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TCS 1 Day Time Frame Current price: ~ ₹3,063.20. Day’s range (approx): ~ ₹3,041 – ₹3,090. 52-week range: ~ ₹2,867.60 (low) to ₹4,494.90 (high). 🔍 Key support & resistance (based on current structure) Support zone 1: ~ ₹3,000 – where the price is hovering—psychological and near recent consolidation. Support zone 2: ~ ₹2,940 – a stronger lower bound if the current support fails. Resistance zone 1: ~ ₹3,150 – near the day’s high and recent supply. Resistance zone 2: ~ ₹3,250 – upper structure/resistance from recent swing highs.
NSE:TCSLong
by Knowledgehub
Part 3 Institutional Trading How Option Trading Works Option trading involves two participants — the buyer and the seller (writer). A buyer pays a premium to gain the right to trade. A seller receives the premium but must fulfill the obligation if the buyer exercises the option. For example, if you buy a Call Option for a stock at ₹100 with a premium of ₹5, and the stock rises to ₹120, you can buy it at ₹100 and make a profit (₹15 net after premium). If the stock stays below ₹100, you simply let the option expire, losing only the ₹5 premium.
NSE:TCSEducation
by SkyTradingZone
Part 8 Trading Master Class With Experts How Option Pricing Works Option pricing is complex because it depends on many variables. The most commonly used model is the Black-Scholes Model, which calculates the theoretical value of options based on several factors: Underlying asset price Strike price Time to expiration Volatility Interest rates Dividends (if any) Volatility This is the most important factor in option pricing. High volatility means the underlying asset price can move significantly, increasing the chance that the option becomes profitable.
NSE:TCSEducation
by SkyTradingZone
TCS 1 Week View 📊 Weekly Technical Overview Current Price: ₹3,004.80 (NSE) Weekly Performance: +3.57% Year-to-Date Performance: −26.69% 52-Week High: ₹4,592.25 (Aug 30, 2024) 52-Week Low: ₹2,888.40 🔍 Key Technical Indicators Moving Averages: 5-Day MA: ₹3,018.94 (Sell) 50-Day MA: ₹2,980.76 (Buy) 200-Day MA: ₹3,046.08 (Sell) Relative Strength Index (RSI): Currently at 40, indicating a neutral stance. MACD: Bearish crossover observed, suggesting downward momentum. Support Levels: ₹2,888.40 Resistance Levels: ₹3,176.70 📌 Conclusion TCS is currently in a consolidation phase with a slight upward bias. Investors should monitor the stock's movement around key support and resistance levels. A break below ₹2,888.40 could signal further downside, while a rise above ₹3,176.70 may indicate a potential trend reversal.
NSE:TCSLong
by TechnicalExpress
TCS 1 Week Time Frame Weekly Technical Overview Current Price: ₹3,028.30 on the NSE 52-Week Range: ₹2,866.60 – ₹4,494.90 Volume: Approximately 8.8 million shares traded this week VWAP: ₹3,032.15 Market Cap: ₹1.095 trillion Beta: 0.97 (indicating moderate volatility 🔍 Key Technical Indicators Moving Averages: TCS is trading below its 200-day moving average, suggesting a bearish trend. RSI: The Relative Strength Index is in the neutral zone, indicating balanced buying and selling pressures. MACD: The Moving Average Convergence Divergence is showing a bearish crossover, which may signal a potential downward movement. 📈 Outlook Support Levels: Immediate support is observed around ₹2,950, with a stronger support zone near ₹2,870. Resistance Levels: Key resistance is at ₹3,100, followed by ₹3,200. Volatility: The stock's beta of 0.97 suggests that it moves in line with the broader market, with moderate volatility.
