Part 1: How to Count Waves Using Chart Patterns?

We can count waves using traditional patterns like Head and shoulders , Double Top and Bottom,
Triangle, cup & handle, etc. This article is about how you can count waves by identifying chart patterns.

I have covered Three chart patterns in this article,
1) Triangles
2) Head and shoulders
3) Double Top and Bottom

1) Head and shoulders :Free stockmarket elliottwave chart one

In addition, the two lows formed when the price failed to rise and fell back down were basically at the same level. The horizontal line is often referred to as the “neckline” When the price fails to fall back for the third time the neckline will break. So “head and shoulders” was officially established.

Changes in volume with head and shoulders:
During the formation of “head and shoulders”, the left shoulder has the largest volume , the Head has a slightly smaller volume , and the right shoulder has the smallest volume . The phenomenon of diminishing trading volume shows that when the stock price rises, the chasing force is getting weaker and weaker, and the price has the meaning of rising to the end.

Operation plan after the Head and shoulders appear:
When the head and shoulders formed, you can decisively follow up the short order. The formation of the head and shoulders indicates the beginning of a new round of decline in the market, and the minimum drop is the distance from the head to the neckline. The profit is very substantial. Therefore, studying the formation of the Head and Shoulders is also a necessary analysis process for band enthusiasts.

Wave Count:
Free nse stock market head&shoulders wave analysis

The left shoulder: wave 3/A.
The first touch on the neckline: wave 4/B
Head: wave 5/C
The second touch on the neckline: wave A/1
The right shoulder: wave B/2
The ending point of the right shoulder: wave C/3

2) TrianglesFree nse elliottwave triangle calls

These are the most commonly used triangle patterns. In this motion, we are going to understand the triangle in terms of the Elliot wave. We’ll be talking about the classical triangle pattern in an upcoming educational series.

Wave Count:free nse elliottwave educational tips

A triangle forms in corrective waves. There are Four corrective waves in Elliott wave theory. The corrective waves are 2,4, B, and X.
There are four waves in a triangle which are A, B, C, D, E.
The starting point of wave A of the triangle is the ending point of impulsive wave 1/3/A/W. After the completion of wave E of wave 1/3/A/W, the Impulsive wave will initiate.

3) Double Top/Bottom:Free elliottwave educational analysis

In the chart, you can sometimes see the stock price fluctuations. The stock price fell back after reaching the highest price. After some sorting, it rose again to near the previous stock price level and then fell back. Two “normally highs” The high point is formed on the circuit diagram and will not be seen again in the short term.

Wave Count:free nse elliottwave doubletop & bottom count

In a Bull market, The first Top of the pattern represents the completion of the impulsive wave. The ending point of the Impulsive wave is the starting point of the corrective wave.
I started the wave count from the first top and labeled it as A, B, and C waves.

In a Bear Market, The first bottom of the pattern represents the completion of the impulsive wave. The ending point of the Impulsive wave is the starting point of the corrective wave.
I started the wave count from the first bottom and labeled it as A, B, and C waves.
After wave C is complete, we can ride the impulsive waves.

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Understand The Cycle Of Doom To Make Winning Trades

stock market cycle of doom

I am starting this topic with a simple question,
Are you finding consistent profit in your trading? If yes, then you can skip this article, and congratulations!

Now, Let’s discuss talk about the rest of the traders.
Indeed, most traders don’t find profits consistently instead end up losing their money. It does not matter which market they trade.

There can be many reasons for not getting consistent profits.
Like, it can be risk management, trading system. It can also be trading psychology.

But the truth is, you are trapped! Ladies and gentlemen, I am showing you the numerous powerful psychological trap ever.

The Cycle of Doom

The cycle of doom involves three phases.

  • Phase 1: The search
  • Phase 2: The action
  • Phase 3: The blame

To become a successful trader, however, you will have to get out of the cycle of doom.
How can you destroy the cycle of doom?
First of all, you have to understand the cycle.

You need to understand what is going on! So you can identify and move beyond the Cycle of Doom in the world of consistently profitable trading.

Phase 1: The search

In this phase, you are searching for Read more

Quick Guide for a stock trader (Visualized)

Starting “a stock trader” is the way of money making is riskier but, we found a way from a perfect trader who really earn. There are 3 trading styles: position trading, swing trading and day trading. If other succeed in day trading, you succeed. The way to making money for you looks like this:

stock-trader

Timeframe of stock trader:

1.  A Japanese & Korean market will open at 6 o’ clock.
2. Start watching SGX Singapore nifty from opening. This will help you to predict India market.
3. China and Hong Kong market will open at 7 o’ clock. Study it with financial new papers.
4. Note a view of other web pages and analysis.
5. Start your laptop and trading platform for pre-market.
6. You’ll see pretty volatility in market 9:15 am to 9:45 am.
7. A Trading plan is alway important, find opportunities for your trading plan matches.
8. This time is very volatile and European market also will open.
9. Examine FII and DII activities.
10. A day trader will square off their position around 3 o’ clock.
11. After closing market, making note of what went in your trading.
12. U.S. market will open at 7 clock which is important for next trading day.

