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These Basic Include the various terms that are around in stock market. What is meant by stock exchange? a stock exchange is a constituted body for the purpose of assisting, regulating or controlling the buisness of buying, selling or dealing in securities. Stock exchange could be a regional stock exchange whose area of operation is specified at time of its recognition or national exchanges, which are permitted to have nationwide trading since inception. In our country NSE was incorporated as National Stock Exchange. "an exchange where security trading is conducted by professional stockbrokers" What is an equity Share? Total equity capital of company is divided into equal parts of small denominations each called a share. For example, in a company the total equity capital of Rs. 2,00,00,000 is divided into 20,00,000 units of Rs. 10 each. Each such unit of 10 Rs. is called a Share. Thus a company tehn is said to have 20,00,000 equity shares of 10 Rs. each. The holders of such shares are members of the company and have the voting rights. What is Derivative? Derivative is product whose value is derived from the value of one or more basic variables, called underlying. the underlying asset can be equity, index, forex, commodity or any other asset. What is an Index? An Index Shows how a specified portfolio of shares prices are moving in order to give and indication of market trends. It is basket of Securities and the average price movement of the basket of securities indicates the index movement, whether upward or downward. What is depository? A depository is like a bank wherein the deposits are securities like equity shares, debentures, bond, government securities etc., in electronic form. A depository holds securities in an account. it transfers securities between accounts on the instruction of the account holder. A depository further Facilitates transfer of ownership of securities without having to handle securities. it also facilitates safe keeping of shares in electronic form. What is dematerialization? It is the process by which the physical certificates of an investor are converted to an equivalent number of securities in electronic form and credited to investor's account with his depository participant. What are the depositories in India? NSDL - National Securities Depository Limited CDSL- Central Securities Depository Limited What is meant by Market Capitalization? the market value of a quoted company, which is calculated by multiplying its current
share price(market price) by the number of shares in issue is called as market capitalization. For example a company A has 120 million shares in issue. the current market price is Rs. 100. the market capitalization of the company A is Rs. 12000 millions. How does investor get access to internet based trading facility? Internet based trading facility is the brokerage trading account. Generally refferred as Demat account. A demat account is like a storage for your shares, just as bank is for your money. Demat account is mostly needed, whether you trade online or offline. The trading account is a service from the broker which allows you to buy or sell between market and you. The demat account is linked to your trading account to faciliate easy clearing of shares. Demat account is required to take delivery of shares. If you are trading in derivatives, demat is not a necessary. Formalities or documents needed for Demat: - A person needs to have a ICICI or HDFC(in most cases) bank account, Pan Card, Address proof, Chequebook with MICR Code on it(For producing a Cancelled Check. Choosing Brokerage: - There are many Brokerage firms like ICICI Direct, Ventura, Geojit, Indiainfoline, 5Paisa, kotaksecurities. We can visit the sites of these and choose the company with least brokerage and best Facilities. Facilities like charting etc. Higher the Turnover of the trading, least is the brokerage the company will charge you. Then the Brokerage firm links your bank account with the demat account. Linking of the account means that you can pay-in our pay-out money from demat account from terminal itself. The Share you purchase will remain in your Demat account What is Brokerage and how one should calculate the brokerage The brokerage that some company charges you is 0.01-0.03 percent in intraday 0.01-0.03 percent in futures, and 0.1-0.3 in delivery. It varies from company to company. A general table is given below how to calculate it.
