IN TRADING, THE TREND IS YOUR FRIEND!

Buying a weak stock and Selling a strong stock is a crime in trading.

Sharing 3 SIMPLE methods that a buyer can use to identify strong stocks in an uptrend and increase the probability of success.

Sharing screeners link to help you out!

Ever wonder why a price corrects after opening gap up or price moves up after a dip.
Have you noticed this in stock market?

This phenomenon is called Climax.

This thread would on
"How to trade Climax"

Like 👍& Retweet 🔄for wider reach and for more such learning thread.

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So far, nobody shared or discussed Climax phenomenon and this was just a mere observation for us.

If you haven't seen any example of climax yet, then let's see an example:
This happened with Tata Steel today in intraday today.

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Climax is the last/ending phase of the trend in stock market.

There are two types of climax based on the trend in market:
1. Bullish Climax
2. Bearish Climax

Shared example of both below.

Let's dig into each of these and see what would be a trading setup.

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Bullish Climax:
As name suggests, it is the ending phase of bullish move/trend. After this price starts downtrend.

Setup:
1. Price should open gap up by over 2%
2. Mark mid point of opening candle. Go short if price is below this.
3. Opening candle's high would be stoploss

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Use this climax trading setup only in #Intraday and use 5 mins time frame chart.

Let's see an example of a bullish climax that happened in Tata Steel today.

Entry got triggered (1317) at 9:20pm when the candle was below the reference point. Trailing SL got hit at 1286.

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Trading on chart patterns is difficult, Until you see this:

Free Technical Analysis course (1/10) 🧵

Rounding Bottom or U Pattern or Saucer all are one and the same with different names and it is a bullish pattern.

Technically, it can be used for both continuation trades in an existing uptrend and reversal trade as well in the case of the downtrend.

Now how we trade rounding bottom pattern?

We try to find out stock that has the pattern but has not given a breakout above the neckline.

Generally, we have observed that majority move happens on breakout itself hence; we keep this stock in the watchlist just before breakout.

What does this mean?

Basically, we look out for the charts where price is consolidating just below the neckline or resistance.

As seen from the below chart where price was consolidation just below the resistance before the breakout and massive upmove.

Also, you would lot of Rounding Bottom Patterns when a stock is in uptrend. That's why this pattern is also called a bullish continuation pattern.

In below chart you can see 4 Rounding Top pattern in an uptrend for a stock.

Trading on chart patterns is difficult until you read this !⚡️

Everything about Ascending Triangle Pattern

Free Technical Analysis course (3/10) 🧵

Ascending triangle is created by price moves that allow for a horizontal line to be drawn along the swing highs and a rising trendline to be drawn along the swing lows.

Horizontal line is the resistance, trendline indicates higher lows, i.e. uptrend.

It is a bullish pattern.

How we trade Ascending Triangle pattern?

We try to find out stock that has this pattern but has not given a breakout above the resistance. That means it is forming higher lows and consolidating near resistance.

We track it before the breakout to capture a big move on breakout.

What does this mean?

Basically, we look out for the charts where price is forming higher lows and consolidating near the resistance.

As seen from the below, chart where price was in consolidation just below the resistance before the breakout and upmove.

Now the most important question is how we trade this pattern?

1. First identify stocks that are forming Ascending Triangle pattern and are about to give a breakout.
2. Stoploss would be the nearest swing low below the current price.

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How to Draw
Support , Resistance and Trendlines ?
A Foundation of Stock Market !

A Thread 🧵
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What is Support and Resistance ?

⏫Support is an area for price , where it halts due to demand of the stock at that price .

⏬Resistance is an area for price ,where it halts due to Supply of the stock at that price .
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How to Draw S/R ?

You can use Any time frame for Drawing S/R and it works on all time frames .

Whenever the Price Reverses from an area for more than 2 times that area can be called as S/R .

You can use Line Tool Or Rectangle tool to plot this on charts .

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Types of Support Resistance
1. Horizontal
2. Moving Averages
3. Trendline
4. Psychological Numbers (100 , 200 etc)

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Reversal of Polarity .

Whenever Resistance Breaks , it tends to act as support and Whenever support breaks it tends to act as resistance

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I have made a videos on chartink platform for various screeners

Here's a thread ✌️

Video 1 : Basics of Chartink

Video 2 : How to code indicator on chartink

Video 3: Techno Funda Chartink Screener

Video 4 : Stage 2