underlying asset. This helps in understanding and selecting the correct option for trading or investment purpose.
Difference between technical analysis and option trading
Technical analysis and options trading can go hand in hand. Many of the best practices for options trading come directly from technical analysis concepts. Technical analysis focuses on price. Fundamental analysis does not solely focus on price.
why we learn option chain?
Option chain is a chart that will give in-depth information related to all stock contracts available for Nifty stocks. The best thing about the option chain is that it provides valuable information about the current security value and how it will affect it in the long term.
What is the purpose of option chain?
It can be used in creating an option strategy at several strike prices. It can be used to analyse and draw noteworthy insights about the stock and its probable movements. It helps the traders in evaluating the liquidity and the depth of the option contract.
Technical trader
Technical trading is a broader style that is not necessarily limited to trading. Generally, a technician uses historical patterns of trading data to predict what might happen to stocks in the future. This is the same method practiced by economists and meteorologists: looking to the past for insight into the future.
NOTE
#We Are Not Promote Anything
#This channel Purpose to share market ideas.
Thanks for Watching🙏
What is Price Action ? Beginners Guide in Easy Steps NSE:NIFTY
What is Price Action Really?
When I started learning I was using a lot of indicators and crap but then I heard about Price action, its meaning is pretty vague and confusing after a lot of effort I get to know that the simplest things work best.
Let's see a structured way to approach Price Action analysis.
1. Chart Reading Bar by Bar.
Studying the Previous candle reflects a lot of important information on the market movement and future direction.
2. Reading the Context and the whole Structure.
*The circles marked on the chart show the best location where certain candlestick formation offers good trading opportunities.
*The reading chart in the overall structure helps to eliminate taking trades in the direction of exhausted trends.
3. Identifying Momentum Increase or decrease.
4. Adding Volume Confirmations.
Volume is the better half of price and without volume analysis can be incomplete.
These are some of the factors that start the price action analysis.
By practice, one can look into the deeper significance of these factors and use them easily.
I hope this has added some new value to your knowledge,
if you like these educational ideas,
Share your views and like.
Will Upload the Next Part with more factors.
Keep Learning,
Happy Trading.
Automation using TradingView Webhooks, I got hooked on Dhan!Brokers are the last people on earth to whom we would like to give credit. Social media is flooded with posts that say “My broker did not help me square off positions…”, “My broker’s app stuck in between..”, “My broker did not help me login…” etc. I believe 99 out of 100 support tickets they get every day would be problems, glitches, and issues. Being a broker is such a thankless job, even if you are doing okay - their customers would say “They just meet the expectations..”
Maybe they should change their name from “brokers” to “platforms”, because when we hear the word broker - we relate it with commissions. It all started in real estate purchases and rentals. If you wish to rent a property, you need to pay 1 month’s rent as brokerage to the person who showed you the apartment. Similarly, the broker in stock trading connects you to the exchange - so that word rhymes with the concept of giving out some money as commissions.
My topic today is not about reducing the commissions or abolishing the list of taxes every trader faces, but something about giving credit for a job done well. This list is tracking 128+ brokers in India. Together they handle about 3,24,94,922 active customers. I assume that should be 95% of all traders. The top 10 brokers handle 80% of the customers. The top 20 handles 90%. This means around 108+ brokers handle just 10% of the customers.
Every broker has some pros and some cons. Switching from one broker to another is not that easy, so the customer will only do that if the new broker offers something extraordinary - a new tech or a pricing advantage. I am here to talk about one such tech that got me interested - Trade via Charts.
@TradingView (TV) is a firm that provides app/web based charting solutions for most of the stocks, indices, currencies, and commodities out there. Most of the brokers provide a free integration with TradingView charts. Even trade from charts is not that new - it was there for quite some time now.
@Dhan is one of the first brokers (15th in this list) that provided the TradingView integration via Webhooks. This means if we set some levels on the TV chart, it could place the orders directly on the Dhan app. This means a lot if you are serious about automating your trading plan. All we need to do is set the right levels on the TV charts via price alerts, pass the JSON script, and then set a corresponding order on Dhan app. If the stock/index crosses that price level - the system automatically places the order for you.
Dhan made this revolutionary integration and then quietly but suddenly it started gaining a lot of customers. Automated trading will attract the office-goers, self-employed professionals and part-time traders because they can set these levels on the chart and then forget it. This feature will help them take their eyes away from the trading screen and focus on their main job. Lesser screen time for trading combined with a higher focus on their main profession.