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So on Intraday we have total Brokerage of 0.08220% on each trade of buy and sell, and 0.05684% in futures buy and sell. It is to be noted that the total is applied to one side only here as the buy and sell are already summed. You can include your
In this way day trader can take profit in any market direction. A day trader enter and exit from stocks with in few minutes to few hours on the same day. But when we trade on high volume and large capital this 10 paisa makes the big difference.50-100. Most of the broker wont tell you that…so whenever some broker tell you that they are giving you this brokerage then just add the above mentioned. You Sell 100 Shares at 102 Rs.50 then total profit you made is not 50 paisa but 100. So if you sell the share on 100. each and sell at 102 Rs. selling at higher Price) or short(Selling at higher. For example: If you a share in intraday (Same day square off) of XYZ company at price say 100.brokerage in the above table and get the total brokerage that is charged. Day traders can utilize exposure on their money i.000 in your account and your broker provides you exposure of 1:5(Some brokers even provide 10-12). Advantages of day trading? First.000 of equity/shares. If you are not able to square off .0822. the aim of a day trader is to take advantage of the price movements with in one day to earn profits. Secondly. What is Day Trading? Day trading involves taking position either long(Buying at Lower. this is bit confusing but means the same. Disadvantage of Day trading? at the EOD you have to square off your position at whatever loss or profit you have. buying at lower price) in the stock market and closing(square off) that position at the End of the day(EOD). It is done in a down trending market. you didn’t gained any profit.e they can buy and sell at higher rate or sell at higher and then buy at lower rate.08220% i. the broker provides some exposure to them for extra trading. Then it means that you can trade worth 50. For Example.0822 Rs. profit and loss are both in your account. The brokerage structure mentioned in the above table is the hidden charges or we can say the additional charges other then brokerage which are always payable. = 100. Consider an example below: You have 10.e. it is short trade. Day traders can take either position long or short i. if in some case you are not able to square off your buying position at the EOD then next morning before 9:30 you have to transfer extra money to your account to carry the trade or the brokerage company will square off the position at whatever rate it is trading. A day trader may trade several times a day in same stock or different stocks. Brokerage Company only provides you the exposure. each and buy at 100 Rs. You Buy 100 shares of 100 Rs. thing about Day trading is that it is the most difficult trading where profit or loss can be unlimited. because until that part you have paid price of the share plus the brokerage. but he will close all his positions before the EOD. Then total price of the share you should consider is 100 X 0. Now this does matter to some new traders that what impact 10 paisa can make on a trade.0822 = 42 paisa appx. they have nothing to loose. It is done in an Up trending market. it is a long trade. This means is that until and unless you sell the above share above 100.e.
000 then it means that you faced drawdown of 50%.67% 50% ----.7%.000 capital and if you lose 20. As you can see from the chart above.000 and your capital comes to 50. now lets say you make a gain of 40. LossOfCapital/Percentage of Profit Required 10% ----.000 from lowest point in order to get back to break eve(starting point).00. It is the percentage of money we lose from our capital after finishing a trade. a line chart can give the reader a fairly good idea of where the price of an asset has traveled over a given time frame.150% 70% ----.000.11% 20% ----. the order goes into bad delivery/short sell.900% 100% ----. This is the most basic type of chart used in finance and it is generally created by connecting a series of past prices together with a line.your selling position at the EOD. then you are in big trouble.233% 80% ----. What Does Bar Chart Mean? .000.00.25% 30% ----. and at the fifth working day.000 to 1.100% 60% ----. it is not difficult to see why line charts have become so popular. Next day.66.400% 90% ----.Blowout/Broke Line Chart.000. this is important point. 5-8% penalty is charged.86% 40% ----. So buying and not squaring off is not big problem but selling and then not squarring of is a big problem. What is Draw Down? Draw Down is a frightening word in day trading. you have sold the shares without physically having them in your demat account. For example if you start day trading with 1. Exchange blocks your Money worth No. if you start with 1. the most important factor is that.000 again your drawdown will be 16. your drawdown would be 20%.11. Bar Chart and Candle Stick Charts What Does Line Chart Mean? A style of chart that is created by connecting a series of data points together with a line. Since the closing prices are often seen as the most important ones to keep track of. because you loose 50% from your capital and would need to make 100% on Rs. exchange tries to deliver the Sold shares from your account. you will need to make 50. of shares sold. but everytrader will experience some draw down.000 and your capital increases from 80. Measuring Draw Down Recovery A detailed Table is Given Below showing how much percentage of profit you require to recover a given percentage of drawdown. since you dont have the Shares. 50. The reason being that.42. now if you lose 20.20.
