Charts for the Day

[anil_s_trivedi]

anil ji one confusion was there...
which moving average must b follow
SMA OR EMA...as i know u prefer SMA ...i also trade on weekly basis...so to much confusion (on daily basis)
weekly i prefer 10 & 40SMA as U indicates
pls guide....

Dear Ravi,

Its very important how you see moving average with price action. On weekly, i use 10 and 40 SMA which is nothing but 50 and 200 SMA on daily. I dont use these moving averages of weekly as stoploss or like that, just for the sake of trend and pattern formation. I observed in strong stocks in uptrend, it corrects to 50 SMA, and after three-four touches, its wise to dont get into trend, as it indicates trend is maturing slowly.

On daily i use, 10 and 100 EMA extensively. Its a indication for me of short term trend and intermediate trend. I use levels of these MA's with price action and direction too...

Many use different moving averages for different charts, i am not one of them. Its not correct approach as per me. Other can differ here. When out of 50 stocks of Nifty crossing certain moving average on upside, its a indication of market wide sentiment building, and if one use different MA's then how you can gauge such a important change in price.

 

[amitrandive]

Dear Ravi,

Its very important how you see moving average with price action. On weekly, i use 10 and 40 SMA which is nothing but 50 and 200 SMA on daily. I dont use these moving averages of weekly as stoploss or like that, just for the sake of trend and pattern formation. I observed in strong stocks in uptrend, it corrects to 50 SMA, and after three-four touches, its wise to dont get into trend, as it indicates trend is maturing slowly.

On daily i use, 10 and 100 EMA extensively. Its a indication for me of short term trend and intermediate trend. I use levels of these MA's with price action and direction too...

Many use different moving averages for different charts, i am not one of them. Its not correct approach as per me. Other can differ here. When out of 50 stocks of Nifty crossing certain moving average on upside, its a indication of market wide sentiment building, and if one use different MA's then how you can gauge such a important change in price.

This is great AnilJi !!!:clap:
Maybe we can make a criteria to scan the number of stocks in Nifty or CNX 100 stocks are above or below a certain moving average to gage the overall market trend.

 

[anil_s_trivedi]

This is great AnilJi !!!:clap:
Maybe we can make a criteria to scan the number of stocks in Nifty or CNX 100 stocks are above or below a certain moving average to gage the overall market trend.

Dear Amit,

Yes it can be done and its a useful tool for me. I usually do this on CNX500. You can also have many added features like,
stock closing positive with up volume...
Stocks closing in ranges like..between 1-2%, between 2-3%...above 5%...
How many stocks are 100% above 200 SMA like that....more its far away more chances of reversal in sight...

There r many things you can do...its just your imagination...and offcourse its usefullness...

 

[sumantra]

Dear Amit,

Yes it can be done and its a useful tool for me. I usually do this on CNX500. You can also have many added features like,
stock closing positive with up volume...
Stocks closing in ranges like..between 1-2%, between 2-3%...above 5%...
How many stocks are 100% above 200 SMA like that....more its far away more chances of reversal in sight...

There r many things you can do...its just your imagination...and offcourse its usefullness...

How can i scan the stocks in the same way ?

 

[anil_s_trivedi]

How can i scan the stocks in the same way ?

Dear sumantra,

There are scanning features in amibroker and Metastock...You need to have your criteria for scanning. Then scan over the universe of stocks, index,sectors...etc.etc...

I after spending over a decade in market, can say...try to manually study charts first...as much as you can...get the feeling whats going on...And it should be done on regular basis...

Scanning stocks on criteria is ok, but until you decipher which is best out the results, its a futile exercise...so chart reading is need to be practised, no matter whats, theory you follow, what strategy you follow...

 

[amitrandive]

Dear Amit,

Yes it can be done and its a useful tool for me. I usually do this on CNX500. You can also have many added features like,
stock closing positive with up volume...
Stocks closing in ranges like..between 1-2%, between 2-3%...above 5%...
How many stocks are 100% above 200 SMA like that....more its far away more chances of reversal in sight...

There r many things you can do...its just your imagination...and offcourse its usefullness...