NSE:TCSLong
by Knowledgehub
Option Trading Derivatives (FAO)1. Introduction to FAO FAO stands for Futures and Options, two major categories of derivatives. Derivatives are financial contracts whose value depends on an underlying asset, such as stocks, indices, commodities, currencies, or interest rates. The primary purpose of derivatives is to provide risk management, speculation, and arbitrage opportunities. Key Features of FAO: Leverage: Traders can control large positions with relatively small capital. Hedging: Protect against adverse price movements in underlying assets. Speculation: Profit from both rising and falling markets. Liquidity: Popular derivatives are highly liquid, allowing easy entry and exit. 2. Understanding Options Options are contracts that give the buyer the right, but not the obligation, to buy or sell an underlying asset at a predetermined price (strike price) before or on a specific date (expiry date). There are two primary types of options: Call Option: Gives the holder the right to buy the underlying asset at a fixed price. Put Option: Gives the holder the right to sell the underlying asset at a fixed price. Key Terminology: Strike Price: Price at which the option can be exercised. Premium: Price paid to purchase the option. Expiry Date: Date on which the option contract becomes invalid. In-the-Money (ITM), Out-of-the-Money (OTM), At-the-Money (ATM): Terms describing the relationship between the strike price and current market price. Options provide flexibility and multiple strategies for traders, allowing them to maximize profits or minimize losses. 3. Understanding Futures Futures are standardized contracts that oblige the buyer to purchase and the seller to sell an asset at a predetermined price and date. Unlike options, futures contracts carry an obligation to buy or sell, not just a right. They are widely used in commodities, indices, currencies, and interest rate markets. Key Features: Leverage: Futures allow traders to control large positions with a fraction of the total contract value. Mark-to-Market: Daily settlement of gains and losses ensures liquidity and transparency. Hedging and Speculation: Corporations hedge against price fluctuations, while traders speculate on market direction. 4. FAO Trading Mechanics Trading FAO requires understanding market participants, contract specifications, and trading platforms. Market Participants: Hedgers: Minimize risk exposure. Example: Farmers selling crop futures. Speculators: Profit from market movements. Example: Traders buying stock options. Arbitrageurs: Exploit price differences across markets. Contract Specifications: Lot Size: Minimum quantity for trading a contract. Expiry Cycle: Monthly or weekly expirations. Margin Requirements: Funds required to maintain positions. Trading FAO occurs on regulated exchanges, such as NSE, BSE, CME, and ICE, providing standardized contracts, clearing mechanisms, and transparent pricing. 5. FAO Trading Strategies 5.1 Option Strategies: Covered Call: Holding underlying shares and selling call options to earn premium. Protective Put: Buying a put option to protect against downside risk. Straddle: Buying call and put options simultaneously to profit from volatility. Iron Condor: Combining multiple options to profit from low volatility. 5.2 Futures Strategies: Hedging: Lock in future prices to mitigate risk. Speculation: Taking positions to profit from expected price movements. Spread Trading: Buying and selling related futures to benefit from relative price changes. 6. Risk Management in FAO Trading derivatives involves high risk due to leverage and market volatility. Effective risk management strategies include: Setting Stop-Loss Orders: Automatically exit losing trades. Position Sizing: Allocate only a fraction of capital to each trade. Diversification: Spread exposure across assets and strategies. Volatility Analysis: Understand implied and historical volatility for better decision-making. 7. Advantages of FAO Trading Leverage for Higher Returns: Small capital can control large positions. Hedging Capabilities: Protect investments from market swings. Flexibility and Variety: Multiple strategies suit different market conditions. Transparency and Regulation: Exchange-traded derivatives ensure standardized practices. 8. Challenges and Risks High Volatility: Prices can move quickly against traders. Complexity: Advanced knowledge is required for strategy execution. Margin Calls: Traders may need to deposit additional funds if losses occur. Liquidity Risk: Not all options or futures are highly liquid. 9. Regulatory Environment FAO markets are tightly regulated to protect investors: Securities and Exchange Board of India (SEBI) regulates derivatives trading in India. Commodity Futures Trading Commission (CFTC) and SEC regulate U.S. markets. Exchange Rules: Each exchange sets contract specifications, margin requirements, and trading hours. 10. Practical Examples of FAO Trading Hedging Example: A wheat farmer sells wheat futures to lock in a price before harvest. Speculation Example: A trader buys Nifty call options expecting an upward movement. Volatility Trading: Traders implement straddles and strangles during earnings season to profit from price swings. 11. Technology and FAO Modern FAO trading relies heavily on algorithmic trading, AI analytics, and real-time data. Platforms offer: Option Chain Analysis: View all available options for a stock or index. Greeks Monitoring: Delta, Gamma, Theta, Vega – to understand option sensitivity. Risk Management Tools: Automated alerts and portfolio analytics. 12. Conclusion Option trading derivatives (FAO) represent a powerful set of financial instruments that combine leverage, flexibility, and risk management. While they provide opportunities for profit maximization, they also carry substantial risks, making knowledge, discipline, and strategy essential. Successful FAO trading requires understanding market mechanics, advanced strategies, and effective risk management to harness the potential of these derivatives responsibly.