Lesser screen time also ensures lower stress levels. Sitting in front of the computer monitor for 6 to 7 hours watching the charts is not a child’s play. It not only eats up our energy but often prompts us to over-trade or exit prematurely.
This is how I created the price alert. In the message box you need to pass the correct Json as provided by the broker (for sample I have mentioned it as just TESTING..). Once this price alert is correctly set up - it places an order if Nifty50 falls below 18900. All I need to do is create a basket with the items that need to be part of the order. For example, see image below - I created a test basket with name: 111 that will place an order of 1 lot on 18900 PE when Nifty50 falls below 18900 on the TV chart.
If you are new to coding or automation - it may take some time to get a grip on what is happening. But once you have done the homework, it should work like a charm. I had no plans to open a Dhan account earlier, but as soon as this feature became stable - I wanted to try it. Now that I have been using it for half a year - I am really loving it. Once I got it working, the speed of placing the order was much better than my manual entries. I saved some slippage costs as well.
The important takeaway here is that automation is highly possible, but you need to set the command correctly. Automation is not a tool to help you make profits if you were losing manually. The logic of what should happen and when it should happen should be decided by you, how it will happen is what's getting automated.
Also, trading is a tough job. Less than 5% succeed. 99% of trading money deployed ends up in the hands of 1% of traders. The real clue is to get your research worked upon. Work hard to find your edge. If you are employed somewhere, use your spare time or weekends to research. Once you are ready with a good plan - you may be able to deploy this feature. If you get it programmed correctly - it may even give you peace of mind.
MCX Mrtal and Energy Analysis Crudeoil , Natural Gas and Silver, Its a general analysis on the basis of simple price action
Mastering Demand Zones : A Deep-Dive !!
Mastering Demand Zones: Advanced Techniques in Stock Market Analysis
Introduction to Demand Zones:
In the realm of technical analysis, demand zones play a crucial role in assessing price movement and making informed trading decisions. A demand zone, also known as a support zone, is a price range on a chart where a particular asset, such as a stock, has historically experienced buying interest and a halt or reversal in its declining price trend.
Demand zones are essential tools for traders and investors as they provide valuable insights into potential price levels where buyers are likely to enter the market, thereby preventing the price from falling further.
By recognizing demand zones and understanding their significance, traders can make more informed decisions, manage risk effectively, and capitalize on potential trading opportunities. However, it's important to remember that technical analysis is not foolproof, and market conditions can change rapidly, so using demand zones in conjunction with other analysis tools is advisable.
Defination: (What is Demand Zone)
In the stock market, a "demand zone" refers to a specific price range on a price chart where there is a higher likelihood of increased buying activity or demand for a particular stock or asset. It's a concept often used in technical analysis to identify potential areas of support where prices might reverse or bounce higher. Here's a simple explanation:
Imagine a stock's price chart, and you notice that within a certain price range, the stock has consistently found buyers and reversed its downward movement. This range, where buying interest is strong enough to halt or reverse a decline, is referred to as a demand zone. It's a level where traders believe the stock is attractively priced, leading to increased buying pressure.
A demand zone typically forms because traders remember that the stock performed well in that price range in the past, making them more likely to buy if the price revisits that level. Traders often use demand zones as potential entry points for buying a stock because they anticipate that prices could rise from that area due to increased demand.
It's important to note that demand zones are not foolproof predictors of price movements. They are just one tool in the arsenal of technical analysis that traders use to make informed decisions. The effectiveness of demand zones depends on various factors, including market conditions, overall trend, and the strength of buying interest.
Overall, understanding demand zones can help traders identify potential support levels where buying activity might increase, but it's essential to consider other technical indicators and market factors for a comprehensive trading strategy.
---
Chapter 1: Fundamentals of Demand Zones
In the vast landscape of the stock market, demand zones represent not only a point of intersection between price movements and investor psychology but also a nexus of potential trading opportunities. To comprehend demand zones is to unravel the intricate interplay of market dynamics and human behavior, a synthesis that lies at the heart of successful technical analysis.
Central to understanding demand zones is recognizing the core economic principle of supply and demand. When a stock undergoes a price retracement during a downtrend, buyers perceive the lower prices as an invitation to participate. As buyers enter the market, their collective demand counters the existing selling pressure, creating an equilibrium and, consequently, a demand zone. This zone marks an area on the price chart where bullish sentiment prevails and offers an optimal juncture for traders to intervene.
