Trend Line Tactics For Beginner Trader 

Welcome to journeyoftrading. I’m using only Candlestick Patterns, support and resistance, trend lines, and pivot points. These indicators are enough for a trading strategy. This strategy includes proper entry and exit and stoploss with trading psychology.  

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Now we are going to do chart analysis for the Bank Nifty on July 12, 2024. First I will Explain Market over view. Today Market is opening yesterday close points. The first candle is a bearish candle of the shooting star. And today I got two trend lines (call options and put options). Those two trend lines have three supports, like S1, S2, and S3 for CE and R1, R2, and R3 for PE.

This trend line gives three confirmations for entry points. One by one, I will explain below. Today market first half totally bullish market or uptrend market.

In the first half, buyers dominated. And the second half totally changed from the first half. It’s a downtrend. The sellers dominated the second half. Today's market is good for both sides. Buyers and sellers both make a good profit.

Today, I got two entry points. Those points are listed below, and chart analysis and trend analysis are updated below.

Entry Points

1.      Inverted Hammer (CE)

2.      Shooting Star (PE)

1.Inverted Hammer

Today the market opening is bearish opening. The first candle is Shooting star, and this opening is yesterday's resistance zone. Some traders take entry from the shooting star candle closing below because this is an uptrend rejection candle. But this is not a downtrend confirmation.

The next candle formation has one support zone. Why? Because this second candle takes a support from the 10th July first candle bottom support. Some traders in this support zone did not find out.

The market is going to go up. Above one rejection zone is there, because of  9^th July (Support zone) & 10^th July (Resistance Zone) both are same. Again, the market is falling due to the first candle support today.

This supports a good entry zone. Why? Because this zone reacted to the 10th July first candle resistance and the first candle support zone today. This is one confirmation for buying.

The next one is trend line confirmation. I got a trend line confirmation chart analysis below mentioned.

The trend line has the support of S1, S2, and S3. These provide additional confirmation for buying.

• S1: Yesterday Morning Star.
• S2: Today is the first candle support with an Inverted hammer.
• S3: long bullish candle.

Now that I got the above-mentioned confirmation, this is strong buying. The S2 points out that you make a business more profitable. Why? Because buying for low points and risk rewards is also less expensive. First point entry and exit are listed below.

Strike Price : 52,300 CE

Premium Buy Price : 313.60

Premium Sell Price : 635.00

Stop Loss : 278.00

Risk Points : 35.6

Reward Points :  321.40

2.Shooting Star

The second-half direction is a down trend. The pivot point resistance is 52,791. This downtrend gives a trend line confirmation like R1, R2, and R3. First candle shooting star, this candle confirms the little bit down side confirmation. This falling comes with support from July 9 (support zone) and July 10 (resistance zone).

Some scaling traders take entries from the call option with this support. And book a small profit. This is not a buying confirmation. Again, the market gives the second entry of the trend line shooting star (R2).

Now I have an entry for put options on a trend line with two resistances. The option entry analysis below is updated.

This entry also has resistances of R1, R2, and R3. These resistances provide additional confirmation for buying the put option. Confirmation points are listed below.

• R1: Pivot point resistance line with shooting star
• R2: Trendline with Shooting Star
• R3: Trend line with (Doji + Hanging Man)

This three confirmations for strong buying of put options. Second point entry, exit, and stoploss updated.

Strike Price : 52,500 PE

Premium Buy Price : 254.35

Premium Sell Price : 410.60

Stop Loss : 220.00

Risk Points : 34.35

Reward Points :  156.25

Today's Psychological Part

It’s very important for trading. Call option 2^nd and 3^rd candle hammer and bullish engulfing these two fake candles of buying. If you buy and put a stoploss on, your stoploss will definitely hit. The market again fell.

Today, the in-between zone put option also created the fake shooting star. This candle after one hammer candle formed after the market moved a little bit up. Again falling down, this entry also hit the stoploss.

When you buy a before, a minimum two confirmations are required. Without confirmation, don’t make an entry.