Share Market में trends और charts कैसे बनाते है? | #Learn2Trade Session 2
Hello friends, I am Vivek Bajaj, your friend. Friends, I have started a video series with Annapurna, where I am teaching trading to Annapurna. She is a very young and ambitious girl, who told me that she wants to do trading, so I thought I should teach her and everyone. So in this video series, this is the second session, where we will talk to Annapurna and she will ask some more questions and I will answer them. Annapurna, how are you? Absolutely fine sir, how are you? I am very good. So in the last class, you were told that there is a line chart, trading terminal and graphs are seen. So I told you that trading view is a software, I told you about StockEdge and I also showed you the trading terminal. Did you get a chance to see anything? Yes sir, I was checking the prices of 1-2 stocks, like you showed that day, if you see a holistic view, you will see it going up but if you see a narrow view, it goes down, so I saw the same in 2-3 more stocks, so that was very insightful Wow, very good, you have already started looking at stocks.
So I forgot to tell you one thing, this is not just for stocks, you can trade anything, you can trade commodity, you can trade bitcoin, if you want to. So technical analysis, which is the subject, which is a medium to trade, it can run on any instrument. So it is not necessary that you have to start from the stock market You can start with gold, which is listed on MCX.
If you want to start with crude oil, Its listed on MCX to trade. In India, there are different instruments, USD/INR is there, which is not very volatile, you can trade in that too, and technical works in everything. So all this is not listed in the stock market, it is traded through the stock market. So good question, so the exchange is the same, either it will be a National Stock Exchange or Bombay Stock Exchange or MCX, but every exchange has the right to launch multiple assets, so some exchanges are doing just equity, some are doing just commodity, some are doing both, so you have to see which exchange is getting liquidity, liquidity means that there should be a lot of buyer-seller. Suppose you go to buy and there is no buyer-seller, then you will have to take it up, so it is called impact cost, that your expense will increase, if you are buying expensive, then the expense will increase. So like the commodity is known for MCX, In equity, NSE, in derivatives, NSE, so every exchange has its own specialization, so you can trade in that exchange, you don't have to do anything, the broker you open an account with, they provide all these exchanges, you don't have to worry about it.
Now the thing is, the technical chart I told you, I told you different durations, so have you decided on which duration you will trade? Yes, like I said in the last video, I want to do swing trading, so when I am starting out, I want to see the time, if I am able to analyze or not, so I think that will be good for me. Okay, so swing trading, like I said, you take a position from 2 days to 15-20 days in the market. So today I will show you on my laptop, how to learn things technically. Okay. Keep in mind, look at the laptop. So now in front of you is a tool, StockEdge, which we have made. So if you want to know about any stock or want to trade, then you will get it in this. First of all, let's pick a stock that you are interested in that I can understand and I want to trade in it. Any one. Now in the discussion, like SBI, you showed last.
Okay, so now in the news, absolutely, now in a lot of discussion Look at the SBI stock, it has increased a lot, 170-180, Now it has become 400, so let's search for SBI. So if you search here, you put SBI here, SBI came here. Now you will see the whole picture of SBI. This is the line chart, which I told you in the trading view, now I am showing you in StockEdge. This is the line chart, it is a one-day line chart, one day means what happened in the whole day. Okay.
And below is the volume, means intraday volume. Okay. This is one week, means what happened in a week in this bank. And this is the volume, this is for one month, this is for 3 months this is for 6 months. So as time is increasing, you see, maybe your view towards the stock is also changing. In intraday, in the stock, you saw a small downtrend at the end. If I show you the 3-month chart, you will feel that after consolidating, it went up. If I show you the 2-year chart, you will feel that it fell, consolidated and then went up. So different time durations can give you different pictures of a stock. Right. That's why I said, first of all you have to decide on which duration you want to trade. Like you said, 2 days to 15 days. So for that, 3 to 6 months is sufficient. Okay. If you want to work within that time duration. Okay. So let's go to the trading view. Because in the StockEdge, the basic chart is very good. But if you want to do more advanced, then you have to go to the trading view.
So I will go to the trading view. Do you remember this chart? We were discussing this. Right. So in this chart, keep this template in mind. It's a very simple template, it's not that complicated. Like you must have read in school, in the graph, there is x-axis and y-axis. So below that is the dates. And in the axis below, there is the stock price of the State Bank of India Okay. And you have plotted the price here.
