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Wyckoff

VARROC ENGINEERING WYCKOFF ACCUMULATIONVarroc Engineering is focused on designing, manufacturing and supplying exterior lighting systems, plastic and polymer components, and electrical and electronics components Market Cap : 5000cr Market Cap set your positions accordingly Sector : Auto Ancillary VARROC ENGINEERING is in a 4 month trading range, the analysis done above is through Wyckoff method and we get what looks like a accumulation TR (trading range). PHASE A : The TR got established from 15th September where it did the highest volume since it's IPO in 2018. Labelled the PSY , SC , AR as Upthrust Action followed by a low spread Secondary Test on good volume leaving a wick and closing in green shows hints at some absorption happening that marks the PHASE A and CHoCH ( Change of Character ) the bias for the TR at this point is bullish. PHASE B : Secondary Test on 21st October with huge volume but closed below the AR 319.80 level which shows rejection, at this point we can conclude the price is not ready for the markup phase and still needs to spend some time in TR followed by the price falling off with low volumes and low spread indicating no further new selling but also fall in demand till 16th Nov where the price went below the ST in PHASE A but on low volumes then buying demand came and closed above previous 4 Days close with fair volume and good spread. PHASE C : The hardest part is identifying PHASE C but it is the only thing matters followed by PHASE D in Wyckoff Method. 16th - 17th Nov the stock had good volumes and good spread indicating SOS rally but failed to closed above AR levels , also the following week/month Nifty ( Comparative Index/ Market Proxy ) had faced Volatility on the down side and 29th Nov being the biggest fall in Nifty since 2 quarters but the underlying stock didn't broke the ST(PHASE B) levels. This shows positive jump in Relative Strength and the start of it. On 7th Dec the candle showed some demand and followed buying crossing above the AR, ST(PHASE B) levels giving couple of closes above the TR so we mark the low on 6th Dec as LPS (Last point of Support) and Conclude Phase C. Though we missed our First of Four entry points but given the Volatile Market conditions it was hard to Initiate. PHASE D : PHASE D in the Wyckoff Method indicates a SOS ( Sign of Strength) TR above the previous TR , BU ( Backing Up Action) and LPS/ Multiple LPS. In this stock's case after the SOS rally the volumes cooled off with slide in price we mark the last swing ended as ST=UT because it wasn't a SOS because the price failed to sustain above the TR and came back in the TR , the market proxy faced huge volatility and made a new low from it's previous levels with big spreads but the underlying stock didn't made a new low thus forming a Higher High - Higher low formation showing relative strength even though it closed -9% and the price is now rising with lower spread and volumes, thus we mark the low as LPS. We make a uptrend channel by connecting two lows and the high. Conclusion : Scenario # 1 : The stock still seems to be in PHASE D also trying to cross above 200 Dema and 100 Dema if it shows SOS above 336 we can expect PHASE E (Markup PHASE), CHoCH and we can start a bull campaign and further add positions with trailing stoploss on LPS/Channel/DEMA. Scenario # 2 : If the price breaks Channel we can expect that the stock needs to spend more time in TR. Scenario # 3 : If the price also breaks LPS then the TR can be extended way further or can be concluded as a Distribution PHASE .
NSE:VARROCLong
by nukacola933
SGX nifty Wyckoff accumulationThe SGX NIFTY appears to be in a period of accumulation, according to the Wyckoff method of technical analysis. This pattern is characterized by a trading range in which there is a buildup of buying pressure, as evidenced by a series of higher lows and a lack of significant selling pressure. Based on this analysis, it is likely that the NIFTY will experience a strong upward move in the near future. However, it is important to note that technical analysis is not an exact science and past performance is not indicative of future results. It's important to do your own research and use this analysis as one piece of information among many when making investment decisions.
NSEIX:NIFTY1!
