LIVE WITH

STOCK MARKET GURU

GOVINDA RAM
MONDAY - THURSDAY
14:00 – 15:00
20:00 – 21:00
FRIDAY
14:00 – 15:00
IDENTIFY TRENDING LINES

IDENTIFY TREND LINES BY CONNECTING THE

HIGHS AND LOWS OF A STOCK PRICE

IDENTIFY THE MAIN UPWARD TREND BY PRICE

TRENDS, TRADING VOLUME AND TREND LINES

OBSERVE WHETHER THE STOCK PRICE IS ABOVE

THE MOVING AVERAGE LINE
 DOJI STAR INDICATION

• MORNING STAR (UPWARD TREND)

• EVENING STAR (DOWNWARD TREND)

MORNING
STAR
U
PW
A
R
D
TR
EN
D
What Is Morning Star?
MORNING STAR
- A morning star is a visual pattern consisting of three candlesticks that are interpreted as bullish signs by
technical analysts. A morning star forms following a downward trend and it indicates the start of an upward
climb. It is a sign of a reversal in the previous price trend. Traders watch for the formation of a morning star
and then seek confirmation that a reversal is indeed occurring using additional indicators.

What Does It Tells You?

A morning star is a visual pattern, so there are no particular calculations to perform. A morning star is a three-
candle pattern with the low point on the second candle; however, the low point is only apparent after the
close of the third candle.
Other technical indicators can help predict if a morning star is forming, such as whether the price action is
nearing a support zone or whether or not the relative strength indicator (RSI) is showing that the stock or
commodity is oversold.
EVENING STAR
D
O
W
N
W
AR
D
TR
EN
D
 EVENING STAR
Trading at Morning Star:
Morning star patterns can be used as a visual sign for the start of a trend reversal from bearish to bullish,
but they become more important when other technical indicators back them up as previously mentioned.
Another important factor is the volume that is contributing to the pattern formation.

Generally, a trader wants to see volume increasing throughout the three sessions making up the pattern,
with the third day seeing the most volume. High volume on the third day is often seen as a confirmation
of the pattern (and a subsequent uptrend) regardless of other indicators.
 HAMMER CANDLESTICK

THE HAMMER CANDLESTICK IS A

BULLISH TRADING PATTERN THAT MAY
INDICATE THE STOCK HAS REACHED ITS
BOTTOM AND IS POSITIONED FOR
TREND REVERSAL
CLOSE HIGH HIGH OPEN

REAL REAL
BODY BODY
OPEN CLOSE

LONG LOWER
SHADOW
 HIGH HIGH

LONG UPPER
SHADOW

CLOSE OPEN

REAL REAL
BODY BODY
OPEN CLOSE
RISK MANAGEMENT / STOCK POSITION
1. Risk management: Controlling positions can help investors manage risks. Spreading your money across different
asset classes and markets reduces the risk of individual investments. If there is a problem or loss in one investment,
position control can ensure that the entire portfolio is not affected.

2. Fund management: Controlling positions helps manage funds effectively. Investors can reasonably allocate funds
to different asset classes, including stocks, bonds, cash, etc., based on their financial status and investment goals.
This ensures that funds are used in the most efficient and rational manner.

3. Emotional management: Controlling your position also helps manage your emotions. Market fluctuations and
investment risks may trigger emotional swings among investors, such as greed and fear. By controlling positions,
investors can reduce the impact of emotional fluctuations, stay calm and rational, and avoid impulsive decisions

4. Profit protection: Controlling positions can help protect profits. When the market is doing well, investors may be
inclined to put more money into the stock market to earn more profits. However, if the market turns or declines,
a position that is too high may expose investors to greater risks. Proper control of positions can help investors
protect profits and avoid overexposure to market risks.
TRADING AT
TRADING AT THIS
THIS AREA
AREA (WEAK)
(WEAK) TRADING AT THIS AREA (STRONG)

UPPER LINE (70)

AVERAGE LINE (50)

LOWER LINE (30)
 RSI
1. The relative strength index (RSI) is a momentum indicator that measures recent
price changes as it moves between 0 and 100. The RSI provides short-term buy and
sell signals and is used to track the STRONG and WEAK levels of an asset.

