Charts for the Day

rangarajan

Well-Known Member
Dear Rangarajan,

.

Posting stochastics in earlier chart is for ppl who are indicator followers. Point there was simple trade in waiting, when higher timeframe (here weekly) in oversold condition, focus on some good positive divergence on lower timeframe(here Daily) to initiate trades, using trendlines at price action getting supported by important S/R level from Higher timeframe(here weekly). This is basic simple setup of using multiple timeframes.
...
ani Trivedi,
BEML :
You r referring to O/s condn in Daily ( 9/11/2015, 5 Bars, Lowest price 999.25.
But there was also a O/B condn in weekly, 5 bars ,24/7/15, Highest price 1316.9.
But subsequently stock entered O/S domain.

Why I chose this stock for positional was because of Strong ADX in Monthly Uptrend.
In weekly ,it was a disappointment because when O/b, though Adx was raising & Strong, price never exceeded the Highest O/B price & Mirror in O/S daily.

I learnt my Stochastic from Smart & till today,it had paid me good dividends.

If Smart is reading this Post, I would be obliged to know his views as the Stochastic Guru for some of Traderji members & how he would trade these condns.

Today, Beml traded 1312.8

Once again thanks anil Trivedi for your Time & Chart.
I am attaching weekly chart of O/B 5bars
 
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ani Trivedi,
BEML :
You r referring to O/s condn in Daily ( 9/11/2015, 5 Bars, Lowest price 999.25.
But there was also a O/B condn in weekly, 5 bars ,24/7/15, Highest price 1316.9.
But subsequently stock entered O/S domain.

Why I chose this stock for positional was because of Strong ADX in Monthly Uptrend.
In weekly ,it was a disappointment because when O/b, though Adx was raising & Strong, price never exceeded the Highest O/B price & Mirror in O/S daily.

I learnt my Stochastic from Smart & till today,it had paid me good dividends.

If Smart is reading this Post, I would be obliged to know his views as the Stochastic Guru for some of Traderji members & how he would trade these condns.

Today, Beml traded 1312.8

Once again thanks anil Trivedi for your Time & Chart.
I am attaching weekly chart of O/B 5bars




Dear Rangarajan,

Sorry, i didnt got your point in this post of yours. What i specifically trying to say is mentioned in images attached.

Thanks for your query...
 
DEAR A S T,

Gd Eg, Sir

Pleased with ur msg

I mean suggestions of best result oriented scripts having life span of > 50 yrs under LT, >15 yrs under MT and under 10 to 5 yrs Mini

This can be easily find out with ur grt experiences as per ur reports in TRJ site

Also what software u r using for TA. My brokers Navia & LKP doesn't have long
term datas on daily basis, having max 1 year

In NSE : Could not be able to find some indicators

In BSE : not at all visited



Regards
Elagairi


Dear Elagiri,

Thanks for your words of appreciation. I till now never holded a scrip for more than a year. But surely looking forward to it. I am still a learner in that 'having patience' in market.

I am trying to incorporate fundamental screening into my stock selection. So its a still under research phase. Since it needs to be backtested very well. It serves two purpose, first my investment universe gets restricted to good quality stocks and second holding into it gives additional mental strength that i am chasing on winners and not on loosers.

Regarding my software, i am using Metastock and for trading i am using RK Global and Tradetiger too.
 

rangarajan

Well-Known Member
Dear Rangarajan,

I use basic technical analysis tools, like R/S, Trendlines and one momentum indicator, I use momentum indicators on line of ROC. along with my favourite moving average.

Posting stochastics in earlier chart is for ppl who are indicator followers. Point there was simple trade in waiting, when higher timeframe (here weekly) in oversold condition, focus on some good positive divergence on lower timeframe(here Daily) to initiate trades, using trendlines at price action getting supported by important S/R level from Higher timeframe(here weekly). This is basic simple setup of using multiple timeframes.

I am more into reading what price is doing, is it rallying it with clean bars of strength with good volumes or just with weak bar spreads the rally is going on. The speed of move tells who is hurry here. How volume is acting on small/big breakouts. Thats it...
anil Trivedi,

I went thro yr post once again & request some clarification.

My understanding, When Stochastic is in O/sold more than 5bars , it is weak & Long should be avoided unless stochastic trades above 80 to nullify weakness.

In yr discussion, stock was O/S 5 bars in HTF( weekly) & since trade in Harmony in LTF, i look for short in daily since weekly O/s.

But, you r saying enter long in Dly on +ve Divergence.
Are u suggesting counter trend trade for scalping?( ie Long)

Pl elaborate the last para of yr post, ie clean bar strength/ weak bars spread.
 

rangarajan

Well-Known Member
Dear Rangarajan,

Sorry, i didnt got your point in this post of yours. What i specifically trying to say is mentioned in images attached.

Thanks for your query...
anil Trivedi,

My understanding,

You are comparing HTF ( here weekly ) & try to make counter trend entry in LTF ( Daily).

Beml was O/B in weekly, but u r suggesting Sell because of -ve Div in Dly.
If it is Snipper trade, OK, otherwise it looks contrary to what i have learnt at Smart's thread.

A share in O/B for more than 5 bars likely make HH & hence Not prudent to attempt Selling. It will dissipate some energy by coming out of O/B & will again make Hh & likely to show -ve Diver.

Ie why i went Long in Beml, but it came to O/S in Dly only.

As rightly said by you, the S/L is far away 806 , but Tgt also >1612.

Now ,subsequent to O/S condn daily( which happened after weekly o/b), there was +ve Div at 1034 to 1312 till now.

