. You can choose to view stock/index charts on Tradingview or ChartIQ. These charting platforms are the best for analyzing charts.
ChartIQ was recently updated. This update brings many new indicators and studies to ChartIQ.Let's take some examples:
I find the candle pattern and CRP particularly useful. This is why I am adding this note.
Make sure you've chosen to view charts from ChartIQ. Click on the Profile section in Kite to do this.
Now, open any chart in your market watch.
You will now see a trade button at the top right. To invoke the quick order window, click on the trade button.
This floating order window allows me to drag the order window to key price point and fire order directly from the chart. This Ashok Leyland chart is an example of how I can see that the stock has been moving sideways over the past few trading sessions. If the stocks move out of the trading range, I might consider buying the stock.
The break out point for the chart is approximately 45. Simply click and drag the order window to the place I feel is most relevant. Once I have done that, I can place an Order to Buy or Sell. I have the option to choose between delivery/CNC or intraday MIS.
Ashok Leyland's example, I would like to be a buyer around 45.40. This price is critical for momentum to pick-up.
This feature is very useful. It allows you to focus on the price action and not the information clutter.
The recent update includes a candlestick pattern. Candlestick pattern study allows you to identify the candlestick formation using the charts. Candlestick pattern identification is a great tool to verify the patterns. But, please be careful.
Select the candlestick pattern you want to load from the studies.
After you have loaded the studies, the system will automatically identify the candlestick patterns.
ChartIQ can identify candlestick patterns in a chart. This is the EOD chart. However, you can also do it on intraday charts.
This is a great way of validating the candlestick pattern. However, there is one problem. The identification process doesn't consider the 'prior trends' rule, which is crucial to candlestick pattern.
The three engulfing trends are, for example, accurate. However, one shouldn't trade on them, as the prior trend is absent. The hanging man pattern is an example of one that makes sense.
How should you use it?
You can continue your analysis as normal, but once you're convinced there is a trading opportunity, switch to candlestick pattern studies to validate the pattern. You should match the chartIQ pattern that you are using.
There are two things happening:
Based on the above, a trader would likely go long. To validate the pattern, I would like to now switch on the candlestick patterns in my studies before placing an order.
I receive confirmation of the pattern. I would be more confident placing my buy trade there.
CPR is an indicator that helps identify key price points for trade setups. CPR is a good indicator for intraday trading.
It is important to know the Support & Resistance before understanding the CPR,so before proceeding I would suggest to check out the chapter .
CPR is made up of three components.
These are calculated from the underlying's High-, Low-, and Close calculations.
Pivot = (High + Lower + Close)/3
Bottom CPR = (High + low)/ 2
Top CPR =
(Pivot - BC) + Pivot
Take a moment to learn the formula. These are simple averages. You can also manipulate the averages. Any technical indicator should be able to show averages.
CPR is a tool that does exactly this. The CPR helps traders identify key price points, and the trend that is associated with these price points.
CPR values today serve as a reference point for trading tomorrow. This will be covered in detail shortly.
Kite searches for "Pivot" in studies. You'll find the CPR indicator.
If we see a sideways movement, it is the CPR narrow range that the next day will show. This is exactly what we are seeing the next day. The trending day was the 2 nd day. The CPR for the 3 rd day was therefore a broad-based one.
The point is:
Okay, now how do we use CPR? This is very simple.
Bullish outlookLook for buying opportunities when there is a higher current market price than the 'Top central pivot (TC).
Let me elaborate. Let's say that a stock has rallied a little. You are searching for a buy opportunity because the current market price has risen more than the TC.
Now you can wait until the stock stops its rally and retraces to the TC line.
Here's a potential opportunity I highlighted.
If the current market price exceeds the TC, this indicates that traders are willing buy, even though the average price may be higher. It is a good idea to search for buying opportunities. Remember that if CMP is greater than TC, the TC acts as a support link.
The "Bottom Central Pivot" (BC) is also a good indicator. If the current market price falls below the BC, this indicates that the market is bearish. Therefore, look for selling opportunities.
Trades can be made even if the stock price is below the CPR. Trades that are within the CPR's range limit can be made.
Buy when the stock is near BC with TC as your target. Sell (fresh short) when it is at the BC with the expectation that the price will fall to BC soon.
There are many traders out there who don't trade the range, preferring to trade the pullbacks. CPR would be a better option to trade only the pullbacks.
Here's something you should know about trading CPR.
Have a great Trading!!!