NSE:TCSEducation
by TechnicalExpress
1
TCS 1 Month Time Frame 📉 Technical Overview (1-Month Timeframe) Price Range: ₹2,867.55 – ₹3,202.95 Current Price: ₹2,962. Trend: Bearish According to TradingView, the 1-month technical analysis for TCS indicates a neutral outlook. However, moving averages suggest a strong sell signal. Oscillators are neutral, and pivot points are not specified. 🔍 Key Technical Indicators Relative Strength Index (RSI): Not specified. Moving Averages: Short-term and long-term moving averages indicate a bearish trend. MACD: Not specified. Pivot Points: Not specified. 🔮 Short-Term Outlook Analysts forecast that TCS may reach ₹2,953.43 within a week and ₹2,707.65 within four weeks. ⚠️ Conclusion The current technical indicators suggest a bearish trend for TCS over the past month. Investors should exercise caution and consider these factors when making investment decisions.
NSE:TCSLong
by Knowledgehub
TCS - Time to go up towards 3500+ Bullish CRAB PRZ at play TF: Daily CMP: 2965 Here is my previous post on this script for a detailed review. Price has completed the potential target as per the Bullish Crab pattern. Results are due in the next couple of weeks. I expect the stock to bounce from this zone 2900-2950 and potentially march towards 3500+ in the coming weeks Internal wave counts are also marked in this chart. I will await bullish confirmation candle in this zone for a good RR entry. Disclaimer: I am not a SEBI registered Analyst and this is not a trading advise. Views are personal and for educational purpose only. Please consult your Financial Advisor for any investment decisions. Please consider my views only to get a different perspective (FOR or AGAINST your views). Please don't trade FNO based on my views. If you like my analysis and learnt something from it, please give a BOOST. Feel free to express your thoughts and questions in the comments section.
NSE:TCSLong
by Murthy_Santhosh
8
Wave Pattern Identified This is an ideal pattern found after a Breif Bull Run in the Market These type of patterns repeat themself on all time factors This cycle is Weekly Price & Time cycle I have left side explained how the pattern of 3 Stroke will look like in Text Book and on real time You can witness one movement of 3 stroke pattern is complete Expect an Pull back move before heading for final Retest of Primary Trend on weekly time frame This is education content Good luck
NSE:TCS
by ShreeKrishna_F
TCS Projection For Next 52 Weeks Bullish View From 01Oct25Key Strength of TCS 1. The full name of TCS is Tata Consultancy Services Limited. 2. It is a company of the Tata Group. 3. It was founded in 1968. 4. Its headquarters is located in Mumbai, Maharashtra. 5. It is one of India’s largest IT service companies. 6. TCS provides IT consulting and digital solutions at the global level. 7. The company operates in more than 46 countries. 8. It has over 600,000 employees. 9. The company functions through more than 200 delivery centers. 10. The company’s revenue is around 30 billion US dollars. 11. TCS focuses mainly on IT services and business solutions. 12. It provides application development services. 13. TCS is also a leader in cloud computing. 14. The company places strong emphasis on digital transformation. 15. Business Process Outsourcing (BPO) is part of its services. 16. It offers specialized solutions for banking and finance. 17. The healthcare sector is also a major client base. 18. It provides services to the retail industry as well. 19. Telecom and manufacturing sectors are its clients. 20. The company develops AI and machine learning solutions. 21. Data analytics is also part of its offerings. 22. It works in the field of the Internet of Things (IoT). 23. It also provides cybersecurity solutions. 24. The company is known for its Global Network Delivery Model. 25. It serves Fortune 500 companies. 26. The United States is TCS’s largest market. 27. It also has a strong presence in Europe and Asia. 28. It has numerous development centers in India. 29. Its R&D unit is located in Pune. 30. This unit is named TRDDC. 31. TRDDC works on software research and engineering. 32. The company has developed tools like MasterCraft. 33. iON is its platform for education and examination solutions. 34. TCS BaNCS is a product for financial institutions. 35. The company’s mission is to enable business through technology. 36. It continually invests in innovation. 37. It has a Co-Innovation Network. 38. It collaborates with universities and startups. 39. K. Krithivasan is its current CEO. 40. Before him, Rajesh Gopinathan was the CEO. 41. Tata Sons is its largest shareholder. 42. The company is listed on the Indian stock market. 43. Its ticker symbol on NSE is TCS. 44. It is known as a major dividend-paying company. 45. In 2018, it crossed a market cap of 100 billion dollars. 