businessman-worried-about-stock-market-volatility-he-was-reluctant-to-buy-or-sell-in-this-situation-free-vector

Open Price

The Open Price of security on any given day is the price at which the security has started trading on that day. The price is determined based on a Call auction mechanism, where the traders first submit orders, and then these are matched to decide the opening value of the security. The prices are calculated in a pre-opening session from 09:00 AM to 09:15 AM run on the Stock Exchange. This is a very efficient method for proper price realization, without any excessive volatility. The supply and demand of the securities determine the price at which they open. If no unique price can be discovered in the pre-opening session, then the first price at which the security trades in the normal session becomes the Open Price. The trading activity in the individual stocks will directly decide the opening of the indexes like SENSEX, NIFTY, etc. The price at which the trading starts in a day could be different from the previous day’s Closing Price of the stock. There can be multiple reasons for a large change in these two prices.

In general, terms, to calculate the Open Price of stocks, the following steps are done on the Stock Exchange:
Step 0: Orders are placed in the pre-opening session
Step 1: After receiving the orders, the buy and sell orders are batched together to find the cumulative orders
Step 2: An equilibrium price and quantity are decided after batching
Step 3: This price is decided such that maximum shares get traded and the imbalance of orders is minimum
Step 4: Eligible trades are executed on this single open share price
Step 5: Orders that were not executed are put in the pending Order Book for the normal trading session
Some Buy orders and Sell orders get executed at a better price. That means if an investor places a buy order at INR 100, but the stock opens at INR 99, then the order will get executed at INR 99 in the pre-opening session. Similar price improvement can also be seen for sell orders.

Uses of the Opening Price


Here are some common applications where this price is used:
• Execution of all orders in the pre-opening session happens at this price
• To determine the opening value of the market Index: NIFTY, SENSEX, etc. • Building price charts like Candlesticks, Heikin-Ashi, etc.
• Used in intraday trading strategies involving Gap-up or Gap-down opening

Why Open Price is different from the Previous Close Price?

Regular traders and investors might have noticed that when the stock market opens, the Open Price of stock on any day could be higher or lower than the Closing Price from the previous day.

Example: If the closing price today of a stock is INR 100, it is not necessary that the trading will open tomorrow at exactly INR 100.
The main reason why the open price is different from the previous close price is large is because of the method by which these two prices are calculated. In addition, there are also other external factors that can contribute to the price mismatch.

The main reason why the open price is different from the previous close price is large is because of the method by which these two prices are calculated. 

Close Price-  The Last Traded Price (LTP) and the Closing Price of stock are two different concepts. The LTP refers to the price at which the last trade happened on any day. Whereas the Close Price at the end of the day is calculated by taking the weighted average of the stock prices in the last 30 minutes.

Open Price – On the other hand the Open Price is decided through a call auction mechanism (Pre-Open). The supply and demand at the start of the day can move the prices in either direction.
Since a price discovery takes place on every trading day, external factors can impact the opening prices. 

 

External Factors which impact Opening Price of Instrument- 

1. Sudden price movement before market close- 

The Closing Price is a Volume Weighted Average Price (VWAP) of the last 30 minutes of trading time. It can be imagined that if there are no other factors involved, then the trading on the next day should resume from the LTP and not the Close Price. This is because the Closing Price itself could be largely different from the LTP.

2. Block Deal window

Block Deal refers to a large trade that happens on a single order. In the stock markets, there are 2 windows available in the day when these trades can be done. The morning window takes place from 08:45 AM to 09:00 AM, before the markets open.
In the block deal window, the reference price used for the deals is the previous day’s Closing Price. The deals are allowed at a price within +/- 1% of the previous closing. So if the previous closing price is INR 100, then the block deals can take place at any price from INR 99 to INR 101.
Therefore, since these deals take place before the market opens, the Open Price can easily move by 1% in either direction from the previous Close Price. This can lead to a small difference in the open price and the previous close price of the stock.

