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U-TURN Resistance converts into Support (EDUCATIONAL -AARTIIND) Aarti Ind. ltd. This stock has taken Resistance twice at same level, then it consolidated as a parallel channel at that same zone, and then it given good breakout from parallel channel along with good intensity of volume, Now it has retraced almost 78.6%, co-incidentally (1) same resistance zone, (2) Parallel channel's top, (3) Support trend line and (4) 200 DEMA, all are there at similar point location, All these 5 conditions met at same level that can provide good support. This scenario makes probabilities very strong each time. where stop loss is too low and Reward is too Good. Overall scenario Perfectly U-turn from valid fibonaccy level 0.786% Daily macd line uptick and also converging towards positive Good support zone Support providing 100DEMA also at same responding zone Parallel channel scenario Support Trend line Disclaimer I am not sebi registered analyst My studies are for educational purpose only Consult your financial advisor before trading or investing I am not responsible for your profits and losses
NSE:AARTIINDEducation
by RK_Chaarts
16
How to trade a breakout successfully? We shall see the chart of century text & ind in the 2-hour time frame. The script had resistance at around 820 where a double top pattern had formed. The third time when the share price approached this resistance trendline a strong green candle was formed breaking out of the resistance. This green candle denotes a breakout. Risky traders usually enter a trade when this breakout occurs. The breakout can be further confirmed by the resistance trendline switching its role into a support line now. This is where most risk-averse traders take the trade. After taking support at the same 820 level we can see the script rallying upwards. The targets can be marked using the Fibonacci extension. The stop loss for this trade should be below the trendline. Happy trading!
CEducation
by Stock-Holmes
falling wedge pattern !bandhan bank : a. The falling wedge pattern is a continuation pattern . b. these patterns are formed when price bounces between two downward sloping converging trendlines . c. with lower lows and lower highs d. this pattern is considered as bullish chart formation , e. but some times can indicate both reversal and continuation patterns – it depends on where it appears in the trend. f. trade should be taken when price breakout happens at upper resistance trendline with volume . g. keeping lower trendline support price as stop loss trade set up / technical shown in charts .....
NSE:BANDHANBNKEducation
by HARMONICSANAND
1
What are Falling and Rising Wedge Patterns?What Is the Wedge Pattern and Its Common Characteristics? 1. Wedge patterns have converging trend lines that come to an apex with a distinguishable upside or downside slant. a. Wedge with an upside slant is called a rising wedge b. Wedge with downside slant is called falling wedge 2. It has declining volumes as the pattern progresses 3. It breaks out from one of the trend lines Why We Should Pay Attention to Wedge Patterns? Some studies suggest that a wedge pattern will breakout towards a reversal rather than a continuation more often than two-thirds of the time. Therefore as the rule of thumb, people generally treat a falling wedge as a bullish pattern and a rising wedge as a bearish pattern , especially a falling wedge would be a more reliable reversal indicator than a rising wedge Since we know a wedge pattern has a higher probability to reverse and due to the fact that the price of wedge pattern converges to a smaller area, we can trade the reversal set up with a relatively close stop loss to its entry price, which provides us with a good trading opportunity with a decent Risk:Reward ratio. Examples of a Bullish Rising Wedge and Bearish Falling Wedge Sadly, there is nothing that works 100% in trading. Not every rising or falling wedge will reverse as one might expect. Every trader must properly manage their risk by setting stop losses and not just trading based on price patterns. Below are two examples. Bullish Rising Wedge ( ETHUSDT during 15/NOV/20 - 28/DEC/20) In the early stages of the epic 20-21 bull market, if traders blindly treat the rising wedge as a bearish signal and trade accordingly, they would pay a heavy price. Bearish Falling Wedge ( LTCUSD during 14/AUG/18 - 14/NOV/18) On the contrary, in the late stage of the 2018 bear market, any trader who blindly trades the falling wedge to bet on a reversal would also learn a hard lesson. Comment down your thoughts on Wedge Patterns in the comment section. Disclaimer: This is just an educational post. Never trade just any pattern. And please do your research before making any trades. Happy Trading!
