An example of picking the stock using Price & RS chart.

An example of picking the stock using Price & RS chart.

 

Chart 1: Bullish chart of Nifty Private bank index. Strong trend, most of the stocks contributing.

 

Pvt bank index

Chart 2: Underperformance of Bandhan bank v/s Nifty Pvt bank index. Double bottom sell below moving average after broadening pattern on 11th Jan 2021.

 

Bandhan bank RS

Chart 3: Bearish price pattern – Bull trap below moving average. Followed by Anchor column follow-through or T20 pattern.

 

Bandhan bank price chart

Pattern: Sector was outperforming, stock did not contribute. Sector corrected, stock fell.

How to trade this setup: Trade bearish price pattern when such pattern in seen on relative strength chart.

 

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      Chart 1: Bullish chart of Nifty Private bank index. Strong trend, most of the stocks contributing.

       

      Pvt bank index

      Chart 2: Underperformance of Bandhan bank v/s Nifty Pvt bank index. Double bottom sell below moving average after broadening pattern on 11th Jan 2021.

       

      Bandhan bank RS

      Chart 3: Bearish price pattern – Bull trap below moving average. Followed by Anchor column follow-through or T20 pattern.

       

      Bandhan bank price chart

      Pattern: Sector was outperforming, stock did not contribute. Sector corrected, stock fell.

      How to trade this setup: Trade bearish price pattern when such pattern in seen on relative strength chart.

       

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