Charts for the Day

[amitrandive]

Dear amit,

Although i had not traded all these consolidations, but its from my analysis of where the sweet points i love to enter...

This is one of good chart for me, where many learning lessons are there for me...including the breakout-Retest also there...we just need to sit and wait for proper entry point...

This is study i am doing for past 8 months...since i lack pyramiding approach, so i am looking to have something...this is just one of them...still lot of work to do...

Anil Sir

Can the above be used for shorting side also?

Bhel Weekly

Bhel Daily

 

[anil_s_trivedi]

Anil Sir

Can the above be used for shorting side also?

Bhel Weekly

Bhel Daily

Dear Amit,

These are patterns of consolidations and it works in any environment...but better works when overall market trend in same direction...Example, if Nifty in bull run then prefer longs only...and if index is bear run then prefer shorts...Consolidation in bear market dont have appetite to hold longer, as uneasiness among long holders force them to liquidate at every small pull too...

In bear markets shorting candidates are those who had very good bull run...as big players will try to exit at each consolidation and fall will be much smoother...

There is pattern working in bull/bear markets...you need to study...In bull markets, stocks open lower(small gap downs if any) and move to close near its highs...while in bear markets, stocks opened higher(with small gap ups if any) and move to close towards its lows...

 

[amitrandive]

Dear Amit,

These are patterns of consolidations and it works in any environment...but better works when overall market trend in same direction...Example, if Nifty in bull run then prefer longs only...and if index is bear run then prefer shorts...Consolidation in bear market dont have appetite to hold longer, as uneasiness among long holders force them to liquidate at every small pull too...

In bear markets shorting candidates are those who had very good bull run...as big players will try to exit at each consolidation and fall will be much smoother...

There is pattern working in bull/bear markets...you need to study...In bull markets, stocks open lower(small gap downs if any) and move to close near its highs...while in bear markets, stocks opened higher(with small gap ups if any) and move to close towards its lows...

The crux of trending markets !!!

So in bull markets we should always buy low and sell high,i.e Buy on dips .
And in bear markets we should sell high and buy low,i.e Sell on rise

:clapping::clapping::clapping:

 

[indianbank]

So in bull markets we should always buy low and sell high,i.e Buy on dips .
And in bear markets we should sell high and buy low,i.e Sell on rise

I do opposite of the above statement....
i always Buy on high and sell on low ........

 

[newuser_RK]

Anilji and others, IndiaBulls real estate has been a rank outperformer past 2 months. I observed that it bounced from strong weekly support. My question is how and where can we enter this stock in the hindsight. Especially if we consider that the stock might not be in our watchlist.

Sent from my AO5510 using Tapatalk

 

[amitrandive]

I do opposite of the above statement....
i always Buy on high and sell on low ........

Sirji

What you are saying is "Buy on strength and Sell on weakness" in a trending market,works on strong breakouts.

What we are saying is " Buy on dips and Sell on rallies" also applies to a trending market but works on retracements and consolidations.

Different phases of the same trending markets

Is more money to be made:

- Selling Weakness, Buying Strength or - Buying Weakness, Selling Strength

I think the answer to the question will greatly depend on your personality and if you are a with trend or counter trend trader. But I am curious as to what Anil Sir has to say on this.

 

[anil_s_trivedi]

I do opposite of the above statement....
i always Buy on high and sell on low ........

Everybody knows you are a discipline follower...in Amit's thread you publicly disclose your longs for portfolio...this requires gut...hats off to you...

You are more of a fan of a 52-weeks high breakout or all time high breakouts...
every strategy is fine as long as it earns for you...

 

[anil_s_trivedi]

I do opposite of the above statement....
i always Buy on high and sell on low ........

Sirji

What you are saying is "Buy on strength and Sell on weakness" in a trending market,works on strong breakouts.

What we are saying is " Buy on dips and Sell on rallies" also applies to a trending market but works on retracements and consolidations.

Different phases of the same trending markets

Is more money to be made:

- Selling Weakness, Buying Strength or - Buying Weakness, Selling Strength

I think the answer to the question will greatly depend on your personality and if you are a with trend or counter trend trader. But I am curious as to what Anil Sir has to say on this.

My whole intention of posting this is...
[/QUOTE]
There is pattern working in bull/bear markets...you need to study...In bull markets, stocks open lower(small gap downs if any) and move to close near its highs...while in bear markets, stocks opened higher(with small gap ups if any) and move to close towards its lows...[/QUOTE]

to ascertain what types of markets in progress...like in bull markets, market opened on slight negative global/local cues but t end of the day close towards its highs...implies strength going on in current trend...

While in downtrend, even slight positive opening on good news get sold off to close towards its lows at the end of the day...
This is underlying whats going on...

Indian bank is more of a stricter trend follower where he gets into stocks which witnesses 52weeks breakout or all time high breakouts...

There is no perfect strategy to trade...infact there is no analysis on indian markets to compare returns of simple trend following model and buying & selling at 52 week high and lows...

When we try to get into multiyear support zone, when stock is in downtrend...this is ok...but you should know, you cannot play with same capital allocation while you used to enter in stocks in uptrend..both are different scenarios...

secondly when stocks is in uptrend(whatever be your definitions weekly higher highs&lows or using MA), i look for a good pullback or consolidation to enter...this is also valid...Now your capital allocation is somewhat higher than what we used in earlier types of trade...So this category is also termed as we are buying lower timeframe weakness in higher timeframe strength going on...I feel more comfortable in this...

 

[anil_s_trivedi]

Anilji and others, IndiaBulls real estate has been a rank outperformer past 2 months. I observed that it bounced from strong weekly support. My question is how and where can we enter this stock in the hindsight. Especially if we consider that the stock might not be in our watchlist.

Sent from my AO5510 using Tapatalk

 

[mindgames]

Dear Anil, what is your preference? - log scale vs. linear scale