3. Post-Close session

After the markets close at 03:30 PM, a Closing Price is calculated for all the stocks. Another Post Close trading session takes place from 3.40 PM to 4.00 PM. All trades in this session happen at the Close Price, so the price of the security does not change at this time. However, the demand and supply dynamics can change during this time period, before trading resumes the next day. Example: Suppose security closed trading at INR 50 and there are still some sellers at this price.
Now, assume there is a change in the demand and the buyers start buying out all securities at INR 50 in the Post Close session. Then, the Opening Price on the next day will tend to move higher as there are no more sellers left at this price.

4. News about the company

One of the major reasons for a gap up the opening or a gap down opening in the stock price is the News release about the company. If these corporate announcements become public after the markets have closed, then these have the potential to significantly change the market demand overnight.
Example: Suppose in the evening (after markets have closed), a company does a press release that they have received a huge order from the government.
There is a good chance that the Opening Price will be higher than the previous Close Price as the market will expect a jump in revenues of the company.

5. Off-market financial results

It is not just unpredictable News releases that can move prices. Many times companies declare their quarterly results or annual results in the evening or on weekends when the markets are closed.
Example: let us assume the company notifies the Stock Exchange that there will be a board meeting to declare the annual results on 20 April (assume it is a Saturday). If the results are very good and profits have increased significantly, then the stock prices are bound to open higher on Monday.
Although it is impossible to predict what the results might be, if they are released when the markets are closed, the investors get an opportunity to analyze the results. Based on the judgment of the participants, one can expect a movement in the Opening Prices when the markets open next time.
The Stock Exchange is usually notified in advance about the date on which the results will be released. Therefore, investors will appreciate the fact that it is possible to know beforehand when the companies will be declaring their results.

6. Market sentiment and Economic changes

This factor is similar to the news release about the companies. We mention this point separately because economic factors and market sentiments can impact multiple companies and sectors at the same time.
Example: On a particular day in 2016, the Sensex closed at a price of INR 27,591.14. Then, news broke out in the evening which had a significant economic impact on Indian businesses. The next day, the markets opened more than 1% lower.

7. Corporate actions

Unlike other events which are virtually impossible to predict and control, corporate actions of companies are pre-planned events. These events are known before hand and the investors can be sure that the opening price will be massively different from the previous Close Price.
Let us look at some of the corporate actions and how they directly impact the prices on the ex-date.

Dividend

When companies pay out dividends, the price of the stock reduces by the dividend amount. This happens because the book value of the company has decreased as cash has moved out from the Balance Sheet.
Example: Suppose the stock price closed at INR 1,000 just before the ex-date. The company pays out INR 25 as dividends.
The investors will notice that the Open Price on the ex-date will be around INR 975.

Stock Split and Bonus shares

When companies split their stocks or issue bonus shares, the share price will reduce by an equal amount as the stock split ratio or the bonus share ratio. This happens because splitting a stock or issuing bonus shares does not change the fundamentals of the company in any way. 

businessman-worried-about-stock-market-volatility-he-was-reluctant-to-buy-or-sell-in-this-situation-free-vector

Stock Market

What Is the Stock Market

A stock market, also known as a stock exchange, is a venue to trade securities, such as Shares and Financial instruments. Sellers of securities are matched with their buyers in a stock market and they trade with each other using rules imposed by the market’s governing authority (SEBI). For example, the National Stock Exchange (NSE) matches the Best Bid Offer (BBO) with the lowest sale price. If there are not enough buyers of the security, then an assigned market maker steps in to make up for the difference and accomplish the sale.

Stock markets serve an important function in the economy by enabling entrepreneurs to raise capital and companies to expand their operations using funding from the markets. On the other side, stock markets generate profits for buyers of securities by making informed bets on growth prospects for these companies. These tasks are accomplished with the help of extensive regulations that govern trades and enforce mandatory disclosure of details from both sides.

Depending on trading volume and economic conditions, stock markets can be bellwethers of the broader economy. For example, major indices at major stock markets plunged during the financial crisis of 2008 and rose to new heights after the Great Recession of 2008, reflecting the Indian economy’s period of sustained growth.