Education
by Coinlog
4
Trade Using Multiple Trend Lines Important Note:- Very complex and professional techniques I have discussed in the below texts. So my friends read this minimum 3 times, otherwise you will not get the inside what I'm saying about. See how a professional trader using multiple trend lines in a chart and find out opportunities. 1. Here you can see two old trendlines are there and two new trend lines i.e. support & resistance line. 2. Price has been take support and resistance in different different position of the chart and if we join them then we can see a different trend channel in different angle along with previous one. 3. Trend channel already change few months ago i.e. new support line and new resistance line. 4. Now break in the upside direction. 5. So we can take position on direction of the breakout. But my friends there is something more in this story, Actually we can't recognize multiple support and resistance in same direction , that's why we can't draw trend lines there. Reality is there is the difference, between professionals and intermediate or beginners. We have to look into the chart in different way all the time then you can see the chart differently or in professional way. In this chart the price already break the old resistance line and now it's break the new resistance line with big bullish candle. Also previous support and resistance line nothing but a symmetrical triangle pattern. By using multiple trend lines you can see the different opportunity in different position of the chart and you have to choose the correct one which have highest provability to move the price in your way. I know this concept is little bit complex but if you download this in your mind, in near future you will get the taste of success.
NSE:RELIANCEEducation
by marketaffairs
TRADE SETUP WITH ABCD PATTERN. GET YOUR SWINGS RIGHT. NIFTY50This tutorial is on the ABCD pattern and the instrument used here is Nifty 50. ABCD patterns are harmonics patterns from which swings lows and swing highs can be forecasted. The present situation is a bearish ABCD pattern. Each point denotes endpoints of the swings. A, B and C denote known swing points whereas D denotes the new swing high. The trade setup is explained on the chart for both longs and shorts. On breakout of point B, a swing high is taken out and point D would be our new swing high or it might be in the PRZ. For shorts, directly you could open a position at point D but confirmation is breaking off the trendline in the shorter timeframe. The profit-taking for the short position will be at 0.382-0.618 fib retracements of CD. The price bounced off from the 0.618 fib retracement. Harmonic patterns give us decent risk-reward ratios for the trades. Practicing these and getting the logic would make us a lot better. You can check out my ideas where I often use harmonics to analyze and give a trade setup. This is just an educational post. Going long and short immediately could not be practical at all times. :)
NSE:NIFTYEducation
by Sanjan91
Trade with Conviction - Price Action + MACD + EMAIn the chart above, we can see that the trend resistance and support lines are well established, from where prices have bounced and retreated from on multiple occasions. After a decent recent pullback, we find the Exponential Moving Averages looking up again, almost ready for a Bull Cross. I personally prefer 9,21 Days EMI for trading in a short time frame of 7-10 days. It can be easily seen that on numerous attempts, price has kept these EMA levels. MACD and RSI play an important role to confirm the hunch from the preliminary screening off the Support & Resistance and EMA lines. I try to watch out for where the RSI levels are moving toward and the key levels from where it bounces. Personally I find the 50-60 region safer, after rising from a lower level, as it not just implies that bulls are back in control, but it also leaves decent room for upside movement and gain from the share. MACD helps to now time this entry right. If its clear that the divergence levels are reducing and the lines are closing in for a Bull Cross, I can form a decent opinion if I want to wait for the cross or enter while the divergence is still decreasing. Most of the time, I enter right before it is all set for a Bull cross. It helps me to get an early entry and close my position in a day or two if the MACD cross is rejected, this keeps the losses to a minimum. Finally, Volume surge serves to further strengthen the view that the increase in price is accompanied by smart money flowing in, and now you know that this price increase will have a sustained increase with momentum. EPS and Financial position of the company seem good, and that checks out all the major points for a long position. To summarise, watch out for EMA and Resistance Support levels to screen stocks preiminarily. Out of the selected bunch, review the RSI and MACD levels. Increasing Volume with Price increase always helps. Check the EPS growth at least, and set the targets and stop losses as per your risk appetite. Thanks for reading :)
NSE:CYIENTEducation
by Aayush_Rungta
6
