Candle Stick Chart analysis to find entry and exit point !! CA Nagendra Sah

Hello Everybody !! Today, I am not recording this class to teach you SFM This class is mainly for the student of the stock market who are trading they asked me that they don't know exit point and entry point, don't know how to analyse the chart, Tell us how brokers tell where to take entry and where to take an exit from analyzing the chart, This should be my target, this should be my stop-loss, Mainly, we are not able to do it So for these things, students have requested me to record this video By the way, time was not available But even after I have to do this much So we can say This class is related to the stock market Basically understanding the chart of stock market And analyzing the chart deciding entry and exit point on the basis of it Today, We will see this So if I talk about the chart so whenever chart is analysed, first thing that people consider is candle chart let's start about the Candlestick chart Firstly, what is this? We have to understand it See, what the chart says... 2 points are in this First, I will tell you the basics that what chart says and how it works Because in the beginning, when I was trading I never believed on this thing that how we can decide the price on the basis of chart Price should be decided on the basis of buyers and sellers' feeling it is thing to bet for buyer and seller How can it possible that a chart tells us what should happen Simply understand like this This chart tells us about the history of price and statistics also suggest that history repeats suppose, any student has performed well from 1st standard to 10th standard He has done well in CPT and also in IPCC level And I am asked to tell that what this student will do in the future So I will forecast the future after looking at his past stand simply, what does our market say that you look at the past And forecast the future on the basis of past Not only this, but statistics also say that forecast the future on the basis of past It means If we talk about the chart, first you have to know what the past is saying Means The chart tells us about the past It gives us the trend analysis of past Means simply we can say If I talk about any chart, it gives the past trend Okay So if it gives past trend so first, we have to know What is happening in the past So for that first of all, we have to know how the price is decided in the market Now, this will give the past history of that price So now see if you go to the market, and you know how the price of anything is decided therein You tell me, the price of anything Do buyers and sellers decide by bidding the bidding of buyer and seller Price is decided on the basis of bidding suppose, it is an instrument, it is a share, it is currency or anything it is If you have to decide its price So we will tell the amount at which we want to sale Another seller will tell the amount at which he wants to sale other seller will tell their own price at which they want to sale And all these sellers Okay! all these people want to sale at whatever price Sum of all the sellers' prices, the price you will get again, all the buyers' price at whatever they want to buy Best price is decided after matching the best buyer and best seller's price You already know this if you trade-in market So I did not need to tell it Okay, the time has been wasted Now think Price is fluctuating in the market at every second You want to know that The whole one day in the market Or at any particular time period What was the history at that particular time? Now, if you want to know the history of any price at any time, suppose You have an apple and you have to sell it tomorrow in the market Today the market has been closed Okay So tomorrow when you will go to the market you just need an idea like, if you go tomorrow to sale apple in the market Suppose Apple has come to you from somewhere or suppose, you produce apples You have to sale the apple in the market which you have produced So tomorrow, when you go to the market, want to get an idea about the the price That what was the price today in the market Suppose you have gone market yourself to get an idea of price, now you tell me what you ask anyone for the price that what was the price of the apple today Think, what will he answer Suppose, that day apple has traded at different prices because of betting Now in that condition, you go to the market and ask someone "tell me, at what price apple traded today ?" You wanna know history because you will apply for tomorrow Tell me, what the other person will reply, can he answer you? He says - "yes see when the market was at closing at 3:30, price was 105 repees you will think okay, at the closing time the price was 105 rupees You will not get an idea from it Why ??? Because you want to know what happened during the whole day you will ask him again At what maximum price Apple traded day? So maybe anyone there who traded he may reply, See, the highest price of today was 108 rupee per KG You will get a little idea ok, Today's highest price of apple was Rs.108 / KG Okay And last price of trade was 105 It means, the seller would be in a hurry when the market was closing at that time seller must have been hasty Sales pressure must have been high That's why it closed at below of the day high ok tell me, at what price the trading started in the morning ? ok, In morning? reply: 1st time when someone come to trade apple the price was 100-/ KG Okay, It means, buyers were more active that day Because in the starting, people bid on apple for 100 Rupees suppose, it is apple and bid at 100 rupees for this But at a time buyers were too aggressive to buy and they bid 108 Rupees but at last time, the sellers became hasty so the price dropped to 105 rupees Means, the supply decreased at the last moment ... Sorry, the supply increased Okay, tell me What must have been the lowest price Means, what is the least price of today? See, today's lower price was to 90 rupees okay now see, it is the whole day's history in front of you Now for the next day, you have an estimated idea That what may be the situation of Apple tomorrow Means we can say That for watching the history of any price You always need to know these 4 prices then only a complete idea will come Because from one price you can't analysis complete history So see what will happen in such condition Here, we can say that these 4 prices 90.... For this, all of these 4 prices for everyday suppose, you want to see the past history of 10 days It means you have 40 prices of 10 days 4 prices of every day And you are looking it for 10 days so it will come 40 prices Now, how to write these 40 prices in one way Think, because you want to know the history of the last 10 days May be this is also possible you want to know the history of the last 1 month It depends on how many days of history you want analyze So in this case what people did, They found a way to present it in a very short form tell it in such a way Which occupy lesser space And people will understand easily just after looking at what it wants to say Okay !! Means see in this way, the price at which trading started in the morning Now, assume now it a share in place of apple The opening price of share decided in the morning Now, you know the time of price deciding at opening of the market i.e. 9:07-9:08AM in the cash market how it is decided, you can watch it in my normal basic videos The opening price will be fixed on 9:08 AM The closing price is average price of last half an hour of trading hour i.e. last 30 min trading hour When market is closing at 3:30, so the average of all traded price from 3:00 to 3:30 PM is the average price And in a whole day, the maximum price that is the highest price And this price is the lowest price of the whole day to quote these 4 prices, people found such a way that, what people say Lets make a candle in which we will indicate all 4 prices see how, suppose, it was case-1 and ABC share these were the price of ABC share See how people presented it Okay tell me, if i see whole day, who were more active, buyer or seller? it seems here, buyers were more active Because in morning, Trading was started from 100 Rupees But it reached to 108 And till the end of the day, buyer were more active Means demand was more supply was less So see, if people want to see such things then let's make a candle See how this graph will be made we will make a candle Its color will be green Why? because the buyer was more active that day Its buying price was high Okay ? Sorry, sorry, buying price was not high if closing price is higher than opening price If opening to closing price goes to positive node, that day candle formed will be green Means it makes a green candle So see The body of candle indicates the opening and closing price It will indicates the opening price Okay, tell me what was the opening price... 100 rupees It will indicate the opening price and this... this indicates closing price What was the closing... 105 rupees Means the opening or closing Lower pint of the box indicates opening price And the upper point indicates closing price But it happens with the green candle looking green means movement toward up side It indicates closing is higher than the opening But for the highest price, draw a line segment and another line segment below the candle for indicating the lowest price Means it became a candle this will look green Now it is hard for me to fill it completely Now just understand, it is green Understand the feeling... Okay? you will get the filled candle The upper point indicates the highest price Means, what was the highest price today, it was 108 rupees this point is high It is the closing point it is the opening point And this last point is indicating the lowest price of the day which is 90 rupees And it indicates highest point May be, you don't want to know the history of whole day but just of 10 minutes So apply the same concept for 10 minutes for how long, 10 minutes Tell me this, what was the history within 10 minutes form 9:15AM to 9:25AM...... if you want to know this SO okay, take the candle of 10 minutes, consider the highest & lowest and opening & closing of 10 minutes You want to know what happened within the last 30 min, consider the history of the last 30 minutes Simply understand this, The longer the candle is made, the longer it will give history Like... let's leave it now, I will show you this later again We will see it practically It is case 1, You tell me There could have been another case How ? See We go market and ask for the history of a whole day it want to see the history of any one day You asked what was a share price today or what was the price of apple which traded in the market They say... the starting price in morning starting price was 100 rupees in morning but, seller dominated the day so much that lowest price reached (say) 92 rupees But after some time, buyer dominated so much that price again reached up what happens in that case? price reached highest of the day i.e. 105 rupees But at the last, at the time of closing seller dominated so mush that the price fall to 96 rupees You will say okay ! this is the situation Now see, the today's closing price See carefully Today closing see the Opening was 100 Rupees But the market dropped to 96 rupees if be seen in a way, history from opening to closing seller was more dominating Means sell pressure was more So what will happen when the sale pressure is more What people do in such case They say, it make red candle Red means today market closed to the downside Means the candle that will be made, will form as You will get to see red color you will see this candle of red color Okay ? This is it's body, it would be toward downside It's one point is opening and another point is closing Tell me which side to put the opening point This will be its opening price Because it is going downward...from starting to end starting to end, it is downside So it is called the opening... at 100 rupees Tell me where it has stopped It has stopped at 96 Okay ! it