But there have been times when the market is disconnected from the mainstream economy’s problems. For example, despite an almost-complete economic shutdown and reports of record losses and unemployment numbers, markets in the Indian Market reached new records during the coronavirus epidemic.

 

How Do Stock Markets Work?

To understand the working of a stock market, it is important to understand the stakeholders involved in its operations. Broadly, there are three parties involved in the process: buyers or those interested in purchasing shares either individually or in large blocks, sellers or those interested in making a sale of their shares at a profit or loss (as the case may be), and market makers or the intermediaries responsible for matching buyers with sellers and vice versa. Interactions between these three participants are governed by a complex set of rules and regulations that are necessary to maintain order and fairness in the market.

Other market participants influence trading activity or help clear trades by verifying and validating transactions. For example, brokers charge buyers and sellers for providing capital and conducting trades. Investment advisers and analysts influence buy and sell decisions by issuing periodic reports about a stock’s prospects after research.

 

How Are Stocks Traded?

The basic math of a stock trade consists of the difference between the bid and ask prices. After a stock is listed at an exchange, market forces take over. It is traded multiple times in a day. Some investors purchase the stock, or bid for it, at a low price. Other traders sell it, or ask for it, at a high price. The difference between the purchase and sale price is known as a bid-ask spread.

This spread is important for several reasons. First, it is an important source of revenue for market makers who make money off the price difference between these prices. Second, it is an indicator of the liquidity and interest in the stock. The narrower the spread, the more the stock’s liquidity because it means that traders are interested in owning or selling it. In general, liquid stocks are less susceptible to wild price swings because of the higher number of traders that make up their market. Illiquid shares, on the other hand, are more liable to display steep increases or decreases in their price because a single large transaction has the potential to draw investors into the company or drive them out of it.

Understanding Broad Market Movements

There are thousands of companies listed on the stock market and each company undergoes multiple price gyrations in a day. Therefore, it is impossible to gauge the market’s broad movements by tracking individual stocks. Instead, indices are used as tokens of the market’s mood.

In the world of finance, index refers to a subset of the stock market which facilitates determining the overall performance of the stock market. Index comprises a basket of stocks that track the performance of these securities and further helps in gauging the overall sentiment of the stock market. The index is also referred to as an indicator that serves as a benchmark to analyze the performance of a portfolio’s returns.

Furthermore, in the index, stocks do not only belong to a specific industry such as pharma, or banks, instead, but they are also picked up from all the major sectors. Thus, indexes help us in showing the overall picture and not just a specific sector of the stock market. One can also invest in stock indexes through various mutual fund schemes and exchange-traded funds (ETFs).

In the Indian context, there are two main stock exchanges: The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Sensex is an index that belongs to the BSE and NIFTY 50 belongs to the NSE.

    • SENSEX-
    • The Sensex is one of the oldest stock exchanges in India. It comprises the total value of 30 stocks of companies that are listed on the BSE. Indeed, these stocks belong to the largest corporations in India and, thus, represent the Indian economy’s performance at large.
    • To simplify, if the Sensex is moving upwards, then the investors or traders in the market will prefer buying stocks and on the other hand, if the Sensex is moving downward, the investors or traders will prefer to hold back their positions. The Sensex movements are tracked regularly which helps in analyzing the overall growth, and industry-related development.
    • Below are the criteria which are used in selecting the 30 stocks of the Sensex:
      • Stock must be listed on the BSE.
      • Large-cap stocks with high market capitalization.
      • High liquidity.
      • Average daily turnover.
      • Wide industry representation
      •  
    • NIFTY 50- 

    • The NIFTY 50 is the flagship index of the National Stock Exchange and one of the most recognized stock market indexes in India. It tracks a total of 50 stocks of huge companies related to various sectors and industries. The NIFTY 50-based stocks are all large-cap-oriented companies that form almost three-fourth of the total capitalization in India. NIFTY 50 helps in benchmarking fund portfolios and launching of index funds, ETFs, and other structured products.

