CNXSMALLCAP trade ideas
CNX Small Cap 100 Top or Breakout Retest?CNXSmallcap. If current week low doesn't go below 12386 and close above 12650-12680, then this week could be considered as retest. Historically there were 4 occurrences in Weekly timeframe where such fall went below previous week, index dragged down. Current week low, close and next week is crucial
1. Dec 31, '07 - Jan 07, '08
2. Jan 08, '18 - Jan 15, '18
3. Oct 11, '21 - Oct 18, '21 (1st Top)
4. Jan 10, '22 - Jan 17, '22 (Double Top after 3 months)
5. Sep 4, '23 - Sep 11, '23 (Current end of the week low, close is crucial)
Small Cap Index close above Monthly SupertrendSmall Cap Index has closed above Monthly Supertrend July 2023 and in September 2023 it traded at all time highs.
Seeing the past history of Small Cap closing above Monthly Supertrend has given huge returns, party may have started in Small Caps, there may be small corrections but not expecting it go below 10250 anytime soon.
Keep riding your horses.
nifty smallcap 100The chart of the Nifty smallcap is looking rather confusing.... and to clear that confusion..... I have given you all 2 separate markings... The BLACK one indicates the downside risk.... while the ORANGE one indicates a BULL RUN. The impulsive 12345 marked in BLACK COLOUR is ONLY INDICATIVE and NOT exact in terms of price. hence do not follow the impulsive 12345 as of now. Let the whole structure play out 1st and then Ill take a view
Nifty Small Cap Index signaling Risk On/ Outperformance BiasAttached: Nifty Small Cap 100/ Nifty 50 Daily Live Market Chart
A Possible Trend Change in this Ratio as there is Breakout
And now Small Caps are set to Outperform Large Caps for the coming few weeks
This is Risk On behavior, something has clearly changed on this Chart
Small cap index - in a crucial point!!! Here we are analysing index with 2 basic indicators relative strength and Ema 30, in weekly charts.
Now, in 2022.. we can clearly see bearishness in smallcap index chart as It's consistently making lower low's like it happened in 2018. In 2018 it clearly given 3 simple warnings before the big fall. You can check relative strength, which turned negative during that time.Weekly Ema 30 was broken during the above mentioned period itself.
3 pointers ticked by the bears 🐻🐻🐻
Now let's move back to 2022
1) We have Relative strength in negative.
2) Consistent lower lows were made...
Yes here two pointers were checked by bears 🐻🐻
But wait here at point 3, Now we got a pullback and we are above Ema 30 support. If it breaks down below the Ema we are going bearish and it's continuation of stage 4 breakdown. If it happens, again another smallcap mayhem is about happen. Nifty may follow the small cap index pursuit due course of time but with better strength.
Is there anything left for bulls?
Yes!!! Bulls are not erased from the picture here, we need to get a closing above 10030 and 11000 in small cap index which will terminate LH - - >LL pattern and start a new trend. If not it we will see repeat what we have seen in 2018... Yes of course we are seeing trailer of this is in many small caps right now!!!
SMALL CAP INDEX IN A CRUCIAL POINTHere we are analysing index with 2 basic indicators relative strength and Ema 30, in weekly charts.
Now, in 2022.. we can clearly see bearishness in smallcap index chart as It's consistently making lower low's like it happened in 2018. In 2018 it clearly given 3 simple warnings before the big fall. You can check relative strength, which turned negative during that time.Weekly Ema 30 was broken during the above mentioned period itself.
3 pointers ticked by the bears 🐻🐻🐻
Now let's move back to 2022
1) We have Relative strength in negative.
2) Consistent lower lows were made...
Yes here two pointers were checked by bears 🐻🐻
But wait here at point 3, Now we got a pullback and we are above Ema 30 support. If it breaks down below the Ema we are going bearish and it's continuation of stage 4 breakdown. If it happens, again another smallcap mayhem is about happen. Nifty may follow the small cap index pursuit due course of time but with better strength.
Is there anything left for bulls?
Yes!!! Bulls are not erased from the picture here, we need to get a closing above 10030 and 11000 in small cap index which will terminate LH - - >LL pattern and start a new trend. If not it we will see repeat what we have seen in 2018... Yes of course we are seeing trailer of this is in many small caps right now!!!
A beginner's guide to trading - Chapter 6On this day let us take an oath to fight and conquer our bad trading habits. Let us take a look about the most important bad trading habits.
Un prepared for the market : Never start a trading day without having a plan or doing analysis on the stocks/index you are trading.
Stop loss : Always place stop order once you entered a trade.
Over thinking : When your strategy gives entry, take entry. Dont hesitate. Your stop order will save you if anything went wrong.
Uncertainty : Accept the fact that market don’t give any strategy 100 % success. Dont look for the wholly grail methods which will give you certainty. It don’t exist.
Patience : Market gives reward to the people who wait for their trade set up to form and who trade with patience.
Ego : Share market is an entirely different domain where you face the strongest opponent “You”. Make yourself to understand your inner demons, so that you wont have too much ego which can affect your trading unknowingly.
Addiction : Once in a while check whether you are passionate about trading or addicted to it.
Fear of missing out : Market always gives opportunities to all. The opportunities which you missed in life will be trying to come out during market hours to take trade when there is no trade set up.
Journaling : Keep track of your trades and improvement . The things which can not be measured can not be analysed.
Less capital : Dont try to get big profits from small capital as it will make you to take huge risks.
Note : Fear & greed is not in the top ten list as they are out dated :)
Our brain makes us to repeat same mistakes. You should be conscious about your actions to avoid it.
Good luck !