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1] Do you know Nifty Distribution percentage ?
More than 40% of Nifty price movement is mainly depend on 6 heavy weight stocks,
Reliance - 10.3%
HDFC Bank - 9.3%
ICICI Bank - 8%
HDFC - 6.3%
INFY - 5.6%
TCS - 4.1%
( Percentage might slight vary depend on the recent changes )
You would have read this or watched some videos many times about the percentage . But i will share you a systematic technique to use these percentage with multi-confirmation from candlestick charts & VWAP.
VWAP is commonly used indicator by most traders for trade entry .
Now i will use VWAP slight differently along with the above percentage of stocks to identify INTRADAY TREND & DIRECTION.
1] Now check the [ Chart - 1 ] which has simple VWAP plotted on 6 Heavy Weight stocks to understand Nifty direction.
I follow a simple rule in a Ratio Format
[ 4:2 , 5:1 , 6:0 for Bullishness ]
- 4:2 means 4 heavy weight stocks out of 6 is above VWAP - Nifty is Mild Bullish
- 5:1 means 5 heavy weight stocks out of 6 is above VWAP - Nifty is Bullish .
- 6:0 means 6 heavy weight stocks out of 6 is above VWAP - Nifty is Super Bullish.
Just Reverse for bearishness
[ 2:4 , 1:5 , 0:6 for Bearishness ]
- 2:4 means 2 heavy weight stocks out of 6 is above VWAP - Nifty looks Mild Bearish.
- 1:5 means 1 heavy weight stocks out of 6 is above VWAP - Nifty looks Bearish .
- 0:6 means 0 heavy weight stocks out of 6 is above VWAP - Nifty looks Super Bearish.
In both the Bullish & Bearish if 3:3 ratio comes 3 stocks above VWAP & 3 below VWAP - Sideways.
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2] After checking [ Chart 1 ] and above Ratio format let's move on to Chart -2.
Heavy weight stocks in Chart - 1 on the same day's price reaction of Nifty using simple approach - Price trading around and above VWAP. I better focus to plan more bullish trades when most of the heavy weight stocks are also above VWAP.
The main aim is to find & trade in the correct direction - Most traders face a problem of getting trapped in the wrong direction. [ Even i have got trapped many a times nothing wrong in accepting the truth ]
3] Refer Chart 3 & 4
Always Nifty will not give one sided moves or staying above/below VWAP. Here an interesting example were few stocks trading above VWAP & few below VWAP - Information is confused - Chart is warning to wait and trade as a Directional trader [ Lack of direction just relax]
The second most problem faced by traders[ even i have faced many a times ] they start over-think during sideways market in hope of catching the next directional move. [ From my experience most of the time charts will give some hint about next direction during sideways price action - we have to be smart in reading the charts correctly ]
I will try to share separately on the ways to trade sideways market after few days - Keep supporting me.
LEARN - UPGRADE - EARN
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I have shared my observation .Use it for educational & knowledge purpose only.
15 alerts at open. How do I know what stock to trade? I ask myself:
Is the stock holding up or falling apart?
Is volume coming in?
How far away do I need to put stop?
Did the stock gap over trend line?
This questions weeds out most alerts....
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Who would have told yesterday that this stock will hit a 20% LC today.
Nothing wrong with the technicals at all, this is where a SL setup in your system can protect you against such dramatic moves.
@kuttrapali26
This is PURE GOLD❤️❤️
नोएडा की सड़क पर कल रात 12 बजे मुझे ये लड़का कंधे पर बैग टांगें बहुत तेज़ दौड़ता नज़र आया
मैंने सोचा
किसी परेशानी में होगा , लिफ़्ट देनी चाहिए
बार बार लिफ़्ट का ऑफ़र किया पर इसने मना कर दिया
वजह सुनेंगे तो आपको इस बच्चे से प्यार हो जाएगा ❤️😊
HAL : Consolidation zone is 1260-1360. Accumulation in step possible. Resistance level ais 1450/1550/1700+ Due to present situation if any news regarding development at defense, some push will be there.
@Gckcon
NIFTY FUTURE : AFTER A MONTH FOR THE FIRST TIME RESISTANCE BECOMES A SUPPORT. BUT WORST IS NOT OVER YET. OVER SOLD MKT HAS BOUNCE. SO BE CAREFULL.
@Gckcon
NIFTY FUTURE : Continuous gap down opening when you hope for the blast 😳😀🙄 in last few days. Everybody place figure of SGX positive but all are demolished when mkt open. At this time : no over night position : is the best rule to sleep calmly.
@Gckcon#NIFTYFUTURE
NIFTY FUTURE : #NIFTYFUTURE#nifty50 : GAP DOWN OPENING WITH HUGE VOLUME INDICATES IT IS DIFFICULT TO CROSS 17400. MAX. OPEN INTEREST AT 17000 PUT INDICATES THE NEAR TERM SUPPORT AT THAT LEVEL.
@Gckcon
JSW STEEL : #JSWSTEEL : TRADING MAY BE POSSIBLE ABV 660 AND RESISTANCE LEVEL AT 690. CROSSING OF 690 WILL TAKE IT TO 720/745/780. METAL STOCKS SHOWED MOMENTUM IN LAST HOUR TRADE SO IT MAY HELP IT.
@Gckcon#stocks#StocksInFocus#stockstowatch