      Below are the criteria which are used in selecting the 50 stocks of NIFTY 50:

      • Stock must be listed on the NSE and should be included in NSE’s futures and options trading list.

      • The company’s registered office should be in India.

      • Large-cap stocks with market capitalization up to INR

      • High liquidity

      • High volume

History of Stock Market-

The idea of trading goods dates back to the earliest civilizations. Early businesses would combine their funds to take ships across the sea to other countries. These transactions were either implemented by trading groups or individuals for thousands of years.

Throughout the Middle Ages, merchants assembled in the middle of a town to exchange and trade goods from countries worldwide. Since these merchants were from different countries, it was necessary to establish a money exchange, so that trading transactions were fair.

Antwerp or Belgium today, became the center for international trade by the end of the 1400s. It’s thought that some merchants would buy goods at a specific price anticipating the price would rise so they could make a profit.

For people who needed to borrow funds, wealthy merchants would lend money at high rates. These merchants would then sell the bonds backed by these loans and pay interest to the other people who purchased them.

The first modern stock trading was created in Amsterdam when the Dutch East India Company was the first publicly traded company. To raise capital, the company decided to sell stock and pay dividends of the shares to investors. Then in 1611, the Amsterdam stock exchange was created. For many years, the only trading activity on the exchange was trading shares of the Dutch East India Company.

At this point, other countries began creating similar companies, and buying shares of stock was all the rage for investors. The excitement blinded most investors and they bought into any company that began available without investigating the organization. This resulted in financial instability, and eventually, in 1720, investors became fearful and tried to sell all their shares in a hurry. No one was buying, however, so the market crashed.

Another financial scandal followed in England shortly after— the South Sea Bubble. But even though the idea of a market crash concerned investors, they became accustomed to the idea of trading stocks.

Although the first stock market began in Amsterdam in 1611, America didn’t get into the stock market game until the late 1700s. It was then that a small group of merchants made the Buttonwood Tree Agreement. This group of men met daily to buy and sell stocks and bonds, which became the origin of what we know today as the New York Stock Exchange (NYSE).

Although the Buttonwood traders are considered the inventors of the largest stock exchange in America, the Philadelphia Stock Exchange was America’s first stock exchange. Founded in 1790, the Philadelphia Stock Exchange had a profound impact on the city’s place in the global economy, including helping spur the development of the U.S.’s financial sectors and its expansion west.

In 1971, trading began on another stock exchange in America, the National Association of Securities Dealers Automated Quotations or otherwise known as the NASDAQ. In 1992, it joined forces with the International Stock Exchange based in London. This linkage became the first intercontinental securities market.

Unlike the NYSE, a physical stock exchange, the Nasdaq allowed investors to buy and sell stocks on a network of computers, as opposed to in-person trading. In addition to the NYSE and the NASDAQ, investors were able to buy and sell stocks on the American Stock Exchange or other regional exchanges such as the ones in Boston, Philadelphia, and San Francisco.

History of Stock Exchange in India-

  • The Indian stock market traces its history back to the late 18th century when the trading floor was under the shade of a sprawling banyan tree opposite the Town Hall in Mumbai. A few people would meet under this tree to informally trade in cotton. This was because Mumbai was a busy trading port, and essential commodities were traded here often. The Companies Act was introduced in 1850, following which investors started showing an interest in corporate securities. The concept of limited liability also put an appearance around this time.

  • By 1875, an organization known as ‘The Native Share and Stock Brokers Association’ came into being. This was the predecessor of the BSE.

  • In 1894, the Ahmedabad Stock Exchange came primarily to enable dealing in the shares of textile mills in the city.

  • The Calcutta Stock Exchange was formed in 1908 to facilitate a market for shares of plantations and jute mills.

  • It was in 1920 that the Madras Stock Exchange took shape.

  • In 1957, the BSE was the first stock exchange to be recognized by the Government of India under the Securities Contracts Regulation Act.

  • The SENSEX was launched in 1986, followed by the BSE National Index in 1989.