Anilji

If you are comfortable can you please share some of your scanning criteria.
I have already prepared some of mine
For Daily basis
1)Stocks closing above/below 20EMA/200EMA
2)Stocks closing in range of 1% to 2% from last 10 to 20 days.
3)Stocks hitting 52 week highs/lows.

 

[ravi2126]

MA'S PROBLEM SLOVE SIR BUT
1 more question,i wanted to sort out 15stock around 100-400/- range for regural tracking n trading but finding hard to sorting as to many options was there..as i remember u also track stock aroung 350/-,on which criteria u sorting your stock

in my list just added
ashok ley
dish tv...iske aage atak gaya hu...kyuki sab pasand aate he?
again pls guide

 

[sumantra]

Dear sumantra,

There are scanning features in amibroker and Metastock...You need to have your criteria for scanning. Then scan over the universe of stocks, index,sectors...etc.etc...

I after spending over a decade in market, can say...try to manually study charts first...as much as you can...get the feeling whats going on...And it should be done on regular basis...

Scanning stocks on criteria is ok, but until you decipher which is best out the results, its a futile exercise...so chart reading is need to be practised, no matter whats, theory you follow, what strategy you follow...

Dear Anilji,
This is my Amibroker(http://s11.postimg.org/vr79zai03/screenshot_8.png.) giving real time data feed. From which tab i can scan the stocks. Please give me the path.
Regards
Sumantra

 

[anil_s_trivedi]

MA'S PROBLEM SLOVE SIR BUT
1 more question,i wanted to sort out 15stock around 100-400/- range for regural tracking n trading but finding hard to sorting as to many options was there..as i remember u also track stock aroung 350/-,on which criteria u sorting your stock

in my list just added
ashok ley
dish tv...iske aage atak gaya hu...kyuki sab pasand aate he?
again pls guide

Dear Ravi,

Having built up universe of stocks and then choosing final ones out of it is a difficult task. I till now using technical analysis only for choosing the universe and finalizing some from the same. But i am in midway of my next thing to include fundamental analysis too into it. To be specific earnings and sales with profit margins. Not too much, else it will be difficult to have stocks in screening.

My process is i track stocks regularly, i have feel of them, likely support/Resistance in excel and possible patterns if any. Now, choosing stocks from the list you require experience of chart reading. As many charts you analyse, you will get at first instinct whether to be in that stock looking at current price.

I generally commit more of my capital in stocks in uptrend. Now definition of uptrend can be anything like, above 200 SMA or above 100 EMA or anything you are comfortable with. Now as a trend follower its important for me to be in stocks in uptrend.
Generally i commit 10% of my capital in stocks in downtrend or predicting bottom types of trades. Here, i look into good risk-reward.

Now, after getting stocks in uptrend, i analyse each of them. What sectors do they belong too. If good news is pipeline, be damn sure, herd mentality will force all stocks from same sectors in up/down.

Third, i look into stocks where stocks after rising from base, retrace towards good S/R levels which are from Weekly/Monthly. Higher timeframe S/R levels are damn good to be trusted.

Fourth, i look into stock having better relative strength vis-a-vis nifty. Better ones always get rewarded big.

Last, i am a momentum based trend follower, so good momentum setup is a prerequisite for me. You can use any momentum indicator like MACD ..etc...

Rest, just pray whatever you bought might move. Fear is necessary, otherwise you will not love reward. At the end of day, i too make mistakes of jumping too early or too late, in any case....Respect for your stoploss is the must thing you need to practice. Its better to loose few coins, than whole account...

 

[anil_s_trivedi]

Anilji

If you are comfortable can you please share some of your scanning criteria.
I have already prepared some of mine
For Daily basis
1)Stocks closing above/below 20EMA/200EMA
2)Stocks closing in range of 1% to 2% from last 10 to 20 days.
3)Stocks hitting 52 week highs/lows.

Dear Amit,

I generally dont use much screens. Only basic ones to define uptrend and for seeing improving relative strength.

I had answered my process in Ravi's question, if anything else you need, ask...

I generally love stocks moving out of base...Those are my favourites where i make money. Being trend follower my 70% trades are holding from weeks to months.

One important thing i learned is, i regularly book profit if stock move into profit my buy point. And hold rest 50% by way of trailing it.It gives me confidence to trade.