馃攳
TECHNICAL Analysis of Stocks for beginners | Akshat Shrivastava - YouTube
Channel: unknown
[0]
on today's video i'm going to have a
[2]
discussion with you on how you can use
[4]
trend lines to make money in the stock
[7]
market
[8]
this is a very important concept right
[10]
now because the markets are going down
[11]
there is a trend reversal that is
[13]
happening and again this trend will
[15]
reverse so when the stock starts turning
[17]
green you can use the concepts that i'm
[19]
teaching out on this video and make
[21]
insane amount of money in the stock
[23]
market so with that said what i'm going
[25]
to cover today on today's video is so
[27]
what are trend lines how to draw trend
[29]
lines how to build channels how to trade
[31]
between different channels to make money
[33]
what is a real breakout what is a fake
[35]
breakout so i will cover all these
[37]
technical indicators and parameters for
[39]
you so press the like button and we will
[41]
get the video started also a very quick
[43]
shout out to our sponsors for today
[45]
which is stock bro it is a trading and
[47]
investment learning platform where you
[49]
can experience live markets in a
[51]
risk-free manner as users you get
[53]
virtual cash and you can buy and sell
[55]
stocks and win cash rewards by
[57]
participating in trading competitions
[59]
you can learn about stock market
[61]
investing in a gamified manner so check
[63]
the links in the description box use it
[65]
to avail free credits so let's get the
[67]
video started and first and foremost let
[69]
me comment on what trend lines are and
[72]
why are they so important and what you
[74]
can do with it so for this let me take
[76]
you to my screen and let me pick a real
[78]
example of hindustan unilever which is
[80]
one of my favorite stocks so i'll pick
[82]
that up and here you can see that i have
[84]
drawn two lines right so this is line
[86]
number one and this is line number two
[88]
now these indicates certain trends
[91]
now you can see that how did i draw this
[93]
trend line so i
[95]
just created a line touching all these
[98]
different points and i extended it and
[100]
this is a resistance trend line right
[103]
why is it a resistance trend line
[104]
because every time the stock moves it
[106]
touches it goes back it touches it goes
[109]
back it touches it goes back so on and
[111]
so forth
[112]
and this is a support trend line right
[114]
so i have connected these different
[115]
points roughly this is also connected
[118]
this is also connected and this is a
[120]
support trend line right now trend lines
[123]
can be of various ways it can be drawn
[125]
in different formats there is no
[127]
specific format of drawing a trend line
[129]
but here are a few key points that you
[131]
must remember about a trend line and
[133]
what it indicates so trend line as the
[136]
name suggests it indicates a trend right
[139]
it indicates a trend now what do i mean
[142]
by indicating a trade for example if you
[144]
analyze this line you will see that the
[147]
stock is making
[148]
higher lows right so that's a trend
[150]
right so this indicates
[152]
a trend called as higher
[155]
lows
[157]
so this is a trend and this is what this
[160]
particular trend line trend line 1
[162]
indicates so this is what a trend line
[164]
means in simple words trend line
[166]
indicates a certain trend here the trend
[168]
being that the stocks is making higher
[170]
lows now comes a very important question
[172]
that akshat can you talk about how to
[174]
draw a trend line what is a correct
[176]
trend line versus not so you can go on
[178]
trading view and here there is a tool
[180]
called as trend line so you just
[181]
literally pick it up and then you start
[184]
connecting the dots for example i see a
[186]
certain trend which is growing here so
[188]
i'll pick my first dot here i'll connect
[190]
this and then i'll extend this right so
[191]
i have connected this and i have
[192]
extended this so this is another trend
[196]
now is there a specific duration for
[198]
this trend is applicable versus not no
[200]
now trend lines are not written in
[202]
stones it's not as if there is a hard
[203]
and fast rule of drawing a particular
[205]
trend line that it can only be drawn in
[207]
this way 2 plus 2 is equal to 4 and that
[209]
is what exactly the trend line is no
[211]
absolutely not there can be multiple
[213]
ways in which you can draw a trend trend
[215]
simply means that you take a time frame
[217]
you decide whatever that time frame is
[219]
you see a trend you draw it you extend