has been stopped at 96 Now, tell me what is its highest price in the whole day If i say, see the highest It has gone to 105 rupees And if you check the lowest So the lowest is 92 Okay Means if you get to see this kind of candle If you take one-day history price then it will become a one-day candlestick one day It is history of one day If you ever feel you want to see of 10 minutes You can make this graph for 10 minutes make 10-10 minutes candles Now how you will make ? They are all readymade provided, all brokers provide these candles readymade You say, show me of 10 minutes Because what happens every second prices are recorded in their software every second's prices are recorded So we ask what is the highest and lowest price They apply formula in their software and provide you the history Means we get to know a history again i am repeating Because, if we have to forecast the future, need to know the past first Like gave you an example If someone asks that what this student will do in final then we ask first, provide us the complete history of the student from 1st standard to IPCC what he has done in 10th, 9th, 8th,... CPT and IPC? So if we get the complete history, We forecast his final we are doing nothing, just knowing the history As long as you want to take the candle, you can make it It depends on your analysis Okay So can I summarize it in one line? the summary is that, what is candle stick and how you understand it So understand like this first, If the candle green candle indicates? It indicates that, the closing price is more than the opening prices The green candle indicates that the Closing is more than the opening price Okay Means, we can say the buyers were more active in the market Okay, in this case, we can say That demand was high here Okay And due to the high demand, price went up But only for that day, it it not related with yesterday's price we are talking about that day Demand high, the price moved upside it indicates this and shows the 4 prices If you see here if i talk about red candle Okay, listen... there is one more candle in place of green candle i.e. white candle Many software show you white candle either Green candle or white candle It will be green or white in color Okay Now see the 2nd case about the red candle it will be of 2-3 types either you can call it a red candle or may be black The black candle is formed when you get to know the opening price is higher than the closing That is, the market closed below to the opening price. Means the opening price is higher than the closing price okay, red candle will be made in this case here it indicates that supply was high and due to which price moved down it's all about the candle stick Now if you want to see it practically so see here let me show you let see, assume, in your any account none of the brokers provide such account which doesn't provide the candle stick So let me take for any one day First of all let me go to NSE website for seeing the price of any share let see one of these which is most active share in the market today like see here, "power grid", it is looking more active today It has gone 2.57% high so we can say 3% today it has gone up by 2.52% tell me, today its opening is 206 and the highest is 213.15 206 is the lowest and it hasn't closed yet because today the market is not yet closed If I look at these things in the candle chart, what does it look like now you may ask, where you can see this candle chart you can go throw many 3rd parties' websites if you want to see the real time chart i'm suggesting you one site, investing.com. visit this site, you'll get to know here okay, see this website shows the global price of every market of every country we can say Whoever handles this site works hard to maintain all the data and the history of the world can be found here okay come to the website, currently we were talking about the "Power Grid", see here where to see, showing you. it shows world-wise, but we have to see for Indian market here it is "power grid corporation of India" clicked it, it will show the price... see this here it is also showing here the upward movement of 4.95 point i.e. +2.4% it is showing us the graph but can't find the history from this graph because we need four prices of each day that's when i know something and i can get an idea Okay See come here, click on this candle icon So it will form Candle Stick chart how it is, same candle is here that i had told now you will say that it's visibility is not clear, so you can "zoom in" let me take 1 day's candle chart noise let me Zoom Out noise i have to look of 1 day noise I am enlarging it because not getting any zoom option that is here I'm making it a little bigger and from here, i am taking candle stick chart okay it became smaller, it takes some time in chart I will enlarge it only then you will see on the screen It is the one day chart See and try to understand this candle After seeing this candle you will understand in little time After seeing this candle if I analyze the opening and closing price with whole day's trade, suppliers were in dominating position to the buyers ok Its opening would be the upper point and closing is the lower point And the upper point that is high of the day Means, the price which was at opening, was the approximately high of the day, there is a very smaller line on the candle And for the downside, the sale pressure was high whole the day And at last where it closed, At lower level But it closed a little above the lowest point according to me it is visible to you Now come here and see if you put the cursor on candle, the prices appears here on the upper side The candle on which the cursor is placed, the price will appear for the same day Now i am talking about this level, look at the right when the cursor is placed at candle, price at that particular point is shown on the right and high & and low on upper side I placed the cursor on this candle, look on the screen See this point is indicating high Okay And high valu 205.65 and see here also 205.52 little bit difference Its opening level will be the same as that see opening on upper side just below where the power grid has written 205.55 is opening And high is 205.65 means The time at which it started in the market from that starting point that starting point was very high for it It only goes 10 paise high, not more than that then after seller dominate and price goes down And see what is the close price ? 203.45 you can see on the right-hand side And see the lowest price lowest price is 202.35 Okay ! Now see today price today it start from here Means...what are your thought after looking the candle Okay...The opening was slightly below where it was slightly below, not more than that And see the current level 211.40 But If you look at the whole day, it has gone till here Now you will say... where is closing ? Closing haven't happen yet But that's why if the market gets closed on this level So they will be closing level it is trying to say you It is 211.35 so see closing has come below If it goes more below Because closing is still yet to come considered your exact is 330 So candle will be here Because 211.40 is your closing point Okay So this way we will analysis candle See it, if you analysis this candle then what you see Opening and closing has been on same point Where the market started, the finish is also on the same but Went up and down the whole day So the candle whose part is very small So it means price is neutral of that day Neither buyer was more dominated nor seller was more dominated By sell was neutralized But after seeing this candle we can say the buyer is more active today this candle stick shows, the sellers were more active that day So it presented the price history Okay So what i told you now, it was how to understand the candle stick about the price..... ok? one more thing, the candle i took is for one day you will say how I get to know about one day okay see when i am putting cursor on candle, showing a complete day below, see below 200...... 2017-06-13 means it is for whole day of 13th June, 2017 Now you'll say, what happens if you make candles of 10 minutes What happened in the "power grid" every 10 -10 minutes? So see, if you want to see the graph for 10-10 minutes here it is, see..... i have clicked on 1 day See....one candle is for one day see, 2 things are here, for how long period you want to select it like, I want to see the history of 7 days And one candle is showing for one hour but i wish to see a candle for 1 day noise let me repeat I say show me the history of 1 month okay, this is for one month It is showing the history of 1 month But, for how many days is a candle? see above, it is showing 5 hours one candle is of 5 hours i wish to see of 1 day see if you want to see for 1 day, it is of one day Show me the history Do as many days as can accumulate, but show me one candle for one day see here, 1 day's candle, 2,3,4,5,6,7,8,9,10. 10 candles are here for last 10 days, showing 10 days history noise Now it is good Okay noise See now It is of one day now 1-1 day, see at the cursor below 2017, 13th June see it is of which day ? 2017, 12th June June 9th, Because there would be holidays between these days This way, now I want to see for one hour So if you see of 1 hour, today on 13th market started from here, till now this candle is showing market is below trading started from here, ok it is of 1st hour, it is for 2nd hour and it is for 3rd hour Each candles are for 1 hour if you click here it will show the price history of 1 hour Now you can easily see where is the opening, high and etc now you want to know the price of every 30 minutes So it will show you about the market trend of 30 minutes but if you see for 30-30 minutes So think, how long has it been since morning It is price of 13th (today). see from here .... Half an hour, 1,2,3,4,5,6,7,8,9 9th candle is running for today, so half of 9th hour, means it is of 4.5 hours currently Okay If you want to see for 5-5 minutes it will show you for that also So you can see this at investing.com if you see prices of 5-5 minutes this time i.e. 2:40PM No, this timing is showing you is showing for after how many candle it is not showing the exact timing Let me show you here, you will understand it If I show you this power grid this side See, it is Zerodha's website This is Zerodha, a broker, they also provide real time candle But let me show you the power grid for more clarity see this If I talk about the power grid, today it is 5.60 Rupees below Click on graph, it will appear on the right side.... ok? Let me take it to another sheet for analyzation See here its graph is also for 5 minutes, means one candle is of 5 minutes Now you can see timing from here, how to see it Like suppose, I wish to see the history of 10 minutes see here, If you see the prices in 10-10 minutes gap today on 6th of June, the first trading at 9:15, see this history at 9:15 after 5 minutes, at 9:20 , see below Below you have to see this See this at the bottom Now we have to see it this way because the graph will get smaller. As it narrows, it becomes difficult to see and need to look carefully Okay let me read what is written below First, let's take a look at what time buyers were more active the time was 12:05 Means if you see the history from 12:05 to 12:10, we get the opening was from 208.64 and closed after at this level It is the largest candle, buyers were most active here If you check volume, then look at below I have placed the candle of the volume here if you want to see the volume, click here and look at the right side It is showing, the volume traded today.... what is the volume, information will also be seen from here see above, if you check here then you will see the volume Opening, closing, high, low volume And what is the day and what is the timing As I clicked on this candle, see above Volume is 981K, means 981 thousands means 9 Lakh 81 thousand shares has been traded only in that 5 minutes Some people say Sorry not 5 minutes, I said wrong the candles are set for 10-10 minutes gap I say, show