This strategy basically comprises of Supertrend and 5-20 EMA crossover.
To know more about the Super trend indicator, watch our first video: https://goo.gl/kSLcys
To Read more about Supertrend Strategy in details, visit: https://goo.gl/gZmGwa
Parabolic SAR is a price and time based technical analysis tool which works very well in the trending market and also identifies potential reversal and stops. It is plotted on the price chart which appears as a dot just above or below the candlesticks or bars.
To know more about Parabolic SAR in details check our article here: https://goo.gl/kCKxn9
To learn Technical Analysis in details, check out our flagship course: https://goo.gl/D1aWFW
A very common problem with the intraday traders is that which indicators work well for the intraday trades. Being an intraday trader, chances are that you use technical analysis to identify trades based on different parameters. However, the first indicator which comes to our mind for intraday trading is Supertrend due to its simplicity. A ‘Supertrend’ indicator can give you precise buy or sell signal in a trending market. To know more about this indicator, follow our article by this link: https://goo.gl/vk4462
It is believed that one of the common mistakes made by novices is that they “spend too much time trying to discover great entry strategies and not enough time on money and risk management”. Below mentioned steps precisely guides how to effectively manage your trade or trading psychology.
1. Stop-loss points
2. Reducing the position
3. Selecting low risk positions
4. Limiting the initial position size
6. Short selling
7. Hedged strategies
Always remember that “you must be willing to accept a certain level of risk, or else you will never pull the trigger”.
Relative strength Index ( RSI ) is a technical analysis indicator developed by J. Welles Wilder. It is a momentum indicator which measures the speed of the change in price movements. RSI oscillates between 0 to 100. Traditionally ranges for this banded indicator is 70-overbought zone and 30-oversold zone . Signals are also generated by identifying divergences , centre line crossovers and also trend analysis.
Read the full article here: Relative Strength Index
The Fibonacci series is one such tool which has stood its test of time in Technical Analysis. It is a popular tool based on key numbers and their sequence identified by mathematician Leonardo Fibonacci. Fibonacci Retracement is specifically used for determining the support and resistance levels. It is based on the idea that markets will retrace a predictable portion of a move. After that it will continue to move in it’s original direction. It is very simple to draw. Just draw a trend line between the high and low and then after dividing the vertical distance by the key Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8% and 100%.
Read the full article here: Why Fibonacci series is important for Technical Analysis?
Gap Theory in Technical analysis represents a price range at which (at the time it occurred) no shares changed hands. It is the unfilled space or area in the chart. It is produced when on a particular day a certain stock at its lowest price is traded higher, compared to its highest price at which it was traded on the preceding day.
Read the full article: Gap Theory in Technical Analysis
Support is price level below the current market price at which buying interest should be able to overcome selling pressure and thus keep the price from going any lower.
Resistance is Price level above the current market price, at which selling pressure should be strong enough to overcome buying pressure and thus keep the price from going any higher.
Support and resistance analysis is an important part of trends as it can be used to make trading decisions and identify when a trend is reversing
When price drops to a support level, it will go back up
When price rises to a resistance level, it will go back down
Support and resistance levels both test and confirm trends and need to be monitored by anyone using technical analysis
Check Technical Analysis course for better understanding.
Charles Dow (1851-1902): The Father of Technical Analysis, and the discoverer of the Dow Theory. It lays down the guidelines to understand how the market moves and the foundation on which the monument of Technical Analysis stands today. Dow Theory can simply be represented as the ‘6 Tenets of Dow Theory’
• Market moves in summation of three trends
• Market trends have three phases
• All news is discounted in the stock market
• Averages must confirm
• Volumes confirm trends
• Trends continue, unless definitive reversals come about
What can be more important than knowing when to enter and when to exit in the stock market! An online technical analysis course can help you master the techniques of doing intraday stock trading very efficiently.
Given the volatile nature of capital markets in contemporary times, it is imperative to be equipped with every possible tool available to trade or invest successfully. Technical Analysis is an effective methodology which, if understood well, can allow one to be in a comfort zone in every kind of environment, be it trading range or trending market. The subject, as we are aware, deals with the pricing and chart parameters of a given asset class, be it nifty index, equity, commodities or currencies. This course has been prepared after a very meticulous review of market behavior and volatility. Students will learn the art of working in Intraday and Positional Trades, variety of techniques for understanding the market behavior and physiology of a normal Investor/Trader and how the stock markets react to this, with the help of charts.