FEDS trade ideas
Gann Time & Price SymmetryWhile it’s not always clear why a time and price symmetry identified a market turn, such symmetries do indeed exist.Gann , considered the squaring of price and time his most important discovery . He called it Price & time squared.However, the proper application can be tricky.
Markets are enigmas, and this attribute demands a great deal of flexibility when working with price and time studies.
This is just another example of how Gann’s principle of time and price balance out.
What should be understood about this mystery is it does not materialize every day. However, when it does, it usually leads to a powerful trend,
As hard as this analytical sleuthing appears, the rewards are worth the effort. All the trader needs is to find one key calculation on an important chart and leverage it out to the overall market.
Gann and several generations of traders have used time and price analysis successfully. You can spend a lot of time figuring out where a market is going to turn based on certain symmetries. It’s best to have a rough idea without spending too much time looking for a move that is not there.
Before attempting trade entry, you need an edge that gives you confidence that you are on the right side of the market. Once that is established, you can use your own rules and discipline to find good entries. Gann will help and square roots certainly are an important piece of the puzzle.
As you perform your due diligence, you might find something else, such as a specific date matching up with the range. Opportunities are out there. There might be something vitally important sitting just below the surface of your price charts. Gann time and price analysis and square roots can get you there.
Federal Bank - Small Bearish DivergenceFederal bank has taken support from the trend line shown and is sitting almost on it now.
The stock is showing a hint of bearish divergence which has been confirmed with the 2 downward movements on Thursday and Friday. It could very well have served the function of consolidation for large volume buying happening during the uptrend.
52 is a key level to watch for bearish breakout.
If it falls below 52 - closes below 52 on the 15 minute candle; Short trades can be initiated for targets of 51 and 50 with SL at 53.
The stock would be bullish above 54.5 indicating consolidation is complete and its open for new heights. Long trades can be initiated for targets of 56, 57, and beyond.
Behaviour of BANK NIFTY will affect the movements here so keep an eye out.
In case of Gap openings below and above the last 2 sessions high and low levels, exercise caution in taking short and long trades respectively.
XABCD PatternSeems like Federal Bank looks strong at 49.5 lvls with a stop loss at 45 below looking weak...
Aiming for a target of 54.5-59-64 lvls n soo onnnn....
Time period I can't guess but its positional not Intraday suggesstion...
Disclaimer:
I am not SEBI Registered Analyst. This is my first time plotting of XABCD Pattern on charts. Looks to me like Bullish Gartley kind off.. Its just a test trade.. So, suggest not to blindly follow my charts. If followed, one should always be able to manage risk.