  • The Securities and Exchange Board of India (SEBI) was constituted in 1988 to monitor and regulate the securities industry and stock exchanges. In 1992 it became an autonomous body with completely independent powers.

  • In 1992, the NSE was formed as the first demutualized electronic exchange to ensure market transparency.

  • NSE began operations in the Wholesale Debt Market (WDM) segment in 1994, the equities segment in 1994, and the derivatives segment in 2000.

  • In 1995, the BSE switched to an electronic trading system from the open-floor system.

  • In 2015, SEBI was merged with the Forward Markets Commission (FMC) to strengthen commodities market regulation, facilitate domestic and foreign institutional participation, and launch new products.

  • Today, the BSE is measured as the world’s 11th-largest stock exchange, and the market capitalization is likely to be around $1.7 trillion. The market capitalization of the NSE is estimated to be over $1.65 trillion.
World-Stock-Market-Timings

Stock Market Timings India

Trade in the stock market can only be undertaken during a specific time interval in India. Retail customers have to perform such transactions through a brokerage agency between 9.15 a.m. to 3.30 p.m. on weekdays. Most investors undertake the purchase/sale of securities listed on the major stock exchanges in India – the Bombay stock exchange (BSE) and the National Stock exchange (NSE). Indian stock market timings are the same for both these major stock exchanges.

Indian stock market timings for trade are divided into three segments:
    • Pre-Opening Timing– This session lasts from 9.00 a.m. to 9.15 a.m. Orders to purchase or sell any securities can be placed during this time. It can be further classified into three sessions: 
    • 9:00 AM – 9:08 AM– During this stock market opening time in India, orders for any transaction can be placed. The order entry is given preference when actual trading begins, as these orders are cleared off in the beginning. Any requests placed during this time can be changed or canceled according to need, which is beneficial to investors, and no orders can be placed after this period of 8 minutes during the pre-opening session.
    • 09:08 AM – 9:12 AM- This segment of Indian share market timing is responsible for price determination of security. Price matching order is done by corresponding demand and supply prices to ensure accurate transactions among investors who want to purchase or sell a security, respectively Determination of final prices at which trading will begin during normal Indian stock market timing is done through a multilateral order matching system.
    • 09:12 AM – 9:15 AM- This time acts as a transition period between preopening and normal Indian share market timingNo additional orders for transactions can be placed during this time. Also, existing bets already placed from 9.08 a.m. – 9.12 a.m. cannot be revoked as well.
    • Normal Session– This is the primary Indian share market timing lasting from 9.15 a.m. to 3.30 p.m. Any transactions made during this time follow a bilateral order matching system, wherein price determination is done through demand and supply forces.

      The bilateral order matching system is volatile, thereby inducing several market fluctuations which are ultimately reflected in security prices. To control this volatility, the multi-order system was formulated for the pre-opening session and was incorporated into Indian stock market timings.

    • Post-closing Session- Stock market closing time in India is marked at 3.30 p.m. No exchange takes place after this period. However, the determination of the closing price is done during this time, which has a significant effect on the following day’s opening security price.
Stock market closing time in India can be divided into two sessions:
    • 03:30 PM – 03:40 PM– The closing price is calculated using a weighted average of prices at securities trading from 3 p.m. – 3.30 p.m. in a stock exchange. For determining the closing prices of benchmark and sector indices such as Nifty, Sensex, S&P Auto, etc. weighted average prices of listed securities are considered.
    • 03:40 PM – 04:00 PM-This period is the post-stock market closing time when bids for the following day’s trade can be placed. Bids placed during this time are confirmed, provided adequate buyers and sellers are present in the market. These transactions are completed at a stipulated price, irrespective of changes in the opening market price.
      Thus, capital gains can be realized if the opening price exceeds the closing price by an investor who has already placed their bids. In case the closing price exceeds the opening share price, bids can be canceled during the narrow window of 9.00 a.m. – 9.08 a.m.
‘Muhurat’ Trading 
    • Indian stock market is generally closed for any transactions on Diwali, as it is a religious festival celebrated all across the country. However, every year on account of Diwali, the market opens for one hour. This year, on October 24, 2022, a one-hour trading session will be conducted from 6.15 p.m. to 7.15 pm as it is considered to be auspicious.