me the candles for 1-1 minute So see, it will also provide 1-1 minute's candles If seen in 1 minute, see here, it is the position of market at 1:03PM Suddenly, the shares of 211 Rupees, see here it was of 211, reached directly to 212.5 the movement of 1.5 Rupees, means (1.5 / 211)* 100 = 0.7% movement in just in one minute And since then to till now This 1 minute is still there, it is just moving around the same price and notice one thing, again and again at the same level came at this level, and now again it is trying to come at this same level And repeatedly falling below the same level, see Means a level has been formed from where bouncing down repeatedly there are histories of 1-1 minute Okay So it was about all the candle stick which presents the history of prices Okay Now we learn, how to use this history for trading As now look carefully It will be down from here, See it has crossed exact at this level Either it will be down Which is expected to be down And like now if it moves up, will move very fast Notice a little here, then you'll get what i'm trying to say It was a level from where it was bouncing down repeatedly Now see, it moved up. In such case moves up very fast And now when it comes down again, touching this level will bounce back again Now see see on this level, how long stayed at this level Notice a little bit earlier, it stayed at this level if I slightly remove it from here See you can a little bit draw it, how? Let me come on this level Horizontal lines Let me make horizontal lines You can draw something on it As if it was a level If i make 1-1 minute's candles, we get, by touching this level, market was bouncing How i will analysis this to you, telling you See, what I told you, it started from here and through this level again came back down Then again by going to this level Goes slightly up and then goes down again and currently trading on this level What it indicate ? And how we will use it I will tell you after some time I'll analyze it now see 5 minute candle has taken and merge 5-5 candles Okay, this was candle Now Lets further analysis it And then let see It was an analysis of candlestick Now we will use it For deciding our entry and exit level Okay Now if we move further So how we will use it see carefully Now lets see history How chart will use in market lets move ahead Why Why Chart is useful to Decide Price movement Or i can say "Useful to forecast" Price movement Okay Now see carefully Why chart is useful to decide/forecast price movement? How ? The chart says one thing chart says simple things That your history Will repeat Chart says this And this thing every people follow Means Maximum person use this and deue to which it works How? see I saying, we are noticing one thing Now what people thing What I am trying to say Always remember one thing in mind that chart says one thing i.e. history will repeat And who tell us history ? 'Candlestick Chart' If I analyze it in such a way that the price was at a level on a particular date in the past price reached this level from below and then after again moved down.... ok? Now what people say, it is a history Now, If the price ever rise again in few days whenever we are talking , it is about time line It is the price on the right side and it is time It is the price on the right side and it is time Also, when the price rises to this level, people expect history to repeat Repeat means, price will come down again That means, if it goes down what level will it go Okay, let leave for down now, may be it will go up again Here, What people say... history will repeat... means it will go down will it happen in reality ? Yes, it happens. Because maximum of traders think the same and apply it while trading Maximum traders think that yes history will repeat suppose this price was at 100 Rupee, people also say this Now see, it was 100 it is not necessary that it will be exactly 100, there is slite flexibility in the market History will repeat but there will be small variation think like that, History will repeat but there will remain small variation I am trying to say that As if it was at 100, then it is not necessary to come again exact at 100 but but chances of nearer to 100 otherwise suppose, the price was at 100 Rupees, so may be these prices at 100.50 and 99.50 respectively but it is around to 100 rupees It says history will repeat It is near around it We says okay So the history will repeat and I have draw this by one line That is, it is difficult for this share to cross this line and go above 100 rupees in the market Means, it's coming up but this line is stopping it, coming up, stopping it Who is stopping? sellers are dominating... because in marke, how the price is decided... on the basis of buyers' & sellers' betting As it goes to 100 rupees, pleople think that now the price will come down because history repeats So sellers become more active with thinking that the price will fall down and wish to sell as soon as possible otherwise price will slip down before i sell Therefore, all the sellers come together to sell quickly... consequently price plunges down And buyers also steps back at that situation, why? Because those who have already bought at that level, try to exit with profit suppose, someone who had bought at this level also think that price will not cross this level... why, because they think history repeats What we will do in that case, buyers want to sale and one who has not purchased, will also wish to sell with a hope that price will come down At which level ? At this upper level So we can say price drop from here okay then again went up and again down So a price level, after reaching at which price is forced to move down due to pressure of sellers, So around 2 If you had notice last video so I had made 1 minute candle Okay And see i had put a line in front of 1 minute candle Remember ? I had put a line and i told see History will repeat See if history is really repeated See carefully see the price history of every 1 minute If you saw a short time ago So that time it had reached till here And what i had said i had told you about "with small variation" little variation has come If i notice this thing How ? See, now come here When it was at this level then I told you that price should need to go down But it didn't It goes up for some time and then goes down With small variations Now small variations will come So we have to wait a little bit but see now Did the history repeat goes down from this level Did it go down again after coming to this level See again history has a repeat, see how? If I talk about below level see You will get it in every situation let me take a horizontal line I am clicking on this level And let me put the line on this level See I have taken on this level Now notice a little bit Did it go up again with small variation when it was bounced from below So yes now some people are thinking It is very good tool As they touch it They(People) should need to sell See it has come to 211 from 212 Ohh! I got profit of 1 rupee Did you know if there is any future trader then how much he will get from this 1 rupee 4000 Rupees Because its market lot is 4000 It means if you see these candle of 1 minute 2 Minute, 3 Minute, 4 Minute, 5 Minute, 6 Minute, 7 Minute you get a profit of 4000 rupees in 7 minute In 1 lot and if you take the advantage of its 1 rupee Means intraday trader could use it if he wants Now come back Yes, we get an around the idea Okay Okay, this is what we were talking about You see if I go little more back So see Did history also repeated here Notice little bit, I am looking this for intraday Any 1 minute is very short If you want to work in intraday on daily basis So you can see the chart of 1 minute also But what happens If you add 1-1 minute you will not be able to see your screen in a day That's why you have to compress it So what you will do ? take 5-5 minutes graph As you take 5-5 minute graph So these 5 candles will merge into each other So i say 1 minute is very short Because it can't come on one screen So we will take 5 minute candle If you don't understand candle so watch my previous video you will understood So see here we were talking about history repeat We have made it short Now a whole day price has come, how? It is complete one day price 6, 13 Today June 13th, see looking in a way See a one-day history has come by making 5-5 minutes graph Notice one more thing I was saying again and again that history will repeat what some people are thinking? see what they think about history repeat that's why I say again and again Incomplete knowledge is very dangerous You haven't understood it completely let me put horizontal lines on it Because some people are also thinking Consider I have put this line notice a little bit let me Make it a little shorter come If I talk about timing so let see it timing see below timing is showing It had touched this point okay ? it had touched this point It will be your timing Click it if you want to see it and if you don't want to see it then click here see, if you come to this point so time was 9:40 okay? So what some people are thinking? see carefully at 9:40 it had come down from here So when it tries to touch here so what people were thinking that now it will fall Okay Let me do one work slightly, it has fallen once once dropped, Could not leave for 5 minutes Could not go up on this candle So what would people have thought that now it will fall let me take it to 1-1 minute but then it will become very short so let take it for 3 minute Okay See this is 3-3 minute graph it goes down after touching this level So what would some people thought see here, notice when it goes to this level so see here after touching this level only remember one thing History will repeat with small variation History will repeat With small variations just remember this No need to use extra mind Because let me repeat once more all these things Buy, sale all these are not short If this had happened then everybody would have earned money in the market But only a few are able to make money in market So just listen carefully what i am saying revise it Then notice it in your practical life and then first trade in small quantity And when the confidence comes Then apply it in high quantity I said that history will repeat, see carefully History has repeat How? see it stopped here goes down Then again stopped again goes down again stopped and again goes down Do you know for how time ? 