The historical evolution of demand zones is a journey that traverses time, reflecting the evolution of market psychology and trading practices. From the rudimentary interpretations of supply and demand in ancient markets to the sophisticated analysis enabled by modern technology, the concept of demand zones has evolved into a multifaceted tool in the arsenal of the astute trader.
This chapter paves the way for an in-depth exploration of advanced technical analysis through the lens of demand zones lets take an example now,
For Example;
In the bustling realm of the Indian stock market, consider "ABC Ltd," a prominent company that has been experiencing a downtrend in its stock price. As the stock retraces and heads toward a crucial level of ₹1,500, a demand zone materializes. This zone represents a psychological and strategic juncture where buying interest has historically surged.
The fundamentals of "ABC Ltd" remain strong, including positive earnings reports and market sentiment regarding the company's future prospects. The demand zone around ₹1,500 becomes a focal point as traders and investors anticipate a reversal in the downtrend. This illustrates the fundamental principle that demand zones encapsulate the equilibrium between supply and demand, acting as pivot points for price reversals.
---
Chapter 2: Technical Tools for Identifying Demand Zones
Embarking on the quest to identify demand zones requires a comprehensive arsenal of technical tools, each contributing a unique facet to the intricate mosaic of price movements. Among these tools, support and resistance levels emerge as bedrocks of price action analysis. Support levels, often synonymous with demand zones, represent historical points where price declines were halted and reversals were initiated. Conversely, resistance levels demarcate zones where price advances were stymied, underscoring their importance as potential areas of market reversal.
The Fibonacci retracement is another pivotal tool that elevates demand zone identification to a refined art. Derived from the Fibonacci sequence, these retracement levels mark potential demand zones by assessing the relationship between a price retracement and significant ratios. Overlaying these ratios on the price chart unveils previously hidden levels that might serve as demand zones.
Volume analysis steps into the spotlight as a complementary tool, painting the canvas of demand zones with intricate strokes. Analyzing the intensity of trading activity within demand zones provides a nuanced understanding of the commitment behind each price point. These tools, when woven together, form a comprehensive tapestry of demand zone analysis that goes beyond surface-level identification to discerning the potential strength and impact of each identified zone.
Lets take an example now,
For Example;
Applying technical tools to the case of "ABC Ltd," we find that the stock has consistently found support around the ₹2,000 mark in the past. Utilizing Fibonacci retracement levels, we note that the 50% retracement level aligns closely with this support level. This confluence underscores the potential demand zone at ₹2,000 as a significant area where buying interest could surge.
Adding volume analysis to the equation reveals that historically, increased trading volume has accompanied price bounces near ₹2,000, suggesting heightened market participation and potential accumulation. Combining these technical tools provides a comprehensive view of the demand zone's strength and potential impact on price movements.
---
Chapter 3: Characteristics of Strong Demand Zones
Recognizing the chasm between mere price levels and robust demand zones is the hallmark of a seasoned trader. Strong demand zones boast an array of characteristics that set them apart and signify their potential significance in the broader market landscape.
"Multiple touches" emerge as a defining trait of potent demand zones. These are zones where the price has rebounded multiple times, highlighting the consistency of buying interest. The cumulative effect of these touches validates the zone's status as a significant level, indicating that it holds sway over market participants.
Volume amplifies the impact of demand zones, turning the spotlight onto the intensity of market conviction. Heightened trading volume within a demand zone infuses it with a surge of energy, underlining the collective sentiment that bolsters the buying interest within that zone.
Moreover, the entwining of psychological price levels with demand zones enhances their magnetism. When a demand zone coincides with a round number or a historically significant high or low, it resonates with traders, inviting their attention and potentially catalyzing buying activity.
This chapter equips us with the acumen to sift through the market landscape and identify not just any demand zone, but those endowed with the attributes of strength and reliability.
lets take an example now,
For Example;
For "ABC Ltd," the ₹1,200 level emerges as a robust demand zone. Over time, the stock has repeatedly bounced off this level, creating a trail of multiple touches. Each touch signifies consistent buying interest, validating the psychological significance of the ₹1,200 demand zone.
