You will never be the same after watching this trading secretYou will never be the same after watching this trading secret.learn to mark important support and resistance.
Trend Lines
SGX Nitfy Consolidation PAHourly Chart of SGX-nifty shows the speed of movement came down since it got into the yellow parallel Channel and become range bound which is between 13222-13167.
Now , until and unless it breaks the higher level of the range it will be in this sideway zone. But if it breaks out the yellow channel then there is the probability of move towards 13442/13529/13629/13779 levels ( These are all Fib extension levels previous lower low and recent higher high). Now if it doesn't breaks the yellow channel then it may continue and further chances of attempt of breakout towards upper side will be high till it stays in the intercept of both the channel. The chances will come down once and the longer it will continue in the yellow zone. Slowly it will show the weakness from side way to breakdown...
Fresh Breakout for Swing long termIf it holds position at 170 will raise upto 187 Resistance which is major
How to trade based on Zones?This is an example of how I mark my charts while taking trades.
Defensive trading strategies are very good for sideways markets. The indices around the world are sideways and not making any fresh highs or lows.
The principle that I have explained on the charts is ideal for protecting your capital and has a higher chance of succeeding. When the price moves to either of the extremes, you should look at taking a trade on the opposite side.
This means that once the price approaches the higher boundary, you should be looking at selling and when the price approaches the lower boundary, you should look at buying.
This does not mean that you blindly set that marked price as the entry point, but you should wait for an extreme to be created and then take a trade only after the confirmation of your bias. Trading such markets requires patience and entries should only be made on the boundaries. If you enter a trade in any direction in the middle of the zone, you are likely to get trapped. What I mean by trapped is that your stop loss will become larger and probabilities are starting to move against you.
Trade only with capital you are willing to lose and maintain proper money management.
Feel free to ask questions, if you have any! :)
FIND YOUR TRADE ,Will it form dual bottom?
will it recover to 500 odd zones in no timr ?
will it crash to 360 odd zones ??
A note on exitsTaking example of the UPL Chart, I present my technique of exits.
Material depicts only past experiences from my small world of trading. We present this only for educational purposes without any monetary consideration. Do your risk management and enter / exit positions.
If you earn from our material, please consider donating 1% to education of poor children.
BANNIFTY - UNDERSTANDING CHARTS ( 6th & 7th October 2020)Second chart from the series of taking a look at the week that was in BankNifty. This week was very bullish trend in the market.
This chart indicates the overall breakout of the BANKNIFTY from it's bearish trend.
The previous two trading sessions have been studied in the below chart.
October 6th Trading Session
BULLISH MOMENTUM IS CONTINUED FROM THE PREVIOUS SESSION.
MARKET OPEN GAP UP BUT PROFIT BOOKING SEEN IN FIRST CANDLE.
SIDEWAYS MARKETS UNTIL 2PM SHOWING CONSOLIDATION
2PM BREAKOUT WHICH SETTLES ABOVE PREVIOUS DAY RESISTANCE
October 7th Trading Session
SLIGHT GAP DOWN IN THE OPENING CANDLE. BTST TRADERS BOOKING PROFIT IN THE MARKET OPEN.
EVENTUALLY BUYERS WIN THE TUSSLE. BUYING VOLUME IS HIGH.
PRICE BREAKOUT OVER THE PREVIOUS DAY RESISTANCE.
BULLISH MOMENTUM IS SUSTAINED.
PREVIOUS DAY RESISTANCE TRENDLINE TAKES SUPPORT IN THE FOLLOWING TRADING SESSION
ENTIRE TRADING SESSION HAS BEEN ONE BIG CONSOLIDATION AS THE PRICE IS CLOSE TO THREE MONTH RESISTANCE.
NOT ENOUGH BUYING AT 2PM FOR BREAKOUT, SELLERS WON.
SIEMENSIt continues to follow the Higher High Higher Low path since March lows. Keeping the same in mind it could rally till 1325 as long as its above 1260
Gbp V/s U.S DollarIt's a perfect chart to understand about negetive and positive divergence. When price go up and rsi go down its call negetive divergence (indicate by blue line in chart) after that price will go down & if price go down and rsi go up its call positive divergence (indicate by red line in chart) after that price will go up.
HOW NOT TO TRADE ACC GAVE A GOOD BO BUT STUDENTS IGNORED PREVIOUS HORIZONTAL SUPPORT
SL HIT
SETUP WAS SIMPLE
TWO PROFITABLE TRADE IN ONE DAY IN ONE SCRIPT1.THE DOJI CANDLE STRATEGY AND
2. THE FIBO STRATEGY
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A BUY WAS GIVEN AT 12.17 AT 2002 IT WENT AND GAVE EASY 1 %
A SECOND BUY WAS GIVEN AFTER FIBO SUPPORT
HDFCLIFE taking trendline support HDFCLIFE taking trendline support on 1HR TF and near support zone.. can enter long if trendline breaks before breaking support zone.
How to trade the magical trend lines ?From new traders to experienced traders, the most under valued technical tool is trend line. Since everybody thinks its easy to draw the trend line, they dont give much attention to it.
I have connected A & B to draw the trend line 2 weeks before. When I analysed for this week's move, I just extended the same trend line and it is marked as dotted yellow line. Price tested the trend line at C, and D. So how this trend line became magical ? The support drawn in blue dotted line & the yellow dotted line is broken at E. The confluence zone at E made the trend line as magical and the fall became non stop.
It is very useful in multi time frame analysis too.
Simple analysis holds the power.
Simple analysis makes the trading execution easy.
Check yourself and see whether you are drawing trend lines or magical trend lines.
NIFTY LEVELS 18/09/2020 BREAK OR BOUNCEBreak of 11510 support, will lead to a fall towards 11450, 11370. Bounce off from 11510 support will lead to 11565, 11612. Have a look on the chart for the support and resistance levels.
Share your opinion in the comment section below, and like and follow for daily market analysis !
Professional Trader | Experience: 2.5 Years
NOTE: The above mentioned views are for educational purposes only. You acknowledge the fact that you are alone responsible for your profits and losses, we won't be responsible for any kind of loss that you might incur by following our signals.
How to trade Falling Channels / WedgeThe material gives an example of trade that we took based on falling wedge pattern. Though, such clean trades do not always come in front of a trader, one can use the concept to execute trades with stop loss levels given in the material.
This trade is already done, and material is intended for people to learn the concept only.
If you copy trades, you might win once, but if you learn the concepts you'll always be in profits!
Descending Triangle in BAJFINANCEBAJFINANCE is forming a descending triangle. With its Quaterly earning slated to be released on May 19th, the stock could sink further if the results are bad inviting a short entry. Consider booking partial profits if you are holding from 700-1300 levels. 1920-1950 is the support in weekly chart and if it closes below that on weekly basis then next support would be at 1600 levels.
