Beginners' club - Candlestick analysis

[iyerboi]

Now that I'm done with my introductory speech, let me get to the chart--lol:
This is simple price action. The point you drew your 1 is a swing low. From that point, you are waiting for the smallest break of that swing low. BTW, look to the west of it. That is a swing high. You would have also been looking for a break of that.
I drew the TL straight across to show where the swing low was broken. Look at the strong move once it was broken! The arrow I drew straight to the west is the stop, because it is the new swing high.
As the move continued, a new swing high was formed at the 2nd arrow. Afterward the new swing low was taken out (# candles to the east of the finale.), but barely. That was still your entry for a short. It pulled back, and then your final candle continued with the trend.
Here's the fun part, because all this looks like rear view stuff, so this my next fact out for yourself. This market continued south. That move on the final candle was only the beginning on this leg.

This chart, in terms of price action, yielded 100% with no FA's.

Once again, Rao, please I'm not picking on you. I have no ulterior motive. I'm just making a point based on your comment.

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how did u fig out that u had to short on the slight break of the first swing low? i'da actually anticipated a support at this level and actually gone long. happened to me quite a no. of times in intraday charts. what exactly was ur signal?

 

[4xpipcounter]

That is your signal. As soon as a swing low is broken by the slightest of margins that is your signal to go short. It is that simple. The key word is "swing" It has to be a swing low, not just a low. I'll post another chart shortly.

how did u fig out that u had to short on the slight break of the first swing low? i'da actually anticipated a support at this level and actually gone long. happened to me quite a no. of times in intraday charts. what exactly was ur signal?

 

[4xpipcounter]

I changed colors for the swing lows and the swing highs. There is a total of 5 swing lows and 2 swing highs on this chart that were broken and plenty of pips could have been made on the trade. Those 7 total are the only swing on the chart with the exceptions of the dip and the peak. So in essence, in trading this, it would have been 7 for 7.

BTW, I did not cherry pick the charts. You can post a market, and any TF, and I'll show you the same basic properties.

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[iyerboi]

Now that I'm done with my introductory speech, let me get to the chart--lol:
This is simple price action. The point you drew your 1 is a swing low. From that point, you are waiting for the smallest break of that swing low. BTW, look to the west of it. That is a swing high. You would have also been looking for a break of that.
I drew the TL straight across to show where the swing low was broken. Look at the strong move once it was broken! The arrow I drew straight to the west is the stop, because it is the new swing high.
As the move continued, a new swing high was formed at the 2nd arrow. Afterward the new swing low was taken out (# candles to the east oYf the finale.), but barely. That was still your entry for a short. It pulled back, and then your final candle continued with the trend.
Here's the fun part, because all this looks like rear view stuff, so this my next fact out for yourself. This market continued south. That move on the final candle was only the beginning on this leg.

This chart, in terms of price action, yielded 100% with no FA's.

Once again, Rao, please I'm not picking on you. I have no ulterior motive. I'm just making a point based on your comment.

gif image hosting

how did u fig out that u had to short on the slight break of the first swing low? i'da actually anticipated a support at this level and actually gone long. happened to me quite a no. of times in intraday charts. what exactly was ur signal?

 

[4xpipcounter]

That's exactly how it works. Go to my post in #103. When the swing low or high is broken it continues in the same direction. It is extremely seldom to see a spike through a swing low or high, then price action reverse direction.

It could be that you were trained into believing that a double bottom or top is a support or resistance, when actually that is all it is. When broken you get some strong price action.

how did u fig out that u had to short on the slight break of the first swing low? i'da actually anticipated a support at this level and actually gone long. happened to me quite a no. of times in intraday charts. what exactly was ur signal?

 

[iyerboi]

That's exactly how it works. Go to my post in #103. When the swing low or high is broken it continues in the same direction. It is extremely seldom to see a spike through a swing low or high, then price action reverse direction.

It could be that you were trained into believing that a double bottom or top is a support or resistance, when actually that is all it is. When broken you get some strong price action.

ha ha! repeat post by mistake. my bad!

 

[4xpipcounter]

That's okay, but do you understand how it works?

 

[iyerboi]

That's okay, but do you understand how it works?

Yup, been a lil busy with office

I'm gonna come back with some of my charts and my LOADS of queries at the earliest i find time

 

[iyerboi]

heromotocorp made a bearish engulf on friday on the daily charts. lets see how this works out.

stock went down upto 1810 yday - took support from lows of jan 27-30. wanted to enter yday but could not. entering today at 1883. fingers crossed!

@paul, if ive learnt my lessons well, 1800 (1811-some room) is my sl rt?

 

[4xpipcounter]

Pravi, it's not good to chase a trade, but nevertheless, you should still get a few points from it. As of now upside looks limited at 1946.

stock went down upto 1810 yday - took support from lows of jan 27-30. wanted to enter yday but could not. entering today at 1883. fingers crossed!

@paul, if ive learnt my lessons well, 1800 (1811-some room) is my sl rt?