Technical Webinar 6 - Analyst Rajendra - (23-Aug-2020)
Technical Webinar 6 - Analyst Rajendra - (23-Aug-2020)
Technical Webinar 6 - Analyst Rajendra - (23-Aug-2020)
Analysis
By,
Rajendra Balusu
INH200007016
Webinar for
Technical analysis
Class 6(Session covers)
• How to handle highs and lows of index
and stocks
• Dos and Don'ts of trading, Methods of
stock selection
• Trade Plans, Positional Analysis
• Opportunities and traps
• Inside And Out Side Bar
• Tips for Intraday Trading
High-Low Index
The high-low index compares stocks
that are reaching their 52-week highs & life
highs with stocks that are hitting their 52-
week lows & life lows.
Examples
High Makes 548
TATACONSUM
03-Aug-20
09-June-20
O-428
O-433 H-440
H-437 L-427
L-428
Monthly Chart
GRANULES
17th Aug 2020
CMP 312
31-Dec-2015
25-May-17 30-Jan-20
O-159
O-150 O-124
H-164
H-164 H-165
L-144
L-131 L-120
Monthly Chart
Now Trading 3290
DIVISLAB
27-Aug-18
O-1930 30-Apr-20
H-2484
L-1930 O-1930
H-2486
L-1822
Monthly Chart
Makes High 185
TANLA
17-June-20
7-Feb-20
O-77
O-76 H-91
H-89 L-76
L-76
Weekly Chart
Example for NIFTY
Dec 2018 High Makes 11760
NIFTY
Here not crossed
pervious Swing
High 6357
31-Jan-2008 31-Mar-2014
O-6136 O-6264
H-6357 H-6730
L-4448 L-6212
Monthly Chart
Example for BANK NIFTY
Dec 2018 High Makes 28388
BANK NIFTY
Nov-2010
May-2014
O-12485
H-13303 O-12920
L-11362 H-15742
L-12773
Monthly Chart
DEEPAKFERT
High Makes 500
31-Jan-08
O-213
H-232
L-150
30-Oct-16
O-212
H-233
L-201
Monthly Chart
DENABANK
24-Dec-08 31-Mar-16
28-Dec-17
O-27 O-26
H-34 H-29 O-25
L-25 L-25 H-25
L-23
Monthly Chart
DHFL
26-Sep-13
30-Jul-09 03-May-19
O-117
O-155 O-147
H-127
H-165 H-148
L-101
L-102 L-102
Monthly Chart
ADVANTAGE
1. Low Risk and Steady Growth
2. Chances of Exceedingly Good Returns in Medium
Term
DISADVANTAGE
1.Lack of Flexibility FOR TRADE ENTRY
2.No Big Gains in short term
3.Time Consuming sometimes.
DO & DONOT S
• Don’t get out of a trade when you are afraid get out when
your trailing stop or stop loss is hit.
• Don’t enter a trade when you are greedy for profits get in
when you get an entry signal.
• Don’t take a huge position size because you are greedy
for profits, trade a planned position size based on risk
and probability of the entry.
• Don’t trade based on your personal opinions trade based
on a robust methodology.
• Don’t trade based on tips, trade based on your own
trading plan.
• Don’t have a target price let a trade go as far as it will
trend.
• Don’t marry your stock, do marry your risk
management plan.
• Don’t trade with your ego but do trade with
confidence after you have done your
homework.
• Don’t just copy another trader’s strategy but do
find a strategy that fits your own personality.
• Don’t try to trade based on future predictions
but do trade the current price action.
Methods of stock selection
New product, service or management
The biggest winners of the past had one
thing in common: New products, new services,
new leadership, new pricing or a new condition
in the industry.
Supply and demand
Look for heavy-volume accumulation by
institutional investors, particularly at key
moments like when the stock is breaking above
prior resistance levels.
Leader or laggard
Buy leading stocks from the leading industry groups.
Institutional sponsorship
For a stock to be a top performer, it must have
institutional support to fuel its price movement.
Market direction
Three out of four stocks follow the market’s
trend, so trade in sync with the market.
Trade Plans
• A trading plan is a systematic method for
identifying and trading securities that
takes into consideration a number of
variables including time, risk and the
investor's objectives.
• A (Day)trading strategy tells you when to
enter and when to exit trades. A trading
plan is more comprehensive than a trading
strategy.
A trading plan covers at least seven
elements:
1.The market(s) you want to trade.
2.The timeframes you want to trade, e.g. 15
min, 30 min, tick or range bars.
3. A brief description of the
strategies you want to trade and
when to use what strategy.
4. Stock open and High are same is
shorting Opportunities.
5. Stock open and Low are same is
Buying Opportunities.
6. The entry rules of the strategies.
7. The exit rules of the strategies.
8. Other important rules, e.g. when to
trade and when not to trade.
9. The money management approach you
are using.
Positional Analysis
• The basic tenet of stock market analysis is
that stocks move in trends. Once a trend
starts, it is likely to continue. Traders make
profits by recognizing a trend early, buying
a stock for the duration of the trend, and
selling as soon as it has run its course.
ZEEL
Positional Call
BUY Zeel CMP 159 buy till 154 TGT 168 STOPLOSS 152
O-158
H-164
L-156
why stock market traders lose
money
1. Trading during the first half-hour of the
session
2. Failing to hear the market's message
3. Ignoring which phase the market is in
4. Failing to reduce position size when
warranted
5. Failing to treat every trade as just another
trade
6. Over-eagerness in booking profits
7. Trading for emotional highs
8. Failing to realise that trading decisions
are not about consensus building
Opportunities and traps
1.Avoid the herd mentality
The typical buyer's decision is usually heavily influenced by the
actions of his acquaintances, neighbours or relatives. Thus, if
everybody around is investing in a particular stock, the tendency
for potential investors is to do the same. But this strategy is
bound to backfire in the long run.
No need to say that you should always avoid having the herd
mentality if you don't want to lose your hard-earned money in
stock markets. The world's greatest investor Warren Buffett was
surely not wrong when he said, "Be fearful when others are
greedy, and be greedy when others are fearful!"
2. Take informed decision
Proper research should always be
undertaken before investing in stocks. But
that is rarely done. Investors generally go by
the name of a company or the industry they
belong to. This is, however, not the right way
of putting one's money into the stock market.
3. Invest in business you understand
Never invest in a stock. Invest in a
business instead. And invest in a business
you understand. In other words, before
investing in a company, you should know
what business the company is in.
4.Don't try to time the market
One thing that even Warren Buffett doesn't do
is to try to time the stock market, although he
does have a very strong view on the price levels
appropriate to individual shares. A majority of
investors, however, do just the opposite,
something that financial planners have always
been warning them to avoid, and thus lose their
hard-earned money in the process.
5. Follow a disciplined investment approach
It is a pause in price action and does not show clear strength in either
direction.
Place bracket orders around it to trade its breakout
in either direction. (A buy stop order above its high,
and a sell stop order below its low. Once one order is
triggered, cancel the other.)
Below are a few tips for intraday trading in Indian share market which will
help investors in making the right decision: