Trend Analysis
BTCUSE A head and shoulders pattern is used in technical analysis. It is a specific chart formation that predicts a bullish-to-bearish trend reversal. The pattern appears as a baseline with three peaks, where the outside two are close in height, and the middle is highest.
The head and shoulders pattern forms when a stock's price rises to a peak and then declines back to the base of the prior up-move. Then, the price rises above the previous peak to form the "head" and then declines back to the original base. Finally, the stock price peaks again at about the level of the first peak of the formation before falling back down.1
The head and shoulders pattern is considered one of the most reliable trend reversal patterns. It is one of several top patterns that signal, with varying degrees of accuracy, that an upward trend is nearing its end.
Key Takeaways
*. A head and shoulders pattern is a technical indicator with a chart pattern of three peaks, where the outer two are close in height, and the middle is the highest.
*. A head and shoulders pattern—considered one of the most reliable trend reversal patterns—is a chart formation that predicts a bullish-to-bearish trend reversal.
*. An inverse head and shoulders pattern predicts a bearish-to-bullish trend.
*. The neckline rests at the support or resistance lines, depending on the pattern direction.
Resistance = 62924, Support = 61839.
Life Insurance Corporation of IndiaHello & welcome to this analysis
Stock has been very turbulant since its listing.
Initially a sharp disappointment for IPO investors and then a super duper rally from lows giving investors a 100% return.
However in the last few weeks its gone into a sideways zone.
Resistance at 1000-1050 with support at 850-800
Good stock to accumulate if 800 holds for decent upside
Will Nifty & Bank Nifty Bounce Lead to a Rally or Fade on Dips?NIifty and Bank Nifty are poised for a bounce will this bounce turn into rally or it will fade away is the question.
Nifty : Resistance : 25200-25500-25750
Support : 24800-24700
Lakshman Rekha for Bull run is 24500.
Bank Nifty : Resistance : 51700-52100-53100
SUpport : 50400
Triangle breakout above 51700.
Parag Milk Foods - Trend Line BO & CUP & Handle in formation Parag Milk Foods is one of the few listed companies in milk space. With strong presence in Cheese & Ghee segment, this stock should give fabulous returns. Other factors:
1. Weekly trend-line Breakout
2. Cup & Handle Formation on weekly time frame
3. Volumes are steady
4. Price is respecting 20 EMA
5. Future growth prospects looking good.
Keep following @Cleaneasycharts as we provide - Right Stock at Right Time at Right Price !!
Cheers!!!
PCR Option Trading Investors use several financial measures to gauge the market temperament before parking their money into the same. Put call ratio is one such financial tool which proves useful for investors in more than one way.
To understand the application and role of this financial measurement one needs to be well-versed in its basics. Here, we have elucidated the nitty-gritty of the same, including the put call ratio formula and other facts.
Put Call Ratio Meaning
Typically, a put-call ratio is a derivative indicator. It is designed to enable traders to determine the sentiment of the options market effectively. This ratio is computed either by factoring in the open interest for a given period or based on the volume of options trading.
Also known as PCR, this particular ratio serves as a contrarian indicator and is mostly concerned with options build-up. Such an indicator helps determine the extent of bullish or bearish influence in the market.
In other words, it helps traders to understand whether a recent increase or decrease in the market is excessive or not.
Based on this information, traders decide if they should opt for a contrarian call in the prevailing market.
Such an investment strategy is based on the practice of purchasing or selling investment units against the prevailing market conditions, to combat mispricing in the securities market.
How is Put Call Ratio Calculated?
Before learning about the put call ratio formula, it is crucial to understand the components of this ratio individually.
For instance, the put option provides traders with the right to purchase assets at prefixed prices, whereas, the call option offers the right to purchase assets at the current market prices.
Put call ratio calculation can be done in the following ways -
Based on Open Interests of a Specific Day
PCR is computed by dividing open interest in a put contract on a particular day by open call interest on the very same day.
PCR (OI) = Put Open Interest/ Call Open Interest
Based on the Volume of Options Trading
Here PCR is computed by dividing the put trading volume by the call trading volume on a specific day.
PCR (Volume) = Put Trading Volume/Call Trading Volume
Here, Put volume indicates the total put options initiated over a specific time-frame. Conversely, Call volume indicates the total call options initiated over a specific time-frame.
Notably, the interpretation of this said ratio differs as per the type of investor.
