Charts for the Day

[mastermind007]

Hi Anil,

What are the moving average values for the weekly chart in RPOWER analysis?

Also can you please review TATASTEEL?


Thanks
Amruta

TATASTEEL seems to be in accumulation zone.

 

[mindgames]

Hi Anil,

If you wouldn't mind, can you please tell me how you go about studying these charts and make buy/sell decisions?

Also, what are some good sources for knowing more about your way of analysis? - ofcourse apart from following this thread

Thanks

 

[anil_s_trivedi]

Hi Anil,

What are the moving average values for the weekly chart in RPOWER analysis?

Also can you please review TATASTEEL?


Thanks
Amruta

Dear Amrutaji,

I am using 10 week and 40 week SMA, that is nothing but 50 SMA and 200 SMA on daily.


Tatasteel is in downtrend and we had our analysis of testing close to 220 levels but stock broke that too. As of now, stock consolidating lower and below 50 SMA on daily. Some constructive action going on in stock. There has been relative strength building in stock compared to Nifty.

Recent bounce is due to oversold on daily. Below 220 bearish activity can be expected, and above 220 and strength can be there. A resistance at 245-250 if overcame can show 290-300 on stock in short time.

Will try to post charts if time permits...

 

[anil_s_trivedi]

Hi Anil,

If you wouldn't mind, can you please tell me how you go about studying these charts and make buy/sell decisions?

Also, what are some good sources for knowing more about your way of analysis? - ofcourse apart from following this thread

Thanks

Dear mindgames,

I when started i mostly traded on daily charts. Results are ok but not on expectations. So while studying what happening, came to conclusion, the charts which in weekly uptrend have given me more returns than downtrend ones.

I maintained my list of stocks which i visit daily they roughly are around 350 or so. I have a feel of them. They are diversified too. So looking at weekly and daily i know where i need to spot on.

My only investing/trading wisdom which i learned is, there is always a accumulation or distribution for the trade to be in profit.Or trend to materialise. There cannot be any trend until accumulation occurs. What are these patterns. They can be any wedges/triangles/double bottom/ cup-handle etc...So i know which stock on my list going on in which phase. Now there are only two ways to trade out it. First on breaking these zones or on retesting of breakout levels, and second ones is trading on lower channel boundaries with 'expectation' of breakout.

I maintain 7-8% Stoploss on my trades and didnt risk more than 3-4% of my capital on any single trade.

I am fan of Schabacker,edwards-maggee books. I try to read these many times, everytime i learned new thing in it.I also read martin pring books. Generally i observed old time classic books have more knowledge than newer ones. Newer ones are just indicator obsessed ones. I also studied Wyckoff, darvas and like minded ones. So what i am today is all a mix of all these, i dont have pinpoint source to tell you from where i follow. Its like learning from own mistakes and correcting the same.

My advice/suggestion is follow method which you are comfortable with and not what others are doing it. Like in this forum or in many forums all threads mostly speak on Intraday to few days strategies. But i learned this badly, and want to tell you, money is made on trading from holding stocks till weeks. Patience is the key. This is my style, if you are comfortable with Short term trading , so be it. There is no right/wrong way in market, everybody is here for money, those who are here for entertainment will vanish and blame markets.

 

[anil_s_trivedi]

Dear Friend,

I generally follow limited threads here in this forum, Noe because others not good, its just i try to read those threads who have something similar what i am studying. Like a thread by Amit Randive, its good watching breakout patterns on those thread. Infact i have few winners from that thread.

So it basically fit to my trading style. You can have your own trading style...and yes you need to take time to learn these things, whats good for you. Its not a 6 months course. I think in 1.5-2 years if you have taken screen time then you will realise whats good for you. There is no shortcut. Give your time, markets are always there and oppurtunities are always there...

 

[Sunnyraj]

Anil sir, your last two posts are really superb :clap:

The way you have explained how ultimately one has to identify his trading style and have a method/strategy around his trading style is really good.

 

[Sizzle]

I maintained my list of stocks which i visit daily they roughly are around 350 or so.

Using any Software?

 

[anil_s_trivedi]

Using any Software?

Dear sizzle,

I use metastock. And i had maintained separate folder for the stocks which i need to track regularly.

The list is ongoing process, i sometimes remove some and add some depending on their technicals.

I am in process of adding fundamental criteria to it, so that best will qualify in the list. I feel fundamental screening is needed for my type of investing/trading where i hold stocks from few days to weeks, some for months too.

Searching for some good sites for extracting fundamental data ...if you have one...share it...

 

[Sunnyraj]

Anil sir, you mentioned that you trade long term charts, focusing on weekly trends.So, if stocks are downtrend as per weekly charts , do you also trade on short side like positional short trades in futures?

or wait for weekly charts to show strength and trade only on long side ?

 

[anil_s_trivedi]

Anil sir, you mentioned that you trade long term charts, focusing on weekly trends.So, if stocks are downtrend as per weekly charts , do you also trade on short side like positional short trades in futures?

or wait for weekly charts to show strength and trade only on long side ?

Dear sunnyraj,

I trade on long side only. No stock Futures for me. I also trade very miniscule quantity in nifty futures that to a system based only. You can say more like SAR based.

See there are short term opportunities in weekly downtrend also, where stock gets oversold momentum wise, but the difference here is you need to be quick in profit booking. And you must never fall in love with stock in downtrend.

There are two things happen for sticks in downtrend and getting oversold. First they will bounce from lower channel support line and targets may be upper channel line. Second stock will go sideways and again the momentum will become overbought and stock again starts to fall. A rare event if more severe weakness will be there we called it as running correction. So these are the only ways stock behaves after getting oversold. IF you know how it is behaving, its easier for you to trade for short gains in weekly oversold regions.