Quick guide on how stock price works!

Here is a visualization of the How stock price works!

how-stock-price-wroks

 

  1. At the most fundamental level, supply and demand in the market determine stock price.
  2. Price times the number of shares outstanding (market capitalization) is the value of a company. Comparing just the share price of two companies is meaningless.
  3. Theoretically, earnings are what affect investors’ valuation of a company, but there are other indicators that investors use to predict stock price. Remember, it is investors’ sentiments, attitudes and expectations that ultimately affect stock prices.
  4. There are many theories that try to explain the way stock prices move the way they do. Unfortunately, there is no one theory that can explain everything.

Credit goes: setofskill.com

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Trading stop loss order: Controlling You? Or…

 Trading-stop-loss


 

The primary explanation to target this subject is based from the reality the great bulk of e-mails. I get are tightly connected to that issue. The number one problem out there is generally one of the following:

 

Getting ‘stuck (stayed)’ with a position.

A position huge quantities and devastating losses.

A single stock position that is way too big.

 

The main problem is always the same exact above. At some point in time things changed and control shifted. You started off being in control and then, The stock you bought is beginning to control you. The position then went on to harmful your financial capital. And finally harmful for your emotional thinking and your capital.

Again, the beginning trigger is always ‘Control’. To be more accurate: The loss of control. In this article is exactly what you need to do in order to escape “losing control”:

No game plan if you think the stock goes to the downside.

Fixed: Apply stop losses. Create a habit of getting into your stop loss as soon as opening a new position.

Rationalize(thinking) losses and making excuses.

Fixed: Your stop loss will handle of any rationalizing.

Trusting in a company, management, your stock advisory,  fundamentals etc.

Fixed: Your stop loss will protect you from RED-events, issues you do not recognize or might not predict and more.

Trading Stop loss ?

Observe what the different solutions have in usual? You got it. A stop loss. It’s not affected by emotions and systematization. And secure you to a position if a stock achieves a predefined price.

In making a long story in short words : You need to manage anything you may in order to recover control and then keep in control. If your position is in control of you, do anything it takes in order to return in control. Sell? Absolutely Yes, that is correctly what I replied: SELL Or EXIT. Go to cash. Totally free your mind and stop rationalizing a losing position. Take a break. Re-group. Restore your mental capital and emotions. Next come back and stay to a controlled way of trading. Use stop losses and stay in control.

MoneyMunch says: each one problem is as a result of traders not cutting their losses and allowing all of them increase into big losses. Trading stop loss order. Trading stop loss. again, I am saying trade in stop loss order.

 

Few Links for help newbie:

Trading stop loss  protect for Traders.

Stop loss definition and basic.

Extra articles on Trading stop loss order.

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List of Online Brokers In India

Online-Brokers-In-India

At this time, NSE have greater than 345 stockbrokers authorized with it for stockbroking business. BSE includes a huge list of trading members/brokers than NSE. Any person who would like to take registration with NSE for stockbroking does have to pass through an online exam of NISM Capital Markets (Dealer) module apart from having other qualifications criteria detailed by NSE India. Right here is the list of some famous online stockbrokers in India.

If your stockbroking firm is not mentioned below, please lets know by sending an email to [email protected], we will include it below. In case  readers come upon any newer trading members/brokers – you might talk about it with us by commenting below this post. We value your help.

It is required to select the broker right after proper research. The brokerage you pay can make a major variation in the return you create in the long time run, and in most cases, it is confusing to transform the brokers once you have chosen your broker. So That, do correct studies prior to getting your choice. Most of the important information is available on the website and before wrapping up contact the broker and verify their brokerage plan considering some details can change.

List of Online Brokers In India

5paisa.com: Buy and sell shares on 5paisa.com with speeds comparable and at times better than NSE’s NEAT Terminal.    http://www.5paisa.com

Aditya Birla Money Ltd: ABM formerly known as Apollo Sindhoori Capital Investment is a leading player in  broking space since 15yrs.     http://www.adityabirlamoney.com/

Advani Share Brokers: Advani Share Brokers, the reputed Bombay based investment house, operates from India’s financial hub, Dalal Street, since 60 yrs.  http://www.advanishares.com/

Agroy: AFIL is the group’s flagship company engaged in capital markets as a premier financial and stockbroking house since 18 yrs.     http://www.agroy.com/

Anand Rathi Securities ltd: Anand Rathi Securities provides financial & advisory services including brokerage & distribution of equities, commodities supported by powerful research teams.     http://www.rathi.com/

Angel Trade: The Angel Group has emerged as one of the top 5 retail stockbroking houses in India.  http://www.angeltrade.com/