3 minutes 3 minutes and 3 minutes If look in a way So 10 minutes market is there 10 minute is enough Means you are feeling that it will go down seller is dominating why? Because people are saying it will go down seller is dominating But also fears why the seller is afraid Because if it crosses this if it crosses this Then see what will be the situation Okay So now something will click on mind Okay ! History is repeating very good History will repeat So you tell me If it was so easy then everyone knew that history would repeat So everybody came here and sold But see what is the risk of the seller here how? If it comes next time And consider if history not repeats Now it will not come short amount Now it will bounce suddenly And in that case, if someone sells here So the market will go downside Some people would think of how it has done why It also has logic I already told that why chart works Because maximum persons or maximum traders use it think, and let me give you it logic why it bounces and run It is resistance Now what you have said You says that when it reaches to this level The one who had already buy here existing buyer will also sale existing buyer will also exit Very good New seller also take an entry by which hope? that market will go down what was the expectation of both expectation was that market will go down Because history will repeat the expectation was that history would repeat But if this happens then the price will never go up in market Because every time 100 come everyone will sale 105 comes everyone will sale 99.5 comes everyone will sale So the price will never go up It means Probability... expectations the seller has become more dominate here remember sale position has become more The entry of the seller has become more Now consider the buyer thinks that it is the last price now price will not going to down from it Because the profitability of this company is very good and now fundamental will come Now fundamental will come Till now chart is running Now tell me if everything is good for the company So why would it cost only 100 rupees? If everything is good So will its price never go above 100 We say history will repeat it means it will never go up but it will go up But when ? May be this time So as it crosses 99.5 and 105 till now highest was 105 Consider if the price didn't stop here So think carefully If it doesn't stop We expect that it will go down It will go down it was our expectation But by mistake, if it doesn't go down and consider market start going up so the risk is also in it that if it doesn't go down from here So now it will not come and the buyer will become more active think carefully We said it must need to go down from here And if it is not able to go then it means more power in the stock to go above it It means it will not go down, as people found their expectations have been wrong So now see what happens The buyer wants to come because now people expectations have been changed If it doesn't go down from this level So now it will go up So you will say it is forceful I do not see any force, think carefully I am saying it will go down from this level If it goes down then it is very good but if it doesn't go down then people will think if the price doesn't go down it means company is doing great its price should need to rise at one level the price will definitely increase so now if increase then what buyer says If it crosses 100.5 so all the people think now it will not go down so when everyone thinks then the price will work again How? As the price goes up As the price goes up so the buyer also take entry And now the one who had taken the new seller entry will also run why? because if he doesn't run now So doesn't know how much it will go up I am seller if the price goes up I will be loss Due to this thinking seller also start buying staples how ? because staples means save the stock Now the seller exit for saving it loss And the buyer who wasn't present before start taking entry Means if the situation doesn't arise once Okay! , sorry, means if it doesn't go So suddenly the market will go up So it means Here trading and selling was also risky As I had shown you here see how market runs Means the same reason See market have spent 9 minutes here 3-3-3 = 9, one way people have spent 10 minutes here But after 10 minutes buyer become active And whoever created a sale position here he also run And not only this buyer also come and see where he has sent the price suddenly See share was of 208 rupees Looked at in a way, I bring linings here he has taken the price upto 211 rupees do you know the profit in such time if you calculate its profit of 6 minutes So if you trade the future of one lot of power grid So it is of 4000 rupees Lot wise trading is done for future trading So if its lot is seen then it is 4000 Rupees see this See the market lot which is 4000 rupees it means if you notice a little bit on this price I have taken the 3-3 minutes candle so see in 6 minutes from 208.80 rupees it has reached to 211.50 211.50 - 208.80 means movement of 2.70 rupees multiply by 4000 you have a profit of 10800 in this 6 minutes And see the same situation is running here Again the same situation see how? it is 3-3 minutes graph Now see the real-time is running see again it is going to top level 3 minute, 3 minutes, 3 minutes = 9 minutes the market is spending 9 minutes here why? Because the seller is afraid that if it accidentally comes out then it will go up And Buyer is afraid not to bounce from here So these are the point of a very tense situation So what we have to do here, it is not easy to take a decision here Because if it comes down then the benefit and bounced by mistake, don't know how high it will go so you will say the problem has arrived problem has arrived Now what should need to do let's do one work let see how strong the resistance is we have to know how much the resistance is strong So small 3-3 minute graph will not work For that, you have to see a large history Okay, now we have to see strong point so I am taking the hourly graph Look at 1-1 hours, I don't see any history in the past was at this level At this level, no history has been seen in the past yet. let's compress the graph more Here, let check graph of 1-1 days It is a very strong point on the 1-day graph see how history repeat If see here, so I am going this way has spent complete 1 day 2 days 3 days, 4 days 5 days 6 days and 7 days if i see What day did it reach if you see this day so see the day see If you see this day then it was your April 19th April 19th, you can see April 19th, Actually it has many ways to see the day if you take the cursor here then you can see the day below And if you click on plus then something like this way you will get to see the day Means on April 19th April may June 3 months April, May and June is running Okay June Means market has spent its time here for 3 months Market couldn't cross this level History repeat again and again How many times ? History repeats with small variations We call it small variation you can see it has go little above Even today small variation has come little above Means it is tough situation People think that it will not come out or will come out So notice this power grid a little bit Let move little more back If we have to move more back then compress it more by clicking on this minus sign Is there a history in the back let see No, till now no history is shown Means if it is seen then this is its life time see i have reached till 2013 If you continue to reduce, this graph will be compressed It will make this very small When i tap on this plus icon then this graph will become little large Its mean this history is... Now thing a little bit I have told you this is strong resistance Now what is the exact level of the resistance Now see, for exact level We use Pivot point, Fibonacci and much more technical analysis If you want to became safe So tell me the highest of till now See, it is the highest of till now This level see in the right hand side how much it is showing Let me show you by entering See here This is the highest level Means 213.80 till now But it has come only 1 or 2 days maximum point that touch Where it touch the maximum point where the maximum point touches You can say that point is our strong level resistance so lets see where the maximum point touch Let me make it more large And then let me put one more line here If i shift this line closing and opening always consider strong So if i seen that these were closing and opening level see ...1, 2, 3, 4, for me 212 is looking strong okay, let see today high, Today's highest is said to have bounced And how long ago it happened if you want to see it So for that you have to expand the graph So let me do one work Let me put this level to here what i am seeing is that this point let see the exact point, one time here and one time here it is touching 2 times and this one more time also with small variation For me consider 212-213 is looking strong resistance Now keep your eyes on this power grid If it crosses this level successfully If it cross 213.5 this time so i think It will breakout Breakout means Price rises by crossing resistance successfully If it breakout Remember, 2.5% or 3% is today movement How much % movement today is looking Approximately 3% If you want to see the % movement then check it here Okay, see it, let me make it short It is power grid If you click here so the % will show by clicking on this icon Today approximately movement is 3% And see the power grid in the 3% up movement How much large candle is showing It is 5 minute graph, let me take 1 day graph Today In previous history largest candle is looking it means A big candle was here but it had failed 2 times it had failed and touching 3rd time Okay so there is a hope That it will cross this time Now if some people are thinking That i will sale here If i sell it here So You are thinking wrong Because here history will not repeat A new history will create here Okay, a new history will create there is a hope to cross this level So we don't have to sell at this level So if you take my suggestion at this stock If nifty remains positive So tomorrow you will see this stock will be up side You see Which day does your history become because it will take 1 to 2 days to upload to YouTube? Because that too has become past for you so by going in past you check will this expectations match or not If today the price reach to 213 If it reach to 213 or if it can give closing to above 212.5 So tomorrow buyer will be more active in it And tomorrow may be 4-5% goes up Okay So never think that "today it has gone to 3%, it is too high so we need to sell" Never do such mistake at this point Today, If you see this is trading on life time high If you go to the history of NSE You can see it is trading on life time high Click on index It come inside nifty 50 I clicked on Nifty 50 It is your 52 week high See this, power grid remember it has gone to 213.80 Rupees in 52 weeks It has gone to 213.80 Rupees It is your 52 weeks high no, it is your life time high so some people like if you take my suggestion so currently it is trading on 213 your current price is 212 Means 1.80 Rupees below from life time high If some people think they have to sell at this level Because it is on life time high so some think to sell Never do such mistake You have to wait If this price doesn't cross 213.80 till tomorrow And if it goes down Then sell But if it cross this 213.80 Rupees till tomorrow So don't even sell by mistake Then you have to buy You have to buy then atleast 4-5% benefit you will get So till now i have just told you simple level resistance i haven't told you much complication It was our resistance And now see What we have to do if the resistance is on level At resistance Price Where the trade is going on, I write it in a line, what I want to say Price of share Is at resistance level or below Resistance level See carefully i have told something At Or Below Maximum price is resistance Like if i say in current case So maximum price of 100.5 rupees was resistance So we can say at resistance level or below resistance level If so, what should be your action If so Then your action should be Remember you have to use much technical thing, it is of initial level Otherwise don't try it else you will loss everything i have shown you when this resistance cross then it take movement like this By the time you blink, you'll be on the road Remember As it cross the resistance then the force of price is very fast Always remember this So the action which i am giving you is for one who think there is resistance again and again Yes very large as i had shown you If the resistance is of long distance So the chances of crossing is more If history is of near future Then there are chances that history will repeat So action will be That you will sell Action will be that you sell But Don't sell if it goes up or sale with Strict stop loss Here, If you don't set the stop loss then you will loss And have to take the gap of stop loss more Because when resistance breaks so it force is very high What happens in more force that you know if you place more stop loss Stop loss work when ... consider someone is already sale So it stop loss will go up And first you enter the trigger price Trigger price comes first then you enter limit price If someone don't know how to set up stop loss so watch my normal video of "Stock Lesson" You put the limit price over the trigger Because where movement occurs first triggers later limits If you are setting stop loss for downside movement Then first trigger will come and after that limit price will come What happens if you know the trigger price