by mitesh18
Volume price analysis & Volume Divergence Cheat sheetWhat makes volume price analysis so crucial? Volume and price analysis play a major role in trading and investing. Volume analysis helps traders and investors identify whether there is significant interest in a particular security. It also helps to identify potential buying and selling pressure, which can be useful in predicting future price movements. Price analysis helps to identify trends and price patterns, which can be useful in making trading and investing decisions. Volume and price analysis are important tools that can be used to spot trading opportunities and make sound decisions. 2 important things to keep in mind when analysing volume: 1. An increase in volume shows that market players are eager to participate in the developing market activity and want to see the price move higher in an uptrend or lower in a downtrend and are willing to buy higher in an uptrend or sell lower in a downtrend. 2. A drop in volume shows that traders are less interested in seeing prices rise in an uptrend or fall in a downtrend and are more eager to purchase lower in an upswing and sell higher in a downtrend. Volume Divergence: It is essential to check whether price and volume patterns are similar when comparing them. In that case, there is a good chance that the trend will continue. A volume divergence occurs when price and volume diverge, which indicates that the underlying trend may not be as strong. According to my observations, whenever a stock is trading at a high volume, it seems to strongly trend either upward or downward. Here are some important concepts in volume price analysis: 1.When the price of a stock rises with increased volume, it indicates that the bull trend is stronger and buyers are interested, and this is a trend continuation signal. 2. If the stock price rises but volume decreases, it indicates that the bull trend is weakening and may reverse, and buyers are not interested. Price and volume divergence suggest a trend reversal. 3. If the price is falling while the volume is increasing, it indicates that the bearish trend is quite strong and sellers are active. 4. if the price is falling and the volume is decreasing, it indicates that the bearish trend is weakening and will soon reverse, signifying divergence between price and volume and a trend reversal.
NSE:ELGIEQUIPEducation
by AfnanTAjuddin
13
Top and Bottoms: Price and Volume IndicationsHi, I personally look for following scenarios while identifying potential tops and bottoms and it works most of the times. For tops: High volume bars with very little progress on the upside Exceptionally wide bars with very high volume For bottoms: High volume bars with little progress on the downside Exceptionally wide bars with very high volume This might sound confusing at first instance but it’s a very simple concept. Let us understand with the help of an example. Adani transmission had a very sharp rally of 125% for approx. four months. But let’s see how this rally ended. Notice very high volume indicating too much effort but the day had very little progress on the upside. Have you ever thought why this is so? Obviously due to sellers. Someone is stepping on it selling huge in a euphoric rally. This weakened the stocks. Immediately after few days of this candle the stock made new high accompanied by a Doji. This is the first day in the entire 4month rally that it had a very high volume on a red day. Remember, we already had a weakness discussed above and this one was just a timely addition to this. The stock lost buying interest after these two events. What may happen if buyers are not interested in a stock? Selling, right? Unfortunately, the reaction was very sharp and halted near a prior resistance level 3000, which is also a 50% retracement of the 4month rally. Notice very high volume which I have labelled as stopping volume. Wide candles and huge volume again stopped the bearish rally. I won’t buy high volume down bars unless they are tested which it did with a lesser supply. It means that most sellers are out of this stock and not much selling left (at least for now). The stock has since been trading in a range of 300-400 points. This strength (retests and hold) discussed above may hold the stock above 3000 for a push on the upside. Do not consider this as a tip. This is just a concept that I wanted to share. Please apply your due diligence before hitting the buy button 😉 Thanks for reading Now you know what do..hit 🚀🚀🚀 and enjoy trading.
NSE:ADANIENSOL
by Bravetotrade
17
Why do I think the IT index is going to rally soon?Hi all, hope you guys are doing well. Over the last 2 months, we have seen a great rally in the majority of the indices, except one - The IT index. Read this post to find out why I think IT is going to pump soon! 1. The IT index has been strongly underperforming the benchmark as well as all other sectoral indices for the last few months. I have taken the June lows as a reference because the market started rallying from there onwards. Observe how the IT index is lagging far behind all other indices. 2. In the last few days, the IT index has been strongly improving, suggesting a mean reversion towards the benchmark index - Nifty. Notice the angle of the curve. On the other hand, all other indices seem to be more or less flat. If the market is able to consolidate the gains and maintain the bullish to sideways narrative, the IT index can really perform well in the coming weeks. 3. This is also in line with the structure. If you notice, the index seems to be forming the Wyckoff accumulation schematic in which the "Spring" seems to have been established on 15 July. Currently, the price appears to be bouncing off the range low and may head towards the range high. 4. The market structure has started to shift to the upside. As we can notice, after the formation of the low on 15 July, the price rallied higher creating a higher high. This caused a shift in the market structure. 5. If we get a move above the range high at 31k, it will confirm that the short-term structure has turned bullish and we can expect higher prices, possibly a move towards 34k. 6. All the IT stocks have been forming a similar structure. I am attaching a few charts for reference. 🔹 Wipro: 🔸 Infosys: 🔹 Mphasis: 🔸 Coforge: Thanks for reading. I hope you found this helpful! 😊 Disclaimer : This is NOT investment advice. This post is meant for learning purposes only. Invest your capital at your own risk. Happy learning. Cheers! Rajat Kumar Singh (@johntradingwick) Community Manager (India), TradingView
NSE:CNXITLong
by johntradingwick
24