This is a daily chart, so you have plotted the daily price. If you take a 2-hourly chart, then you will plot the closing price of 2-hourly. Do you remember? Yes. This is a line chart. Yes. Now there are different types of charts. First of all, it is important to understand that. Line chart is a simple line. There is a pattern of candlestick. I told you very briefly last time. This pattern considers open, high, low, close of that time frame. Okay. If the stock is closed in bullish market, then it will be green.
If the stock is closed in bearish market, then it will be red. Okay. If I ask you, if the stock is closed in bullish market, what does it mean? According to open, high, low, close. It means that open was low and close was high. Right. Precisely. Correct. So in this bullish market means in this candle, whichever period can be a candle, this is a 2-hour candle. Okay. If we take a day candle, then we are talking about the end of every day. So if we talk about this day, let's take today. Today we are recording on 5th February. So today's low is Rs. 385. And today's high is Rs. 408. It is closed at Rs. 393. And it was open at Rs. 387. So this low is visible here. See why it is green in this candle. It is green because it is closed in bullish manner Okay. Today it is closed at the top. And why is this stick like this? Because it is made low at the bottom and high at the top.
Okay. So do you understand the structure of the candlestick? Now see, there is a small stick at the top and a small stick at the bottom. It means this is low. It is made high by touching low and low by touching high. Okay. But why is it green? Because it is closed at a higher level. At a higher level.
Got it. Okay? Got it. Like this is open, this is closed, this is high and this is low So if there is no stick, then closed and high are same. Exactly. If there is no stick at the top, then closed and high are same. If there is no stick at the bottom, then low and closed are same.
Okay. Okay? So this is a candlestick format. Similarly, there is another format called bar chart. In which you cannot see the colour depth inside. What is inside the bar chart? If this is the same format, high, low, open, closed. Okay. Okay? So there are different formats of charts and each format tries to tell you something. So is everyone looking at us? No. Because you will get lost in so many formats. There is candle, there is bar, there is hollow candle, there is area, there is baseline, there is Renko. Continuously, all this is science. This is a science. So studies are being done continuously on this and new patterns are coming. You don't have to go into this now. This is for us. Those who have already advanced will see Renko, Line chart, Kagi But you will not see. You will see only two now. Line chart to start of it and then we will go to candlestick. Candlestick, okay. But now we will focus on the line. Okay. Now in this stock, the last time which was discussed with you, you can see a trend, correct? Yes.
What trend was visible? Bullish trend. Bullish trend. This means uptrend. Right. How do you design an uptrend? When there is a difference between this point and this point and this point and this point and this is up, then it is an uptrend. This is low, this is low, this is low. So when lows are making highs and highs are making highs, then it is called an uptrend. I will tell you how. This is low, this is low, this is low. When I added these, it became high trend. Why? Because low is making highs. Okay, because lows are also going up. Exactly. And high is also going up.
So what is this stock? Bullish. Why? Because it is in uptrend. Why? Because higher highs are being made and higher lows are being made. And if this starts to go upside, then it will come in bearish trend Let's see an example of bearish trend. So our first task is to find out in which trend is this stock? Is it in bullish trend or bearish trend? Now you tell me in this. You do it. Chart is in front of you. Now you draw and tell me. Here, draw a trend and tell me. You will click from here. Good. Take it to the first line. Good. Good. Good. More or less. You have understood. Now give it to me. You have understood. Now I want you to practice this. When you go to trading view or StockEdge, you can use this for this purpose.
So you will practice this. See, this line is being drawn. More or less. Okay. I am explaining this to you to make you understand. So lower low and high is also making a new low. This means this stock is in downtrend. So before trading in any stock, the biggest need is to know its trend. The simple formula for trend is higher highs and higher lows and lower highs and lower lows. Now you have to see in which duration you are trading. According to that, you have to find the trend. Because the stock which is in uptrend on a weekly basis, it can make a downtrend in a 1-hour chart. So this is a daily chart. Let's reset it to 1-hour chart. Now what does 1-hour chart say? Do you remember that I made a trend in daily chart? So the line is still here. You can see that it has worked on this trend line for 1-hour. As soon as it has broken this trend line, there is an uptrend. So last time, I told you about a concept called breakout.
Right. This is called breakout. So after breakout, if the stock goes up. And sustains. Okay. So this means that it is ready for a new era. Okay. So it will make new highs and lows. It is possible. No, it will not make new lows, it will make new highs. It will make higher lows. It will make higher highs but the trend will be upwards because it has given an uptrend breakout.