and limit price in stop loss So by the way I have explained very well Even after if some people don't know the logic behind it so let me give you the logic Because it makes sense to know why we should keep the gap of stop loss higher Because it is dangerous trading This trading is very dangerous Doing sell is very dangerous in it Because you are trading on this situation You are taking danger see carefully, where i had just show you i had shown you 3-3 minutes graph See, if you do sale then you will take this danger If you are selling at this resistance It means you can lose 10000 rupees in 6 minutes So this force is very fast force That if you don't set up stop loss right Then you will loss See it has cross this level 3, 6, 9, 12, 15...are you seeing here both buyer and seller are nervous Neither buyer want to take entry Neither buyer want to take entry means neither buyer and seller wants to take entry These points are point of nervousness And when you see the volume there, the volume is always low Because this point is confusing point for both buyer and seller they have confusion in it, But... If the line which i have placed above remove by mistake from force Then buyer will take entry with confidence And seller will go On those point you should also need to participate Like see when this level was removed, so you should need to take entry And you should gain 2000, 3000 or 4000 Rupees and leave If you trade future then Okay So it is the thing whenever you trade, let me repeat once more Whatever i am saying you just use it once And now I have told you about the resistance When the resistance will break for that we need technical analysis Like Some people also forecast this Will it come down from 99 this time Or will it break 99 this time? We use technical analysis for such things Which we call We will look mcd conversion and RSI Relative strength index (RSI) We will see RSI whether it is oversold or overbought We will apply moving average in it Where is our moving average? Is it not the case that the price is much higher because of the moving average If prices were very high due to the moving average then it will be overbought When the stock is costly Suppose the time this price is going up and people think that it is costly Then they will not cross over that They will cross only when people think price are cheaper Now whether the price is costly or cheaper For deciding it We use moving average, we use bollinger band Now consider that the conversion here Whether the buyer or seller will active We use Bollinger band for over sold and over bought In mcd conversion we will make relation of 2 moving average A 16 days movement We have to look how many days we have to take in bollinger band 1st.... 26 days 2nd.... 12 days No, No i say wrong I have to look once how many days movement we take Now if we do this work daily then we remember but I do not use daily Like as you see in it Which i was talking about mcd conversion we will debate on this Means i am trying to say Here it is 12 days and 16 days Okay And it makes average for 9 days signal [Noise] If talks about moving average conversion or diversion See whom does it cut point If this black point cut upper side So there are chances it will cross or break it But now this black line is going downward That's why people are nervous If the black line cross red line So hopes of people increases Like i have put this RSI point here If you see relative strength index then this point is going to 58 Means it is not telling about overbought Means this and this are looking in our favor Means i can say for checking it whether it will break or not for that you have to use technical analysis Like let me tell you more about it If you don't know much technical analysis Or if you want to know that history will come down after repeat and it will go up by breaking it So let me tell you At investing.com It will provide you everything in written see All those thing which i was talking about If i exit it from here So see as i exit something technical I clicked on this technical As i clicked on technical, take the power grid on investing.com If you don't have much knowledge about RSI or mcd conversion So see on daily basis Because you are looking for the daily movement of price When it was in intraday then look it for 2-3-5 minutes Go to daily price movement And see this It is giving pivot points It has set pivot point to 206 This is resistance and this is support I had just talked with you about resistance not on support Okay, See RSI is at our level It is favorable It is showing 60.71 on daily basis See what i was put here It is also showing 58, It is changing on daily point ohh it is of 3 minute when i see on daily basis See what our RSI is coming on daily basis 60.72 See, see, see it has cross Immediately it has just cross No okay, it is still on the same level exact on 212, haven't cross it till now Means you can wait till it cross 213 then easily you can take entry in it if it goes to 214 then apply money in it without tension There is no issue you can take large quantity Risk will be less in it set up small stop loss Take 2-3 lot, you will get 20 - 25 - 30 thousands in one day okay, my own experience is saying this because this time it will cross Because market has come after 3 months But for it nifty should be positive If nifty goes negative So remember you will be fail I was talking about this technical analysis of power grid STOCH castic variance is neutral STOCH RSI says that it has been bought more Means it is looking slightly unfavorable this one is unfavorable mcd conversion is saying to buy it See it is using this much indicator tools You don't know what these indicators are saying But don't worry At least they have written "Buy" here see carefully moving average is also saying to buy it 10 days moving average is also saying to buy it 50 day moving average is also saying to buy 100 days moving average is also saying to buy moving average of 200 days also saying to buy Means all the moving average are saying to buy it Remember we had chosen daily basis chart All moving average are saying to buy Okay All signals from here also saying to buy it And what we are looking that it sit on exact resistance level Where is candlestick chart ? no chart here !!! No worry, we have clicked on technical okay, If we go to chart Means technical analysis is saying us to buy it All technical analysis is saying to buy it And the graph we had made And it is also looking that it will going to success this time means break out will success okay, let me tell you Sale is action With strict stop loss i was a bit lost, i was talking about stop loss we were talking about stop loss, so let me discuss it in 1 minute Because may be some people set stop loss But they don't know the logic behind it see carefully What i am trying to say is that it will go up with every fast force So may be you loss what is stop loss? see.... It is bidding, it is the room of NSE Where buyer and seller are bidding buyer and seller are bidding inside consider bidding is currently running See how much is being bid at the moment lets talk in this, consider price is running of 100 level and want to sell it on 100 You think current price is of 100 I think resistance will not going to cross it this time what i have to do i have to do sale okay let sell But the fear is that If it breakout by crossing this level i will tell you Then it will rise so much that you will not be able to escape. 1-2 % movement will come in 1 minute Okay I did the sale but the risk is that the maximum till now was 100.50 So how you will set up stop loss, see carefully Stop loss says that When it reach to 101 rupees then remove me If It go to 101, then I should give up my hope That market will go down and it has gone above the resistance so i(Stop loss) should give my hope My expectation was that it will go down Okay, but if it goes up then you have to left the hope of stop loss But what happens, think carefully When it will go it will go so much faster That may be it doesn't reach to 101 And directly with the percentage gap of 0.5 or 1% it will reach to the price of 102 What you have to do in such case? What is trigger price The trigger we place This bidding Place us out of the room we will not enter the room Trigger price means As trigger price will touch market Consider here If 101 comes, then I have to enter the market from outside Okay Let me take an entry in this crowd Currently where we are sitting? We are outside We are just noticing from outside what is going inside we don't have any problem till then it reach to 101 Because then it will going to be on 90 and i will earn from here..these are my words But if by mistake it goes above 101 then i will loss So what happens in that case I don't have any risk till then the price come 101 here Because it will go down not above But if it comes 101 So now i don't have to be safe i have to go And all people like you will think that all will go And it will go very fast That after 101 price will directly go to 102 Gap of 1 Rupees will come directly Because people will bid in panic situation and price will go to 102 If so If it goes to 102 And consider what you have done What trigger price says... We take entry here from trigger price And you place your bid on limit price You have taken the entry on 101 Because it was your trigger price you reach fast to the bidding room And takes an entry and you said you will sale, if you have placed the limit price gap less Consider you have put the limit price 101. 101.20 if you place 101.20 So you take fast entry And you says you are ready to sell on how much?....on 101.20 You are trying to sell it on less amount Where did the price reach on 102 [Noise] You were trying to sale Oh... Sorry, Sorry you were trying to buy Because we are buyer and we were trying to buy Because your stop loss is toward buy You are saying you want to buy it on 101.20 And how much has the buyer reached in the market 102, Now you will not get Now consider it is goes to 103 You loss If it goes to 104 you will loss Why? because you are sitting on price 101.20 that's why When you trade on such resistance So gap should be little big in between trigger and limit price Because it means take the entry fast as possible when it reach to 101 And tell the person in front that give me as much price as is going on So put 102 instead of 101, place 1% gap nothing big deal in it The price you get will be traded on If you want to buy on 102 Then someone gets there Because remember there is almost 1% gap in between 101 and 102 And 1% is very large By the way 1% gap means 4000 Because if its lot is 4000 By the way if you don't keep 1 Rupees gap then it will run 50 paise will also run in such stock, you have to place stop loss by placing 2000 or 3000 If you want to sale at such level If you want to sale at such level then sale Sale with strict stop loss Means don't do trade of without stop loss otherwise you will be on road in 1 day But Keep High gap Between between which? By high gap between trigger price Trigger price and limit price otherwise If you want to know stop loss in more details I have explained this by taking 30-40 minutes You will get it normal batch video Watch our normal basis video you will get this in it And if you already know then simply understand Where the bidding takes place in the market, they enter with the help of trigger price. And limit price means it comes there with that bid I run fast but this is my bid running So keep that type of gap more But if you leave stop loss here then you will be on road now see If stop loss breaks resistance here when the market goes up by breaking any price it is called breakout Okay When Price Crosses Resistance level When price crosses resistance level through upside You can say when price above the level Cross means which side Because it can cross downward is well when price crosses Means Go above Resistance level when price crosses resistance level It is called Breakout It is called breakout And buying on breakout is best trading If it is