Additionally, substantial trading volume has consistently accompanied these price bounces, indicating a broad market consensus on the importance of this demand zone. Furthermore, the demand zone aligns with a historically significant low point for the stock, reinforcing its strength. These characteristics collectively amplify the potency of the ₹1,200 demand zone.
---
Chapter 4: Advanced Confirmation Techniques
Identifying demand zones is only the beginning; validation through advanced confirmation techniques lends an additional layer of assurance and precision to trading decisions. Among the most potent tools in this arsenal are bullish candlestick patterns. These patterns visually encapsulate the sentiment shift within a demand zone, transforming bearish pressure into bullish momentum.
The engulfing pattern, a classic candlestick formation, encapsulates this sentiment reversal by engulfing the previous candle's range. This dramatic change in price direction within a demand zone signifies a shift in market dynamics.
Divergence analysis adds a dimension of complexity to confirmation techniques. By comparing price movement with an oscillator like the RSI, traders gain insights into market behavior dynamics. Positive divergence, characterized by the price moving downward while the oscillator trends upward, hints at an impending reversal of bearish sentiment.
Mastery of these advanced confirmation techniques equips traders with an artful finesse to separate true demand zones from fleeting fluctuations, positioning them to navigate the market with heightened accuracy. lets take an example now,
For Example;
In the scenario of "ABC Ltd," let's assume the stock price has approached the ₹1,800 demand zone. A bullish engulfing candlestick pattern emerges within this zone, marking a powerful shift from bearish to bullish sentiment. This visual confirmation is an indication that buyers have overtaken sellers within the demand zone.
Moreover, the Relative Strength Index (RSI) exhibits positive divergence during this time frame. As the stock price trends downward, the RSI moves in the opposite direction, signaling potential upward momentum. This dual confirmation through candlestick patterns and divergence analysis boosts the credibility of the ₹1,800 demand zone as a potential reversal point.
---
Chapter 5: Risk Management Strategies
Within the realm of trading, where volatility and uncertainty reign, effective risk management assumes paramount importance. Demand zones, while offering alluring opportunities, also carry inherent risks. Navigating these intricacies necessitates a comprehensive approach that encompasses various risk management strategies.
Central to this approach is the art of placing stop-loss orders. By situating these orders slightly below a demand zone, traders shield themselves from the specter of false breakouts. This strategic placement ensures that even if a demand zone fails to hold, potential losses are contained.
Position sizing enters the equation as a cornerstone of risk management. Traders allocate capital in proportion to their risk tolerance and account size, preventing overexposure to a single trade. The principles of risk-to-reward ratios further contribute to a balanced approach, ensuring that the potential rewards of a trade are commensurate with its risks.
In a realm where uncertainty looms, effective risk management strategies serve as the rudder that steers the trader's ship, guiding them through the ebb and flow of the market's tides. lets take an example now,
For Example;
Suppose you decide to trade "ABC Ltd" with the demand zone at ₹2,500 in mind. To manage risk effectively, you set a stop-loss order just below the demand zone, at ₹2,480. This buffer guards your trade against potential false breakouts and limits potential losses.
Position sizing comes into play as well. You allocate a portion of your capital for this trade based on your risk tolerance and overall account size. This ensures that your exposure remains within acceptable limits and aligns with your overall portfolio strategy. By managing risk through these strategies, you protect your capital and minimize potential downsides.
---
Chapter 6: Demand Zones in Different Market Environments
The dynamic nature of markets mirrors the shifting winds, prompting traders to adapt their strategies to different environments. Demand zones, as malleable indicators, respond in unique ways to various market conditions, underscoring their versatility.
In a trending market, demand zones operate as veritable launchpads, propelling prices further in the direction of the trend. Here, demand zones transform into essential support levels that act as stepping stones for continued price movement.
In contrast, the world of sideways markets presents a different challenge. Demand zones within a sideways range serve as both potential entry points and zones of caution. As prices oscillate within a confined range, demand zones offer traders the chance to participate in potential breakouts or capitalize on range-bound price action.
Volatility ushers in a realm of both opportunity and danger. Demand zones become focal points of not only entry but also vigilance. In this environment, traders must remain nimble, ready to adapt their strategies in response to rapid market shifts. lets take an example now,
For Example;
Now consider "ABC Ltd" in various market environments. In a trending market, the ₹1,600 demand zone acts as a catalyst for trend continuation. As the stock retraces to this level, it offers an attractive entry point for traders looking to capitalize on the ongoing uptrend.
