1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures - Bac
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Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -
Normally in any chart we will have two lines, the upper line is called the RESISTANCE line and the lower line is called the SUPPORT line. Ideally they are parallel. Only when they are not parallel it forms patterns.
In an ascending triangle you can see that the RESISTANCE (Upper) line is more or less flat the support line is sloping.
You have to understand the market psychology. The sloping support line indicates that the Sellers are slowly giving way to Buyers and some point there will be no/less sellers, at which point the buyers will take the market beyond the resistance line. For the sellers to control the Resistance line they have to sell till the Support line...
In the Descending triangle it is the opposite. The Support line would be more or less flat and the Resistance (Upper) line is sloping.
Normally in any chart we will have two lines, the upper line is called the RESISTANCE line and the lower line is called the SUPPORT line. Ideally they are parallel. Only when they are not parallel it forms patterns.
In an ascending triangle you can see that the RESISTANCE (Upper) line is more or less flat the support line is sloping.
You have to understand the market psychology. The sloping support line indicates that the Sellers are slowly giving way to Buyers and some point there will be no/less sellers, at which point the buyers will take the market beyond the resistance line. For the sellers to control the Resistance line they have to sell till the Support line...
In the Descending triangle it is the opposite. The Support line would be more or less flat and the Resistance (Upper) line is sloping.
Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -
Triangle Pattern and NR7 Relation
When the Previous day was NR7 day, you will most likely see a Triangle formation also in the daily and/or hourly charts. If there is a triangle formation and if it not symmetric then it makes your life easy.
Meaning,
NR7 & Ascending Triangle - Most likely LONG call above Yesterday's High.
NR7 & Descending Triangle - Most likely SHORT call below Yesterday's Low.
To add to the above, in an NR7 stock if other than Triangle pattern is formed it is better to be cautious. For example a FLAG or Channel formation normally would reverse.
Triangle Pattern and NR7 Relation
When the Previous day was NR7 day, you will most likely see a Triangle formation also in the daily and/or hourly charts. If there is a triangle formation and if it not symmetric then it makes your life easy.
Meaning,
NR7 & Ascending Triangle - Most likely LONG call above Yesterday's High.
NR7 & Descending Triangle - Most likely SHORT call below Yesterday's Low.
To add to the above, in an NR7 stock if other than Triangle pattern is formed it is better to be cautious. For example a FLAG or Channel formation normally would reverse.
Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -
When Neither the Resistance nor the support lines are nearly flat and both lines are sloping then that would form a Symmetric Triangle. That means both the Buyers and Sellers are not having the confidence and would want to wait.... In any case you will have to wait for the breakout and take the position. In the Symmetric Triangle case, it is 100% safe to wait and to take positions only after the breakout has happened.
When Neither the Resistance nor the support lines are nearly flat and both lines are sloping then that would form a Symmetric Triangle. That means both the Buyers and Sellers are not having the confidence and would want to wait.... In any case you will have to wait for the breakout and take the position. In the Symmetric Triangle case, it is 100% safe to wait and to take positions only after the breakout has happened.
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