Charts for the Day

[anil_s_trivedi]

Dear Anil Sir,

Your analysis on stocks & index is really giving a good insight on how to look at chart from weekly, daily & hourly perspective. Thanks for educating with superb explanations.

I have a query, as in this chart of LT, daily was in uptrend nearing a good support level, if at that support we get above average volume & stock moving up on hourly chart, can we buy with SL below that support level.

I don't expect this LT like move (which happened today) , but can one expect a good move at such chart position?

Thanks once again.

Dear t2t,

If on any chart stock having good uptrend and testing Trendlines, then one can initiate position on lower timeframe with minimum risk...one can try to identify setup of retest too on lower timeframe...

Regarding volume, most important thing is consolidations need to have below avg volumes, and breakout associated with consolidations need to have above avg volumes...

Always try to get good entry setups...i mean there are many Trendline setups but if there is another factor favouring it, then go for it...like +ve div in momentum indicators...improving relative strength...

Frankly speaking i have intermediate s/R zone expectation from L&T, but so fast...it was really a fast stroke...poor me, i got out early on...but this is market for you...sometimes you sit tight and it pays, sometimes we try to outsmart and market shows our place in right time...

But then there are some, good trades too...one like bata got out and stock still correcting...so end of the day feels good. Whatever we analyse and got results as per expectations, it feels nice...

 

[ravi2126]

[/QUOTE]I dont trade candle patterns...earlier i used to...but now price action is more involved for me[/QUOTE]

Sir could u pls spread more light on this..what difference you find in both...

which indicators do u find easy for newbies(just like me),n which one is ur fav n do u prefer different indicators for different time frames ?

 

[anil_s_trivedi]

Sir could u spread more light on this..what difference you find in both

Dear Raviji,

Earlier i used to remember every candle pattern..then came down to identifying few...like doji, engulfing...but then with engulfing i always try to go long if bullish one, or rather it always itched me to go for long...

With price action, price is the only thing for me...if price is closing above this its good for me...if its below this stay away...

For example, if price staying above previous days high, its a sign of strength..do you need candle to see this/or prove this... if price chasing weekly high and staying above it, its a sign of strength trying to come in on higher timeframe...

Similarly, observe what price is doing...if we are travelling from previous week low and chasing previous week high...its a reversal coming in or strength coming in...

Take it lower timeframe on daily...and then observe what price is doing on 5min...if we open below previous days low and then chase previous days high, then its a sign someone is trying to take market up and its a indication of strength coming in...failure at highs will put mark on effort taken at lows, and there are chance to take that low on lower side...as market is not sustaining above previous days high...

This is what technical analysis is all about...remember higher highs-higher lows...its a uptrend...and viceversa...then dont you think its important to analyse how thats higher high is forming in first place...

I took whatever suits me...if one is happy and having some decision making with anaylsing candles then stick with it...if its working for you, then follow it...dont change just bcoz someone said about it...its you only need to decide...

 

[anil_s_trivedi]

Dear Raviji,

Earlier i used to remember every candle pattern..then came down to identifying few...like doji, engulfing...but then with engulfing i always try to go long if bullish one, or rather it always itched me to go for long...

With price action, price is the only thing for me...if price is closing above this its good for me...if its below this stay away...

For example, if price staying above previous days high, its a sign of strength..do you need candle to see this/or prove this... if price chasing weekly high and staying above it, its a sign of strength trying to come in on higher timeframe...

Similarly, observe what price is doing...if we are travelling from previous week low and chasing previous week high...its a reversal coming in or strength coming in...

Take it lower timeframe on daily...and then observe what price is doing on 5min...if we open below previous days low and then chase previous days high, then its a sign someone is trying to take market up and its a indication of strength coming in...failure at highs will put mark on effort taken at lows, and there are chance to take that low on lower side...as market is not sustaining above previous days high...

This is what technical analysis is all about...remember higher highs-higher lows...its a uptrend...and viceversa...then dont you think its important to analyse how thats higher high is forming in first place...

I took whatever suits me...if one is happy and having some decision making with anaylsing candles then stick with it...if its working for you, then follow it...dont change just bcoz someone said about it...its you only need to decide...

 

[t2t]

Dear Raviji,

This is what technical analysis is all about...remember higher highs-higher lows...its a uptrend...and viceversa...then dont you think its important to analyse how thats higher high is forming in first place...

Anil Sir,

Great insight, how those higher highs & low are forming.

With chart in previous post its crystal clear & make trading enjoyable.

Thanks

 

[anil_s_trivedi]

BEML is in downtrend on higher timeframe as well... a good support coming in at 800-10 zone...as rightly identified by you...

Below that 750/650 are only prominent support levels in sight as of now...

This falling leg is witnessing below avg volumes...means selling pressure is going low as of now...

 

[Trader987]

"The whole secret to winning big in the stock market is not to be right all the time, but to lose the least amount possible when you're wrong,".

Your signature line is AWESOME :thumb:

 

[mindgames]

LT~DAILY

Seems good to short ?

Dear Anil,

Apart from the fact that stock was in weekly uptrend, was there any other reason to be long on this chart - especially after 3 bear days and the fact that a pivot was taken off. In fact, couple of uptrend TLs were also broken (unable to post my chart as I'm traveling but sunny's chart conveys my query well too!)

Thanks

 

[karthik_sri]

Excellent and well said Anilji:clapping:
A simple way of understanding what price is doing! A very simple way of price action beautifully explained with charts! Even the DH/DL is like PH/PL

 

[anil_s_trivedi]

Dear Anil,

Apart from the fact that stock was in weekly uptrend, was there any other reason to be long on this chart - especially after 3 bear days and the fact that a pivot was taken off. In fact, couple of uptrend TLs were also broken (unable to post my chart as I'm traveling but sunny's chart conveys my query well too!)

Thanks

Dear mindgames,

Yes as you said stock is in uptrend on weekly...The reaction from 12/5/16 bar 1339.9 is also having down bars with below avg volumes...so its a normal pullback on daily...looking it seems its a normal pullback with three legs...

Bars of 19th/20th/23rd may are down bars and having weak close as per price action...closing towards its lows...There has been pivot breached by 24th may bar, but it smartly pullback and have close above that pivot zone...also closed slightly above 23rd may bar with above avg volumes...

so this pivot zone was a aggressive long zone with small stoploss...but for me if one has to go long then bar on 25th was right one to go long...

sunny chart is ok, it tells the trend line is broken and stock have possibility of change in trend...but to short at that instance is not advisable...as you are trying to enter in middle...as i said its already looking like a '3' wave pullback and entering at TL break can have whipsaw there...better can be break & retest there would have been perfect short trade...

Lastly there you need to define whether to take short trade or not, as higher timeframe is in uptrend you need to have additional evidence on looking for a good fall...atleast on volume front to have above avg selling...and closing below that pivot low of bar 2/5/16...

And if you observed my postings here and on Nifty thread, then break in trendline is not itself a cause to change the trend...a good strength in stock may give a consolidation timewise, hovering around there and will refuse to correct price wise...this can have bullish implications...And this generally happen when higher timeframe momentum is in uptrend then this daily momentum sell will have little to say...so just to wait for daily momentum to get oversold and then get the berth on running train for next uptrend in progress...