Get started
SUN PHARMACEUTICAL INDUSTRIESSUN PHARMACEUTICAL INDUSTRIESSUN PHARMACEUTICAL INDUSTRIES

SUN PHARMACEUTICAL INDUSTRIES

No trades
See on Supercharts
Overview Financials News
Ideas
Discussions Technicals Forecast Seasonals Options

SUNPHARMA trade ideas

Mastering Impulses and CorrectionsHello, Successful trading in the stock market requires a comprehensive understanding of market trends and the ability to identify price patterns. One such pattern is the interplay between impulses and corrections. By recognizing these alternating phases, traders can gain valuable insights into potential market movements and make more informed trading choices. In this article, we will explore how to identify impulses and corrections in stocks and leverage this knowledge to guide our trading decisions. Understanding Impulses and Corrections Impulses and corrections are two primary components of price movements in the stock market. They represent the cyclical nature of stock prices, characterized by alternating phases of strong trending moves (impulses) and temporary price retracements (corrections). These patterns are largely influenced by the collective behavior of market participants, as supply and demand dynamics drive price action. Impulses: The Power of Momentum Impulses are the strong, directional moves that propel stock prices in a particular trend. They typically occur in the direction of the prevailing market sentiment and are characterized by higher volume and strong momentum. Impulses can result from a variety of factors, including positive news, strong earnings reports, or broader market trends. To identify impulses, traders should look for the following characteristics: Strong Price Movement: Impulses are marked by significant and sustained price advances or declines. These moves often occur in a relatively short period, indicating a surge of buying or selling pressure. Volume Expansion : Increasing trading volume during an impulse signifies market participation and validates the strength of the move. Higher volume confirms the presence of eager buyers or sellers, further reinforcing the direction of the trend. Break of Key Resistance or Support Levels : Impulses often break through important technical levels, such as support or resistance, further establishing the strength of the trend. These breakouts serve as confirmation points for traders. Corrections: The Breath Before Resuming the Trend Corrections, also known as retracements or pullbacks, are temporary price reversals that occur within an ongoing trend. They serve as a natural pause or breathing space for the market before resuming the dominant price direction. Corrections are characterized by price pullbacks against the prevailing trend, often retracing a certain percentage of the previous impulse. To identify corrections, traders should consider the following factors: Counter-Trend Price Movement : Corrections exhibit price movement in the opposite direction of the prevailing trend. These retracements can be shallow, typically ranging from 25% to 50% of the previous impulse's range. Decreased Volume : Corrections usually occur on lower trading volume compared to impulses. This decline in volume suggests a temporary reduction in market participation and reinforces the notion of a temporary price reversal. Support and Resistance Levels : Corrections often find support or encounter resistance at previously established price levels. These levels can act as potential reversal points, creating opportunities for traders to enter or add to positions. Using Impulses and Corrections in Trading : Recognizing impulses and corrections can provide valuable guidance for trading decisions. Here are some ways to leverage this knowledge: Trend Identification: By observing a sequence of impulses and corrections, traders can identify the prevailing trend. Understanding the broader market direction can help align trades with the momentum and improve the odds of success. Entry and Exit Points: Impulses provide opportunities for traders to enter positions in the direction of the trend. Once an impulse is identified, traders can look for suitable entry points during corrections, aiming to enter at favorable prices before the next impulse begins. Risk Management: Understanding the interplay between impulses and corrections can help traders set appropriate stop-loss levels. Placing stops below significant support levels during corrections can protect against adverse price movements while still allowing the trade to capture potential gains. Conclusion: Recognizing and understanding the patterns of impulses and corrections in stock prices is a valuable skill for traders. By identifying these phases, traders can gain insights into market trends, determine entry and exit points, manage risk, and develop effective trading strategies. Incorporating this knowledge into trading decisions can significantly enhance the chances of success in the dynamic world of the stock market. The above chart clearly shows you the Impulses and corrections on the Sunpharma chart. Good luck and all the best in your trading!
NSE:SUNPHARMAEducation
by thesharkke
Sun Pharma ready for firing on upside For all trade on my Auto Harmonic patterns indicator trade setup - Risky trades can take trade after crossing 23.6% on either side and safe traders can take trade after 41% We can start buying when our Trailing SL hit at 23.6% with SL of recent low our Target will be 41%, 78.6% , 127.2% 161.8% and 223.6 % , when reversal pattern appears on chart we have to trail our SL if trailing SL hit exit from long trade and initiate sell trade ,
NSE:SUNPHARMA
by JaiPrakashShuklaHarmonicTrader
MyPOV @ Sun PharmaI am looking at today's Closing which is at crucial level. according Fib level from previous swing low to today's High give 0.618 retracement. What I am Assuming : with Reference of RSI Level previously 60 to give deep towards 40 Level then around 6% retraced. same way if current RSI go to touch the level of 40 then one interesting pattern will emerge which is Head and Shoulder (Mark on Chart). I know there is many if and else in this scenario to play, I am waiting to break Recent Swing Low (980)for put trade for Target 945 and defiantly change the view at 945 level and switch to find buying at that level. For educational purposes only. Not financial advice. Consult a professional before making financial decisions. #Disclaimer #NiVYAMi
NSE:SUNPHARMA
by kzatakia