success breakout If it is success breakout then it is the best trading of your life Like if i say you simply If this power grid has come to a life time of Rs 213.80 so far If decisively it cross 214 Rupees Then atleast 5% will come 214 * 5% see you will get 214 * 5% You can get benefit of 10 rupees and lot is of 4000 confirm earning of 35-40 Thousands you will get Okay Because all the technical analysis are saying to buy it And it is near our breakout so it will breakout I think it will breakout, so some people will say show us by buying If you say this It hasn't breakout yet See, It did not cross the level Okay But it will cross Wait But don't hurry up what some people think... That when we are feeling it will breakout so let buy it quickly We will buy on 214 so it is much better to buy it on 211 Some people think this See, This is stupid thinking That it is running on 211, see history has repeat again How many times would you have earned in such a time Notice from here, If you were here, you would sell once come here and buy Then come here and sell See, benefit of 4000 on every movement Because price is moving in between 211 to 212 Means there is 1-1 rupees movement So you can say movement of 1-1 rupees and benefit of 4000 Rupees 4000 here Then 4000 here then 4000 here 12000 rupees would have been earned But this is not happens normally, I will show you more graphs But first let me summarize it I am summarizing it Yes, If successive breakout occurs then you will get I was saying something that it is not right thinking That when i will buy after 214 So why shouldn't i buy it on 211 Because benefit of 3 rupees also get Will buy after 214 but if I buy at 211 So this benefit of 3 rupees will be given and you will get the up benefit also I says if it doesn't go up what will you do if it remains down Try to understand Buyer will active if it cross 214 Buyer will be active means its chances to go down will decrease So if it decrease then what you have to do Means if you wait to 214 Then you will earn a little less But the surety of earning will be high Why you don't understood it That's why we have to trade after breakout Until breakout you should trade for below Okay So i am saying the same when price crosses resistance level then it is called breakout And if breakout happens then buy share And it is your safe trading You will get low benefit but it is safe trading But this breakout need to be successful It shouldn't fail Breakout fail means Consider it go to 214 with small variance of 1 rupees and it fail Then get out again soon I used to say it safe trading But i have to buy it Okay It is my analysis on resistance Let move little further We said if resistance breaks so we called it breakout And when it breakout we have to buy So lets move little further On resistance Never do sale after breakout by mistake Because after breakout a sharp movement take place Now let me talk on 2nd We have deal the situation A in resistance The situation we had deal, it was our resistance Now lets come on "Support" What is this? Support What happens in support? see history will repeat again Consider It is our time table It is some time and this is some price Okay Consider any price was trading consider that price was at 80 Rupees Let take it 100 100 Rupees price any price here Price go up from here And come back down at a level and after touching this level It is 100 It touches this level again And again market goes up Again after some day it goes up When it come to this level So again history will repeat People says that again it will up from here People thinks that This point which has been match from here this point We called this point "Support" The point from which price got bounce by coming down to upside.We are calling it "Support" Like consider this is price, it was your 100 rupees Remember small variation Consider if it goes slightly down consider it 99. Have i messed up something behind? consider it is 99.70 Okay, no problem, small variation will work Now tell me If we reached to support level, so what we have to do at support level? History will repeat Slightly up-down run may be it can bounce from 99.70 and may be it can go over through 101 So you have to keep the slightly gap in between and have to run on the basis of margin So tell me what you are seeing as we come to support level will the market go upside after coming to 'support" Means if price If Price of share Is at support level Either it is at support level should not be below support level which is support level .... 100 or 99.70 99.70 is your support level because it was lowest So, support level or above support, should not be below Or Above support If price of share is at support level or above support level then Trader has to Take Long position But again Very risky Until you don't have any idea Until you get some experience Buying at support level is very risky Because after it sharp movement is about to come, breakdown also possible If it fails then breakdown will occur, if breakdown occur may be you will be on the road in 1 day Because after it the force of the sell Sale force will be very fast Because after it seller become active Buyer is more active above support level and seller is more active below the support level Means it is a point and it is very confusing point Up-down, Up-down If you feel that is their any up-down situation So be careful, Earn a little less profit but first be sure Don't do at support level, let it bounce slightly from support then buy or either let it break the support decisively let it breaks the support Because if it break If it is till support then it will bounce If by mistake it doesn't bounce then don't know how down it will go So currently i am repeating the same story for below Means trader has to take long position But With Strict stop loss You can't ignore stop loss in it But here we need to place stop loss because stop loss in it is very small long position with strict stop loss and the gap of the stop loss In stop loss Order Gap between trigger price gap between trigger price and limit price Must be high Because Force will be very fast toward downward direction That your orders will not be executed, must have gone down before that and it won't take time to break 2-3-4% So if 2-3% is broken then it means that you have the loss of 20-25 thousand In 1-2 minute It is such situation If it breaks the support breaking support is breakout [Noise] Didn't I explain breakdown to you on the diagram Let me explain you breakdown on diagram See, when the breakdown will happen? It is called breakout price was gone and come back from one level went again back again went again back again Means it was touching this level and came back if next time may be it goes this much down and then again come up And if this level is resistance If it was resistance When it breaks then a very fast sharp up movement is on price It is called "Breakout" It was breakout It is breakout remember it is very good trading Breakout will give you a lot of earnings Same like this breakdown will happen downward when price goes When price Goes below Support level If it goes below support level then It is called Breakdown Okay, and when breakdown happens so you don't have to buy the share You have to sale the share in breakdown You have to sale the share And in that case older support level will be stop loss for you And when you look the stop loss of this sale Its stop loss will be, like if i see in my example If breakdown happens For this you will understand consider it go to 99.70 Let me enter its price consider it go to around 99 Rupees after breakdown It is called breakdown Rupess 99 Now tell me that if you have sold around 99 rupees Breakdown happens and you sale the share at 99 rupees So Then how much should your stop loss be around Now support level is your resistance, because Ones breakdown happens Then remember your older support will be your resistance After breakdown Support become resistance and in such case [Noise] if it breakout Now come on, sold for 99 Rupees Stop loss of it, See how much the price should go in it because you think this level has been breakout and it has gone below this level so it would not go above this level so do one work, keep some variation 100 is above it Keep the stop loss around 100.5 with small variations We can say You should keep the stop loss of 1.5 Rupees at around 100.50 we will see the level, i will tell you you should need to place stop loss around 100.50 with small variation Like as i had told here If it breakout you have to buy on breakout, when you will call breakout see how much it has gone breakout was at 100.5 So when you have to buy? Consider breakout happen and you have buy after becoming safe You buy it at 101 It was risky till 100.5 You think whether it will go up or down And it goes to 101 and you have bought the share at 101 Now tell me if you buy it on 101 and consider if its fail again If it reverse then you will loss again So how much support you should have in this case If it was on 100.5 and you have trade on 101 So 99.5 is okay If you setup the stop loss for this case So its stop loss should be around 100.5 the same 1.5 Rupees stop loss Okay If we move further Remember one more thing Let see one more thing in it We were talking about breakout, what is the meaning of breakout If it goes up then it is breakout, okay!! After breakout Resistance becomes Resistance becomes Support support, how? think carefully I say it go up came back then again go then came here again go here and came back consider it has gone down It was our Till now it was resistance till now till now we were saying it resistance I am giving you simple resistance formula, later i will tell you another Consider it has gone down But if it goes up now Consider if it goes up If it goes direct up by crossing this level Okay So now lets see for up Now if it comes back then it will go up after touching here Okay Now it is going to be support for this I want to say this Means now it tough to go back from where it has cross it will stop there Means it will become its support you will say "Show" yes, show us okay let me show you, after breakout it will become support Let see with some examples I have find something for you first of all let see the nifty for all All should have to look at nifty It is our 3 minute let me keep it for 1 day we will check it on the basis of 1 day It is 1-1 day graph Let me compress it Lets do one work, i am taking the candle of 1 week Okay See here i am putting a lining here, watch carefully Let me draw it from here let me draw horizontal lines from here We mostly try on the point where it touches the maximum Because i had told that small variation is possible so if i talks about small variation then see See here This small variation was slightly less Because these point come back after touching here It was resistance And when history repeat it had come back from here Okay Next time see careful when it cross this Slightly notice here see When it crosses then force will be high Till here it was below resistance But next day It has jump above the resistance These looks like jumped candle means it is "gap up opening" Whenever it crosses resistance gap up arrives Notice one thing We had a little variation backwards we had slightly left this top point if i touch this exact top point So the next day opening where we have taken the gap see the exact from next day of the opening which we called "Gap up opening" Gap up opening slightly here, see gap up opening exact may be we had placed little more let move slightly back Maybe put up too much No, it was okay it was at exact if you move it from here then it will become something else level was right okay leave it, i had told you before "with a small variation" see when decisively it was crossed it came over, it is not exact, small variation are there If we see it from far So the support that we see has become a resistance for us Okay, let see for 2nd case let see more stock Okay, let see one by one okay, let see it you can see anyone see here, if i put