Voltas - Explanation of my yesterday's analysis
https://www.tradingview.com/x/DBRzd3y6/
I have used the same words on the chart and repeating them here also for the purpose that you can read many times and understand the level of analysis. Firstly, read here and then alongwith chart.
Some one has asked me a question or in other terms raised a doubt regarding Voltas. His/her view is that Voltas is in downtrend before a level of 844.
1. I am happy that a question has been asked and this is an opportunity for all to elaborate and learn.
2. As per my understanding, downtrend starts when the low of previous swing is broken. But, if low is not broken after a prominent high, it is just a retracement.
3. But a question arises as to how can we say that retracement has completed and there will not be any further fall?
4. Generally, it is said that we should buy only when there is pull back up to 38.6%.
5. Now, two red parallel lines have been drawn, lower on at 23.6% and the upper one at 23.6%, if we buy only after 38.6% we are going to loose the profit in between. But, sure risk is greater.
6. Now, to reduce the risk, we should have the expert knowledge and check from other angles like drawing of waves, channels and other means to be used like overbought - oversold situations etc. [This is the most important factor of stock market because smart money always want liquidity, means sufficient number of floating stock and then raise the price and sell back to the public]. For this we can use RSI or William's R%.
7. For example, I have drawn waves in white for all of us to understand things properly without numbering them just to show the movement.
8. Drawn is a channel in green which shows you probable future movement pictorially/geometrically.
9. Lastly, to be very sure about the future movement, we have to do the time analysis and then wait for the levels to be attained and maintained and if we are not experts in this, simply use moving averages at the lower levels.
10. How, the levels are to be chosen? Answer is W. D. 4H. H and 15m is the best way.
That is why I always request you people to comment and ask as many questions as you want, I will try to answer all the valid question, because it is the only way to understand and improve.
I have used the same words on the chart and repeating them here also for the purpose that you can read many times and understand the level of analysis. Firstly, read here and then alongwith chart.
Some one has asked me a question or in other terms raised a doubt regarding Voltas. His/her view is that Voltas is in downtrend before a level of 844.
1. I am happy that a question has been asked and this is an opportunity for all to elaborate and learn.
2. As per my understanding, downtrend starts when the low of previous swing is broken. But, if low is not broken after a prominent high, it is just a retracement.
3. But a question arises as to how can we say that retracement has completed and there will not be any further fall?
4. Generally, it is said that we should buy only when there is pull back up to 38.6%.
5. Now, two red parallel lines have been drawn, lower on at 23.6% and the upper one at 23.6%, if we buy only after 38.6% we are going to loose the profit in between. But, sure risk is greater.
6. Now, to reduce the risk, we should have the expert knowledge and check from other angles like drawing of waves, channels and other means to be used like overbought - oversold situations etc. [This is the most important factor of stock market because smart money always want liquidity, means sufficient number of floating stock and then raise the price and sell back to the public]. For this we can use RSI or William's R%.
7. For example, I have drawn waves in white for all of us to understand things properly without numbering them just to show the movement.
8. Drawn is a channel in green which shows you probable future movement pictorially/geometrically.
9. Lastly, to be very sure about the future movement, we have to do the time analysis and then wait for the levels to be attained and maintained and if we are not experts in this, simply use moving averages at the lower levels.
10. How, the levels are to be chosen? Answer is W. D. 4H. H and 15m is the best way.
That is why I always request you people to comment and ask as many questions as you want, I will try to answer all the valid question, because it is the only way to understand and improve.
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