Grse & Mazdock: Hidden Channels Unveiled! CT Breakouts ahead ? In this video, we dive deep into the strikingly similar price structures of GRSE and Mazdock. Both stocks are navigating a hidden parallel channel, with a recent breakout of a key counter trendline. GRSE is showing trendline support, despite making slightly lower lows, while volumes across both stocks suggest potential for bigger moves. Watch closely as we map out potential pathways for future price action setups. Keep these stocks on your radar and let's revisit after the breakout!
Professional Out Look on Construction of Chart Patterns I have made efforts in Explaining How the Market Professionals will construct the chart
before analyzing and finding the path of Market behaviors
I have given details analysis and where its heading in near term and long term
One can view it completely to know the Methods of market
This is education content
Thanks
Option TradingTo read an option chain, you can look for the following information:
Strike price: The price at which the stock is bought if the option is exercised
Premium: The price of the options contract, or the upfront fee paid by the investor
Expiry dates: The dates on which the option expires, which can affect the premium
Open interest (OI): The total number of outstanding option contracts that have not been settled
Implied volatility (IV): A percentage that indicates the expected price fluctuations, and the level of uncertainty or risk in the market
Bid: The best available price at which the option can be sold
Ask: The best available price at which the option can be purchased
Volume: The number of transactions that have occurred on the current trading day
Net change: The net change of LTP, where a positive change indicates a rise in price and an unfavorable change indicates a decrease in price
Bid qty: The number of buy orders for a specific strike price
Ask qty: The number of open sell orders for a specific strike price
Here are some other tips for reading an option chain:
The option chain is divided into two sections, calls and puts, with calls on the left and puts on the right
The current market price is displayed in the center
ITM call options are usually highlighted in yellow
Higher open interest usually indicates higher liquidity and market activity
BTC & Gold Price Action Analysis | Key Levels & Trading StrategiDiscover the latest price action analysis for Bitcoin (BTC) and Gold in today's market. In this video, we break down key levels, chart patterns, and potential trading opportunities for both assets. Whether you're a Forex trader, crypto enthusiast, or looking to diversify your portfolio, our expert insights will help you navigate the markets. Don't miss out on crucial support and resistance levels, trend reversals, and strategies to trade BTC and Gold effectively.
#BitcoinAnalysis #GoldPriceAction #BTCPriceForecast #GoldTrading #ForexTrading #Crypto #TechnicalAnalysis #BTC #Gold
Exide Industries Breakout & Retest | Swing Trade IdeaExide Industries has recently broken a counter trendline and is currently retesting the breakout level. The stock has also breached the mother candle, but it remains inside a parallel channel that could act as resistance. Keep an eye on how the price reacts within the channel – a breakout above could open up new opportunities, but the channel resistance may cause hesitation. Manage your risk and stay aware of the overall market structure before making a move.
Advanced MACD with Professionals The moving average convergence/divergence (MACD) indicator is a technical tool that helps traders identify entry and exit points for buying or selling securities. It's made up of three time series calculated from historical price data, and the metrics are highly adaptable: MACD series:
The main series Signal or average series: The second series Divergence series: The difference between the first two series Momentum Trading Otimize your MACD strategies with ... The MACD indicator is often displayed with a histogram that shows the distance between the MACD and its signal line. The histogram is positive when the faster EMA line is on top, and negative when it's on the bottom.
Here are some tips for using the MACD indicator: Buy or sell: Traders may buy when the MACD line crosses above the signal line, and sell when it crosses below. Understand moving averages: Moving averages tend to trail behind price movements, but the MACD can transform this into a trading strategy. Look at the difference between two moving averages: This shows how fast a trend is moving.
Market at Crossroads: Will the Next Move Be Up or Down? After 1200 points down side in 5 days, will nifty continue to fall more or it will consolidate for the new upside run ??
Nifty looks oversold in smaller time frame, looking at those it seems we should see some bounce back up !
Overall to stay cautious and stay alert on the indexes, would suggest to stay away from Futures and Options.
Top 1% Trader SecretDetermine your risk capital, i.e., the total amount of money you're willing to risk in your trading. This should be money that you can afford to lose without it affecting your lifestyle. Calculate 1% of your risk capital. This is the maximum amount you're allowed to risk on any single trade.
For day traders and swing traders, the 1% risk rule means you use as much capital as required to initiate a trade, but your stop loss placement protects you from losing more than 1% of your account if the trade goes against you.