During a sideways market phase, the ₹2,200 demand zone takes on a unique role. It acts as a pivot for price oscillations within the range, offering potential buy and sell opportunities. As the stock tests the upper or lower boundaries of the range, this demand zone could signal a potential breakout or reversal, highlighting its versatility.
---
Chapter 7: Incorporating Demand Zones into Your Trading Plan
The culmination of demand zone mastery lies in the integration of this knowledge into a holistic trading plan. A comprehensive strategy that incorporates demand zones can serve as a compass, guiding traders through the tumultuous waters of the stock market.
This chapter walks us through the process of crafting such a trading plan.
Setting objectives is the first step, aligning trading goals with personal aspirations and risk tolerance. Establishing clear risk thresholds guards against unforeseen market shocks, ensuring that trading remains within predefined boundaries.
The harmonious integration of demand zone analysis with other technical and fundamental tools is pivotal. This convergence results in a strategy that's not only robust but also adaptable, capable of navigating a range of market conditions. lets take an example now,
For Example;
Integrating demand zone analysis into your trading plan for "ABC Ltd," you set clear objectives. Your goal is to achieve a 1:2 risk-to-reward ratio for each trade. Considering the demand zone at ₹2,200, you set your stop-loss at ₹2,180 and identify a profit target at ₹2,260. This alignment between demand zone analysis, risk management, and profit-taking strategy ensures a comprehensive and calculated approach to trading.
---
Chapter 8: Case Study and Practical Example
The true litmus test of knowledge lies in its application. This chapter dives headfirst into the practical realm by presenting a series of case studies that illuminate the effectiveness of demand zone analysis. Real-world scenarios—ranging from triumphant victories to humbling challenges—offer readers a firsthand glimpse into the art of demand zone trading.
For example.
Persistent Systems.
In a recent case in the Indian stock market, "Persistent" encountered a demand zone around ₹4620-4760. The stock's price had been declining, but within this demand zone, a bullish pinbar candlestick pattern formed. This marked a shift in market sentiment, as buyers stepped in and overpowered sellers.
Adding to the confirmation, the RSI displayed positive divergence, hinting at an imminent price reversal. Subsequently, "Persistent" rebounded from the demand zone, validating the power of demand zone analysis combined with advanced confirmation techniques in real-world scenarios.
This case study unravels the dynamic interactions between demand zones and price movements, capturing the essence of trading in action. By observing the strategies employed and the outcomes achieved, we can gain an experiential understanding that transcends theoretical knowledge.
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XAUUSD Elliot Wave LabelingLet’s take this labelling as a case study.
The red ABC pattern is a 3-wave pattern. It’s a correction.
Corrections happen in waves 2 and 4.
This entire correction happened in wave 2. After wave 2 comes wave 3. That sharp upward spike on the right is wave 3. Wave 3 will help price to resume its upward trend.
Now, inside that ABC correction is another correction. It’s a 5-wave pattern called a triangle. A triangle is a wave that is always before the last impulse in a given cycle.
In this case it happened as wave B which was before the last impulse (wave C). It can also happen as wave 4 which is before the last impulse called wave 5.
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#If u Buy stock without stop loss that mean U are weak in Physiology
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In this video we try to Identify Trend and Entry By Big Bull👑🤑🤑💸💸
How market really work with number's
How important is option chain analysis?
The option chain analysis data provides a very comprehensive view for all the available options for any particular underlying asset. This helps in understanding and selecting the correct option for trading or investment purpose.
Difference between technical analysis and option trading
Technical analysis and options trading can go hand in hand. Many of the best practices for options trading come directly from technical analysis concepts. Technical analysis focuses on price. Fundamental analysis does not solely focus on price.
why we learn option chain?
Option chain is a chart that will give in-depth information related to all stock contracts available for Nifty stocks. The best thing about the option chain is that it provides valuable information about the current security value and how it will affect it in the long term.
What is the purpose of option chain?
It can be used in creating an option strategy at several strike prices. It can be used to analyse and draw noteworthy insights about the stock and its probable movements. It helps the traders in evaluating the liquidity and the depth of the option contract.
Technical trader
Technical trading is a broader style that is not necessarily limited to trading. Generally, a technician uses historical patterns of trading data to predict what might happen to stocks in the future. This is the same method practiced by economists and meteorologists: looking to the past for insight into the future.
