Trends and Stages

Gap up and Gap down

• It happen due to premarket and after market orders between 9:00am and 9:07am

Price moves due to majority of money, that due to institutions not retailers

Always follow the trend, never go against market trend

swing high and swing low

uptrend=higher high, higher low , HH-HL

downtrend=lower high, lower low, LH-LL

Patterns happen due to people psychology

Reversal patterns

• Head and shoulder
• Double top
• Triple Top

Trading is about

• probability
• managing risk
• psychology

To Create trendline you have to create line which connect roughly 3 points

when trenline started to get breached, then pay bit more attention, it may signal of end of trend or consolidation

Homework

Analyse 5 stocks

1. Indiabulls housing finance

2. Mahindra Mahindra

3. CAMS,

4. Tata Steel

5. Tata Motors

6. Draw a trendlyne on the current trend (weekly trend)

7. Idenitfy the trend based on market structure (weekly and daily)

8. If you can see a topping pattern, mark it on the chart

Head abd shoulder in tata steel

when 50 day crosses 200 day , it’s called golder cross over. this indicate change of trend

Reverse of golden cross is death cross

Use Stage analysis to pick right sectors exclusively

Homework 2

1. Analyse the stage of the following stocks Voltamp, Hikal, Happiest Minds, Share India securities, netflix
2. Watch the support resistance video and if you have any questions, ask in the group q&a