[222]
it that is what a trend line would mean
[224]
it is an indicator it simply tells you
[226]
that hey this is how the stock has been
[228]
behaving in the time frame or time
[230]
period you have decided so that is the
[232]
simple concept of trendline a more
[234]
important concept is to understand the
[236]
concept of channel right so channel
[238]
simply means that you pick a certain
[241]
time frame so i have picked the time
[242]
frame from let's say somewhere around in
[244]
july right so you can see july here now
[246]
this trend is up until december right so
[248]
i'm sitting in end of december so this
[250]
trend starts from july of 2021 to
[253]
december right so this is a time period
[255]
that i am picking now how is this
[257]
channel behaving during this particular
[259]
period of time now this is a very strong
[261]
resistance trend line
[264]
resistance trend line and this is a very
[266]
strong
[268]
support
[269]
support trendline now why am i saying
[272]
strong support and strong resistance now
[274]
there are weak trend lines and strong
[276]
trend lines now a weak trend line would
[278]
be something like this right so it is a
[280]
very sharp slope right usually more than
[284]
more than 45 degrees right so that's an
[287]
indicator of a weak trend line it will
[290]
not have i'm not saying have i am saying
[293]
not to have
[294]
multiple multiple touch points right
[298]
multiple touch points so here you can
[299]
see that there are multiple touch points
[301]
both on support trend line and both on
[304]
resistance trend line therefore this is
[306]
a very strong
[307]
channel right so i hope you get the
[310]
concept of what a channel is what a
[311]
trend line is what is the utility of it
[314]
the utility of both support trend lines
[316]
and resistance trend line and channels
[318]
is very simple that it just allows you
[320]
to see where the stock is moving how it
[322]
has behaved recently and probably it
[324]
will continue to follow this trend and
[326]
channel now before i take you through
[328]
how you can make money by trading trend
[330]
lines let me also give a couple of more
[332]
examples so this entire concept of trend
[334]
lines and channels is clear so let us go
[336]
to hdfc life insurance stock and let us
[339]
draw a support and resistance trend line
[342]
so this is what this is a resistance
[344]
trend line resistance trend line
[346]
and this is a support trend line support
[350]
trend line right and we are drawing it
[352]
from the period where right from here
[355]
roughly
[356]
november of 2020 right till now so this
[360]
is roughly a 13-14 month period we are
[363]
looking at right
[364]
now is this a strong trend line the
[366]
answer seems to be yes why because the
[368]
gradient is pretty smooth multiple touch
[371]
points on the support trend line and
[373]
again multiple touch points on the
[375]
resistance trend line right so therefore
[376]
this entire channel is a fairly strong
[380]
channel okay
[381]
i hope this point is clear this is the
[383]
second example that i have shown you
[385]
now let me talk about one final concept
[388]
before i start teaching you money making
[389]
techniques from it now there is a
[391]
concept called as multiple channels and
[393]
multiple trend lines so let me use
[394]
different colors so you can see here
[397]
that this is a channel that i've drawn
[399]
right this is a trend line that i drew
[401]
and this is a channel this is the main
[403]
channel right so i will mark it as main
[406]
channel right channel okay
[409]
now there is a peripheral channel also
[412]
or a secondary channel right and here
[413]
you can see that this is
[415]
another channel this is another channel
[419]
okay
[420]
so here there are two channels channel
[422]
one and channel two they each have their
[425]
own support and resistance zones and
[427]
they have different trend lines so i
[429]
hope this concept is very clear and let
[431]
me just do a very quick commentary on
[433]
this so that this becomes clearer now
[435]
what is happening is that this is your
[437]
main line right or mean and this is your
[439]
main resistance line now here what
[442]
happened was that there was a breakout
[444]
that was given here and then the stock
[447]
changed its trend right so there was a
[449]
change of trend that happened right this
[451]
led to creating of another
[454]
trend
[455]
now why is this important because you
[457]
might have heard of the phrase that you
[458]
know what the stock has undergone a
[460]
trend reversal or a stock has given a