open. on which. The closing price is displayed on the right side of the bar. __________________ What is Sensex and Nifty? The Sensex is an "index". and the bottom represents the lowest price. it means that the prices of the stocks of most of the major companies on the BSE have gone up. If the Sensex goes up. this tells you that the stock price of most of the major stocks on the BSE have gone down. Just in case you are confused. The BSE and NSE are both situated in Bombay.A style of chart used by some technical analysts. the top of the vertical line indicates the highest price a security traded at during the day. and close for a security each day over a specified period of time. There are other stock . and the opening price is shown on the left side of the bar. What is an index? An index is basically an indicator. These are the major stock exchanges in the country. It gives you a general idea about whether most of the stocks have gone up or most of the stocks have gone down. the BSE. The Sensex is an indicator of all the major companies of the BSE. is the Bombay Stock Exchange and the NSE is the National Stock Exchange. and the bottom represents the lowest price. The Nifty is an indicator of all the major companies of the NSE. If the Sensex goes down. and the opening price is shown on the left side of the bar. the Nifty represents the top stocks of the NSE. Just like the Sensex represents the top stocks of the BSE. low. as illustrated below. security traded at during the day. What Does Candlestick Mean? A price chart that displays the high. The closing price is displayed on the right side of the bar.
pips.. that "whatever position.This is the least effective method and used by most. These are the type of stops that get stopped out most frequently and are based on emotions rather than technical analysis.just read it like novel. This is called the “BSE Mid-cap Index”. There is an index for the FMCG stocks.g. as a stock moves in the intended direction.". Easier said than done! in my opinion before entering into the world of trading one should prepare his mind or take an oath. Once you have a plan it is a question of just sticking to the rules. So Prepare your mind before trading that you will use stoploss. E. i am introducing these stoploss here only for information purpose. but they are not as popular as the BSE and the NSE. Many people are taught to use stop losses. Once you are proved wrong you are taken out of the wrong trade with small loss rather then taking huge losses. how well technical analyzed it is.. The strategy involves placing your stop 10 points . There are many other types of indexes. The reason being that it protects your capital. There is an index that gives you an idea about whether the mid-cap stocks go up and down.This is a form of trailing stop. There is an index for the automobile stocks etc.Most of the stock trading in the country is done though the BSE & the NSE. __________________ Introduction to Stop Losses Risk management is one third of the key to successful trading. Monetary Stop: . along with a trading plan and psychology. I am Providing the introduction to stoploss that might not be understood for new traders but dont worry u will understand it once we go ahead with the thread. Here in our forum there are many advance strategy where we can use these undergiven stoploss method. but use them incorrectly. so that elementry of stoploss is Learnt. A plan for stop losses is crucial to take the emotion out of your stop loss process and preventing stopping out too early. no matter how sound it is. points or percentage of acccount value to determine a stop loss level. Believe me when i Say . they will be in use as we learn advance strategy.exchanges like the Calcutta Stock Exchange etc. I will always use a PROPER STOPLOSS in all my trades. Bar Stop: . the stop will trail with it. This involves choosing an amount of money. But Just go through it. how to use these stoploss depends from person to person. like in the illustration of DRAW DOWN. There is an index for the metal stocks. The problem is that stop losses should be based on technical indications not a monetary value.i myself incurred losses many times just because i didnt used stoploss and thats y i am compelling to use it.. Besides Sensex and the Nifty there are many other indexes.
Remember the candles must be closed. place your stop loss 5 points below the low of the hammer. If you are entering a long position after a hammer and confirmation. When using SAR. If you were short you place your stop 10 points above the high of the two bar candle. In the price chart if the successive bottoms are higher then preceding bottoms. When putting SAR into charting software. Candle Stop: . If there is too much risk then reject the trade.If you are entering a trade on a candlestick signal then you can use the open. if the price is in uptrend we can say that it has potential to move higher. When the stop is hit. Support and Resistance Stop: . the stop is moved closer to the price. for a few moments it increases suddenly and comes down and again will rise in small amounts and some times large amount alos. Ask yourself at what level is my original analogy wrong. or above resistance if short. we can say that the price of the stock is RISING if it is in uptrend for timebeind. SAR stands for Stop And Reverse. the trader reverses direction. you do not want to use SAR unless there is a good trend. As the next candle closes move your stop loss accordingly.below the low of the two most recently closed candles. Parabolic SAR Method: . To prevent Market Maker manipulation adopt the following strategy when placing stop losses at support and resistance levels. As each andle closes. As the stock increases. The uptrend indicates that for the time being the forces of demand are stronger then the forces of supply and there more buyers for the stock then their are sellers. THE PRICE IS SAID TO BE IN UPTREND.As Market Makers are aware that people place stop losses just below and above support and resistance. if the successive bottoms are higher then the preceding ones you can conclude that the price of the stock is in uptrend. low. __________________ Uptrends Generally the price of the stock moves up and down in small movement over a period of time. In an uptrend the top position have no importance in respect of the establishment of an uptrend. it is a complete trading system. remember the Market Maker diary. close to determine your entry point and stop. it gives you a stop loss level represented by a dot on the chart. It works best in trending markets. do not use open candles. meaning if you follow the method you are always long or short.Parabolic SAR is not just an indicator. If the stock moves up reallocate the stop loss 10 points below the low of the previous two candles. you need to be one step ahead of the game when using this strategy. If it comes below the low of the hammer it is probably not a reversal and a good place to stop out. A line drawn connecting successive bottoms is called uptrend. For example if you were long then determine the low of the two most recent candles. move the stop accordingly but NEVER lower the stop. Measure the range between the support and resistance. For an example consider the example chart from one book: - . If he stock moves down leave the stop where it is. Place your stop loss 10% of the range either beneath support if long. high. It is an ‘always in’ system. Even though the price is fluctuating by moving up and down. It is not very useful during the Market Makers lunch period where there is little volatility.
