Trade with Quant

Here with this blog we will discuss most common Chart pattern used by technical analyst. So here we go...... Fibonacci Retracement : - The Fibonacci retracement levels are 23.6%, 38.2%, 61.8%, and 78.6%. While not formally a Fibonacci proportion, half is additionally utilized. The marker is valuable since it very well may be drawn between any two huge value focuses, like a high and a low. The marker will at that point make the levels between those two focuses. Fibonacci Retracement Cup and Handle Pattern : -  A cup and handle value design on a security's value diagram is a specialized marker that takes after a cup with a handle, where the cup is looking like a "U" and the handle has a slight descending float. The cup and handle is viewed as a bullish sign, with the right-hand side of the example ordinarily encountering lower exchanging volume. The example's arrangement might be just about as short as seven weeks or up to 65 weeks . Double Top :- The Double top ...

"If you cannot follow a rule, do not begin speculating or investing, as you are sure to lose." Those were the days when we used place a hedge and forget about it. Hedgers now become more knowledgeable and technically aware thanks to the increased information stream. Hedgers consistently decide about their position and cash management. These decisions effect profitability of an organization. Today with this blog we will learn how candlestick patterns can help in hedging, because many trend reversal candlesticks can assist in timing the placement or lifting the hedge Let’s first discuss types of hedge: 1.      Long Hedge: When underlying position is at risk of rising prices. Take an example of an Equity investor who created a short position in Infosys future for monthly expiry but in very short term he accepts a bullish momentum so he decided to buying a call option or selling puts. If in case price rises in short term then these position can counter balanc...

Why gaining Control over Emotions is important When you are Trading in Stock Market? It’s wisely said in the markets that “ The expectation that you bring with you in trading is often the greatest obstacle you will encounter .”   – Yvan Byeajee. I am writing this article for all my friends who say Technical analysis always put me in losing side, Technical analysis made me lose money more than I earn from technical analysis. So, with my experience in equity market I have learned that 90% of the Chart Pattern breakouts works but the only thing that doesn’t work is our control on emotions i.e. our Greed and Fear While we are in Trade. We have to be extra-ordinary, fast and different from the investors/Traders to make big money in Stock Market. So, first let’s discuss what factors plays important role that affects your trade in stock market. Fear:-   Fear? Really??   Yes it is fear that forces you to book loss in trade and the bitter truth is few acc...

Trend Lines As technical analysis is built on the assumption that prices trend, the use of  trend lines  is important for both trend identification and confirmation. A trend line is a straight line that connects two or more price points and then extends into the future to act as a line of support or resistance Some Terminology: - Higher highs and  Higher lows:  -  When the peaks and troughs are ascending on a chart, and uptrend can be seen happening. In that uptrend, prices can be seen as higher highs and higher lows. As the uptrend is occurring, prices from the previous period that were seen as highs are even higher than they were before. Lower Highs and  Lower Lows : -  In contrast to overall increase in value that an uptrend indicates, downtrends can be seen with the descending peaks and troughs that a chart shows. Therefore, the change in prices show lower highs and lower lows.  Breakout: - A breakout is when prices pass thr...

What is a trend? A trend is directional movement of prices that remains in effect long enough to be identified and still be profitable. Anything less makes technical analysis useless. If a trend is not identified until it is over, we cannot make money from it. A trend must be recognized early and be long enough for the technician to profit. Also remember that there are trends of different lengths, shorter trends are the part of longer-term trends. How to identify Trend We can identify trends by looking at graph of prices for extreme points, tops and bottoms, separated by reasonable time periods, and how to draw lines between points.want to learn how to draw trend-line click here .  Trends Develop from Supply and demand As in all markets, whether used cars, grapefruit, real estate or industrial products, the economic principle of   interaction between supply and demand determines prices in trading markets. Each buyer(demand) bids for a certain quantity at a ce...

Nifity Pharma Nifty Pharma has under performed in the past five years. A Virus leads the current fall, and health becomes the prime concern for the world, it is more likely to outperform. I am sharing some charts based on my study that shows Bullishness on Whole Pharma sector. Industry/Sector Analysis - Nifty pharma breakout in monthly chart. Nifty Pharma - Nifty pharma breakout in weekly chart Nifty Pharma weekly chart Company/Stock Analysis Now some pharma stocks that form Bullish patterns: - 1.) Biocon Ltd is forming Bullish flag pattern: - Biocon 2.) Divis laboratories limited formed bullish structure: - Divis Lab 3.) Bullish Flag Pattern in Cipla: - Cipla ltd 4.) Alembic Pharma also looking good at a price of 700:- Alembic Pharma 5.) Sun Pharma also looking good:- Sun Pharma By seeing all these charts and patterns I am confident on  Bullishness of Pharma sector.This approach of analysis is called top do...

I am a very small retail investor.I usually don't take any kind of risk 300-400 rupees daily profit is enough for me rather than loosing thousands. Safe trading is the key to earn.For me,Its all about my strategy and how do I protect my stop loss. Generally I gave preference to fundamentally sound stocks to make their charts.Before making any chart i follow price action of that stock every day. My theory is " Keeping Things Simple ". Below  is the chart of reliance industries that i made before trade. Fig-1 So, How do I make it? I opened a Candlestick chart of Reliance industries and uses two hours candle for making my chart.Looking at the chart I found that From Feb 16,2020 to May 7 , 2020 stock is facing resistance at point A,B,C,D as shown in Fig-1.Then, I drew a resistance line by connecting all four point. I also drew a trend line by connecting Point-1 and Point-2 as shown in Fig-1.I traded on reliance on multiple supports and makes money ...

Author:-   Shailesh Bhardwaj                   ( Student at NIT Kurukshetra) It’s wisely said in the markets that “ What seems too high and risky to the majority generally goes higher and what seems low and cheap generally goes lower.”  – William O’Neil” I am writing this article, to explain   all my friends how Technical’s play a great role in equity markets, and how do a single candle can changes Trend .How do we all get fooled by behavior of stock. So, with my experience in equity market I have learned that we have to be extra-ordinary, fast and different from the investors/Traders to make big money in Stock Market which I will explain further Now first discuss about what is TECHNICAL ANALYSIS? At the most basic level, technical analysis refers to the use of price charts and other bits of market information to make investment decisions.  Technical analysts try t...