Analysis of charts - discussion share ur views

[vishalalluri]

hi everybody

im vishal and am a novice to the markets .learnt a lot from TJ my special thnks to saint ST amitbe linkon and all senior members who have been brilliant in building a traders paradise .

in this thread i would like to post as many charts as possible and hope all senior members would give thier views on them . i beleive this would be a great platform where in everybody would be profited by understanding from scratch abt charts as we cant just analyse charts from day 1 and perfect the market but practise makes a man perfect .

this thread would would contain all possible charts from SMA ,EMA OSCILLATORS AROON ADX RSI ETC ETC
looking forward for active participation:thumb:

 

[vishalalluri]

hi everyune
:thumb::thumb::thumb:
i would like to start with my first chart ,its a very basic strategy of trading in which we see the pivot and supports and resistence as breakouts and trade .i hope this chart would help beginners

A perfect set would be for the market to open above the pivot level and then stall slightly at R1 then go on to R2.if pivot forms a big support the wen buy on every dip
we cud also enter on a break of R1 with a target of R2 and if the market was really strong close half at R2 and target R3 with the remainder of your position.

QUOTATION OF PIVOT BASED TRADING WITH AN EXAMPLE

Let us take an example
Dated July 22nd :
Nifty Open =4469 , High =4558 , Low = 4386 ,Close = 4399
Using the formula we calculate the support resistances and pivot point
Resistance 3 = 4689
Resistance 2 = 4623
Resistance 1 = 4511
PivotPoint = 4445
Suppot 1 = 4333
Support 2 = 4267
Support 3 = 4155
note: when nifty opens abovepivot and moves towards R1 we go long and we check if the pivot forms a stong support and keep adding on dips

if anytime nifty breaches pivot we exit our postions at minimal losses

 

[sumit.agarwal]

good going, for novice, continue

 

[vishalalluri]

SMA MEANS SIMPLE MOVING AVERAGES

It simply takes the sum of all of the past closing prices over the time period and divides the result by the number of prices used in the calculation. For example, in a 10-day moving average, the last 10 closing prices are added together and then divided by 10.

SMA could be a very good indicator for short medium trader in which it could give simple signals abt the trend of the scrip
sma are also used by intra day traders but to trade with sma intrday one has to be agrresive trader
MED(2-3 moths)/long term perspective SMA are good trend indicators

The most common time frames that are used when creating moving averages are the 200-day, 100-day, 50-day, 20-day and 10-day.
200-day average is thought to be a good measure of a trading year,
100-day average of a half a year,
50-day average of a quarter of a year,
20-day average of a month and
10-day average of two weeks.

a simple chart showing price action movement on basis of SMA is shown in the chart attched

3 day SMA RED LINE
14 DAY SMA GREEN LINE
50 DAY SMA BLUE LINE

 

[vishalalluri]

good going, for novice, continue

thnks sumit

i hope this thread wud benefit beginners who are trying to TA the first few weeks i believe wud be posting only about the basic indicators and their importance

later i hope to succeed in posting combination of indicators in better trading decisons

:thanx: for the first reply to my first thread

:thumb:

 

[vishalalluri]

hi everybody for anybody who has been trying to get a nse bse past data and eod data u can find it in this software "" data extractor ""

i have picked this up from tj from senior member satya after surfing a lot

cos these softwares were attched by senior members 1 or 2years back so for all newbies like me

here is the link

http://www. 4shared.com/account/file/130682673/d3f46828/data_extractor.html

remove space before 4shared

the best part is we dun need another converter software to convert to csv format we have an option in de itself

and for basic charts using the (historical to date) data one can use

fcharts

:thumb: cheers

 

[vishalalluri]

Average Directional Index

The average directional index (ADX) is a trend indicator that is used to measure the strength of a current trend.

The ADX is a combination of two price movement measures: the positive directional indicator (+DI) and the negative directional indicator (-DI).

The ADX measures the strength of a trend but not the direction.

The +DI measures the strength of the upward trend while the -DI measures the strength of the downward trend.

These two measures are also plotted along with the ADX line. Measured on a scale between zero and 100, readings below 20 signal a weak trend while readings above 40 signal a strong trend.


we can also analyse the +di crossover with -di crssover to understand the performance of the script

i have attached the rcom chart to see the behaviour of ADX in price movements i have also added how the combination of SMA and adx IN THE CHART

views are welcomed:thumb:
::cheers:

 

[vishalalluri]

HI EVERYONE
i hope my last 2 posts explained the basics of SMA and ADX and how the price of the scrip reacts to crossovers in them

im my last post i aslo showed the combinational effect of SMA and ADX for better decisions

In my next post i would be talking about AROON UP/DOWM indicator and how a combnation of SMA .ADX ,AROON give better signals for entry OR exit
:thumb:

please let me know in anyway i have rom to improve

suggestions / views

:thumb:

 

[vishalalluri]

hi every one

here i come again

AROON UP/DOWN indicator


The Aroon is a trending indicator used to measure whether a security is in an uptrend or downtrend and the magnitude of that trend.

The indicator is also used to predict when a new trend is beginning.

The indicator is comprised of two lines, an
"Aroon up" line (green)
"Aroon down" line (blue line).

The Aroon up line measures the amount of time it has been since the highest price during the time period. The Aroon down line, on the other hand, measures the amount of time since the lowest price during the time period.

NOTEE::::another thning which we can conclude from this indicator is we can see is the trend would be bullish when aroon up is above the aroon down line

similarly the trend will be bearish when the aroon down line is above the aroon up line

this is so great an experience to share what we know:thumb:

 

[annu]

hi vishal,

your post are very helpful , i am reading them again and again for better understanding.

vishal can you please tell us the formula of calculating resistence and support in pivot

point. thanks

regards