any line here It is of Infosys If i take the horizontal line of Infosys so see carefully history has repeat here Okay, i have placed lining here let me show you by making it small See here it bounce from here Okay Its breakout here It goes down from here, we can say it become resistance for next level Now, if i talks about that resistance So see, it come down once and then .... see after coming here It goes up means breakout see carefully, How much breakout will happen Because slightly nervousness occurs at this point, we had discussed about it before When this level breakout, at the time when this breakout has happened, at that time it was at level 956 When these breakouts happen, look at where they have stopped 1098 It means When decisively it breakout from here see from here when breakout from here, where did it stops Means 1098 in 4 trading session it has reached to 1098 in ...1, 2, 3, 4, 5, trading session 1098 - 956 movement of 142 rupees after breakout in 5 days But when it falls down from there so see again it has taken the support Because now it will stop below See again by touching it and then you see I had told wrong it was not in 5 days Because we have taken this of 1 week It is 1 week candle because we have to compress it you are matching the history of 2014 in 2015 So you have to take weekly charts Because it will be compressed then it will be seen together So see, I am just trying to say did it take the support after crossing the resistance See again it goes up and when it comes back So again it take the support again comes back trying to take the support, see here they stuck the main sticking points are these point Because people think breakout have done support has been broken now it wil definitely go down they start selling candle is also large seller has dominated here But its fail It is breakdown fails It is breakdown fails, the breakdown has happened, it went down but due to failing it again bounce see how much it has bounced There are chances of being trapped at this level that's why when you don't have the experience, there are chances of getting caught in Breakdown and breakout trading It was going to trap Means what we were saying just now this small variation is dangerous among all Okay Breakdown happens then got fail Next day it goes up And see again, we have consider this level resistance because it goes to this level and after 2-3 times up market is again trying to go down are you seeing? if i take exact 100% then see Ultimately it goes down and now see how much times it is taking support See how much support is taking from this level Now the small variation which had happened when you move ahead of it so it has taken little more below Now 1 time, 2 time, 3 time it is weekly graph 1-1 week If you check on daily basis on one day basis, so see how much support it is taking This chart work only because everyone thinks Because the price of something is decide from where We only tell its price If we say it will go up 2nd person also saying it will go up 3rd is also saying the same So all buyer will become active and buyer will bid so we decide the price So why chart wouldn't work see on daily basis see how much days it has spend here this much And next time when it come downward again see it is bouncing on same and slightly, see how much days it has spend then goes down from here and up from here So this is support the one which i am showing you is support It was of Infosys If i see this same thing in Nifty So let me take the graph of 1 day in Nifty So see in 1 day, you people will automatically understand that what I was saying is correct or not This level and this level are almost your same level see But small variation is also here If i slightly increase the point see this see it has touch the exact level chances of being trap are here, because what people thinks support has been broken and now it will run it get break from small variation but again it go up and after that see here When it take support from here and go upwards Again, people are careful at this level Because it becomes resistance after that after that, this level becomes our resistance and see again it has crossed that resistance level what i said... force will be more learn these 4-5 words force is very fast after breakout and breakdown If there is force then consider it is okay and if no force is there than consider there is no force I have placed a line there see after it there is a gap up we had seen one more recently for nifty when it breaks the support according to me it should visible I had placed this line on top point So it has spent 4 days here because people are nervous up or down breakout of fail people wait 3 days here as soon as people felt that closing has been gone up and now it is confirmed see a gap up opening on the next day morning is your open gap up and you think it has rise so much you will get more chance to buy it, see how many chances you will get to buy it Once breakout occurs If it is success breakout so look and then let's go i used to say again and again The chart will be used in our intraday consider if any news comes then all the chart will fail maybe some people think that how it is looking so much big candle opening here direct down here in one day and closing here look like the day of demonetization 500-1000 rupees note that were banned There was a direct opening from below And closing up Okay all those things so when the news comes they all will fail see how it fails let me show you more 2-4 examples then we will talk further How does the news spread let me take it outside See CSE is a company if you see it than see i have placed a line here It is also one day graph, see 1 day candle If i draw something here These are drawing symbol If you draw from here Take horizontal and see, let me touch this highest point see How much did the price reach see the price in right hand side 809.99 is coming Means consider around 890 round off figure is very good, 890 see when it crosses the 890 figure So see force is more, force of breakout is more one is breakout force And see after it when it crosses 880 so see where it has stop after breakout at 1000 Means 1000 from 880 1000 - 880 120 Rupees, its lot is 1100 multiply by 1100 You could earn 1,32000 rupees in the middle of this duration so its happened Swing traders who put 1 week opinion Once successful breakout So you can trade if you want But then at which level you have to exit It is main thing So for these exit points you have some technical analysis you have to see those as you are seeing this these mcd conversion Black level which was going up black level have crossed here as it crosses so you will understand it is "bell of danger" so get out of it first So all these things, volume get more all these are for your result day what i had told you that news is up then chart whenever news will come it is up from chart But the price reaction that will come after news is also with chart See, How? When the bad news came okay, demonetisation news was come it is also showing it result So some people will say it is not a bad news see when record date come so after record date consider first we had 1 share Now that company has divided in 3 parts So i will get the share of 2 company in free So the price of these share will down but it will not effect me because you get the 2 more share in free of other company so the value of this company will down and another will come but this happen after record date It doesn't hurt But these are not of record date It is your same day price movement which was your 15-20% downfall in one day all the earning Has lost then you will say it should need to take support yes, it have to take but panic situation was so high so that it haven't taken the support and fall down see on next day and when it goes below Because if it comes from up then the support will be in action but support didn't make so support is broken and breakdown again So if it goes below again so see in that case See now it is going up so it will be resistance consider like this it is a line If price is up then it will fall there if the price is down then it will stop there simple thing It is not so difficult like course So i had just told you this simple thing simple breakout and breakdown It will become support for this price If you make like this If you talks about breakdown So when will breakdown happen Going below is down, going up is out After breakdown breakdown will break support so the earlier support will become Support becomes resistance After that support will become resistance see, How? it was going down it stops after coming at this level after it price goes up then consider again it goes down again down okay go up again come below again and consider it breaks here okay 3 times stop and this time market breaks we called it breakdown but if it bounces back again Remember It will be tough for it to cross this So now price will go from here So before this this point before this it was support Now see after this point It will be your resistance You will also say to show this let see 2-4 example there are many after the breakout The breakdown must be done See this You will get many let see of the power grid, which we were recently watching It is hard to find a share of the market which is going uptrend okay Because the market is up so mainly you will get to see breakouts when the market will down you will get to see only the breakdown Yes, maybe I can find if I go to the past trend Okay lets search in Nifty let see this level It is of one day let me do it for 1 week so that we will get past history okay, let see this It hasn't happened yet, Let's do a little analysis for what happens see what can happen, notice a little bit whether we are saying wrong or right we will get to know from here see this See, breakdown has been done You will understand from here if you remember some days back See, it was our support level, let me put a line in it I am drawing the horizontal line here See, Maximum time has touched here Okay let go slightly back let me take it for 1 week, The graph will look a bit bigger and it will be good It takes time to find, see here at this level, the market has spent a lot of days Okay It should be support level but it spends one day and breaks the support after breaking the support it goes down and down. Now, see it is taking up But it will be tough to cross 250 The price of 250 which you are seeing Now when the price will go around 250 then the same tough situation Either it go up or fail Either it will cross from here or fail If it cross 250 So if I am there so I also trade If decisively it breaks the 250 and goes to 251 or 252 Again I will take a long position For upside For that, I have to find the price which is mostly broken But it is down, it will go up after down, then only you will know that resistance is being created Otherwise, you will not know here it the slightly idea I am taking it for 1 week But it is down what will you see in it Okay This will be the side only then you will take resistance, price is still down Do not even see the graph for so many days you will find it But you should get the one in which When the breakdown has taken place and what has come up then it will be stopped Okay For that, I have a lot of examples Okay fall down after the breakdown, like if you will see of UPL See of UPL I have a lot of examples in breakout because currently, the trend is on the upside See this If you see here UPL is a share I am talking about it Let me show you 1-2 examples of it and let's finish it See, this level has spent a lot of days, it is tough to cross it I know this very personally because I gave up after holding it completely for 1.5 to 2 months And when I gave up, it came out See it little carefully It has touch here It couldn't get out it touches this 1 day, 2 days, 3 day then again goes down Again tries to go up, it seems like now it will breakout But it didn't happen again because nifty was going up The trend of nifty was up every day It seemed that it would go down, but it failed again And