[463]
breakout or a stock has broken down so
[465]
all these are what these are just
[466]
indicators that the trend lines have
[468]
changed so i hope this concept is clear
[470]
that a stock can have multiple trend
[472]
lines it can have multiple channels and
[473]
it indicates certain things so this
[475]
brings us to the second part of the
[476]
video where we will speak about that how
[478]
you can use trend lines and channels to
[480]
make money and for this you need to
[483]
understand the difference between real
[484]
breakout and fake breakout easiest way
[487]
for me to explain this is by taking you
[489]
through a couple of examples okay so
[491]
example one let's go back to our hul
[494]
stock
[494]
and in order to identify real breakout
[497]
and fake breakout you need to use the
[499]
volume tab right so here if you click on
[501]
functions and if you go to the volume
[504]
tab
[505]
you will be able to integrate that into
[508]
the mix right
[509]
and if you zoom it you will be able to
[511]
see the volume bar also so let us first
[514]
understand what is a real
[516]
break out right so real breakout simply
[519]
means that it has broken apart from this
[521]
channel what channel am i talking about
[523]
let me just color it up once more right
[525]
so this is the yellow channel that i am
[527]
speaking about this is the main channel
[529]
and the stock has broken out of this
[531]
channel and has given a run up so this
[533]
is called as breakout because the stock
[535]
gave like significant returns once it
[537]
broke through this channel similarly a
[539]
stock can break down also break down
[542]
also and here is where the stock is
[544]
breaking down so i hope this simple
[546]
concept is clear now many a times what
[548]
would happen is that you will see a fake
[550]
break out right for example you will see
[553]
that okay hey you know this thing this
[555]
green candle is moving up it will break
[557]
this channel and it will go to new
[558]
heights and i will just buy it here i
[560]
will sell it here right this is my
[562]
buying point and this is my selling
[564]
point and i'll make this difference of
[565]
money in a very short manner this sounds
[567]
super exciting but what ends up
[569]
happening is that in terms of a fake
[571]
breakout
[572]
the stock gives a little bit of run up
[574]
then it falls more right so you would
[575]
have bought something here and now
[577]
you're forced to sell it here right many
[579]
a times we panic and we sell it and we
[581]
sit on a loss so how to avoid it that is
[583]
where the concept of identifying real
[586]
breakout with a fake breakout comes into
[587]
the picture so super easy to do it right
[590]
so there are a few key things that you
[591]
must understand first is the type
[595]
of candle that is there right
[598]
you need to keep an eye on that second
[600]
you need to keep an eye on the volume
[602]
right
[603]
these are two very important parameters
[605]
that you must keep in mind now are these
[607]
guaranteed techniques that if you take a
[609]
look at type of candle and volume 100
[612]
you can identify a real breakout from a
[614]
fake breakout no
[615]
absolutely not you must append this you
[618]
must append it with third point which is
[620]
fundamentals right fundamentals and
[624]
market conditions right now this is
[626]
beyond the scope of this video this is
[628]
very difficult for me to teach on such a
[630]
short video but at least if i teach you
[632]
the first two points you will be able to
[633]
trade better so what do i mean by type
[635]
of candles so let me zoom out and let me
[637]
show you the type of candle that has
[639]
been formed here right so i'm zooming
[641]
out and here you will see this
[642]
particular candle now what is this type
[644]
of candle if you have watched my
[646]
technical analysis part 1 just comment
[647]
in the description box below i will also
[649]
understand whether you are learning
[651]
something from my videos or not so
[654]
this
[655]
candle has very small wicks wix means
[658]
again you tell me what wix means you
[659]
have to watch part one of the video so
[662]
this is a very strong
[664]
x type of candle you need to comment
[665]
what that exists so this is a very
[667]
strong x type of a candle and psychology
[670]
behind this is that hey here there are
[672]
very few people who are taking opposite
[675]
positions right what do i mean by very
[678]
few people taking opposite positions so
[680]
as you can see that this is a big green
[682]
candle and literally everyone is buying