46. It holds a leading position in India’s IT industry. 47. It is also a top company by employee strength. 48. Employees come from various countries. 49. A large number of women are employed. 50. The company has focused on digital skill training. 51. It is preparing itself for an AI-driven future. 52. Recently it launched an AI transformation unit. 53. Amit Kapur has been appointed as the head of this unit. 54. The company has extended contracts with global firms like Virgin Atlantic. 55. During Covid-19, it adopted a work-from-home model. 56. Its Secure Borderless Workspaces model became well known. 57. It is active in CSR activities. 58. It works in education and healthcare under CSR. 59. It contributes to environmental protection as well. 60. It has participated in the Digital India initiative. 61. The company has trained lakhs of youth in skill development. 62. It promotes diversity and equal opportunities. 63. It places special emphasis on women leadership. 64. It is a leader in campus recruitment. 65. It is highly popular among engineering students. 66. The company’s work culture is considered professional and collaborative. 67. Employee development programs are conducted. 68. Digital platforms are available for learning. 69. The company has registered many patents. 70. It develops innovation-based solutions. 71. Its financial performance has been consistently strong. 72. Its global client retention rate is high. 73. Customer satisfaction is its priority. 74. It also works with governments of many countries. 75. The company provides IT infrastructure services. 76. Cloud migration solutions are also available. 77. Partnerships with AWS and Azure are included. 78. It also offers SAP and Oracle services. 79. The demand for digital banking solutions is growing. 80. The company contributes significantly to India’s export sector. 81. Its share in the Indian economy is notable. 82. It ranks at the top in IT exports. 83. The company’s brand value is considered trustworthy. 84. It has won numerous technology awards. 85. It follows governance and transparency standards. 86. Its management structure is strong. 87. Global recession can be seen as a challenge. 88. Infosys, Wipro, and HCL are its competitors. 89. Employee costs and visa rules are also challenges. 90. Even then, the company’s performance has remained stable. 91. Its focus on new technologies has increased. 92. Artificial intelligence is part of its future strategy. 93. It is working on generative AI solutions. 94. The company provides digital advantages to its clients. 95. It is efficient in handling long-term contracts. 96. Client loyalty is its major strength. 97. The trust of the Tata brand gives it strong support. 98. It has a strong identity in the global economy. 99. It is considered the face of India’s IT industry. 100. TCS will continue to lead in technology and innovation in the future.
NSE:TCSLong
by TheGoldenFarmsofEquity
TCS – Bearish Outlook Intact, But a Wave B Bounce in Play?Chart Structure (Weekly) TCS has been locked in a corrective decline since the 4592.25 peak. The latest fall into the historical support cluster (near 3056–2890) completed a five-wave structure within wave A. From here, a bounce toward wave B is possible, with resistance around 3350–3600. Bullish trigger: RSI shows a bullish divergence (price made a lower low, RSI made a higher low). Upside potential: A move towards the 3350 resistance zone. Downside risk: If support fails, the next major level sits near 2292 — aligning with a larger wave C. So the long-term outlook remains bearish, but a short-term bounce looks probable. Fundamental Headwind Adding to the technical picture, the looming H1-B visa fee hike is a structural negative for Indian IT companies. TCS, Infosys, and peers with heavy US revenue exposure could see margin pressure in the quarters ahead. This reinforces the larger bearish bias, making any bounce counter-trend in nature. Illustrative Option Play – Bull Call Spread For those looking to play the short-term bounce while limiting risk, one way is to structure a bull call spread: Buy 3000 CE (Oct Expiry) at ₹42.1 Sell 3040 CE (Oct Expiry) at ₹31.25 Lot size: 175 Net Cost: ₹1,899 Max Profit: ₹5,101 (~26%) Max Loss: ₹1,899 (~10%) Breakeven: 3011(4%) Reward/Risk: 2.7 (Note: Prices are as of EoB 29th September 2025. This is only an example to demonstrate risk-managed structures. Not a trade recommendation.) Summary Long-term: Bearish, with risk of a wave C drop toward 2292. Short-term: Bounce into wave B likely, targeting 3350–3600. Strategy: A bull call spread provides a clean, limited-risk way to play this bounce, while respecting the larger bearish setup. Disclaimer: This analysis is for educational purposes only and does not constitute investment advice. Please do your own research (DYOR) before making any trading decisions.