UPTREND BREAKTHROUGH The uptrend may change or reverse at any time and the forces of supply can dominate the forces of demand. when this happens the price trend breaks the uptrend line and moves below the uptrend line. .
In downtrend we consider the Lower Tops. but the main theme is that Downtrend has changed. . Stock may fall at the eod. Like in uptrend we consider the higher bottoms. after following the trend for some time the force of demand overcame the forces of supply and their was a trend reversal. or may start forming uptrend or no trend at all. if the second top is lower then The previous one then we may conclude that the Supply has overcome the demand and the price may fall to further down levels. At this moment of Trend we approach the method of Sell at higher and buy at bottom. Now it is not sure that it is a trend reversal. the next pattern whatever the chart forms need to be identified for further trading. The given two charts illustrate the Downtrend Formation and breakthrough: Downtrend Formation and Breakthrough We can see in the above chart that downtrend was formed with the second top lower then the previous chart.__________________ DownTrends Downtrend is just opposite to the uptrend. We Connect the First Top with the second Top that has formed at lower then the First.
2.Now i am going to introduce the buying and selling method which i have backtested for last 8-9 months. We let our profit run untill and unless the ongoing price reverses. 3.The firs thing we do is determine the trend either up or down. Use of Stoploss in every Trade. If the uptrend is formed. Profit margin in this method is lesser as compared to the advanced trading methods. We buy the equity at point C (Second higher Bottom). Exact Exit. then we buy the equity at the start of the second higher bottom or sell at start of the second lower top. It requires you to follow the DISCIPLINE in terms of: 1. Exact Entry as per rule. For example Consider the chart below. and moreover Be emotionless and work like ROBOT. once the price gets reversed we immidiately exit after taking a profit of 2 Rs. . Detecing the trend: .
. if it doesnt then let your stoploss hit and stick to discipline. The main theme is to follow the DISCIPLINE. Once the price reverses then we cant say where it goes. because some times the stoploss doesnt get hit and the force of demand again wins the force of supply. Consider the chart below. and Move on to next scrip and follow the Same discipline.Second higher Bottom.The main motive is to let your profit run and be in riskless trading envirement. Cause Chances are there that stoploss doesnt get hit.In case the price doesnt get reversed then you should let your stoploss hit. it is better to stick at your stoploss rather then exitting at the same price or with fear. in the above case B-C= 2 Rs down. Why Stick if Not reached 75%: . Either let your profit run and take it. So if the price reaches 75% of your target and reverses then you should exit immidiately. and moves down toward where you have put the stoploss. Consider the Figure Below. at D pattern has reversed and you should exit. Why Exit at reverse: . Or let your Stoploss hit.Some times the price reverses before the 75% of your target or on a failed uptrend.I consider stoploss using this method to be the Difference between The previous top . Stoploss: .
out of which . if the Volatility or fluctuation is more then 80 paisa then you should enter and exit.In the above method. the target that can be achieved is the difference between previous top and second higher bottom. To make it more superior you should enter into the trade only when the least Difference between the top and bottom is more then 0.20% of the scrip price.20%) you should take entery only if the difference between the top and bottom is more then 80 Paisa.(400+0. you should exit immidiately if that happens or 75% of that is achieved. .08% is taken as brokerage in most cases and rest is your profit. For Example for a scrip of 400 Rs. if price fluctuation is less then you shouldnt enter. the reason being that all your profit will be gone in brokerage only. That should be your price target.
