As compared to Nifty in previous analysis BNF is showing much more bearishness and has corrected about 15% from the top whereas Nifty is around 10%. The previous rally that started on 30th Aug. is completely wiped out which in itself is not a good sign. Though BNF is hovering near support it had a great opportunity to break past the triangle pattern in smaller TF...
Nifty has been in negative territory from past few days also forming a H&S pattern on the top, a highly traded pattern, for about 1000 pts. target which has been completed a few days back. Now, after a few days of pullback a negative candle is formed on last trading session it may continue the trend in the direction of the primary trend i.e. down. But, there's...
After almost 3 months the stock has broken out of the rectangle or channel pattern with great volumes with RSI entering super bullish territory of above 60(Acc. to unconventional RSI).
With a retest and a bullish candle on the previous resistance which now has become support this stock is ready to fly to new highs.
Moreover, sector is also bullish. Therefore, a...
Using multiple confirmations, different timeframes and by applying rules of price action over a chart let's one understand HOW THE PRICE BEHAVES!
Here is an example of buying a stock at the lows (Disclaimer: NOT THE ABSOLUTE LOWS)
Let's start with a Higher TF- Weekly'
The stock is in a formation of a price action pattern called CUP & HANDLE, where CUP is...
Inverted H&S pattern with a huge Pinbar in the right shoulder and increased volumes with a bullish RSI. A trendline BO is also complete. Moreover, RR ratio is also in favour, fulfilling one aspect of money management others include, position sizing, risk managing etc.
Buy Price- 986
Accending parallel channel BO. A buy order should be placed above high. It may or may not retest the breakout. In all a buy should only be made when the high is breached.
SL-1678 (Since Accending channel BO is usually for bearish trades. But it can be traded will a small SL because it has broken towards upside.)
Chart is self explanatory with multiple factors in line with the breakout, a Bullish Pattern with increasing volumes and a EMA cross-over which is confirmed bullish RSI. As the pattern was advancing sellers tried to lower the price but buyers resumed the buying in between stating clearly that we are in control, with multiple rejections on resistance and support...
Starting with the trend:
Daily- Bullish with 21-day EMA well over 50-day EMA
Hourly- Walking on the footsteps of daily TF i.e. Bullish
Inverted H&S pattern with multiple rejections between 288-294 range making the resistance weaker and weaker. Moreover, the stock spent good number of hours near the resistance with no rejection from the zone,...
As a breakout & retest is complete, it gives the best scenerio for entry with compliance to the rules of money management as RR ratio and position sizing are considered as major components while entring a trade for a trader.
In this case, a low has been established at 665 which will act as a point for SL placement in the near future.
Types of traders entering...
Initial Understanding on Weakly TF:
1. Pattern: A clear Inverted H&S pattern is formed which took around 3 Years to form and that signifies entry in the Stage 2 i.e. Mark-Up.
2. Volume: Volumes has seen a drastic jump this year as compared to previous years, which again tells the presence of bulls.
3. Resistance Zone: A number of times resistance zone...
After a fantastic rally stock took a pause where buyers slowly started accumulating before a further push towards the new highs forming a clear cup & handle pattern which is definatly a bullish sign.
Trend intact on both daily and hourly TF.
TG- 2980, 3225
After a 1.5 month long consolidation the stock has finally broken out of the channel phase forming a typical Bull & Flag pattern indicating a further upside potential confirmed by multiple timeframe analysis. This analysis is divided into two different phases based on 2 different timeframes and those are:
1. Daily Timeframe
2. 1 Hour Timeframe
BO is done on 1 Hour TF.
Risk Reward Ratio seems fit with 1:1.7
Multiple Factors in play:
1. Stage 1 accumulation done, stock entring stage 2 Mark-up
2. EMA crossover done.
3. Jump in volumes, an indication of a successful exit for Stage 1 accumulation.
Disclaimer: Education Purpose only.
The stock has been trading in the range for past 200+ days and has started to show the signs of strength and these are:
1. A quick bounce from the support taking out the short term resistance of 1070.
2. Volumes have stated to increase showing the bullish sentiment among buyers.
3. The gap between 21-day and 50-day EMA has been reducing.
Why this time the...