3 stocks to avoid in the market reversal

livemint.com:

Subscribe to enjoy similar stories. In stock trading, technical analysis is the compass that guides traders toward profitable decisions. However, with a dizzying array of charting techniques and timeframes, many traders find themselves lost in a maze of options.

From the oldest and familiar candlestick charts to the more intricate but noiseless Point and Figure (P&F), Renko, Heikin Ashi, and Line Break charts, each method promises to reveal hidden trends—yet often, it feels like trying to read the stock market through a foggy lens. The challenge is real. With so many tools to choose from, how can traders confidently trade through the stormy seas of market volatility and identify the trends that truly matter? While traditional charting methods provide essential insights into market behaviour, we ran the All-Chart Matrix scanner by Definedge, which scans stocks across multiple timeframes and chart types.

The All-Chart Matrix scanner assigns each stock a trend score, ranking them from bullish to bearish. Stocks with the highest trend score are considered the most promising, while those with the lowest score indicate stocks that traders should avoid in rising markets. The Nifty50 has recently reversed from levels of 23,300 to 24,500, igniting investor optimism as fear recedes from the market.

The All-Chart Matrix scanner, which runs across multiple timeframes and chart types, allows traders to identify the best opportunities and where to avoid potential losses. In this scenario, traders who have done their homework will be well-positioned to take advantage of rising trends and steer clear of stocks with weakening trends. We expanded the analysis beyond the Nifty50 index to better gauge market trends and ran the All-Chart