NOTE
#We Are Not Promote Anything
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Thanks for Watching🙏
Clear All Technical Concept For Option👑👑Royal Trend👑
what is data trading ?
DATA-Trading is like a GPS system while you navigate the treacherous Ups and Downs of the markets. DATA is your guide to gain knowledge and make better decisions in the markets.
Topic Trading Things
Topic - Option Trade and Trading 💸💸💸💸👑🤑
#If u Buy stock without stop loss that mean U are weak in Physiology
#Train Your self To take small trade with Stop-loss
How to make Big Profit💸 With Small Account
In this video we try to Identify Trend and Entry By Big Bull👑🤑🤑💸💸
How market really work with number's
How important is option chain analysis?
The option chain analysis data provides a very comprehensive view for all the available options for any particular underlying asset. This helps in understanding and selecting the correct option for trading or investment purpose.
Difference between technical analysis and option trading
Technical analysis and options trading can go hand in hand. Many of the best practices for options trading come directly from technical analysis concepts. Technical analysis focuses on price. Fundamental analysis does not solely focus on price.
why we learn option chain?
Option chain is a chart that will give in-depth information related to all stock contracts available for Nifty stocks. The best thing about the option chain is that it provides valuable information about the current security value and how it will affect it in the long term.
What is the purpose of option chain?
It can be used in creating an option strategy at several strike prices. It can be used to analyse and draw noteworthy insights about the stock and its probable movements. It helps the traders in evaluating the liquidity and the depth of the option contract.
Technical trader
Technical trading is a broader style that is not necessarily limited to trading. Generally, a technician uses historical patterns of trading data to predict what might happen to stocks in the future. This is the same method practiced by economists and meteorologists: looking to the past for insight into the future.
NOTE
#We Are Not Promote Anything
#This channel Purpose to share market ideas.
Thanks for Watching🙏
DATA TRADING PART 2 BY PROFESSION'S 👑👑Royal Trend👑
what is data trading ?
DATA-Trading is like a GPS system while you navigate the treacherous Ups and Downs of the markets. DATA is your guide to gain knowledge and make better decisions in the markets.
Topic Trading Things
Topic - Option Trade and Trading 💸💸💸💸👑🤑
#If u Buy stock without stop loss that mean U are weak in Physiology
#Train Your self To take small trade with Stop-loss
How to make Big Profit💸 With Small Account
In this video we try to Identify Trend and Entry By Big Bull👑🤑🤑💸💸
How market really work with number's
How important is option chain analysis?
The option chain analysis data provides a very comprehensive view for all the available options for any particular underlying asset. This helps in understanding and selecting the correct option for trading or investment purpose.
Difference between technical analysis and option trading
Technical analysis and options trading can go hand in hand. Many of the best practices for options trading come directly from technical analysis concepts. Technical analysis focuses on price. Fundamental analysis does not solely focus on price.
why we learn option chain?
Option chain is a chart that will give in-depth information related to all stock contracts available for Nifty stocks. The best thing about the option chain is that it provides valuable information about the current security value and how it will affect it in the long term.
What is the purpose of option chain?
It can be used in creating an option strategy at several strike prices. It can be used to analyse and draw noteworthy insights about the stock and its probable movements. It helps the traders in evaluating the liquidity and the depth of the option contract.
Technical trader
Technical trading is a broader style that is not necessarily limited to trading. Generally, a technician uses historical patterns of trading data to predict what might happen to stocks in the future. This is the same method practiced by economists and meteorologists: looking to the past for insight into the future.
NOTE
#We Are Not Promote Anything
#This channel Purpose to share market ideas.
Thanks for Watching🙏
Happy Maha Navami and Vijaya Dashami to Everyone!I did not trade this week nor I shared any setup due to festival and time spent with my family. Looking at chart now seems like downside target for whole week has been achieved in a single day, hence no more trades unless there is bullish reversal or further breakdown. I will share my setup by this Sunday. Till then, shop for fundamentally sound stocks available at discount in this correction.
Wish everyone Happy Maha Navami and Vijaya Dashmi, Enjoy the festivals!
Thank you!
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INSIGHTS:
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As usual, I will keep sharing my insights which are based on my personal experience in trading.
1. Please stop watching foreign markets, it won't help but will corrupt your viewpoint and ultimately you will either lose an opportunity or make a loss.
2. Market will not keep taking SL again and again, it has to decide a trend after some time. But if it takes 2-3 SL, just stop and wait for another opportunity.