Pre-Open Session

The pre-open session is for a duration of 15 minutes i.e. from 9:00 am to 9:15 am. The pre-open session is comprised of the Order collection period and an order matching period. The price band applicable shall be the same as the normal market.

The order collection period of 8* minutes (9:00 AM to 9:08 AM) shall be provided for order entry, modification, and cancellation. (* – System driven random closure between 7th and 8th minute). During this period orders can be entered, modified, and canceled.

What is the Pre-Open Market Session?

The Pre-Open market session is utilized to arrive at the ideal opening price of a stock for the current trading session.

The duration of the pre-open market session is from 9:00 a.m. to 9:15 a.m. which is 15 minutes before the trading session starts on: NSE and BSE. Pre-open market strategy is provided to stabilize heavy volatility due to some major event or announcement that comes overnight before the market actually opens for trading.

Special events, like merger and acquisition announcements by a company, de-listing of stocks, debt-restructuring, credit-rating downgrades, etc., can have an impact on investors.

The session helps the market to stabilize the prices of various companies’ shares by determining the actual demand and supply of the shares. In the process of determining demand and supply, the equilibrium price is decided. This helps in bringing stability as the price and trades are not decided on the basis of trends.

Timing Schedule of Pre-Opening Session

The 15 minutes of the pre-open market session is broken into three sub-sessions:

How Is the Stock’s Opening Price in the Pre-Open Market Session Achieved?

During the pre-open market session, a call auction takes all orders and then arrives at an equilibrium price. The equilibrium price is the price at which the maximum number of stocks can be traded based on the demand and supply quantity and the price.

In a call auction price mechanism, the equilibrium price is determined as shown below. Assume that NSE received bids for particular stock XYZ at different prices between 9:00 am and 9:15 am. Based on the principle of the demand-supply mechanism, the exchange will arrive at the equilibrium price – the price at which the maximum number of shares can be bought/sold. In the below example, the opening price will be 105 where a maximum of 27,500 shares can be traded.

During order matching, period order modification, order cancellation, trade modification, and trade cancellation are not allowed. The trade confirmations are disseminated to respective members on their trading terminals before the start of the normal market. After the completion of order matching, there is a silent period to facilitate the transition from the pre-open session to the normal market. All outstanding orders are moved to the normal market retaining the original time stamp.

Limit orders are at a limit price and market orders are at the discovered equilibrium price. In a situation where no equilibrium price is discovered in the pre-open session, all market orders are moved to the normal market at the previous day’s close price or adjusted close price/base price following price-time priority. Accordingly, the Normal Market / Odd lot Market and Retail Debt Market open for trading after the closure of the pre-open session i.e. 9:15 am. Block Trading session is available for the next 35 minutes from the opening of the Normal Market.

Calculation of Index Price-

As can be seen in the above steps, the Opening Price of the stock is decided in the order matching period. Therefore, the Open Price of individual stocks will only be displayed to the traders after 09:08 AM. However, investors would have noticed that the price of the index (SENSEX, NIFTY, etc.) starts moving from 09:00 AM itself, as soon as the order entry begins. This is possible because the stock exchanges calculate an indicative price for the index, based on the live orders being received for the stocks in the index.

Example: Let us consider SENSEX for understanding as it is a market index that is comprised of 30 stocks. When the orders are submitted for these 30 stocks in the order collection period, an indicative value of all the stocks can be calculated through supply and demand. Depending on the weights of these stocks in SENSEX, the indicative price of the index can be calculated. This indicative price continuously changes as the orders keep flowing in till 09:08 AM. The opening price of SENSEX is then calculated once the Open price of the 30 stocks is finalized. If no trade happens in any of the 30 stocks in the pre-opening session, then the previous day’s Closing Price is used for the calculation of the index price.