Now the question is that this breakout can be wrong. How to know that this is the right breakout? It means that the horse will start running from here. Yes, because the breakout can be here too. Here we have made a trend line, so there is no breakout here. No, if we suppose, if the chart was up to here, then this breakout could have happened. Yes, it could have happened. Correct. So there was no breakout. Correct. Absolutely correct. So there was no breakout. Right. Or if there is a breakout and it goes down again, then this is called a false breakout. Okay. That it told that I am starting to run, but actually it did not run properly. So this is nullified. Another way to confirm a breakout, I told you about the concept of volume. Right. So the number of people who participate in the breakout, there is a chance that the breakout will be right. Okay. So you see, when this price was going up and this breakout happened, a lot of people participated in it. So this is a conviction that yes, this breakout is looking genuine because a lot of people participated in it.
Volume traded more in this. Volume traded more, means more people are participating in it. Okay. So till now what do you think about the concept? Technical, is it tough or is it okay? Sir, the way you are explaining, it seems easy till now. It is easy. Anyone will explain, it is easy, it is not that complicated. See, this is like, the more you practice, the more you refine it. Okay. This is totally skill. Like you learn music, you learn flute, you learn guitar, you learn tabla, so the more you practice, the better you will become.
So it is technical also. So every day, in the evening, half an hour, you have to spend. Okay. You spend in StockEdge, here also it is technical. You have made charts here, here is an advanced chart in which you can draw these trend lines, see. You can do the same thing here also, but in the trading view you will be able to do it more technically. Now in StockEdge, the technical numbers are good, but the chart is not that good. But either you use StockEdge or Trading View, either way, at least both are sufficient to learn.
Okay. Right. So if I am trading, suppose today I have decided that I want to trade in SBI. Okay. So I saw that, suppose if we do not consider this one, which is their breakout, if we consider there also, then we are going bearish. So should I consider this then? So bearish or bullish, this word, you have to use it very selectively. Okay. Okay. Broader trend is bullish. It has gone down slightly. This is not bearish. Okay. This is correction. Okay. The one that goes up will come down once. Like a ball, you throw the ball, you throw it, it falls, then it comes up a little, but not completely up.
It will come up a little, then it will fall, then it will come up a little, then it will fall. So this is called retracement or correction. It will come down once, but if the long term trend is still positive, then the trend below will go around again with support. So this can be, if I want to do it, then I can think about it You can think about it. Because in this, I will tell you later How you will do trading, I will tell you later. Now you think how to analyze the chart and find out the trend.
Okay. We will discuss trading strategy, but now the most important thing is to befriend the chart. Befriend this template. The more time you spend with it, the more comfortable it will be for you. And then one point will come that it will tell you that this stock will reverse from here, take it. Okay. Okay. So now we have to discuss trading strategy a lot We have to go very deep in trading strategy. Okay. Now let's discuss this. Now in this, you can use different types of annotations. Like I drew a line. Similarly, you have different types of annotations here. You can draw a parallel channel. For example, from here to here, this will be my parallel channel. There are different patterns. The more you use it, the more you will understand about the pattern. Parallel channel is the same length. Generally, the stock moves in a range. When it is consolidating or making a trend, there is a range So this parallel channel or support line, resistance line symbolizes this range. Okay. Okay. One concept that I forgot to tell you and it is very important to understand is Support and Resistance.
Okay. Now I will delete this once. Look, understand one thing that in every stock, there are buyers and there are sellers. There is a price point at which there are many buyers and there is a price point at which there are many sellers. The price point at which there are many buyers creates support. They will not let the price go below it because there are always buyers. And the price at which there are many sellers becomes resistance. The stock does not go above it because there are many sellers. Okay. So where there are many buyers, it is called demand zone and where there are many sellers, it is called supply zone. Simple law of economics. Okay. If supply is more than demand, the price will go down. If the demand is more than supply, the price will go up. The same theory works in the financial market. What is this? This is actually a pictorial presentation of law of demand. Right. If there are more demand, price is going up and there is more supply, price is going down. As a trader, it is your responsibility to find out where is the demand zone and where is the supply zone.
Where is the support and where is the resistance? Whenever the stock price comes near the demand zone, you know that big people are ready to buy. And whenever the stock price comes near the supply zone, you know that big people are ready to sell. And when it breaks the supply zone, which is called? Breakout. Exactly. It is called breakout. When it breaks the supply zone, it means that more big people have defeated those big people. So now the stock can make a new rally from here. Okay. So what is your role to figure out the demand zone and supply zone? How do you figure out? Typically, these horizontal lines are good enough to figure out the demand zone and supply zone. Horizontal line means the line that you are seeing.
