#Nifty watch this trendline to be taken out for a good long trade! https://t.co/nC32qh2rOO

LOG vs LINEAR Charting!

This is the most important thing especially if you are analysing long term charts!🧐

So, let's get this right today!

Let’s go🧵...

1⃣ Wait, What's Log chart?

Before I define Log chart, let's look at the chart you are using daily - 'The Linear Chart'

- Linear chart is used by default in most platforms. This is probably why you never knew log charts

Wait, don't click on 'log' yet before you understand it...

2⃣ ok, so what does Linear chart mean?

Take a look at the image
- The y-axis is separated equally by 1000 points starting from 0 to 11000.
- So, any linear chart would have its y-axis equally separated by 'N' points always

And... that's where the problem lies...

3⃣ But, I don't see any problem?🤔

Ok ok.. let me explain...

- Can you look at this #TATAELXSI chart & tell me the price in '99 when it was listed? No!
- Can you draw a proper trendline in this chart? No!

Reason is because of the price congestion between '07 to '20...

4⃣ What else?🧐

- Whenever there is a price change in an instrument & it's drastic it'd be difficult to analyse on a linear chart

- Look at this example of #BTCUSD. What happened in 2021(refer to the red box)? 🤔

All this is because of the equally spaced Y-axis!

hmmm... ok🙄

#RCF quarterly chart

Breaking out from a massive 15-year long descending triangle.
Price has been in a tight range in the last 1 year.

This could just be the beginning of a new long-term uptrend.

Stop - 78.

#stockideas

It took me 10+ years & more than 1000+ hours of practice…

to master these 5 IMPORTANT RULES WHILE DRAWING TRENDLINES 🎯

These simple rules, if mastered, can help one spot HIGH PROBABILITY TRADES!

Ready to learn?🤓

Let’s go🧵…

1⃣ Trendlines are zones and not a single line!

- Due to volatility in price, many times prices tend to spike on both sides
- So, consider trendlines as zones from multiple swing highs(include wicks) to get the best fit trendline
- Your winning probability increases with zones

2⃣ Trendlines with more touchpoints

- Any trendline with 3 or more touchpoints is a very significant one
- The price points around significant trendlines are important & should be watched

Observe the commentary in the Nifty chart below

3⃣Trendlines on higher Time Frame are more significant

- A trendline on the 15 min chart will be easily broken than a trendline on the daily
- A shorter time trendline break might just mean a consolidation phase before the price moves up again resuming the larger trend

4⃣ The steeper the trendline the more likely it will break

- The less steep the trendline angle, the more significant it is & more likely to be respected.
- Any trendline with an angle greater than 30° is steep & likely to be broken before the previous trend continues.

A COMPLETE COURSE with strategies on Trading for FREE!

Yes, you heard it right!

So, stop paying for webinars & watch these videos!

My objective with the #LearnwithTrendlineInvestor series on Youtube was to help people learn.

So, I hope it benefits!

Let’s go! 🧵...

1⃣ How to use Trading view - CHARTING TOOL?

In this video I cover all the basics a beginner needs to know as to how to use this simple yet amazing tool which is available for

2⃣ How to read CANDLESTICKS without knowing the names?

Candlesticks are the foundation of charting and I cover how to read candlestick charts without needing to know the names of

3⃣ When to use LOG/LINEAR CHARTS?

Even the biggest handles get this simple concept wrong and I teach how you can have a better perspective on charting by making a simple switch to log

4⃣ The secrets to find a significant and reliable TRENDLINE!

It's easy to get carried away with trendlines as it is totally subjective. But, don't worry in this video I teach rules which you can use to identify valid trendlines and how to draw

#NiFTY_50(15966.65)

#Hold short.... Continue...as per weekly view.

Daily chart.

Pending means target near to Fibonacci retracement level 0.382% (14366).

Weekly chart for Fibonacci retracement level.

#Perception

@_Harsh_Mehta_ Historically 85% of time nifty intraday range was above 2.3%. Taking Counter trade after this number is reached is useful. Tuesday was near this number. Was expecting a fall on Wednesday. Was holding puts from tuesday closing. Reaped 1.1 lac at open sterday.

#NIFTY weekly chart showing some similarities with the 2015-16 fall.

Both falls were preceded by an almost non-stop bull run for 1-2 years (counting from last retest of 200-week SMA).

In 2015-16, index fell 25% in 52 weeks. So far, from Oct 21, we have fallen 17% in 34 weeks.

#MARKETS
In a bear mkt increase the tf to 6m / 1y, u will become bullish. Short and medium term bearish moves are actually long term pullbacks. Since 1990, there were only 9 bearish years out of 32.
.....

......6m chart - history says -30% to -65% bear moves. 30% drop leads to 12.5k. Time to do pyramid averaging SIPs every month.