Bharti Airtel Analysis

Entry/Exit and SL for the Bharti Airtel.

Daily/Weekly Time frame looks bullish.

                      DAILY

                                Weekly

Basket Swing Trading

 1. Super Trend usages 

  a. 1 hour buy trend

  b. Day hour buy trend

  c. Check Weekly Volume UP

  d. Market is more than 1Cr

--> STOP LOSS: Day High Break

Example:

WEEKLY

Monthly

Daily

Strategy 6: Rising Wedge Pattern

 The rising wedge is a popular reversal pattern that is predictive in nature and can give traders a clue to the direction and distance of the next price move.

Rising wedges appear regularly in the financial markets and traders gravitate towards the pattern because of its simplicity in identification and application

WHAT IS A RISING WEDGE PATTERN?

The forex rising wedge (also known as the ascending wedge) pattern is a powerful consolidation price pattern formed when price is bound between two rising trend lines. It is considered a bearish chart formation which can indicate both reversal and continuation patterns – depending on location and trend bias. Regardless of where the rising wedge appears, traders should always maintain the guideline that this pattern is inherently bearish in nature (see image below).

HOW TO IDENTIFY A RISING WEDGE PATTERN

The rising wedge pattern is interpreted as both a bearish continuation and bearish reversal pattern which gives rise to some confusion in the identification of the pattern. Both scenarios contain a different set of observation dynamics which must be taken into consideration.

Continuation Pattern:

1. Established downtrend
2. Rising wedge consolidation formation
3. Linking higher highs and lower lows using a trend line assembling towards a narrowing point
4. Confirm divergence between price and volume using volume function - MACD may also be used
5. Overbought signal can be confirmed by other technical tools like oscillators (RSI)
6. Look for break below support for short entry

Reversal Pattern:

1. Established uptrend
2. Rising wedge consolidation formation
3. Linking higher highs and lower lows using a trend line assembling towards a narrowing point
4. Confirm divergence between price and volume using volume function - MACD may also be used
5. Overbought signal can be confirmed by other technical tools like oscillators
6. Look for break below support for short entry

HOW TO TRADE THE RISING WEDGE PATTERN

The chart above shows a rising wedge ‘continuation’ pattern after a determined downtrend. The rising wedge is outlined by the blue dashed lines showing diminishing bull strength in the uptrend. Confirmation of the uptrend waning in strength can be seen using the volume tool on the chart which depicts fading volume in concurrence with the ascending price in the market. This is known as divergence, showing that the upward movement is coming to an end.

The entry point (labelled) occurs once the trend support line of the rising wedge has been breached. There are two common methods of entry:

1. Wait for a candle close below the support trend line before entry
2. Enter into the short position as soon as the price breaks the support line, regardless of the candle close

The stop level as highlighted on the chart is elected from the high point of the rising wedge located on the resistance trend line. This identification point makes it relatively simple to locate the stop level for novice traders. The limit in this example was taken from the previous swing low giving this trade an extremely positive risk-reward ratio.

Strategy 5: HEAD AND SHOULDERS PATTERN

 

key action points when identifying this pattern:

1. Identify the overall market trend using price action and technical indicators (preceding uptrend)
2. Isolate the Head and Shoulders chart construction
3. The distance between the ‘Head’ and ‘Shoulders’ should be as close to equidistant as possible
4. Delineate the neckline at the low point between both ‘shoulders’ – preferably horizontal but not obligatory

The Head and Shoulders chart pattern is a price reversal pattern that helps traders identify when a reversal may be underway after a trend has exhausted itself. This reversal signals the end of an uptrend. The Head and Shoulders pattern has a distinctive appearance resembling its namesake which includes a distinct ‘left shoulder’, ‘head’, ‘right shoulder’ and ‘neckline’ formation.

WHAT IS THE INVERSE HEAD AND SHOULDERS PATTERN?

The Inverse Head and Shoulders (informally known as the 'Reverse Head and Shoulders pattern) resembles the same structure as the standard foration but reversed. The Inverse Head and Shoulders is observable in a downtrend (see image below) and indicates a reversal of a downtrend as higher lows are created.

There is a general rule of thumb to designate stop and limit levels. Taking the high point off the ‘right shoulder’ will specify the stop level whilst the vertical distance between the neckline and high of the ‘head’ will approximate the limit distance – 1832.8 pips in this case. The risk-reward ratio on this trade is roughly 1:1.2 which is still within the DailyFX recommended risk management parameters.

Strategy 2: V shape

                                             V shape Strategy 

As the name implies, the "V" chart patterns have the letter "V" shape and prices shift their momentum from an aggressive sell-off to aggressive rally in its structure. 

The key factors of the pattern identification:

1. Sharp Downtrend
2. Sharp Uptrend
3. V shaped Pattern (usually 1-3 bars reversals)
4. Volume increase in both breakdown and breakout phases
5. Breakout over neckline
6. Pullback to the Neckline
7. Target

Stop loss: The stop loss is placed under the last lowest one

How to Do Option Chain Analysis

                                         OPTION Chain Analysis

NSE LINK:

Old Link:

 https://www1.nseindia.com/live_market/dynaContent/live_watch/option_chain/optionKeys.jsp?symbolCode=-10006&symbol=NIFTY&symbol=NIFTY&instrument=-&date=-&segmentLink=17&symbolCount=2&segmentLink=17 

New Link:

Nifty Bank Analysis 18 oct 2020

                     NIFTY Bank Analysis

As we can see it is formed V Pattern we can see the retracement of the 5% from the Top. 

So We can short it and Target Around 22600 by Oct End. 

CandleSticks Basic

 Type of Candle stick:

1. Bullish

1. Bearish
2. 
   
   
   
3. DOJI: The Doji is an excellent potential reversal signal. It occurs when the open and the close are the same. Usually, the open and the close are found in the middle of the price range.
4. 
5. HAMMER : It is important to recognize this sing as and indication of a potential reversal When it develop in Harmonic area. 

HARMONIC PATTERNS

                                         HARMONIC PATTERNS:

Content from Below Book: 

BOOK: The Harmonic Trader  

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1. Everyone knows that October historically has been a troubling month for the major markets.
2. particularly evident when several harmonic calculations converge at a specific price area to define critical support or resistance. This area is known as the Potential Reversal Zone.
3. The Key to utilizing these harmonic measures when analyzing a price chart is to determine the area where the greatest amount of calculated rations congregate.
4. When three, four or even five numbers come together within a specific area as defined by their respective structure, you must respect the high probability for some type of reversal.

                                                                    RULES

• Bigger the Pattern, the more significant the potential reversal ( Example : Weekly chart)
• If a PRZ contains four or five numbers, the area should be considered  very harmonic. If the price action reverse from this area, the PRZ could be considered as an important turning point. BUT if the price action doesn't reverse it worked indicate that the predominant trend is quite strong. 
• To determine valid reversals and to optimize trade executions. These skills require consistent dedication to research past harmonic examples and to analyze current set-ups.
• Price Gap in the PRZ occurs most frequently and is the strongest of all the warning signals. A price gap is an extremely significant indicator of an invalid setup and has kept me out of my bad trade

                                Entry Exit when the W Pattern  seen

Above diagram we can see the W pattern Making so Making the Entry when we see the upward Move. 

Keeping the Target Minimum of  Middle of the W . Later keep the Trailing Stop Loss