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CNXIT trade ideas

Four phases of the stock market What Is a Stock Cycle? A stock cycle is the typical evolution of a stock's price from an early uptrend to price high through to a downtrend and price low. Richard Wyckoff, a prominent trader and pioneer in technical analysis, developed a buy-and-sell stock cycle that occurs over four distinct stages: Accumulation Markup Distribution Markdown How Stock Cycles Work Stock prices may appear random, but there are repeating price cycles that are predominantly driven by the participation of large financial institutions (FI). As a result, following cash flows reasoned to originate from these large players can be identified as occurring in a cyclical manner. The Wyckoff stock cycle has expansion and contraction periods, much like the economic cycle. It can be used for portfolio management allocation, allowing for increased investment during the accumulation and markup phases and profit-taking during the distribution and markdown phases. Investors measure a stock cycle by comparing the distance between lows to help determine where prices are in the current cycle. A trader must have a strategy to take advantage of price action as it is happening. Understanding the four phases of price action can maximize returns because only one of the phases gives the investor optimum profit opportunity in the stock market. Becoming aware of stock cycles and the phases, allows investors to be prepared to profit consistently with less drawdown. The study of stock cycles gives investors a heads-up on trending conditions for a stock, whether sideways, up, or down. This allows them to plan strategies for profit that take advantage of what the price is doing. Understanding the Wyckoff Stock Cycle Phases Accumulation: An uptrend starts with the accumulation phase. This is where institutional investors slowly begin acquiring large positions in a stock. Investors use support and resistance levels to find suitable entry points at this stage of the stock cycle. For instance, investors may start accumulating a security when it nears the lower end of a well-established trading range. Markup: A breakout of the accumulation period starts the markup cycle. Trend and momentum investors make the bulk of their gains during this phase, as a stock's price continues higher. In this part of the stock cycle, traders use indicators, such as moving averages (MA) and trendlines, to help make investment decisions. For example, an investor may buy a stock if it retraces back to its 20-day moving average. Distribution: Institutional investors start unwinding their positions at this stage of the stock cycle. Price action begins to move sideways, as the bulls and bears fight for control. A bearish technical divergence between a stock's price and technical indicator often starts to appear in the distribution phase. For example, a stock's price may make a higher high while the relative strength index (RSI) makes a lower high. Markdown: Volatility often increases during this phase, as investors rush to liquidate their positions. Investors use temporary retracements to the upside as an opportunity to sell their shares, while traders look to open short positions to take advantage of falling prices. Typically, margin calls increase near the conclusion of the markdown cycle, as stock prices near their lows, which may help explain the climactic volume often associated with this part of the stock cycle.
NSE:CNXITShort
by gl_clicks
NIFTY ITHello & welcome to this analysis on the IT Index. With Q4 results starting from 2nd week of April, IT stocks will once again be in limelight. If the index can sustain above 36700 it could lead to rally till 37750-38000 where it has a line of polarity besides a Bearish Harmonic Cypher. This continuation of bullish outlook is valid till its above 36000. Failure to hold it would take it down to 35250-34500. Key levels to watch out on both sides 36000-36800 for a trend direction move.
NSE:CNXITLong
by Dinesh_C_Nagpal
1
Nifty IT may take support at this levelCNXIT is traveling in a channel and it got a rejection from the top of the channel we have a demand zone for CNXIT from 34453 to 33500 We are going to be bullish in CNXIT until a daily candle closes below 33500. So we can plan swing trading in this sector and we can take long positions if get any long setup in the stocks which come under this sector but we have to wait until it enter into DemandZone. What we believe in:- °Trade With Logic °Take Time Before Investment Saving Your Capital 🙂 I'm not responsible for your profit or loss. Mainly Stock & Crypto Investor 🕵️ | The Indus Trader 📊 DISCLAIMER:- This Channel Is For ( EDUCATIONAL PURPOSE )
NSE:CNXITLong
by The_Indus_Trader
NiftyITNifty IT Currently in a downtrend Suggestion: As Shown Nifty IT has always bounced back once it reached close to its 50 Day Moving Average. Hence Expecting a Bounce back Next week in all IT Stocks If your a risk Taker you can Buy All the Good stocks TCS, KPIT, Wipro, BSOFT, HCL Tech Today which is still available at a Good price & You will get Rewarded well next week. Note: The above is only for Risk Takers and just my Suggestion. Safe Traders only enter once there proper reversal Happy Trading Like & Follow :) Ping Me on whats app for any stock related suggestions - 9962 668555
NSE:CNXIT
by arunspoton