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Trend Lines

Finolex Cables - Learning TrendlinesTrendlines and Spacing - Learnings 1. T# and A# are the entry points for two different up trends. 2. Trendlines widely spaced touches are marked in green color with the entry point numbered in T# and A#. 3. Trendlines with narrow spaced touches are marked in pink color (Considering staying in the trend, these lines may be wrong). 4. A trader entered @ say, T1 (Around 203 in Jan-2016) can still hold as on today (Aug-2018) as the widely spaced touches T1, T2 are still in trend. 5. Similarly, a trader entered @ say A1 (Mar-2016) could have booked profits @ A5 (around 653, May-2018).
NSE:FINCABLESEducation
by SureshNatarajan
Nifty: Was It Just Short Covering ?Hi, Thanks for your response to my previous post which actually made profit for some traders. Expecting similar response for this post too. So the rally did come, as per expectations, which took the index from 10701 to 10809 in just two trading sessions. However, it came back to the same level of 10711 and faced a hard push to 10837. Was it just short covering which started above 10770 and boosted by the breach of 10810 ? Well! it was one of the factors but the question is how short sellers were compelled to cover their shorts ? And the answer is, It was the buyers at the support 10700-10710 who had a strong belief that this level has held the market twice and it will hold it this time too. At that time I was talking to a colleague sitting next to me that the market could reverse. As I looked on smaller TF, market was breaking out of a falling wedge, the first sign of reversal for me. I was quite optimistic for 10750 at that time but market comfortably sustained above that level. Next halt was at 10830 and it just achieved that. Present Scenario : Last week was a whipsaw. Can we expect a trend this week? I personally do not think so. Presently we are resting at an important downtrend line resistance. Case 1: If we continue to move above 10830 level, we have a second bearish bat pattern sitting at the corner. Coincidentally, the PRZ of both the patterns fall at 10870 (for further clarity see previous post above). Therefore, the level 10870-10900 may again act as strong resistance for the market. Which means, we may see reaction from this zone. It would depend upon the type of the reaction that the further course of action can be anticipated. The more time we stay above the downtrend line, the more would be the chances to breach the PRZ resistance. In such a case, it may soon hit 10930 or may retest previous all time highs. If bearish move is to continue, it has to come back fast into the bearish zone (under the TL). In such a case, after hitting 10870 (or before), a sharp reaction has to push the market towards 10810 and 10766. Where would I go bearish? I might trade opening small short positions near the PRZ. But I will go fully bearish below 10700. Until then I ll enjoy the spikes in some stocks like BajFin, Kotakbank and Lupin etc. Case 2: We do not resume the current up move above the TL (10830) and reverse from there. In this case too I will go bearish below 10700 only. Below 10700 I would hunt for 10600 (Bat target 2). I hope that this analysis will help some traders, who follow technical analysis, to take better decisions. Trade safe, stay healthy. Regards
NSE:NIFTYEducation
by Bravetotrade
17
The Perfect Bullish Bat Below 10094Hi fellows, hope you are doing great with your trading. I wish you all the best for the coming week. In my previous post I shared my observations with the expectations that the index will achieve higher levels in the coming days. Unfortunately, I had to take trades in the reverse direction, later in the week, in order to mitigate my losses. It is all part of trading and I need to be flexible in this profession. The stubborn will be blown away by the winds, but only the flexible will survive the storms. Current observations: Below the level 10094, I would assume that it is a bullish BAT pattern which is under formation. I called it a PERFECT BAT because the B leg retraced exactly 0.5 of A leg; also the B-C projection at D comes out to be exactly 2 times; and the A-B-C extension at D is exactly 1.618 as a complemetary confluence. These are all traits of a perfect BATpattern. For me the BAT would be in action below 10094. A conservative approach would be to wait till 10013 where AB=CD completes and also 10000 could also act as a psychological support. But break of 10K would trigger stops for long traders and may attract new shorts. So I would call 10000-10094 as the key level to watch out for the next week. The PRZ for the BAT falls at 9780, I would call 9780-9687 as a strong support zone below the 10K mark. If this support zone holds, a bounce of the order of 38.2% to 61.8% can be seen ( which would be 10020 to 100169 resp.) The question of complete reversal from this zone should be left unanswered as of now. Other Possibilities: It is possible that the 10094 holds and market rebounds from there. In that case, I would like to see the index above the red downtrend line in order to be bullish. It is also possible that the market consolidated between the red trendline and 10094 before giving any decisive move. Cycle study: Market reacted before its 25 day uptrend cycle, so I expect some sort of reversal at the end of this cycle. But this time it could be an upward reversal. I ll have reassess the situation at the cycle completion. So, my post has short term bearish undertones, with the expectations of intermittent bounces in the market. For long term I am still bullish but I need specific levels for that. With a regret that I am not able to update during the week, I hope you guys will find this post useful and take your trading decisions with care. Do hit the like button for better posts ahead. Trade safe, stay healthy. Regards Bravetotrade
NSE:NIFTYEducation
by Bravetotrade
5