NSE:TCS
by WaveXplorer
Part 3 Institutional TradingPart 1: Introduction to Option Trading Option trading is a sophisticated financial instrument that allows traders to speculate on or hedge against the future price movements of an underlying asset. Options provide rights, not obligations, giving traders flexibility compared to traditional stock trading. Unlike futures, where contracts are binding, options give the choice to exercise or let expire. This makes them attractive for hedging, income generation, and speculative strategies. Part 2: What is an Option? An option is a contract between a buyer and seller that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a predetermined price (strike price) on or before a specific date (expiration). Call Option: Right to buy the underlying asset. Put Option: Right to sell the underlying asset. Options derive their value from the underlying asset, which can be stocks, indices, commodities, or currencies. Part 3: Key Terminology in Option Trading Understanding options requires familiarity with core terms: Strike Price: Price at which the option can be exercised. Expiration Date: Last date the option can be exercised. Premium: Price paid by the buyer to purchase the option. In-the-Money (ITM): Option has intrinsic value. Out-of-the-Money (OTM): Option has no intrinsic value. At-the-Money (ATM): Option’s strike price is near the current market price. Part 4: Types of Option Contracts Options can be categorized as: American Options: Can be exercised any time before expiration. European Options: Can be exercised only on expiration. Exotic Options: Complex options with non-standard features, e.g., barrier, Asian, or digital options. Part 5: Option Payoff Structure Option payoffs determine profit or loss: Call Option Payoff: Profit if underlying price > strike price at expiration. Put Option Payoff: Profit if underlying price < strike price at expiration. Graphs are often used to visualize potential profit/loss for both buyers and sellers. Part 6: Option Pricing Components Option prices (premiums) are influenced by: Intrinsic Value: Difference between strike price and underlying price. Time Value: Additional value due to time remaining until expiration. Volatility: Higher volatility increases option premiums. Interest Rates & Dividends: Affect option valuation for stocks. Part 7: Option Pricing Models Common models used to calculate option premiums: Black-Scholes Model: For European options, considers volatility, interest rate, strike price, and time. Binomial Model: Uses a tree of possible prices to calculate option value. Monte Carlo Simulation: Used for complex or exotic options. Part 8: The Greeks – Measuring Risk Greeks quantify how an option’s price changes with market variables: Delta: Sensitivity to underlying price. Gamma: Rate of change of delta. Theta: Time decay impact. Vega: Sensitivity to volatility. Rho: Sensitivity to interest rates. Greeks help traders manage risk and structure positions. Part 9: Option Strategies for Beginners Simple strategies include: Long Call: Buying a call to profit from price rise. Long Put: Buying a put to profit from price fall. Covered Call: Selling a call against owned stock for income. Protective Put: Buying a put to hedge an existing stock. Part 10: Advanced Option Strategies Advanced strategies include: Spreads: Buying and selling options of the same type to limit risk. Vertical Spread, Horizontal/Calendar Spread, Diagonal Spread. Straddles & Strangles: Betting on high volatility without direction bias. Butterfly & Condor: Complex strategies for range-bound markets.
NSE:TCSEducation
by SkyTradingZone
BULLISH TREND - TCS - CASH OR OCT FUTURETCS is being respected at the extreme demand zone and now upside movement will start. TCS can be bought with the stoploss of 3000 and extreme target of 3500. INTERMEDIATE target of 3150-3300 are also there. TOTAL BULLISH ON TCS TILL NOVEMBER 2025 📉 THIS CHANNEL IS ONLY FOR EDUCATIONAL PURPOSES. Disclaimer: I am Not a SEBI registered analyst. I just share my positions to do paper trading and no where its a recommendation! Please do your own analysis before taking any trade.