3. In case you have 2-3 SL hits, immediately stop looking at market, leave your computer, watch some movies or go some place with family or do any other leisure activities, but just get the market out of your head, believe me it helps a lot.
4. If there is a SL, DO NOT THINK TWICE, JUST EXIT, IT IS JUST 20-30 POINTS, you will be getting 100 - 300 points in another trade if you simply take SL this time without thinking twice. But if you show ego to market or think that let me watch for some time, you will definitely regret it. Sometimes you may be right, but that will be just pure luck and gambling.
5. Trade with long term view point, even if you are initiating an intraday, have a weekly viewpoint, so that you will have conviction to either carry forward or just exit if you are not convinced.
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SPARC : Breakout Soon#sparc #swingtrade #momentumtrade #patterntrading
SPARC : Swing / Momentum Trade
>> W pattern clearly visible
>> Volumes building up
>> Good Strength in stock
Low Risk High Reward Trade
Swing Traders can lock 10% profit & keep trailing
Please Like or comment if u r Liking the analysis & Learning from it. Keep showing ur Love
Disclaimer : This is not a Trade Recommendations & Charts/ stocks Mentioned are for Learning/Educational Purpose. Do your Own Analysis before Taking positions.
Option Trade and Trading 💸💸💸💸👑🤑👑Royal Trend👑
Topic Trading Things
Topic - Option Trade and Trading 💸💸💸💸👑🤑
#If u Buy stock without stop loss that mean U are weak in Physiology
#Train Your self To take small trade with Stop-loss
How to make Big Profit💸 With Small Account
In this video we try to Identify Trend and Entry By Big Bull👑🤑🤑💸💸
How market really work with number's
How important is option chain analysis?
The option chain analysis data provides a very comprehensive view for all the available options for any particular underlying asset. This helps in understanding and selecting the correct option for trading or investment purpose.
Difference between technical analysis and option trading
Technical analysis and options trading can go hand in hand. Many of the best practices for options trading come directly from technical analysis concepts. Technical analysis focuses on price. Fundamental analysis does not solely focus on price.
why we learn option chain?
Option chain is a chart that will give in-depth information related to all stock contracts available for Nifty stocks. The best thing about the option chain is that it provides valuable information about the current security value and how it will affect it in the long term.
What is the purpose of option chain?
It can be used in creating an option strategy at several strike prices. It can be used to analyse and draw noteworthy insights about the stock and its probable movements. It helps the traders in evaluating the liquidity and the depth of the option contract.
Technical trader
Technical trading is a broader style that is not necessarily limited to trading. Generally, a technician uses historical patterns of trading data to predict what might happen to stocks in the future. This is the same method practiced by economists and meteorologists: looking to the past for insight into the future.
NOTE
#We Are Not Promote Anything
#This channel Purpose to share market ideas.
Thanks for Watching🙏
Channeling Types & Identification in Technical AnalysisHi friends, Mates and Colleagues today i am sharing an easy to understand publication on Channel patterns commonly seen and used during charting and in technical analysis, hope it might be helpful for the new entrants in the world of Tradingview and technical analysis sharing below the description about channels, visuals and some insight about already shared on provided chart.
Ascending Channel-:
An ascending channel is the price action contained between upward sloping parallel lines. Higher highs and higher lows characterize this price pattern, Technical analysts construct an ascending channel by drawing a lower trend line that connects the swing lows, and an upper channel line that joins the swing highs.
Key factors-:
An ascending channel is used in technical analysis to show an uptrend in a security’s price.
It is formed from two positive sloping trend lines drawn above and below a price series depicting resistance and support levels, respectively.
Descending Channel-:
What Is a Descending Channel?
A descending channel is drawn by connecting the lower highs and lower lows of a security's price with parallel trendlines to show a downward trend. Officially, the space between the trendlines is the descending channel, which falls under the broad category of trend channels.
Key Factors-:
A descending channel is drawn by connecting the lower highs and lower lows of a security's price with parallel trendlines to show a downward trend.
Traders who believe a security is likely to remain within its descending channel can initiate trades when the price fluctuates within its channel trendline boundaries.
Parallel Channel-:
A parallel channel pattern is a technical chart pattern that is often used in price analysis to capture a counter-trend move, It is one of the highly observable patterns and gives multiple trading opportunities to traders and A parallel channel pattern showcases a directional rally wobbling between two trendline barriers and is most likely to provide a counter-trend move.