Support and Resistance Level Day Trading Technique The concepts of support and resistance are undoubtedly two of the most highly discussed attributes of technical analysis and they are often regarded as a subject that is complex by those who are just learning to trade. If it is going up then that then let it run and as it reverses you exit. In all Viceversa for Sell orders in Downtrend..these terms are used by . you should Enter only if it gives you this much else dont... The above is little confusing so if you dont understand any thing then do ask me. This doesnt mean that you should exit immidiately at that point..This is the least profit margin you should seek. It is least...... I will post the real example of intraday later.
After a resistance level is penetrated. it is believed that demand will overcome supply and prevent the price from falling below support. buyers become more inclined to buy and sellers become less inclined to sell. support and resistance can come in various forms and it is much more difficult to master than it first appears. it is believed that supply will overcome demand and prevent the price from rising above resistance. The logic dictates that as the price declines towards support and gets cheaper. sellers become more inclined to sell and buyers become less inclined to buy. it often becomes a support level. this is because investors want to limit their losses and will sell later. . By the time the price reaches the support level. By the time the price reaches the resistance level. What is Resistance? Resistance is the price level at which selling is thought to be strong enough to prevent the price from rising further. when prices approach the former level.traders to refer to price levels on charts that tend to act as barriers from preventing the price of an asset from getting pushed in a certain direction. it often becomes a resistance level. At first the explanation and idea behind identifying these levels seems easy. After a support level is penetrated. but as you'll find out. The logic dictates that as the price advances towards resistance. What is Support? Support is the price level at which demand is thought to be strong enough to prevent the price from declining further. this is because buyers who didn't buy at that price before it went up are now willing to buy at that price.
If a security is approaching a resistance level. it can act as an alert to look for signs of increased selling pressure and potential reversal. it signals that the relationship between supply and demand has changed. A resistance breakout signals that demand (bulls) has gained the upper hand and a support break signals that supply (bears) has won the battle. How can Support & Resistant Levels help you make profitable trading decisions? Identification of key support and resistance levels is an essential ingredient to successful and profitable trading. If a security is approaching an important support level. At first the .The concept of SUPPORT AND RESISTANCE is essential to understanding and interpreting the markets.these terms are used by traders to refer to price levels on charts that tend to act as barriers from preventing the price of an asset from getting pushed in a certain direction. support and resistance define natural boundaries for rising and falling prices. __________________ Support and Resistance Level Day Trading Technique The concepts of support and resistance are undoubtedly two of the most highly discussed attributes of technical analysis and they are often regarded as a subject that is complex by those who are just learning to trade. Support defines that level where buyers are strong enough to keep price from falling further. Just as a ball bounces when it hits the floor or drops after being thrown to the ceiling. If a support or resistance level is broken. Resistance defines that level where sellers are too strong to allow price to rise further. Being aware of the support and resistant levels of stocks and indices can greatly enhance analysis and forecasting abilities. it can serve as an alert to be extra vigilant in looking for signs of increased buying pressure and a potential reversal.
The logic dictates that as the price advances towards resistance. The logic dictates that as the price declines towards support and gets cheaper. it is believed that demand will overcome supply and prevent the price from falling below support. What is Resistance? Resistance is the price level at which selling is thought to be strong enough to prevent the price from rising further. By the time the price reaches the support level.explanation and idea behind identifying these levels seems easy. What is Support? Support is the price level at which demand is thought to be strong enough to prevent the price from declining further. sellers become more inclined to sell and buyers become less inclined to buy. it often becomes a support level. buyers become more inclined to buy and sellers become less inclined to sell. this is because investors want to limit their losses and will sell later. this is because buyers who didn't buy at that price before it went up are now willing to buy at that price. By the time the price reaches the resistance level. After a support level is penetrated. . but as you'll find out. support and resistance can come in various forms and it is much more difficult to master than it first appears. it is believed that supply will overcome demand and prevent the price from rising above resistance. After a resistance level is penetrated. when prices approach the former level. it often becomes a resistance level.
