Analysis of charts - discussion share ur views

[veluri1967]

vishal,
Pip can be compared to paise in rupees.
15 pips means 15 paise in rupees.
but 15 pips make more money in terms of $.
I just compared it with paise for understanding.
veluri1967

 

[vishalalluri]

hi everyone
Feels nice to see nifty @5023 would luv to see it at 5085 and 5184 if the bulls dont allow bears to snatch the momentum

Wanted to share some intresting facts of Bollinger bands

I guess everybody is aware of bollinger bands i would like to share an important indication of bollinger band with people who are still novice in the markets .

to just refresh a bit on bollinger bands

Bollinger Bands are comprised of three bands

* the upper band
* the lower band
* center band.

TO REFER THE BASIC CHART OF B.BANDS PLEASE REFER TO PREVIOUS POST

http://www.traderji.com/technical-a...s-discussion-share-ur-views-2.html#post359496

The middle band is a simple moving average which is normally set at 20 periods, and the upper band and lower band represent chart points that are two standard deviations away from that moving average.
okieeee now what i would like to point out is the price action of a scip when generally we see after a contraction in the b bands

if we have a look at any scrip for which the b bands have shown contraction it shows us some picture about the scripts consolidation for some time and generally the scrip sees a break out on the higher side or the lower side after the contraction is over .

So............... what we do is wait till the consolidation period to get over and see when we could see some expansiaon of BB and buy at the next second candle after the expansion has occured to see more upmove and take positions

but again the performance of the other strength indicators can also be watched upon to get further confirmation .

recently lots of scrips has shown this kind of action let see the action on some charts

BOLLINGER BANDS ARE IMPRESSIVE IN THE TRADING WORLD AND WE CAN REALLY MAKE GOOD MOVES

ILL POST MORE ANALYSIS ON B BANDS IN THE COMING POSTS

 

[vishalalluri]

UNDERSTANDING WHY RAJESH EXPORTS HAD CONSOLIDATED FOR SO LONG A TIME AT 40 -50 LEVELS WITH BOLLINGER BANDS

 

[vishalalluri]

Trading the bollinger band is not restricted to any one particular format generally what we can conclude is when the gap beetween the upper and lower band decreases the volatility of the stock decreases
they are some traders who look for scrips which have contraction in bollinger band s and they wait for the expansion patterns to indicate a buy signal but this has to be again confirmed with indicators or candlesticks

the other aspect of using bollinger band is to trade the channel there are some scrips which we can see as in the chart of india infoline where in bb formed a major support and resistance levels hence what a trader (channel trader ) would do is buy at the lower band sell at upper band

 

[vishalalluri]

ANOTHER ASPECT OF BOLLINGER BAND OBSERVATION WOULD BE SEE IF THE SCRIP IS CONTINIOUSLY TOUCHING THE UPPER BAND AND WE GET A REVERSAL SIGNAL WHEN WE HAVE A GREEN CANDLE OUT OF THE B BANDS AND THEN THE NEXT CANDLE IS A RED CANDLE WHICH IS A SIGN OF REVERSAL . THIS IS JUST OBSERVATION AND I WOULD POST AS MANY CHARTS ON THIS OBSERVATION AND LETS SEE IF THEY HOLD TRUE

FOR GETTING MORE ON WHATS HANGING MAN ALL ABOUT PLEASE VISIT THE POST

http://www.traderji.com/technical-analysis/33257-candlestick-charts.html#post363214

 

[vishalalluri]

MORE ON BBANDS

 

[vishalalluri]

ONE IMPORTANT THING WE CAN ALSO SEE IS THE WHOLE CANDLE NEED NOT BE OUT OF THE UPPER BAND BUT IF MORE THAN 3/4 RTH IS OUT AND IS FOLLOWED BY A RED CANDLE WE GET REVERSAL SIGNALS

PLEASE CORRECT ME / EXPAND THE AREA OF OBSERVATION FOR BOLLINGER BANDS

 

[vishalalluri]

gudnite all

 

[sibumajumdar]

MORE ON BBANDS

Brother Vishal, Will U plz comment on Green/Red combination on 25 May? I find our logic is not woking. Plz clear my confusion. Thanks....SM

 

[vishalalluri]

Brother Vishal, Will U plz comment on Green/Red combination on 25 May? I find our logic is not woking. Plz clear my confusion. Thanks....SM

hi sm

i had told in my previous post that everytime these reversal cant be logical and yah if such a scenario comes we dont exit only on basis of the next candle but one alsochecks with other indicators

say for example in the chart we do have a red candle after a green out of the bollinger but the 52 week closing price the black line was shown some more upside we would always look on adx or rsi or any other indicator also

sibu ji but i think in stock markets everytime the techncial analysis does help much specially when the boom is news based and the rise in price tll may 25 th was cos of may 18th election result which added 2000 points on index .

Sibu ji i might not be correct but i do try to give my best of views
please correct me if wrong ur guidance would be helpful
i have enclosed another chart showing the rsi levels and gmmA