Key Fcators-:
A price channel occurs when a security's price oscillates between two parallel lines that are either horizontal, ascending, or descending. The channel is formed when a security's price is buffeted by supply and demand.Traders can sell when the price approaches the price channel's upper trendline and buy when it tests the lower trendline.
Hope you like this post, Thanks for reading and giving your valuable time.
Best Regards- Amit
Option's By Professionals Player's 🤑👑👑Royal Trend👑
Topic Trading Things
#If u Buy stock without stop loss that mean U are weak in Physiology
#Train Your self To take small trade with Stop-loss
How to make Big Profit💸 With Small Account
In this video we try to Identify Trend and Entry By Big Bull👑🤑🤑💸💸
How market really work with number's
How important is option chain analysis?
The option chain analysis data provides a very comprehensive view for all the available options for any particular underlying asset. This helps in understanding and selecting the correct option for trading or investment purpose.
Difference between technical analysis and option trading
Technical analysis and options trading can go hand in hand. Many of the best practices for options trading come directly from technical analysis concepts. Technical analysis focuses on price. Fundamental analysis does not solely focus on price.
why we learn option chain?
Option chain is a chart that will give in-depth information related to all stock contracts available for Nifty stocks. The best thing about the option chain is that it provides valuable information about the current security value and how it will affect it in the long term.
What is the purpose of option chain?
It can be used in creating an option strategy at several strike prices. It can be used to analyse and draw noteworthy insights about the stock and its probable movements. It helps the traders in evaluating the liquidity and the depth of the option contract.
Technical trader
Technical trading is a broader style that is not necessarily limited to trading. Generally, a technician uses historical patterns of trading data to predict what might happen to stocks in the future. This is the same method practiced by economists and meteorologists: looking to the past for insight into the future.
NOTE
#We Are Not Promote Anything
#This channel Purpose to share market ideas.
Thanks for Watching🙏
How to make Big Profit💸 With Small Account👑🤑💸By Big Bulls💸👑Royal Trend👑
Topic Trading Things
How to make Big Profit💸 With Small Account
In this video we try to Identify Trend and Entry By Big Bull👑🤑🤑💸💸
How market really work with number's
How important is option chain analysis?
The option chain analysis data provides a very comprehensive view for all the available options for any particular underlying asset. This helps in understanding and selecting the correct option for trading or investment purpose.
Difference between technical analysis and option trading
Technical analysis and options trading can go hand in hand. Many of the best practices for options trading come directly from technical analysis concepts. Technical analysis focuses on price. Fundamental analysis does not solely focus on price.
why we learn option chain?
Option chain is a chart that will give in-depth information related to all stock contracts available for Nifty stocks. The best thing about the option chain is that it provides valuable information about the current security value and how it will affect it in the long term.
What is the purpose of option chain?
It can be used in creating an option strategy at several strike prices. It can be used to analyse and draw noteworthy insights about the stock and its probable movements. It helps the traders in evaluating the liquidity and the depth of the option contract.
Technical trader
Technical trading is a broader style that is not necessarily limited to trading. Generally, a technician uses historical patterns of trading data to predict what might happen to stocks in the future. This is the same method practiced by economists and meteorologists: looking to the past for insight into the future.
NOTE
#We Are Not Promote Anything
#This channel Purpose to share market ideas.
Thanks for Watching🙏
Chart Time frame vs accuracy..To explain this concept I would like to use analogy of weather forecasting.
Consider you are living in Mumbai and you are suppose to make following are 3 weather forecast:
1. Will it rain on 2nd August at 1:15PM ?
2. Will it rain in first week of August ?
3. Will it rain in month of August ?
Equvivelant in stock time frame is
1. Will price move up by 1% in next 2hrs? (use 5min or 15min chart)
2. Will price move up by 5% in next 3 weeks? (use 1hr or daily chart)
3. Will price move up by 15% in next 6 months? (use weekly Chart)
Even if you are using simple logic and charting tool accuracy of Answer to Q3 will be much higher than Q1.
When accuracy increases it is less taxing on our mind and we can get reasonable return without much stress. To trade weekly chart we need patience and a reasonable SL. This will also allow us to build position over few weeks as we get clarity of trend.
Let us understand with few samples.
This is 5min chart. We can see lot of whipsaw.
And below is weekly chart. We can see reasonable trends over few weeks.