after it here Force will be more of the breakout day See it has gone with fast force And when it goes So the price was 750 of that day And when it bounces back So 860 is the new level made 865 means more than 100 Okay Breakout has done so it goes up from 100 You can trap in such a situation Now see, when it fall down has taken the support See no news was there It falls down but it goes up again by taking the support So when the market goes up breakout happens When it falls down then it will get the support But you will get to see the breakdown situation when the market goes in the downside direction Okay So i hope I have told you a straight line case Like these are some technical analysis So i am trying to put back See, 1-2 things are more how can we draw it, see 1-2 more Like how to make upside resistance Which is in uptrend Uptrend when the trend is up in the market what is uptrend? I will tell you just now A price was there Price increase decreases again price increases again decreases again price increase again decrease again price increase It travels in the direction of wave So what we do? how do we decide resistance? In that case, we make this line, see carefully Then we make channel line This breakout happened this way As you will see this then it will become It will be support Okay It will be support And it will be resistance You will say show what is this? Again the same thing, why... what? because maximum people use it So it will be It will be your support and that will be your resistance And again when it goes then you will say that oh breakdown happen here When it comes down people start buying How I can show you that? Lets see Let see for intra-day Look in the way of intraday You will understand From an intraday point of view, I am taking 5-5 minute graph Whenever people trade in intraday so they analysis by 5 or 10-minute graph So I did some trading here, so let me show you on the basis of that channel The match will be seen See, How? Let me make a line here Consider it is a lower point Okay It is the lower point I have drawn some lining, see carefully See how many times it has touched Touched here Get bounce after touch here then touch here then touch here Then touch here and take out support But when it breaks the support then it goes below again Okay So you can make a channel like this You can make ray like this but for that, you have to find the price in the market If you make intraday then you can take 5 or 10-minute graph If you want to go on daily basis So channel will be easily made on a daily basis there is no issue in it Okay You can make on a daily basis also Let me search if I get anything else Like Hindustan Unilever Hindustan Unilever has gone too much up You couldn't see for 1 day, but now let see Let me show you on the basis of 1 hour But your trend should need to go up Okay Like see, it you talk here It is a very sharp up movement so that it is hard for us to find Let's draw a line and see if I am speaking correctly Let draw a line, it was our top point it was our top point it is not matching here So at that time You have to find that situation, again They move frequently, you don't have to decide for everyone If you see such a situation then you have to take the decision Like every day it seems like it is going up and down, so you have to look such things in that case Okay I have taken the graph of 1 hour If I make the 5-5 minute graph So there is no need because a straight line is running It needs when the line going straight upside So let me find any upside trend which is going completely up See Muthoot finance is also going so up It is going up and up Now is such case, see what is difficult in it for you Why we need to make the channel Let know this first we don't have to make this channel everywhere there is a logic behind it Because you had not any past history We don't have any past history Because it hasn't gone too much high till today so how will history repeat Think carefully I am saying history will repeat So history will repeat when it has gone back in past He had past trend here, here also so the history was trying to repeat But when the price is moving like this and Never had that price gone backward How will you decide the resistance and support of it? So in that case, we look its resistance and support by a cross line Like see it, try to find something in it There is nothing in its back, It has break the resistance Here the resistance is broken If it talk from here, see it There was a level from which it has come down From this level let me draw again See, I am drawing this line If i draw this line See here, it was the chance to fail, Students get caught here Any trader caught here because see falls breakout has happened Because it has crossed this level, people feel that breakout has to occur But it falls and goes down and see how much down it has come, and it caught here But here success breakout has done And after success breakout, it keeps going up Now from you will take the past history, tell me Now how will you decide resistance and support? Now here you have to make the channel How? It is very long Let me take it for 1-1 hour Okay See this level has a cross on this day The level has been crossed on this day, now after it, I have to make... let me take it slightly down okay also, let me take it down, space will come This is of volume, let me take this down too make it down is well Okay See it carefully Now after this, your channel will be made If you have to look the resistance than see here Now, I have to draw a line here Not horizontal, how we will make a line for this We try to lowest point we try to look at the lowest point or the maximum touchpoint Either it is lowest because you are drawing support And you will draw resistance for upside which is the highest point So now, I can say take the point after the breakout consider I start from here, you can start from its ahead also Are you seeing something? The maximum point from where it touches Which i am seeing from here is that it is touching the maximum point See, this, this and this See many point are touching here Here it is touching here too again touching here then here It means if someone trade now if someone trade now So the notice of trader should be that when it falls from up so it will touch this line then the buyer will be active because it is support otherwise, if it breaks it then the seller will be active toward the downside consider if I see the upside, So see a channel will make here again i am drawing the maximum point which I am seeing here let see how many maximum points are here consider if it is touching high level Means there is no maximum touch in upside Getting support but it is not going upside even after you can do in it As you see 2 point maximum 1st one is this and 2nd one is this even then you can make Let remove this line we have removed this line Okay So now see There is a slight confusion in resistance level we are not getting any idea about resistance level So where we have to book the profit, now see what happens in such a situation In such situations we will use Fibonacci support and resistance Or we will use pivot point Because now it supports will be from mathematical calculation We say again and again that history will repeat It doesn't have any history so how will you decide Now, when it doesn't have any past history so we will use some other technical measures Like we will find pivot point in that Turn all High, low, and closing point into red in pivot point and divide it by 3 So pivot point will come So I am not telling you about technical measures Like MCD conversion, RSI, Resistance I haven't told you about them till now These are what who try to tell us about when will breakout success or breakout fail they try to tell us all these things Okay So you all see when you notice slightly all this what I had told you and not only this, don't use extra mind when you need to use technical measure Just go to investingIndia.com Go to investingIndia.com InvestingIndia Sorry...Investing.com It is Investing.com, like if you see of Muthoot Muthoot Finance here is Equity NSE report I have entered in it like it was of Muthoot Finance Now as if we did not know at which level we had to book profit I had taken this of 1-1 hour graph If you take for 1-1 day So you have to draw the different line on the basis of 1-1 day graph So at which level I should have to book profit If you want to see that thing than go here The technical The technical analysis of it From here you will know What technical measure say to you? The pivot point is showing that it is giving you 3 support level and it is resistance level Means 461 Which I was talking about is "Fibonacci", it finds out on the basis of some % Resistance is 465.66 Means you have to book profit at this level, If you are a buyer I had told you to do sell on resistance If you had bought already so sale on resistance level otherwise if you want to take entry first then also do sale the sale will be done around resistance It is saying that In RSI action is saying it is overbought See all these Every signal is saying "buy" So never do sale in such signal, always buy What at which level? The channel which you had just made Like if you are for Intraday so you can choose 1-1 hours or 5-5 minute graph If we take 5-5 minute graph so at which level we should have to buy So if you want to draw then 1 level is this and 1 level is this It comes back from up after touching this level, so when it touches this level our buyer will be active Because we have taken slightly small If you go more back You can see more just go to past history And cross if it touches this level If you are not getting any idea when you should have to book profit So just book at this resistance level You don't have to use more mind in it Okay, it is on hourly basis If you want to take on a daily basis then it is your resistance point If you make a 5-5 minute graph on Intraday, so where we have to book profit on a 5-minute graph, at this level we should have to book profit It will tell you all these things So i hope I have tried my best to tell in a simple way And I tried my best Now let see next video about some technical measure like we use Futkal parity, Open interest, see many technical measures are present And what we do from every technical measure We only decide Will the breakout happen Or will it fail Will they breakout or fail? We try to find from every recent history, whenever you draw this line whenever you draw this line so try to repeat maximum time what had happened in past repeat maximum time what had happened in past set this in mind Okay And all the technical measure will tell about either it will breakout or fail Will the breakdown happen or will it fail we use technical measure for all such things consider if it has oversold So people will not sale more okay, what will happen here It means if you trade by mixing news and chart so it will be very best And you can see investing.com for technical analysis If you like the video Subscribe the channel Some people say to like the video so I will not say you to like the video if you like the video then press the like button it is your choice Okay See you in the next video, If I get time, I will come and take good short videos, this one has been very long Because there was basis level in it I will try to record the video at a specific point take care All the best Bye-bye

Channel: CA Nagendra Sah

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Keywords: candlestick analysis, candlestick patterns, technical analysis, ca nagendra sah, candle stick trick in hindi, candlestick chart, technical analysis of stocks, candle chart analysis in hindi, chart analysis, technical analysis tutorial for beginners, candlestick analysis in hindi, candle stick, ca nagendra sah candlestick, how to read candlestick charts, candlestick chart analysis, candlestick pattern, candle chart analysis, chart analysis day trading, nagendra sah

Id: cLtfnpB8JjI

Length: 143min 2sec (8582 seconds)

Published: Sun Jun 18 2017