Special Pre-Open session

The special pre-open session is applicable to the below type of securities:

  1. IPOs securities – first day of trading. This also includes SME IPOs
  2. Re-listed Securities first day of recommencement of trading. (as defined under para 1(C) of SEBI circular no. SEBI/Cir/ISD/1/2010 dated September 2, 2010)
  3. Stocks having derivatives contracts on the Ex-date of trading after undergoing corporate restructuring*

*Corporate Restructuring: Merger, demerger. Amalgamation, capital reduction/consolidation, scheme of arrangement, in terms of the Companies Act and/or as sanctioned by the Courts, in cases of rehabilitation packages approved by the Board of Industrial and Financial Reconstruction under Sick Industrial Companies Act and in cases of Corporate Debt Restructuring (CDR) packages by the CDR Cell of RBI.

Below are the timings for the special pre-open session:

Technical Analysis rules by Mr. Chartist

  1. अगर आप चाहते है की आपका चार्ट Analysis आपको Follow करे तो आप कभी भी 1 साल से कम Data वाला Chart न देखे क्युकी टेक्निकल Analysis होता ही Historical Data को Analyse करके Future को Predict करते है और जब Data ही कम रहेगा तो ये Accurate नहीं होगा.
  2. आप Intraday में Analysis करना चाहते है तो पहले Market को settle होने का Time दे, & Chart Analysis केवल 10:00 PM के बाद करे ताकि Shares का Movement Stable & Analysis Accurate हो.
  3. Analysis में आप केवल Price पर विश्वास न करे, आप Price के साथ साथ Volume को भी महत्वपूर्ण अंग माने & जब भी कोई Chart Breakout या Breakdown पर हो तो उसको वॉल्यूम से कन्फर्म करे & बिना वॉल्यूम के किसी भी पैटर्न को Breakout या Breakdown ना माने.
  4. जब भी आप Support & Resistance Draw करते है तो सबसे पहले आप Horizontal लाइन को तरजीह दे & उसके बाद ही आप Diagonal लाइन को महत्त्व दे, & अगर आप Diagonal Line Draw कर रहे है तो उसके पीछे एक महत्व कारण होना चाहिए.
  5. Pattern की ताक़त & Pattern का Time एक दूसरे से संबद्ध रखते है, जितना ज्यादा Time Frame का Pattern होगा वो उतना ही मजबूत Pattern होगा, तो आप हमेशा से ज्यादा Time Frame वाला Pattern खोजे.
  6. अगर आप मार्किट में नए है तो Indicator उपयोग कर सकते है, लेकिन कुछ सावधानियाँ बरतने की जरूरत है
    a- कभी भी Indicator को मुख्य/प्राइमरी टूल की तरह उपयोग ना करे
    b- Indicator, Price & Volume के Calculation से ही निकलते है तो हमेशा से इंडिकेटर आपको लेट अलर्ट देते (Lagging View)
    c- आप जब नए होते है तो आपको इंडीकेटर्स सबसे सरल लगते है लेकिन जैसे जैसे आपका अनुभव बढ़ता जायेगा आपको Indicators के Drawbacks भी मालूम चलते जायेंगे
  7. यदि कोई व्यक्तिगत स्टॉक घटना (Event- News, Earning, Announcement etc) के बाद चलता है, तो अपने स्टॉक चयन के दौरान उस स्टॉक से बचने का प्रयास करें क्योंकि घटना स्टॉक में कुछ विफलता की संभावना जोड़ती है।

How To Set TradingView Alerts

How To Set TradingView Alerts

If you’re new to TradingView you are unsure of how to properly set server-side alerts and alert conditions on the TradingView platform, then this post is for you!

Server-side alerts are alerts that are monitored by TradingView’s servers, meaning you do not need to leave your computer running with the charting platform open in order for them to trigger.

In this post, I will sum up exactly how to create all types of script alerts on the TradingView platform including price alerts, drawing tool alerts, and indicator alerts.