Let us analyze recent fall and rise events in BTCBitcoin had a fantastic rally this year but also had seen the worst of the falls due to China’s crackdown. Let’s analyze the BTC chart and find out the critical signs we have observed during the fall and also analyze what’s the current situation. In this analysis, we will be using Trendlines, Supply and Demand Zones, and RSI. We shall understand them briefly. Trendlines can be ascending or descending lines. The trendlines are formed using at least 2 tops or bottoms. Ascending lines are formed by joining at least 2 higher highs or 2 higher lows which act as support. Descending lines are formed by joining at least 2 lower lows or 2 lower highs which act as resistance. Applications of Trendline s: 1. They indicate the prevailing trend in the particular duration. 2. They act as support and resistance lines. 3. If ascending trendlines are broken to the downside and the immediate low of the rally is broken then the stock may have a new downtrend. 4. Similarly breaking the descending trendlines to the upside and an immediate high of the prevailing fall indicates the new uptrend. Supply and Demand Zones are the zones where the price is failing to break out multiple times. Supply zones are the areas of interest for the bears and demand zones are the areas of interest for the bulls. Applications of Zone s: 1. They represent the critical areas in the chart where the traders or investors are interested. 2. Breakouts in either direction will add momentum in that direction. Interesting Interpretation of Trendlines and Zones : 1. Ascending trendlines are joined by the points where bulls are interested to go long. 2. Descending trendlines are joined by the points where bears are interested to go short. 3. Similarly demand and supply zones are zones where bulls and bears are interested in long and short respectively. 4. Giving up trendlines and prices going below or above immediate level indicate that the bulls or bears have given up on the stock for a while. Important Note : The breakout should be confirmed by checking higher volumes or pull backtest or waiting for the price to take out immediate high or low. This confirmation gives us a confluence between the different schools of thought. Some traders may only follow trendlines for breakouts, some may follow zones, these checks ensure you have more participation towards your position. Once the trendline or a zone is broken the nature becomes opposite. For example, if a supply zone or a descending line is broken, the price rises and then comes back to test the zone, this time it must act as a demand zone or support line, else it is said to be failed in the pull backtest. Relative Strength Index (RSI) It is a momentum indicator of the price in a particular duration. For detailed definition and formula, please check in the indicators section in TradingView. It is generally used to determine whether the stock is oversold or overbought. Applications of RSI: 1. Oversold if the price reaches 20 or 30. 2. Overbought if the price reaches 80 or 70. 3. Reversal signs based on divergences. If price is making higher highs or higher lows but on contrary RSI is making lower highs or lower lows. Then it is a sign of bulls giving up and a bearish reversal is on its way. Let us these concepts and apply to our chart. You can see supply and demand zones and the trendlines on the chart. FALL The supply zone had been tested four times and then took a great fall. You can have a doubt that actually once the price had managed to breakout supply zone with good volumes and crossed immediate higher high but even failed. Yes, here it failed the pullback test. It received resistance from the purple trendline 1 and came back for the pullback test and failed. We can see a bearish divergence by checking corresponding highs trendline 1 connected in RSI. RSI was also indicating overbought signs. After a certain fall, it rose again to test the zone which now turned to supply zone and couldn’t break. This gave confirmation for the participants of different schools of thought, hence with huge volumes price fell. RISE The price reached another critical area called the demand zone. Before falling into the demand zone, the purple trendline 2 gave support to the fall. The corresponding trendline 2 in RSI confirms the bullish divergence and showing oversold signs. This reversal was confirmed by huge volumes, taking out the 40k mark and breaking a strong trendline which resisted price to rise during the fall. The price also took a pullback test and succeeded. CURRENT SITUATION After a pullback, BTC made a high of 48k and then formed an intermediate demand zone. The blue trendline is supporting the rise. If the BTC breaks 48k, it can go to test the supply zone. If it breaks the blue trendlines and the intermediate trendline, it can test the 37k level. If the 37k level fails it may test the demand zone again. We have a minor bearish divergence in RSI and RSI is in the overbought zone. As we analyzed the fall and rise of BTC, we understood before considering any position, confirmation is necessary. This is just an education post and not investment advice.
