Analysis of charts - discussion share ur views

[saivenkat]

Hi all,
I was going through some charts and i found that mostly for the last two months or so, small cap stocks and penny stocks have soared a lot, than large cap stocks. One similar SCRIP i found was SEJAL GLASS (GROUP B, 532993). I think there is ascending triangle break out,and also a huge constriction in the Bollinger band, which indicates that there is going to be a huge volatility in the stock.

I am planning to buy this stock at current market price of 54,for quick gains. Is my judgment about this scrip correct. If so at what level shall i keep the stop loss on EOD basis? At the lower bollinger band of 51 levels, i feel. Is my way of placing the stop loss correct or not?

Also the average volumes are very low in this stock, is it advisable to judge this scrip by triangle break out?

Secondly, i have posted the second chart of the same scrip here, with my doubts raised in it? As usual friends, please tell me am i correct or not?

Thanks and Regards
Saivenkat

 

[kaly422000]

rsi isthe most powerful and simple indicater with macd. as a biginner i study only this indicaters.chart pattern recognisation is most necesity to analyse a stocks with volume is another important parameter

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:[/QUOTE]

 

[SwingKing]

Hi all,
I was going through some charts and i found that mostly for the last two months or so, small cap stocks and penny stocks have soared a lot, than large cap stocks. One similar SCRIP i found was SEJAL GLASS (GROUP B, 532993). I think there is ascending triangle break out,and also a huge constriction in the Bollinger band, which indicates that there is going to be a huge volatility in the stock.

I am planning to buy this stock at current market price of 54,for quick gains. Is my judgment about this scrip correct. If so at what level shall i keep the stop loss on EOD basis? At the lower bollinger band of 51 levels, i feel. Is my way of placing the stop loss correct or not?

Also the average volumes are very low in this stock, is it advisable to judge this scrip by triangle break out?

Secondly, i have posted the second chart of the same scrip here, with my doubts raised in it? As usual friends, please tell me am i correct or not?

Thanks and Regards
Saivenkat

Hi Sai,

Good to see a chart from you. Good job.

If I were you, I would have two concerns,

1. Mild divergence visible with RSI and MACD
2. Volume not picked up as it ideally should.
3. Mostly triangles work when there is a prior trend established (since they are continuation patterns in most cases). In this case, trend is not that clearly visible.

I'd suggest you to wait for a 3% close above the triangle boundaries ... It's not clearly visible whether that has actually happened ...

Tc ..

 

[rajputz]

Hi every one.....IMO about seja glass, if one knows the daily price fluctuation range of the scrip then can place a Stoploss buy order on the up side and Stoploss sell order at the lower side taking into the consideration of whipsaws... Whichever side it breaks, go with the direction....if it is a fakeout to the upper side then the volume will be considerably low.....

 

[saivenkat]

Hi Sai,

Good to see a chart from you. Good job.

If I were you, I would have two concerns,

1. Mild divergence visible with RSI and MACD


2. Volume not picked up as it ideally should.

3. Mostly triangles work when there is a prior trend established (since they are continuation patterns in most cases). In this case, trend is not that clearly visible.

I'd suggest you to wait for a 3% close above the triangle boundaries ... It's not clearly visible whether that has actually happened ...

Tc ..

1) Is the mild divergence in MACD can be taken as a positive divergence?

2)Again i posted the same chart with image zoomed, with the doubts entered in it. Please clarify Raunakji.

3) The last close was on 54.05. so 3% up move means i get 55.60, that means i may enter once the upper bollinger band is pierced?

Last but not the least raunak, as usual you are so kind enough to clarify my doubts in the quickest possible time. Thanks a ton friend. Take care.

 

[SwingKing]

1) Is the mild divergence in MACD can be taken as a positive divergence?

2)Again i posted the same chart with image zoomed, with the doubts entered in it. Please clarify Raunakji.

3) The last close was on 54.05. so 3% up move means i get 55.60, that means i may enter once the upper bollinger band is pierced?

Last but not the least raunak, as usual you are so kind enough to clarify my doubts in the quickest possible time. Thanks a ton friend. Take care.

Sai,

You are alwys welcome ...