NSE:TCSLong
by Navjyotpatheja
TCS at Confluence of Resistance / EMA / ST/ GAP/ AVWAP / FIB Between 3500-3550, TCS could face strong resistance on multiple fronts and they are listed below. Daily SuperTrend GAP Zone 50 DEMA at 3540 (retesting it after a long time, expect a rejection) Fib retracement of 61.8% of the recent swing Avwap from the recent swing (at 3530) 100% (abc pullback) from the swing low (at 1498) Daily chart with Harmonic pattern, suggests that one more low at 3000 odd levels is due. The same is being observed as per the EW counts Here is the chart with possible path/count/target destinations Finally, this is a first bounce after a sharp correction; expect first bounces to be sold in to, similarly, first dip will be bought in to. In all likelihood, I am not expecting TCS to go up much from here.. expecting a meaningful decline before resuming the upmove. Disclaimer: I am not a SEBI registered Analyst and this is not a trading advise. Views are personal and for educational purpose only. Please consult your Financial Advisor for any investment decisions. Please consider my views only to get a different perspective (FOR or AGAINST your views). Please don't trade FNO based on my views. If you like my analysis and learnt something from it, please give a BOOST. Feel free to express your thoughts and questions in the comments section.
NSE:TCS
by Murthy_Santhosh
7
TCS 1D Time frame📍 Current Price & Range Current price: ₹3,063.80 Day’s High / Low: ₹3,106.90 / ₹3,052.00 52-week High / Low: ₹4,494.90 / ₹2,991.60 🔍 Key Levels Immediate resistance: ₹3,100–₹3,110 Next resistance: ₹3,200–₹3,250 Immediate support: ₹3,050–₹3,060 Psychological / strong support: ₹3,000 📊 Indicators & Momentum Price is just below near-term resistance, showing hesitation. Short-term trend is neutral to slightly bearish; momentum is weak. RSI and MACD suggest neutral to weak momentum, no strong reversal yet. Stock is trading well below its 52-week high, indicating it has already corrected significantly. 🔮 Possible Scenarios Bullish breakout → Sustaining above ₹3,110 could push price toward ₹3,200–₹3,250. Sideways / consolidation → Likely to trade between ₹3,050–₹3,110 if no strong catalyst. Bearish pullback → Breaking below ₹3,050 may take price toward ₹3,000, and further down to ₹2,950–₹2,900 if weakness continues. 👉 Outlook: At the current level (₹3,073.80), TCS is in a neutral zone. The next directional move depends on either a breakout above resistance or a fall below support.
NSE:TCSLong
by Knowledgehub
8
Best Candlestick Patterns for Traders1. Doji Candle Definition A Doji candle is formed when the open and close prices are virtually equal, creating a candle with a small or non-existent body and long shadows. The Doji signifies indecision in the market. Neither buyers nor sellers have control, indicating a potential reversal or a continuation depending on context. Types of Doji Candles Standard Doji: Equal open and close prices with long upper and lower wicks. Dragonfly Doji: Small body at the top, long lower shadow. Indicates bullish reversal if found at the bottom of a downtrend. Gravestone Doji: Small body at the bottom, long upper shadow. Indicates bearish reversal if found at the top of an uptrend. Long-Legged Doji: Long upper and lower wicks with a tiny body. Shows extreme indecision. Trading Implications Appears after strong trends to indicate potential reversals. Confirmation is critical; traders often wait for the next candle to determine the market’s direction. Risk management is essential because Doji candles alone do not guarantee a reversal. Example Imagine a strong bullish trend; suddenly, a Gravestone Doji appears. This could indicate that buyers are losing control, and a bearish reversal might follow. Traders might consider exiting long positions or preparing for a short opportunity. 2. Engulfing Pattern Definition The Engulfing Pattern consists of two candles: Bullish Engulfing: A small bearish candle followed by a larger bullish candle that completely engulfs the previous candle’s body. Bearish Engulfing: A small bullish candle followed by a larger bearish candle that engulfs the previous candle. This pattern signifies a strong shift in market sentiment. Characteristics Bullish Engulfing: Occurs at the bottom of a downtrend. Indicates buyers taking control. Bearish Engulfing: Occurs at the top of an uptrend. Indicates sellers taking control. Trading Strategy Look for significant volume during the engulfing candle for confirmation. Place stop-loss below the swing low for bullish or above swing high for bearish setups. Often paired with support and resistance levels for higher accuracy. Example During a downtrend, a small red candle is followed by a large green candle engulfing it. This signals that bulls are overpowering bears and a potential trend reversal is imminent. 