SUGGESTION : DRAW A MIDDLE AVERAGE LINE

2. An asset is usually considered STRONG when the price is ABOVE 50 and
WEAK when it is BELOW 50. The ABOVE 50 (Average Line) determine the
VOLUME and MOMENTUM is STRONG signal Upward Trend. While
BELOW 50 (Average Line) determine the VOLUME and MOMENTUM is
WEAK signal Downward Trend.
DEAD CROSS

GOLDEN CROSS
 MA CROSS

1. MA CROSS consist of CROSS which signal reversal of the TREND.

2. GOLDEN CROSS means BULLISH TREND - Red Line over Green Line

3. DEAD CROSS means BEARISH TREND - Green Line over Red Line

4. Candlesticks trading above Red Line indicating STRONG BULLISH

MOMENTUM
EVENING STAR
 BOLLINGER BAND
1. Bollinger Band® is a momentum indicator used in technical analysis that depicts two
standard
deviations above and below a simple moving average.

2. Three lines compose Bollinger Bands:

A simple moving average, or the MIDDLE BAND, an UPPER and LOWER band.

3. When the price continually TOUCHES the UPPER Bollinger Band, it can indicate an
OVERBOUGHT signal.

4. If the price continually TOUCHES the LOWER band it can indicate an OVERSOLD
signal.
TRADING AT
TRADING AT THIS
THIS AREA
AREA (WEAK)
(WEAK) TRADING AT THIS AREA (STRONG)

UPPER LINE (70)

AVERAGE LINE (50)

LOWER LINE (30)
 RSI
1. The relative strength index (RSI) is a momentum indicator that measures recent
price changes as it moves between 0 and 100. The RSI provides short-term buy and
sell signals and is used to track the STRONG and WEAK levels of an asset.

SUGGESTION : DRAW A MIDDLE AVERAGE LINE

2. An asset is usually considered STRONG when the price is ABOVE 50 and
WEAK when it is BELOW 50. The ABOVE 50 (Average Line) determine the
VOLUME and MOMENTUM is STRONG signal Upward Trend. While
BELOW 50 (Average Line) determine the VOLUME and MOMENTUM is
WEAK signal Downward Trend.
DOWNWARD UPWARD
TREND TREND
PULL BACK
PULL BACK
 TRADING PSYCHOLOGY
Greed & Fear: Greed and fear are the most common emotions in trading. Greed can lead to overconfidence and overtrading, while
fear can lead to overcaution and missed opportunities. Controlling greed and fear is the key to success.

Sick Of Losing: Sick of losing refers to investors’ excessive fear and sick to losses. This psychological state may cause investors to be
unwilling to admit losses and stop losses in time to avoid facing the reality of losses. However, cutting losses promptly is an important
part of risk management.

Chasing Winners & Avoiding Failure: Chasing winners means that when investors see a certain stock or market rising, they
blindly follow in order to obtain more profits. Avoiding failure means that after investors suffer losses or make wrong decisions, they
avoid facing their mistakes and try to cover them up. Both thinking can lead to impulsive and irrational decision-making.

Short & Long Term: Short-term thinking in trading psychology refers to excessive focus on short-term market fluctuations and
immediate profits, while ignoring the value of long-term investment. Long-term thinking focuses on long-term investment goals and
values and remains calm and rational about short-term fluctuations.

Self-discipline and patience: Self-discipline means staying calm and following your investment plan and strategy. Patience means
waiting for the right market timing and not acting impulsively. Self-discipline and patience are very important qualities in trading
psychology, helping to avoid impulsive decision-making and over-trading.

Learn & Reflect: Continuous learning and reflection are the keys to improving trading psychology. Investors should look for
opportunities to learn and improve their knowledge and skills and reflect on or evaluate their decisions and performance after each
transaction.
 QUOTE OF THE DAY

“The market is a device for

transferring money from the
impatient to the patient.”

WARREN BUFFET
 REMINDER
LIVE WITH
STOCK MARKET GURU

GOVINDA RAM
TOMORROW
14:00 – 15:00