TradingView Alert Types

TradingView has several different types of alert actions, all of which can be enabled or disabled as you wish (depending on your membership plan).

Notify on App only works if you first download the (free) TradingView app (Android or iOS). If you have the app installed and a trading alert is triggered then you will receive a push notification straight to your mobile device.

Show Popup will display a window popup inside your TradingView chart window when an alert is triggered. The popup will display on every chart you have open.

Send Email sends you an email whenever an alert is triggered. You can specify the message that is sent so that you know which indicator triggered the email alert.

Play Sound plays an audio alert whenever a signal is triggered. You can select from 8 different sounds and you can choose how long the sound plays for. This is a fantastic tool for day-traders and I use it every day.

Send Email-to-SMS will send you a text message to your phone. In order to use this feature, you must have a phone data carrier that allows email-to-SMS functionality.

How To Set TradingView Alerts

You can set alerts in a multitude of ways. The easiest way is to just click on the Alert menu and then click the Plus button. Then you can choose what to set an alert for and the conditions that trigger it.

The alert options are fairly straightforward to understand, but I’ll break them down below.

Alert Options & Conditions

 

 

Conditions

This section sets the conditions which must be met in order for the alert to trigger. You can click on the first box to select the script that you want to generate your trading signal.

In the second box, you can choose which variable you want to monitor.

The third box is used to set the condition that the second box’s variable must meet in order to trigger the alert.

Note that if the script you are using generates its own alerts based on internal conditions that the script looks for then you do not need to touch the second or third box.

Simply select the script you want to use for alerts and the script will decide when to send out the alerts. These particular options are more for using basic alerts on drawing tools which I will demonstrate below. For most script-based alerts you will only need to touch the first box to select the script.

Options

These four buttons let you choose when the alert is triggered (on a candle and time basis).

If you set it to Only Once then the alert will trigger a single time without repeating, and it will trigger during the current candle without waiting for it to close.

If you set it to Once Per Bar then it will trigger once per bar (before the candle closes), and it will repeat on any new bars.

If you set it to Once Per Bar Close it will only trigger when the candle closes. This is the most common setting that you will use for trading signals if you are a systematic trader, and it will repeat on any new bars if the alert conditions are met.

Once Per Minute will trigger the alert on any current candle multiple times, but only once per every minute. This is great for detecting potential setups before the candle closes so that you can be prepared in advance. I often use this for assistance with trading my intraday strategies, so that I spend less time staring at charts during the day.

Expiration Time

This section lets you set the expiration time of the alert.

How long you can have the alert active depends on your membership plan. On a Free account, you are limited to only 1 alert per account and the maximum alert expiration is 2 months.

On a Pro account, you can set multiple alerts (up to 20 on Pro and 100 on Pro+), also with a maximum expiration of 2 months.

On the Premium account, you can set up to 200 alerts and gain access to the open-ended setting which will leave the alert active forever until you manually disable it.

You can set any date within your maximum time period and any time of day. Expiry times are useful for tracking day-trading setups with a limited time window, but most of the time you will want to set the alert for the maximum time possible – until your setup is invalidated or you have already acted on it.

Setting Price Alerts

The Quickest way to add an alert in Stock with the ALT+A shortcut key this will provide the alert box with a setting and we can add an alert for above and below in the price. 

Alert Allow you to put alert in varios conditions, Crossing Up, Crossing Down, Greater Than, Less than, Entering Channel, Exiting Channel, Inside Channel, Outside Channel, Moving Up, Moving Down, Moving Up %, & Moving Down. 

Setting Alerts on Drawing Tools

This feature is particularly useful for pattern traders.

You can set alerts based on your technical analysis drawings. This is great for rectangles, triangles, flags, wedges, trend lines, and channel breakout signals. You can set alerts on any type of drawing tool you wish.

For example here is how you would set an alert that triggers when the candle closes beyond a trend line (signaling a breakout setup):

 

Right Click on Mouse and Next Click on Add Alert in Parallel Channel (Drawing)
Select various field in Alert and give name to Alert, add message to identity the alert with details.