[685]
a stock here right so everyone is a
[687]
buyer here almost everyone how do i know
[689]
it because this has very small wig it
[692]
has very very my new twix so very few
[694]
people are selling the stock here and a
[695]
lot of people are buying the stock here
[697]
so this is considered to be a strong x
[700]
type of candle again you need to tell me
[701]
what the name of this x is and comment
[703]
below with your answer in case you don't
[705]
understand go and watch my part 1 of
[707]
technical analysis video i have covered
[709]
this type of candle there so you're
[711]
essentially looking for this type of a
[713]
candle and the second thing that you're
[714]
looking for is increasing volume right
[716]
so here you can clearly see that hey
[718]
there is increasing volume the volume
[720]
has been going up for this stock
[722]
consistently and it gave a real breakout
[725]
it broke the channel and then it made a
[727]
new high it literally reached at its top
[729]
and then it broke down further but you
[731]
would have traded this particular range
[733]
and you would have made a lot of money
[735]
in the process
[736]
now this technique is called as
[738]
identifying a
[740]
real
[741]
real break out right this is what
[744]
readers try to do all the time and this
[746]
is how they make money now you would say
[748]
okay great you have explained what a
[749]
real breakout is can you also explain
[751]
very quickly what a fake breakout is
[753]
because i don't want to get trapped so
[755]
can you explain a little bit about fake
[758]
break outs okay happy to do it right so
[761]
so here we are taking a look at hdfc
[762]
life insurance this is your resistance
[765]
line this is your support line this is a
[768]
very strong channel and here you see a
[770]
big candle right but you see a very big
[773]
wick right wick or wicks whatever you
[775]
call it right so this is a very big
[777]
brick what does this show that here
[780]
not everyone is buying right there are a
[782]
lot of people lot of people who are
[784]
selling right this is what this candle
[787]
shape indicates when you see a very big
[789]
wick and a very big body also
[792]
this week size indicates that hey there
[794]
are people who took this stock up until
[796]
this point then a lot of people sold it
[798]
and the stock closed somewhere here
[800]
right so this is what vic and body
[802]
indicates that there are a lot of
[804]
sellers here as well right so this is a
[807]
sign of a fake breakout that's one
[809]
second you will not see any increasing
[811]
volume per se volume was constant that
[813]
it increased a little bit then next day
[815]
it got cut right so this is not
[817]
necessarily like increasing volume the
[818]
volume is very haphazard so this is a
[820]
sign of a fake
[823]
break out now of course you need to
[825]
practice more you need to identify more
[827]
cases i'm just giving you a framework so
[829]
that you can practice
[830]
but i hope this technique is clear that
[832]
if you are able to identify the
[834]
difference between real breakout and
[835]
fake breakout you can make a lot of
[837]
money in the process
[838]
now let me illustrate two more buying
[840]
techniques that will make you super
[842]
happy and please press the like button
[843]
if you like these techniques
[845]
the second technique that i would like
[846]
to speak to you about is trading the
[849]
channel now what does trading the
[850]
channel means now you would say akshat
[852]
you explained about like fake breakout
[854]
real breakout this breakout it's like
[856]
too messy my head is getting complicated
[858]
so easy technique please okay so this is
[860]
technique number two
[862]
trading
[863]
channels trading the channels right
[866]
channels this is super easy right so you
[868]
identify a good channel right i
[870]
explained what a good channel is this is
[872]
a good channel
[873]
you simply whenever the stock hits here
[876]
it's here hits here it's here you sell
[879]
it
[880]
whenever it hits here here here here you
[883]
buy it right you will say how would we
[885]
know that you know it is hitting here or
[886]
not that is exactly why you draw a trend
[888]
line right so you will be extending this
[890]
trend line now because the stock is
[892]
somewhere here right and this brings me
[895]
to technique number three right
[896]
technique number three this is this
[898]
according to me is zone of bulk buying
[901]
zob okay so zone of bulk bank means what
[904]
that hey there was a very strong channel
[906]
it got broken ask yourself why did it
