My top recommendations for the Chart Patterns if you are interested.

In this thread, I will explain to you the psychology behind the cup & handle pattern. The attached chart is of Balaji Amines.

Point 1 = Profit booking by many traders and fresh short positions opened taking the stock down till level 2 where there is no more selling

Point 2 - a level wherein the stock becomes attractive again for fresh buyers and short positions will be covered adding strength to the stock.

It moves back till point 3 which is now the psychological resistance level and would again see profit booking by weak hands.

But, this time the stock fell till point 4 wherein the buyers (smart hands) are willing to pay a higher price and further push out the weak hands absorbing all their selling. This is the ideal entry point for a risk-loving trader as this is the closest to the stop-loss point.

Finally, you see - in the whole process - the stock has shifted hands from uninformed retail investors to "smart hands". And finally followed by a cup and handle breakout. The target will be the depth of the cup projected upwards from the breakout level.

When to take entry for a conservative investor? At candle no 5 - the breakout candle and stop-loss a few % below breakout level.

In the next thread - I will explain to you how the same principle works for most of the patterns (No need to mug up the pattern names)

Praj Industries - keep on the radar. Price is telling something. Smart money most probably pushing out. Strict SL needed. Volatility contracted.

Laurus Labs - I will look forward to add more of it in my investment portfolio between 570-590 zone as it coincides with my 30 MA principle on weekly chart.

Plan your investments as per your risk appetite.

HDFC Bank - price bouncing back from the support must knock off the previous highs else it becomes weaker. Not a healthy sign till now. Need a strong follow-through. The zone of 1290-1300 is still to be tracked carefully.

Hello Friends 🤗

Here is my filter to identify short term breakout in #stocks

Save it & Make a part of your trading tool

Top 4 set up I love to follow.

Buy all time high
Sell all time low

Buy 52 week high
Sell 52 week low

Buy 50 days high
Sell 50 days low

Buy above ST 10.2 (MR trade where DC 50 low & high is 10 ATR or more)
Sell below ST 10.2( MR trade for long unwind or shock therapy apply)

#CPR is an indicator which is used for #Intraday in Stock Market.

This learning thread would be on
"𝙐𝙨𝙚𝙨 𝙤𝙛 𝘾𝙋𝙍"

Like❤️& Retweet🔁for wider reach and for more such learning thread in the future.

Also, an investment strategy is shared using CPR in the end.

1/24

Central Pivot Range (CPR) acts like a magnetic level for any stock/index. Traders use it for intraday but it works on higher time frame as well.
CPR is just the three lines which is like a magnet and price approaches these levels. CPR acts like a support or resistance.

2/24

What are these three lines now?

𝗣𝗶𝘃𝗼𝘁 = (High + Low + Close)/3
𝗕𝗖 = (High + Low)/2
𝗧𝗖 = (Pivot – BC) + Pivot

For intraday chart use previous day candle HLC. Similarly, for Daily Chart it would be Monthly HLC. For Weekly/Monthly Chart use Yearly HLC.

3/24

This indicator is available on Zerodha Kite (web version) and it works well there. It's also available in @tradingview but setup needs to be done based on the time frame.

Images are shared for CPR setup of both the terminals (Zerodha and Tradingview).

4/24

CPR can be used in finding trend.

If CPR is moving up for the next day, then trend is up. If CPR is moving down for the next day, then trend is down.

Some examples for both:
In the below chart of Nifty (5 mins), CPR is moving down and price is also in downtrend.

5/24

My past experience tells me to turn cautions on any asset class, the moment #GOLDMANSACHS gives incremental target when , it has already run towards extreme
As #GS sees #CrudeOil at 140 , I rein in my one-way Bullish optimism, I have been bullish since 40s-60s, 120 now
#OOTT