Now you have a cursor that is giving you lines. So here… If you go there, you will find cross, dot, arrow, etc. But what I am interested is in the trend line. Simple straight trend line. So, let's take a simple example, Annapurna. Which date is this? I will delete this. Which day is this? This is the day of 12th February. You see, do you understand anything here? Do you feel anything? If I draw this here, do you feel anything? Do you understand something by looking at it? That the price goes up again and again and someone comes to sell.
This means that this supply has become a zone. Typically, when you define a zone, then the stock never moves at one price. It goes around and creates a range and reacts to that range. So, if I draw a horizontal line here, this becomes a horizontal line. And if I draw another resistance here, this becomes horizontal. So, what happens to this? What happens to this gap? This is called the supply zone. Supply zone. Now you see, whenever this stock has broken the supply zone, the one it has broken now, how did it run? Because in this zone, earlier also, some people attempted to stop the stock. It fell down. This is my supply zone.
Okay. First, we have to find the demand zone. So, how do we find it? Where there were a lot of buyers, and the price is going around from there again and again. So, this happened. And it turned from here. And it turned from here a little. So, you see, it fell from here to here. So, this is a good demand zone. What was the demand zone? Rs. 185 and here 173. That means, from 172 to 185, there was a continuous attempt of price going down. But there were some people, whether they were operators or big people, they were standing below to buy it. Okay. So, what will happen now? Suppose, this stock falls next time. The one that goes up, falls once. If this stock of Rs.
400 falls, when should you buy it? If the stock of Rs. 400 falls, you should buy this stock. Why? Is the trend up? Is the trend up or down? Now, the trend is up. Then you should buy it. What is the big trend saying? The big trend is fast. So, the answer to the first question is, yes, I should buy it. Because the big trend is still fast. But at what price should I buy it? You cannot trade at every price. Every stock has a right price. The right price decides the demand zone and supply zone. Okay. Now, at today's rate, this stock is here, at Rs. 390 Should you buy it? It has just dipped.
So, I think I should buy it. Because it will go up. But if you buy it, what is the basis to buy it? Because it can go from here to here. Yes, it can go. It can go here too. But the probability of going down from here is less. So, which is the best trade? If it comes up to here, up to Rs. 345, then I will buy it. Then it is good for me. Okay. Because my probability of loss is less. Stock market is all about probability. Okay. You can't enter at all the prices. You want to enter only at the price in which the probability of success is high. If you enter the State Bank of India at Rs.395, you can be right.
But risk and reward are unfavorable. Okay. If you enter around Rs. 350, because there was a demand zone below risk and reward are favorable. Okay. So, this is a big learning for us today. Assessing risk and reward is the definition of a good trader. Okay. Got it. Do you understand risk and reward? Yes. Technical analysis as a science has so much power that it gives you the skill set to measure risk and reward. So, the more you look at the price, the more you get into it, the better you will learn the concepts. But what if it doesn't goes up to Rs. 345 Okay. There are so many stocks in the market.
Okay. There are so many stocks. There must be some stock in which risk and reward are favorable. We will work on that. Okay. We have only this much money. If we don't invest Rs. 5000, we have Rs. 2000 but we are still active. And if we are very active, we have 700-800. We won't invest all the money in all the 700 stocks. So, end of the day research, which I tell you to do with stock, its objective is that in which stock, risk and reward are favorable, keep it out at night and go to the stock the next day in which there is a trade opportunity.
But sir, there are so many stocks. So, what all stocks I will be able to track in a day? So, I will teach you this. After this, we will record another video in which I will tell you how to filter. In which stock should you do it in? So, you will have to learn this filtering mechanism. Maybe there are 10 stocks in which the probability is high that it can give you a better return. So, that is the StockEdge in which you can filter. You can do scans in that. I will teach you that later. But for today, you have more or less learned the structure of technical analysis. Right. Correct? Yes, sir. We will record another video together and teach you. It has just started. And if you want to become a trader, this is not going to be an easy journey.
But I am enjoying teaching you. And I hope you are enjoying learning. Yes, a lot. That's good. So, friends, this is all about laying the foundation of becoming a quality trader. And the questions that Annapurna has asked, the ones who have been involved, she is very, very genuinely asking good questions. And you must be liking it. If you have more questions, then you can ask them in the comment section. We will take those questions as well. But now, the initial starting is there. Today was the second class. After that, the other classes will continue. So, stay connected. And share this video with your friends. Tell them that someone is genuinely teaching technical in a simple language. Teaching trading.
So, give everyone the benefit of it. Thank you so much for connecting with my video and for connecting with my channel. Bye-bye..
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