[908]
get broken because the entire market
[910]
fell now do you think that hul will
[912]
never return to this channel again the
[914]
answer is absolutely no so therefore
[915]
this becomes a zone of bulk buying
[917]
because this indicates a very strong
[919]
channel from a technical viewpoint the
[921]
stock will 100 or almost 99.999
[925]
we'll come back to this channel again if
[927]
it is a strong stock and then it will
[929]
start following this trend line
[931]
hopefully again right so from that
[933]
perspective it makes a lot of sense to
[935]
do bulk buying in this zone the more it
[937]
falls the more you should buy to what
[939]
extent will it fall topic for another
[941]
video i'll probably make it if there's
[943]
enough interest on this video if you
[944]
guys haven't liked it please like it it
[946]
indicates to me that there is enough
[948]
interest on this video so three
[950]
techniques that i taught you number one
[951]
identifying fake breakout from real
[953]
breakout you make a lot of money second
[955]
trading the channel this is one of my
[957]
favorite techniques and let me show you
[959]
how many times you can make money from
[961]
this right so for example let's say that
[962]
you start trading this from here so you
[964]
made 21 gain right you know in couple of
[968]
months then the stock fell here right so
[970]
you will pick this up again so you will
[972]
buy this stock again roughly here how
[974]
much gain did you make again 15 gain
[976]
again
[977]
then again here right that it almost
[980]
touches this line so if you would have
[981]
purchased this you would have again made
[984]
roughly 11 gain here and then there was
[986]
a real breakout so even if you missed
[988]
real breakout you would have made 21
[991]
plus 15 plus 10 percent gain within a
[993]
matter of a few months so if you add all
[995]
this 21 plus 15 36
[998]
46 47 gain you could have easily made
[1001]
from one stock by trading in a stock
[1003]
like hul if you like it do comment it
[1005]
will make me super happy so from this
[1007]
perspective all you simply need to know
[1008]
is the concept of trend lines trading
[1010]
trend lines drawing a strong channel and
[1012]
trading in that channel so this is
[1014]
technique two and third technique that i
[1016]
talked about was zone of bulk buying
[1018]
right so this is where i am buying a lot
[1020]
of hull right now and i will continue to
[1022]
buy it i don't care to what extent it
[1024]
falls every time it falls i'll buy even
[1025]
more this is the reason why i say that
[1028]
hey you must learn how to make money if
[1030]
you're making a lot of money then you
[1031]
will always have cash to invest in the
[1033]
stock market and you can take advantage
[1036]
of these type of opportunities as a
[1038]
retail investors so when people say that
[1040]
you know what retail investors can only
[1042]
make like 10 because the mutual fund
[1044]
manager only makes like 12 percent this
[1046]
that i'm showing you right and if you
[1048]
actually go back on several of my videos
[1050]
i have said it that i used to trade
[1052]
channels for hul i have done extensively
[1055]
for that in the last one one and a half
[1057]
years and this is exactly what i was
[1058]
talking about so yes you can make like
[1060]
20 30 40 also depending on the market
[1062]
conditions and average rate that you can
[1065]
easily make as a retail investor is
[1067]
roughly 15 to 20 that is a very
[1069]
realistic number to assume now you would
[1071]
say okay why is it that mutual fund
[1073]
managers then don't end up making like
[1074]
30 and 40 on our money that is a
[1077]
completely different conversation i'll
[1079]
have it with you some other time all
[1081]
right so with that said let me just
[1082]
quickly summarize everything right now
[1084]
is a great time to learn this technique
[1086]
so that you can start taking advantage
[1088]
of these techniques when the market
[1090]
starts showing upward moves that's one
[1093]
second key thing how would you practice
[1095]
it go on stock grow download the app and
[1097]
start practicing it with virtual money
[1100]
right so you don't need to put even your
[1101]
real money you just practice with
[1103]
virtual money and build up your skills
[1105]
and then you can start taking actual
[1107]
positions in the actual market and make
[1109]
money out of it i hope you enjoyed the
[1111]
video please give it a thumbs up and i
[1112]
will see you the next time
[1133]
you
Most Recent Videos:
You can go back to the homepage right here: Homepage