Aracade Share & Stock brokers: Arcadia group has philosophy of client servicing backed by all principal Indian Stock and Commodity.   http://www.arcadiastock.com

Dalal & Broacha stockbroking pvt ltd: The Company is the member of The Stock Exchange Mumbai NSE and the OTC exchange of India.  http://www.dalal-broacha.com/

Dalmia Securities: Dalmia Securities (P) Ltd., is one of the market leaders in the Indian securities market.  http://www.dalmiasec.com/

Emkay: Emkay is a Financial Services Company promoted and run by professionals.       http://www.emkayshare.com

Ethical investment solutions pvt ltd: It is committed in providing you superior customer service.  http://ethical360.net

Geojit Financial services ltd : Company has a network of over 300 branches in India and abroad, rendering quality equity trading services.  http://www.geojit.com/

ICICI Direct : Online share and mutual funds trading facility by the ICICI group.   http://www.icicidirect.com/

IL & LS Investsmart : IIL is a premier financial service organisation providing individuals and corporates with customised financial management solutions.   http://www.investsmartindia.com

India Bulls : Indiabulls is India’s leading retail financial services company with 70 locations spread across 62 cities.  http://www.indiabulls.com/

Indianstockmarket.net : Indianstockmarket.net is an effort to educate Indian investor by providing stock news, stock market websites, informative articles, resources to various investment guides.  http://www.indianstockmarket.net/

Indira Securities: FIRM has grown from a modest stockbroking firm to the current status with substantial business base with 15 yrs experience.  http://www.indirasecurities.com/

Indus Invest: INDUS  is one of the well established professional stockbroking company in north India.  http://www.indusinvest.com

InvestMentor Securites : ISL is a leading stockbroker of Gujarat, India. ISL has a seat on India’s largest stock exchange.  http://www.investmentoronline.com

Investment Research& Information services(IRIS) : Myiris.com provides online trading service of Indian stock and mutual funds.  http://www.myiris.com/

Jaypee Capital Services : It has the expertise and the experience to capitalize on daily stock movements and employ over 20 specialist traders certified by the NSE. http://www.jaypeecapital.com/index.html

Khandwala securitiesLtd :
Khandwala group has had over six and a half decades of experience in the financial services industry.     http://www.kslinvestor.com/

Kisan Ratilal Choksey : We serve an eclectic clientele comprising High Net Worth Individuals, Corporates.  http://www.krchoksey.com

LKP : It is one of the most respected groups in India, offers a single window advantage to its clients for all capital and money market related activities.  http://www.lkpsec.com/

Mangal Keshav : It has been a leading brokerage and advisory house offering a range of sophisticated advisory, financial trading and investment services.  http://www.mangalkeshav.com

Motilal Oswal: One of the top-3 stockbroking houses in India with 23 yrs experience.  http://www.motilaloswal.com

Mumbaibull.com : A guide to invest in Indian few nice tips to invest in India and Indian stock markets. A cautious approach for maximizing profits.     http://www.mumbaibull.com/

Networth stockbroking Ltd: NSBL is a member of NSE & BSE on the Capital Market and Derivatives  segment.     http://www.networthstock.com/

Orient Capital Market: OCM was started 15 yrs ago with the sole aim to reduce the cost and improve the efficiency of the Broking system.     http://www.orientcapitalmarket.com/

Pratibhuti : Pratibhuti is one of the prominent Indian stock Broking Company effecting business on India’s major bourses.  http://www.pratibhuti.com/

RBK Share Brokers : RBK Share Broking Ltd is the member of Mumbai Stock Exchange, the premier stock exchange of India.  http://www.religare.in/

Religare Securities Ltd: Religare Enterprises Limited (A Ranbaxy Promoter Group Company) provides integrated financial solutions to its corporate, retail and wealth management clients.   http://www.religare.in/

Share Khan : Sharekhan brings to you a user-friendly online trading facility, coupled with a wealth of content that will help you stalk the right shares.  http://www.sharekhan.com

Sivan securities : Sivan is one of the leading Indian Investment Banker & Stock Broker with a strategic focus on South India.     http://members.tripod.com/~sivansec/

Toss financial services : Toss strives for absolute professionalism and high degree ethical standards when it comes to the question of client’s interest.  http://www.tossfinance.com

UTI Securities : UTISEL was promoted as an independant professional entity in 06/94 by UTI. the entire share capital of UTISEL is now held by Administrator of Specified Undertaking of Unit Trust of India since 02/03.  http://www.utisel.com/

Latin Manharlal: Latin Manharlal has grown over a period of experience and serving ever-growing clientele in the Capital Market and F&O Segment. The company is a Trading and Clearing Member Broker registered with both the exchanges (BSE/NSE) Under Cash, F&O Segments and Registered Trading Member under Currency Derivative Segment. http://www.latinmanharlal.com/

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