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RAMCOSYS trade ideas

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
15% in RAMCOSYS but risk is big 👑 Terms used if you don't know : ✣ Contraction pattern: A pattern starting with a broadening high candlestick and low candlestick and converging to a fixed point, these highs and lows created in between them are bulls vs bears fight going on inside the pattern and if it comes to the lower part of it, surely bulls will take it to the topmost point and vice-versa until one of them wins ✣ Structure and trend: Two types of trends that exist in the market today are uptrends and downtrends. Each type of trend tells a different story and has its own impact on a trader's success in the market. While uptrends show a series of higher highs and higher lows, downtrends show lower highs and lower lows ✣Breakout: Breakouts are commonly associated with ranges or other chart patterns, including triangles( HERE WE WILL SEE THIS ONE ), flags, wedges , and head-and-shoulders. These patterns are formed when the price moves in a specific way which results in well-defined support and/or resistance levels. Traders then watch these levels for breakouts ✣ RSI DIVERGENCE: A bullish divergence occurs when the RSI creates an oversold reading followed by a higher low that matches correspondingly lower lows in the price. This indicates rising bullish momentum, and a break above oversold territory could be used to trigger a new long position. ✣ Supply/ Demand: In the supply zone , the prices are higher than the bid price, and in the demand zone , they are lower. The bid price is what a trader is willing to pay for a stock 👑 Important levels - explained well 👑 Comment your thoughts and queries regarding anything on this analysis of mine, feel free buddy :) ⌛ Motivational and psychological area ⌛ ✣Trade only if you are in the right mindset, if you have been emotionally weak for some time, take your time and don't trade, trade with a happy and + mindset only. ✣If you want to make money, firstly be prepared to lose it, only that much which you can afford and that much by which you can make a mistake again, learn from them and grow ✣Don't lose hope and keep grinding ✣I have seen my friends on youtube streaming games with watching 10, constantly they streamed for a year or two and now they are buzzing with 1k to 2k watching daily. ✣Focus on the process, you are here to make money not stupid decisions and lose it all ✣No one will help you climb the mountain, few will tell the path, so follow good people, make good mentors and make good decisions and choices in the stock market. ✣Believe in yourself :) 🎓🎓 Some info about me :) ➼My name is Apoorv and I am a 2nd year Engineering student, I want to pursue trading as my career, and thus whatsoever setups or trades I potentially see on my charting platform, I post it here and share them with you all. ➼I hope you will love my simple analysis style. ➼Feel free to suggest your view on this as learning is earning here :) ➼I take my trades on my Zerodha account :) ➼I don't take all the trades I post ➼These charts are my and only my work, my thought process, just from an educational point of view and no calls.
NSE:RAMCOSYSLong
by Averoy_Apoorv_Analysis
4