BC NANDY SIR CHART PATTERN

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Subhadip Nandy
@SubhadipNandy16 5 years ago 834 views

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I see a lot of traders following classical chart patterns . Being a pattern follower myself for some years , here is my advice to them as I feel some pointers will improve their accuracy . Again , this is not the only correct way but what I have learnt from my experiences

1. Volume confirmation is a must. Without the volume rules being fulfilled , there is no importance to the pattern

2. Understand where the pattern is taking place within the major price structure of the index/stock. An inverse head and shoulders bottom reversal occurs at market bottoms , not at market tops

3. If a pattern is valid, it will leap out at you from the computer screen . If it takes a lot of time for you to "see" the pattern , you are probably imagining things

4. Understand how the market players operate so that a pattern is created . Understand the psychological basis of market participants within the pattern . Best resource : Technical Analysis of Stock Trends by Edwards and Magee . You should read the book at least 10 times or more

5. A pro tip : Use line charts while searching for patterns . Bar charts or candlesticks will be confusing , a line chart consisting of only closing prices is much easier on the eye

6. Check whether major support/resistance zones exist after a pattern breakout. In short , check whether the breakout has empty spaces to run

7. Define an entry stop and how you will trail the trade once it get's going. Define when and why you will exit if something changes . Have your plan ready before you enter the trade.

8. Use modern indicators to support the pattern breakout. See whether a price breakout is supported by a momentum , volume or volatility breakout. If so , it adds weight to chances of success for the breakout

9. Last but not the least , use some for of money mgmt for initial position sizing and then scaling in or scaling out.
#bestofluck trading patterns :)

10. Trading patterns will need years of practice , there is no shortcut. The amount of time you spend and see the patterns working out will add to your experience . Took me 5 years to successfully trade patterns :)

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Subhadip Nandy
@SubhadipNandy16

Regarding the MFI divergence indicator those who are asking :
1. Link not working on TV
2. Not showing on spot Nifty/BankNifty
3. Code showing errors
All your answers are there in the original thread. Kindly do not expect spoon feeding .
SOLVE YOUR PROBLEMS ON YOUR OWN

Subhadip Nandy
@SubhadipNandy16

Two year back thread on MFI, someone liked this so came up in notifications . Rather than running around 100s of indicators, I have made this my go to indicator under any circumstances and have been using this for years

What do you think/use as the most robust leading indicator if following technical analysis ? Please answer with reason , I will provide my answer after 2 hours
( At Delhi airport , bored as hell )
— Subhadip Nandy (@SubhadipNandy16) August 12, 2019

This thread actually had some great answers , one can learn a lot about the thought processes of different traders from the answers. Please go thru them

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Subhadip Nandy
@SubhadipNandy16

Showing one example on how we see VolXplosion.
iBulHSgFin came under VolXplosion on 24th Feb, Check the price charts and the OI analysis. Price blasted today after OI buildup of two days.
Self explanatory

A single day long or short buildup can flutter to deceive. Analyse minimum 2 days to 5 days

SBI is now on watchlist
( disclaimer : already long today)

I am seeing many users using the VolXplosion as a daytrading concept. It does work , but the main juice is on positional plays. You will be much better off if you take this trades from a positional standpoint

The Decoding Volume & OI course is not just about VolXplosion. Analysing OI correctly gives you a lot of other trades.
DrReddy : OI buildup within range. We have discussed this in the video. Move seems to have started today

Subhadip Nandy
@SubhadipNandy16

My presentation on Money Management was based on a lot of sources as I mentioned. For traders interested on those sources , here they are

#OptimalF
Portfolio Management Formulas: Mathematical Trading Methods for the Futures, Options, and Stock Markets by Ralph Vince

The Mathematics of Money Management: Risk Analysis Techniques for Traders by Ralph Vince

#SecureF

#FixedRatio

The Trading Game: Playing by the Numbers to Make Millions by Ryan Jones

https://t.co/U0c65EbEog.

Subhadip Nandy
@SubhadipNandy16

Along with the levels, there is Trend Ratio.
Near 1 or below is bearish, near 2 or above is bullish
( this as per last day's closing).
If Trend Ratio is bullish, expect support at Balance or breakout above Upper level will mean rally will continue.

If Trend Ratio is bearish, look for break or Balance or lower levels .

On a bullish Trend Ratio if Balance breaks, expect all longs to be trapped . Can short with stop above upper breakout figure. And vice versa

Normally the Trend Ratios of both indices are in sync, a little bit of difference. But here BNF is bullish while Nifty is bearish. So, if playing bullish tomorrow concentrate on BNF, If playing bearish, concentrate on Nifty

Major Rule :
1. DO NOT play bearish is market above Balance
2. DO NOT play bullish is market below Balance

The Balance basically tells you which side is a bit trapped

As long as the market stays within the upper and lower levels, option sellers ( whether they have sold on friday or will sell tomorrow) are at an advantageous position and make money. Whichever side this level is broken, that side sellers will be trapped

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It is simply adding to your winners.

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• See, Everyone can see charts and find breakouts, pullbacks etc.