Bull. If a security is approaching an important support level. it signals that the relationship between supply and demand has changed. Opportunist[/URL][/B] Few things to be considered before we plunge in Trading World:= Make an exploration in Metstock with following Formula. A resistance breakout signals that demand (bulls) has gained the upper hand and a support break signals that supply (bears) has won the battle.com/"]Blog . Resistance defines that level where sellers are too strong to allow price to rise further.when today's close is Greater . If a support or resistance level is broken. Just as a ball bounces when it hits the floor or drops after being thrown to the ceiling. If a security is approaching a resistance level.Adapt Overcome[/B][/COLOR][/SIZE][/FONT] [B][URL="http://bullbearopportunist. support and resistance define natural boundaries for rising and falling prices. __________________ ------------------------------------------------------------------[FONT="Fixedsys"][SIZE="3"][COLOR="Green"][B]Improvise .The concept of SUPPORT AND RESISTANCE is essential to understanding and interpreting the markets. it can act as an alert to look for signs of increased selling pressure and potential reversal. Support defines that level where buyers are strong enough to keep price from falling further.blogspot. Bear. Being aware of the support and resistant levels of stocks and indices can greatly enhance analysis and forecasting abilities. How can Support & Resistant Levels help you make profitable trading decisions? Identification of key support and resistance levels is an essential ingredient to successful and profitable trading. it can serve as an alert to be extra vigilant in looking for signs of increased buying pressure and a potential reversal.
Let me put forward the importance of 65:45 ATLEAST.i have to get ATLEAST 250% means per trade 5 % Profit just to stay in break even status. 2nd many times my stop would be Hit and if i am putting 3 % on an average Stop then in 50:50 case i donate 150 % of my Capital to Mkt. Say in an year i take 100 trades and my delivery brokerage is 1 % and i employ ALL of my capital in Each trade.ON MY CHART has given 17 good trades out of 23 and i got my edge giving tool.they see a set up or indicator or Osc in a chart and starts believing that probably this MA Envelope or BB or MA crossover or MACD or RSI or Stoch . So uptil now i am ALREADY MINUS 250 % hence my rest 50 trades on which the stop was not hit .this will not or may not stand over a period of time nor this can be used on other instruments.suppose we want to find out in our data base how many such occurence happened in past then we write : cum(if(c > ref(c.than yesterday's close. So i donate 100 % of my capital to broker community in 1 yr. Various support and resistance levels of your recommended stocks are given to you in advance and your job is to simply observe the price action of your recommended stocks and take decision basing on the predetermined support and resistance levels. The day trading recommendation which you receive from stock market technical experts perfectly helps you to do day trade without making such calculations and analysis. With this you will find in a database of say 800 hundred and above days it is 51: 49.1. Here people makes 2nd biggest mistake. Now with 65:35 i loose 105 % in Stop and 100 % towards brokerage so 205 % so even if i get 4 % profit on those 50 trades where stop is not hit i get 260 minus 205 so i get 55 % ANNUAL RETURN WOW !! better than bench mark.If it qualifies then that is ROBUST . A simple eyeballing of a sample data (the chart on my monitor ) and arriving to a conclusion based on THAT sample Data but NOT based on a subastantial data nor this observation is validated on other instruments . We now enter Technical Analysis arena to get that 65:35 edge giving tool. So plz thirive to get that Edge and Plz DO NOT BOOK PROFIT in below % than what u risked. To successfully use this technique 1.-1). First you should purchase day trading recommendation with 2-3 clear support and .and for today's close less than yesterday's close we write : cum(if(c < ref(c. to find out the total data base we write cum(1).hence this observation is rubbish.1. So we have to first and foremost thrive for an EDGE which is ATLEAST 65:35 otherwise we are Gambling a 50:50 case.Evapoartes.0)).depend on that do not vaccilate. After messing up this initial Eureka type Discoveries Disappear .0)). Bah !! then how do i trade ??? if it is almost 50:50 .-1).Another thing how does then Price came up so much from its 800 days AGO Price ? This people do not understand first slowly slowly people understands that it is 50:50 case and HOLD is best strategy. So plz first code your observation and see how many times it gave me result on a substantial past data.
