Complete stock analysis for stock traders.

-
(1) Which stage is this stock is in?


For example: Accumulation, mark up, distribution, mark down.


(2) Is the stock you are analyzing in an uptrend or downtrend?

For example: Uptrend consist of HH, HL. Downtrend consist of LH, LL.
(3) How strong is the trend of your stock?

For example: ADX above 25 level. Trend is moving in 40 degree angle. Price is above short term Moving Averages. Price is above primary trendline.
(4) What wave is this stock in?

For example: Wave 1, Wave 2, Wave 3, Wave 4 or Wave 5.
(5) What do the moving averages telling me?

For example: Moving average is flattish or trending higher with price.
(6) Are there any chart pattern forming in your stock?

For example: Always look for pattern in the context of current trend. 
(7) Is the price chart of your stock is smooth or sloppy?

For example: Price trend is moving in random or non-random fashion.
(8) What does the volume pattern tells me?

For example: Volume is above average or below average.
(9) Where are the potential support or resistance zones?

For example: Always mark the potential S&R zone while analyzing trends. 
(10) Are there any bullish gaps in the direction of the current trend.

For example: Always look for continuation gaps in the direction of trend. Breakaway and runaway gaps are considered continuation gaps.

Comments

Post a Comment

Popular posts from this blog

Should we follow FII & DII?

-
If there is one thing sure about the  stock markets , it is the uncertain and unpredictable behavior of the market. With no certainty of future direction, small traders often in the search of telltale sign from the big Institutional investors, be it Domestic Institutional Investors or Foreign Intuitional Investors. These set of baffling questions always arise in the thought of small traders? Are the  institutional investors  buying or selling any stocks? Which sectors are FII & DII betting huge on?       What are the FII and DII saying about the market and the economic conditions of the country in the coming months and year?       Which sector gonna perform well in next 6-12 months according to FII & DII.    There’s a big misperception among small traders, that FII and DII knows in advance when and  which sector or economy gonna do well. But the truth is they are also as clueless as small traders. But only t...
Read more

Why market breadth indicator is the holy grail for traders?

-
Market breadth is the only reliable indicator in the market which tells us the underlying sentiment of the current market. We should always first analyze the underlying sentiment of the market before putting our hard earned money on the line. Now the question might arise in your mind how do we check the market breadth of the market? Wait! I’m not going to tell you that “Go to NSEINDIA.COM website and check how many stocks advanced versus how many stocks declined today”. This isn’t the proper way to check market breadth of the market. Trading is not so easy; you have to do some work to get the information. First of all, you have got to download ‘NSE BHAVCOPY’ from their official site, then after downloading the sheet, open it now on your excel in computer. Then delete every column on the sheet except “SYMBOL, CLOSE & PREVIOUS CLOSE column. Then write the formula on next column to get the percentage change of today. The excel formula for % change in stocks is:    ...
Read more

These trading rules can be applied by everyone.

-
As everyone knows rules are more important in trading than any other things. I have been writing these rules on my personal trading journal for the past 3 years. Following these rules might help you to make money during bull market, and alert you to stay in cash during bear market. As we grow more in  experience, more rules will be coming and we will be refining our approach along with our rules. Some technical rules listed here might not suit your approach, because one size doesn't fit all.  Learn to take a small loss. Don't invest in same sector that you have already invested in. Only trade stocks which is outperforming the Index. Always  trade in the direction of the primary trend in your   chosen time frame. Be patient, wait for the right opportunity in the market. Stay in cash, when the general market is below 20-50 EMA. Always keep the position size of your trades constant. Let your winning trade run as far as it goes with ATR or EMA TSL. Al...
Read more