For all the basic stuff that I am using in this post, you will have to visit the following idea. This post is in continuation of SBI weekly divergence study..
Overbought -- OB
Oversold -- OS
Divergence -- Div
B-- Div after OB at A
C-- Double top...
These extensions are based upon external relationships among waves 1,3 and 5. Length of waves are added on top of each other. W3 could be equal to or 1.618 of W1, when added on top of W1. In this case W5 would be extended. But if W3 is more than 1.618 of W1 then W5 would be shorter than W3.
In case of extension, W5 could be equal to 1.618 times the length from 0...
There are 3 popular Fibonacci tools viz. Fib retracement, fib extension and fib projection. Most of the times traders get confused with these three and make wrong calculations.
These levels can be calculated manually but most advanced trading platforms provide tools so that you don't have to go through the time consuming process of writing everything on the...
Generally we see these patterns at the bottom or top of a rally. The market has to be in a prevailing trend for the last many waves. The wedge patterns suggest slow and gradual loss of momentum in the prevailing trend. This is a potential signal that a reversal is on the cards. Wedge formation can also be associated with decreasing volume, which act as another...
It is advised to do backtesting on the instruments you want to trade. You can also play with the moving average as different instruments respect different moving averages, some would respect 50 while other may respect 20 or 100.
Avoid this model in a sideways market when the moving average is flat / wavy. Trade when the EMA is trend up or down at a reasonable...
Stock market is not made for retail traders to win. It is made for them to lose and that is the only way professionals can make money.
They will drift retailers out in a shake out and force them to commit on the wrong side of the market. And trust me or not, this is the only way they can make money in the stock market.
There are a few reasons why the...
The price action is saying that this breakdown might fail but still we have to be prepared for both the sides.
Read the H&S educational post attached to this idea.
Please do not consider this idea as a tip.
It is an analysis for the traders who want to learn practical technical analysis.
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Maruti has been moving in an uptrend channel. Currently its in consolidation phase on this smaller time frame where price drifted down to 5885 zone. It may retest this level again before breaking out of the trend line for a target of 6025-6050.
1. Let the price settle down in the 5885 zone or lower before taking trade.
2. If price opens with a gap above trend...