actively traded stocks and large cap stocks from stock market technical analysis. if the price of your recommended stock took support near support levels.. if the chart formation supports the price action then you can consider it as a strong buy signal. First you should purchase day trading recommendation with 2-3 clear support and resistance levels in highly liquid stocks. Various support and resistance levels of your recommended stocks are given to you in advance and your job is to simply observe the price action of your recommended stocks and take decision basing on the predetermined support and resistance levels.com 2. you can consider buying that stock to exit at next resistance level after booking the profit. To successfully use this technique 1. actively traded stocks and large cap stocks from stock market technical analysis. you should consider the 1st resistance level as immediate support level... or if the price is strongly moving in upward direction towards 2nd resistance levels after crossing 1st resistance level.if the recommended stock is moving in between 1st and 2nd resistance level... you should consider the 1st resistance level as immediate support level. IMPORTANT: .com . Do check via line chart the reversal formations at tops. similarly if it is moving in between 2nd and 3rd . valuenotes. s Originally Posted by rajputz The day trading recommendation which you receive from stock market technical experts perfectly helps you to do day trade without making such calculations and analysis. if the chart formation is negative then you should stay away from the stock.if the recommended stock is moving in between 1st and 2nd resistance level...com . similarly if it is moving in between 2nd and 3rd resistance level. you should consider the 1st support level as your immediate resistance level or your target level. Some free tips can be taken from. you should compulsorily observe the price charts every time before taking buying decision. in the same way if you enter into stock at 3rd support level. 4. you can enter into that stock. you can consider buying that stock to exit at next resistance level after booking the profit. Some free tips can be taken from. downtrends etc. valuenotes. IMPORTANT: . 3.. if the chart formation is positive as learned in previous thread.resistance levels in highly liquid stocks. if the price of your recommended stock took support near support levels.com 2. icicidirect. 5. you should consider the second support level as immediate resistance level or your target level and if you enter at 2nd support level. you should consider the 2nd resistance level as immediate support level. or if the price is strongly moving in upward direction towards 2nd resistance levels after crossing 1st resistance level. icicidirect.
2. you can enter into that stock. There are 3 types of channelling stocks or rolling stocks some may say: 1. Descending Trading Range -Stocks bounce up and down the channel in a downtrend. Ascending Trading Range -Stocks bounce up and down the channel in a an uptrend. you should consider the 1st support level as your immediate resistance level or your target level. you should consider the 2nd resistance level as immediate support level.resistance level. downtrends etc. Do check via line chart the reversal formations at tops. rather like drawing trend lines to see the channel. Well. . 3. if the chart formation is positive as learned in previous thread. if the chart formation supports the price action then you can consider it as a strong buy signal. Channeling/RangeBound Stocks Horizontal Trading range is actually part of channeling stocks or range bound stocks. in the same way if you enter into stock at 3rd support level. 4. you should consider the second support level as immediate resistance level or your target level and if you enter at 2nd support level. You can draw a parallel line connecting the top and a line connecting the bottom. trading range bound stock can be great short term money making opportunity by shorting and going long within the range. Channeling stocks are stocks that trade within a certain range between high and low price points for a period of time and may become predictable over time. you should compulsorily observe the price charts every time before taking buying decision. A channel forms when stock price bounces up from support line and then drops back to near/or support line after hitting the resistance line. 5. if the chart formation is negative then you should stay away from the stock.
__________________ ------------------------------------------------------------------- .3. Horizontal Trading Range -Stocks bounce up and down support and resistance level in a horizontal trading range.
if the price of the stock rises from second bottom and moves above the peak level(middle of the two bottom price levels). The double bottom forms because the buyers who did not buy stocks at first bottom price consider it as good opportunity to buy stocks at second bottom level and this buying interest creates demand for the stock to rise sharply from second bottom level.Adapt Overcome[/B][/COLOR][/SIZE][/FONT] A double bottom and triple formation formation occurs when the price of a stock creates one bottom by falling and rising to certain level(like V shape) falls again to the same approximate level and rise from there creating second bottom. When the buying interest is more then the supply of the stock at 2nd bottom level.[FONT="Fixedsys"][SIZE="3"][COLOR="Green"][B]Improvise . So the price advances aove the intervening peak levels. the upward momentum gains strength and it moves to further higher levels. So breakout above the peak between first and second bottom gives buy signal in double bottom formation. Down are some examples of the double bottom formation and tripple bottom formation: - . buyers will chase the stock upward with their offers to buy.