Now, I trust candlesticks a lot. Probably more than indicators. Hence, I'd say that this cadlestick (Inv Hammer) is not valid. See, candlesticks are most effective when there is something to reverse. (Uptrend to downtrend or vice versa). In congestion zones, they work the least. Hence, on candlesticks am not that convinced about this stock.

On volumes if you see, the pickup recently does not 'appeal' that much. I mean how much is the pickup if quantified (how many time it's 22 day avg) ?? If it's 4 to 5 times then the volume might be useful. However from chart, I cant say.

Regarding divergence now. I'd love to see a divergence calling my name rather than me getting down to find it. In this case, the divergence is not that bullish. As a trader its not calling out to me. I have to virtually squeeze my eyes to find it. Hence, I am not that positive about this either.

Contrary indicator is what the price has signalled. It has moved 3% and hence there could be a valid trade. What I'd do is do a probe test (where u can invest only 20% of original amount) in mind to test if the stock has strength. If the stock does show strength, then increase your positions. Else take the small loss and leave.

Tc.

 

[saivenkat]

Sai,

You are alwys welcome ...

Now, I trust candlesticks a lot. Probably more than indicators. Hence, I'd say that this cadlestick (Inv Hammer) is not valid. See, candlesticks are most effective when there is something to reverse. (Uptrend to downtrend or vice versa). In congestion zones, they work the least. Hence, on candlesticks am not that convinced about this stock.

On volumes if you see, the pickup recently does not 'appeal' that much. I mean how much is the pickup if quantified (how many time it's 22 day avg) ?? If it's 4 to 5 times then the volume might be useful. However from chart, I cant say.

Regarding divergence now. I'd love to see a divergence calling my name rather than me getting down to find it. In this case, the divergence is not that bullish. As a trader its not calling out to me. I have to virtually squeeze my eyes to find it. Hence, I am not that positive about this either.

Contrary indicator is what the price has signalled. It has moved 3% and hence there could be a valid trade. What I'd do is do a probe test (where u can invest only 20% of original amount) in mind to test if the stock has strength. If the stock does show strength, then increase your positions. Else take the small loss and leave.

Tc.

Thanks Raunak,

After all these discussions with you, i feel that, may be i would be doing some paper trading in this stock, and i would look for some more good stock that is having good liquidity and high volumes.

Actually i wanted to have a look at the SEL Manufacturing Company Ltd, which is much discussed in many sites, and was looking at the charts, and this SEGAL GLASS WAS JUST abv the SELMCL and it attracted my attention, and that is it.

Now that i prefer to stay in sidelines and something in me says that some strong correction is due within two or three weeks time, If it occurs, may be i would prefer to enter at that time.

Okay friend, What is your opinion on SELMCL AND SBI?

Take care friend and Good night.


Oka

 

[molthi]

RSI gave the first signal followed by Slow Stoch and last by MACD.
RSI signaled the buy entry after having moved to above (from below) the value of 30. Next, the slow Stochastics gave the entry on a crossover after having been below 20.

Then, finally, the MACD gave the entry signal on the crossover. Since they are all based on moving averages, they all gave a signal to buy, but the timing is different. The RSI is usually first, but can sometimes not move to extreme levels to signal an entry, so you might miss some trades. The slow Stochastics will give you more entries than the RSI, which may mean more losing trades.
http://www.moneyshow.com/trading/Currency_Corner.asp?aid=currency-18659

 

[saivenkat]

Hi all

I post here the chart of Amar raja batteries, with the following doubts in mind.

I see from the charts that an ascending triangle pattern is formed, during the formation of the triangle as expected the volumes dried, but then suddenly during the MONTH OF JAN THE VOLUMES ARE PICKING UP.

A) Does this mean the their is going to be a break out soon or else this can not be qualified as ascending triangle at all..

B) Till this day i was thinking that volumes must pickup only after the breakout has occurred. Is my thinking correct?

c) Lastly as usual i request the senior members to tell me is it correct to buy the stock at CMP lvls?
Regards
Saivenkat

 

[kaly422000]

rsi isthe most powerful and simple indicater with macd. as a biginner i study only this indicaters.chart pattern recognisation is most necesity to analyse a stocks with volume is another important parameter

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:

[/QUOTE]
now i have noticed inverted head and shoulder like formation in these stock, namely bartronics,himachal future and balajitele but i am not sure pls check