COINBASE:BTCUSDEducation
by Sanjan91
Distribution Phase ExplainedThe distribution phase is when large funds and institutional investors sell their shares at a high price in order to maximize their profit. Because institutional investors and large funds hold large positions (> 1 million shares), they cannot close their positions with a single sell order because doing so will draw attention to the stock, causing other market participants to sell their positions as well. It's important to remember that institutional investors want the highest price to close their positions because their primary goal is to maximize profits, which is why they spread out the distribution phase over time rather than emptying their position in a single day. The institutions' plan of not to sell their entire position in a single session furthers their goal of selling at high prices because it misleads retail investors into believing that the stock still has room to rise, and the retail side begins buying (increasing demand) while the institutions are selling (exiting at high price). This is referred to as a buying climax. (From the institution's perspective) How can we us retailers identify distribution? Long legged Doji and shooting star candles with high volumes can be seen in the chart above near the resistance zone of 665-685 levels. High and ultra-high volumes indicate the presence of large funds (Mutual-funds, Pension-Funds, etc.). Observing the Doji candle and the shooting star candle in conjunction with their respective high volume bars as highlighted indicates that institutions are selling at high prices of 665-685 levels which has been tested several times. This is a good time to sell stock and take profits, but some retail investors are starting to buy now, expecting prices to rise even further! Sometimes, it's also referred as bull-trap! The mark-down phase follows the distribution phase. Prices begin to decline and make lower lows and lower highs during this phase as institutions begin to book profits. The mark-down phase is also marked in the chart. It is best to avoid buying during the markdown period, as prices tend to decline sharply in this phase. This was an educational post to help you better understand the distribution phase, and possibly avoid being trapped on the wrong side of the trade. Happy learning!
BSE:RAMCOSYSEducation
by anaida_sultana
2
What is a Symmetrical Triangle Pattern?The Symmetrical Triangle is usually a continuation pattern. It represents a pause in the existing uptrend after which the original uptrend gets resumes. A breakout from the upper trend line marks the continuation of an uptrend while a breakdown from the lower trend line marks the start of a new bearish trend . This pattern is also known as a wedge chart pattern. How does Symmetrical Triangle Pattern Work? Phase 1 : Existing Uptrend When there is an extreme demand in prices there is an uptrend. It continued as the demand increases. Phase 2 : Pause When demand is equal to supply the there is a pause in an uptrend and investors start to book profits here. As prices consolidate it forms converging trend lines . As there is equal demand and supply investors buy on the lower trend line and sell on the upper trend line . Which results in forming a Symmetrical Triangle Pattern . Phase 3 : Uptrend Continuation After demand matching the supplies when there is when buyers are again interested to buy demand increases. Which results in breakout! And the continuation of the uptrend. Role of Volume: Volume plays a major role in a symmetrical triangle pattern . When in an uptrend the volume is quite higher. In the second phase, the volume starts to diminish due to equal demand and supply. And again on the breakout, the volume surges. Volume with Breakout gives a good indication of a successful uptrend. Above Chart Explanation: This is a 4H chart of AXSUSDT we can see it's in an uptrend previously with good volumes. Now after successful uptrend prices consolidate with diminishing volumes. And after it, there is a breakout with above-average volumes. And then the uptrend continues. Conclusion: Symmetrical Triangle Pattern is a continuation pattern. Which on upper trend line breakout can give a potential bull move and when on lower trend line breakout gives a possible bear move. Comment your thoughts on Symmetrical Triangle Pattern down below. Disclaimer: This is just an educational post never trade just any pattern. And please do your research before making any trades. PS: We are again publishing this for our Indian audience. Happy Trading!
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Education
by Coinlog
24