3. Hammer and Hanging Man Definition These patterns have small bodies and long lower shadows. They often signal potential reversals but depend on their placement in the trend: Hammer: Bullish reversal at the bottom of a downtrend. Hanging Man: Bearish reversal at the top of an uptrend. Characteristics Body is small. Lower shadow is at least twice the size of the body. Upper shadow is minimal or absent. Trading Insights Hammer: Appears after a downtrend. Buyers start to gain momentum. Confirmation comes from the next bullish candle. Hanging Man: Appears after an uptrend. Sellers might be gaining control. Confirmation comes from a bearish candle following it. Example In an uptrend, a Hanging Man appears. The next candle is red, confirming that sellers are exerting pressure. Traders may look to short or exit long positions. 4. Morning Star and Evening Star Definition These are three-candle patterns that indicate trend reversals: Morning Star: Bullish reversal at the bottom of a downtrend. Evening Star: Bearish reversal at the top of an uptrend. Components Morning Star: First candle: Large bearish candle. Second candle: Small-bodied candle (Doji or spinning top) indicating indecision. Third candle: Large bullish candle closing at least halfway into the first candle’s body. Evening Star: First candle: Large bullish candle. Second candle: Small-bodied candle showing indecision. Third candle: Large bearish candle closing at least halfway into the first candle’s body. Trading Approach Confirm the pattern with volume. Look for support/resistance levels aligning with the pattern. Set stop-loss just below the lowest point (Morning Star) or above the highest point (Evening Star). Example In a downtrend, a Morning Star appears. The first candle is red, the second a small Doji, and the third a large green candle. This indicates a potential bullish reversal, signaling a long trade setup. 5. Shooting Star and Inverted Hammer Definition These patterns are opposite of Hammer and Hanging Man and indicate potential reversals based on trend location: Shooting Star: Bearish reversal at the top of an uptrend. Inverted Hammer: Bullish reversal at the bottom of a downtrend. Characteristics Small body. Long upper shadow, at least twice the length of the body. Minimal or no lower shadow. Trading Implications Shooting Star: Appears after an uptrend. Suggests bulls are losing control. Confirmation comes from the next bearish candle. Inverted Hammer: Appears after a downtrend. Suggests buyers are gaining momentum. Confirmation comes from the next bullish candle. Example An uptrend sees a Shooting Star appear. The next candle is red, confirming sellers’ dominance, signaling potential short opportunities. Conclusion Candlestick patterns are invaluable tools in technical analysis, helping traders anticipate potential reversals, continuations, and market sentiment shifts. Among the myriad of patterns, the Doji, Engulfing, Hammer/Hanging Man, Morning/Evening Star, and Shooting Star/Inverted Hammer are considered the top 5 due to their reliability and simplicity. Key Takeaways: Always use candlestick patterns in context with trend and volume. Confirmation is crucial; no single pattern guarantees a reversal. Combine candlestick analysis with other technical tools like support/resistance, moving averages, and RSI for higher probability trades. Risk management, stop-losses, and position sizing are essential for trading success. By mastering these top 5 candlestick patterns, traders can gain a powerful edge in analyzing market behavior and making informed decisions.
NSE:TCSEducation
by TechnicalExpress
TCS 1D Time frame🔍 Current Price & Context Trading around ₹3,089 Day’s range: ₹3,065 – ₹3,107 Previous close: ₹3,171 Market sentiment: Bearish, influenced by external factors affecting IT stocks. 📊 Technical Indicators Moving Averages: Short-term averages are slightly above current price, acting as resistance. RSI (14): ~30, indicating oversold conditions. MACD: Negative, showing bearish momentum. Stochastic Oscillator: Oversold, may suggest a short-term reversal. CCI (20): Below zero, confirming bearish trend. ROC (20): Negative, indicating declining momentum. 🧮 Strategy / Trade Ideas Long Setup: Entry near support (~3,050) if bullish reversal appears Stop Loss: Below 3,000 Targets: 3,100 first, then 3,150 Short / Pullback Setup: Entry if price fails near resistance (~3,100) Stop Loss: Above 3,150 Targets: 3,050 first, then 3,000 ✅ Summary TCS on daily chart is bearish but oversold. Watch immediate support (~3,050) for potential reversal, and resistance (~3,100 – 3,120) for pullback risk. A breakout above resistance could target 3,150+, while failure of support may lead toward 3,000.
NSE:TCSLong
by Knowledgehub
2