How to know ( probability only), which will come first, O/B level or O/S level.:)

Also, pl discuss if a share is O/B in HTF, where u will look for entry to have better R/R

One more, what is higher stochastic as seen in yr chart, Higher setting or %K
 
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anil Trivedi,

My understanding,

You are comparing HTF ( here weekly ) & try to make counter trend entry in LTF ( Daily).

Beml was O/B in weekly, but u r suggesting Sell because of -ve Div in Dly.
If it is Snipper trade, OK, otherwise it looks contrary to what i have learnt at Smart's thread.

A share in O/B for more than 5 bars likely make HH & hence Not prudent to attempt Selling. It will dissipate some energy by coming out of O/B & will again make Hh & likely to show -ve Diver.

Ie why i went Long in Beml, but it came to O/S in Dly only.

As rightly said by you, the S/L is far away 806 , but Tgt also >1612.

Now ,subsequent to O/S condn daily( which happened after weekly o/b), there was +ve Div at 1034 to 1312 till now.

How to know ( probability only), which will come first, O/B level or O/S level.:)

Also, pl discuss if a share is O/B in HTF, where u will look for entry to have better R/R

One more, what is higher stochastic as seen in yr chart, Higher setting or %K

Dear Rangarajan,

You are comparing HTF ( here weekly ) & try to make counter trend entry in LTF ( Daily).

Beml was O/B in weekly, but u r suggesting Sell because of -ve Div in Dly.
If it is Snipper trade, OK, otherwise it looks contrary to what i have learnt at Smart's thread.


- No, if you are short term trader, then only you need to trade. What i am doing is, identifying higher timeframe weakness, First by seeing divergence coming in secondly, by Trendline break of that run. Now there was a divergence in weekly in my stochastics 14,3,3 and 5,3,3. That is enough, to conclude either sideways/ correction coming in. But trading on indicator is suicidal, so i wait for price to tell. And price did trendline break, so its ok to sell the BEML if you are holding at that point.

I need to look into Smart's thread. I hadn't gone through it, so cant comment.


For going long:

I am seeing Weekly oversold on 14,3,3 as on week ending 13/11/2015. Now switch onto daily chart , You will see a +ve divergence effect of 5,3,3 alreadyy taken place and we had rallied from 999 to 1132 on 9/11/2015.
But subsequent to that till 13/11 no single bar shown strength to cross its high. And now we are standing as on 13/11. After that stock keep falling, there is low of 1018.05 made on 20/11 with reversal bar on daily, also see another +ve div on daily in 5,3,3 stochastics.

Now we have weekly oversold on 14, 3,3 , also we have +ve div on daily in both 14,3,3 as well 5,3,3 so we have a reason to look for long. But price confirmed only on Trendline break on upside at later that, till then price gone sideways to down in Start of december.


Also, pl discuss if a share is O/B in HTF, where u will look for entry to have better


No, i never trade on indicator overbought/oversold readings. I am a trend follower guy. I posted stochastics just to pinpoint playing trades where there is a higher chances if getting into profit. Such good times come, when stock is in overbought/oversold in higher timeframe, if divergence also, well and good. Identify entry point on daily, with here too divergence playing in your favor.


One more, what is higher stochastic as seen in yr chart, Higher setting or %K

Blue one is 14,3,3 and Red one is 5,3,3 on both daily & Weekly.
 

rangarajan

Well-Known Member
Excellent anil Trvedi.

I have understood yr concept.

i am a fan & trader of Stochastic after Smart's thread & now combining with Adx, No regrets till now.
Adx looks powerful to me.( subjective)
Ofcourse, results r not 100% in my favour but 80% success.

You have given me extra ammunition & thank you.
Do u find Reversal Bars very effective. ( U have mentioned it )

I have never used 5,3,3 but for a Stoch trader it will give more whipsaws i believe.

By the way, my chart dosent show O/S for week end 13/11. & that is why my post on Dly O/s.

Thanks for yr Time & knowledge sharing.
My pleasure to keep watching yr thread.
 

rangarajan

Well-Known Member
anil Trivedi,

Pl discuss Jetairways when u find time.

In weekly, it was O/Sold from 5/6 to 3/7 ( 5bars), the lowest being 248.
But it never came below that.
Weekly TL Resistence breached week end 23/10.
But apart from that what else you would have looked into.
Once TL was breached & we enter the trade, what will be the s/l. Previous PL which is far away or from Dly chart
And what is yr criteria for O/S. No of bars or K just below 20

 
anil Trivedi,

Pl discuss Jetairways when u find time.

In weekly, it was O/Sold from 5/6 to 3/7 ( 5bars), the lowest being 248.
But it never came below that.
Weekly TL Resistence breached week end 23/10.
But apart from that what else you would have looked into.
Once TL was breached & we enter the trade, what will be the s/l. Previous PL which is far away or from Dly chart
And what is yr criteria for O/S. No of bars or K just below 20





Dear Rangarajan,

I treat oversold as when higher stoch get below 20 readings. Looking at Jet yes ideal trade is on trendline break only. Either one can look into TL break with volume to enter or on retest of Trendline after breakout.

I usually have my own stoploss based on price reading. But usually i have found my stoploss reading is closer to 50 SMA on daily, or 10 SMA on weekly.
 

rangarajan

Well-Known Member
I treat oversold as when higher stoch get below 20 readings. Looking at Jet yes ideal trade is on trendline break only. Either one can look into TL break with volume to enter or on retest of Trendline after breakout.

I usually have my own stoploss based on price reading. But usually i have found my stoploss reading is closer to 50 SMA on daily, or 10 SMA on weekly.
Thank you.