Charts for the Day

rangarajan

Well-Known Member
Oversold momentum means i am taking any momentum indicators like RSI(14) / Stochastics(14,3,3) hitting oversold regions...
Clean bar means, if its a strong bull buying coming in, bar should have open at lows and close at highs with above avg volumes...Also the range of bar should be higher considering previous 2-3weeks bars...It implies bulls taking away price up strongly...
I am using 21/50/200 SMA's on daily...denoting short term/ intermediate term/ long term trend indicators...below 200 SMA its of no business there...50 SMA is my most important ones, below it i refrain to add my existing positions...
21sma is short term indicator...

Yes, i too observed volumes in your chart and my chart differing...my sharekhan terminal also showing same volumes..i am using spot only..
Thank you anil trivedi.
 

VJAY

Well-Known Member
Oversold momentum means i am taking any momentum indicators like RSI(14) / Stochastics(14,3,3) hitting oversold regions...
Clean bar means, if its a strong bull buying coming in, bar should have open at lows and close at highs with above avg volumes...Also the range of bar should be higher considering previous 2-3weeks bars...It implies bulls taking away price up strongly...
I am using 21/50/200 SMA's on daily...denoting short term/ intermediate term/ long term trend indicators...below 200 SMA its of no business there...50 SMA is my most important ones, below it i refrain to add my existing positions...
21sma is short term indicator...

Yes, i too observed volumes in your chart and my chart differing...my sharekhan terminal also showing same volumes..i am using spot only..
Dear Anilji,
So you never look to enter trades in those scrips which is trading below 200SMA.....now many scrips below 200 SMA ...how you start enter those scrips if it trading above 200 SMA you wait for consolidation abv 200 or any other creteria?
 
Dear Anilji,
So you never look to enter trades in those scrips which is trading below 200SMA.....now many scrips below 200 SMA ...how you start enter those scrips if it trading above 200 SMA you wait for consolidation abv 200 or any other creteria?
Vjay ji,

One of my long term setup warrant scrips to be qualified if it trades above 200 SMA..while for swing trades there are two categories...first is when scrip is above 200 but retrace towards 50 sma..while other is scrip is below 200 but price action is flattening near 50 sma...

I look out for base formation setups, it may be near 200 sma or near 50 sma...bases can be flags, rectangles, cup with handle patterns... I look out for low volume consolidation in bases and price action if tight the better it is...
 


Infy gone sideways after runup from august-2017...almost 42% over the period...Since past 4 months gone sideways. recent volume consolidations telling stock is apt for upside breakout...Many IT names gone sideways in this period, shedding some of its gains timewise...lookout for those names..
 

VJAY

Well-Known Member
Vjay ji,

One of my long term setup warrant scrips to be qualified if it trades above 200 SMA..while for swing trades there are two categories...first is when scrip is above 200 but retrace towards 50 sma..while other is scrip is below 200 but price action is flattening near 50 sma...

I look out for base formation setups, it may be near 200 sma or near 50 sma...bases can be flags, rectangles, cup with handle patterns... I look out for low volume consolidation in bases and price action if tight the better it is...
Thanks anilji....nice explanation
 

ravi2126

Well-Known Member
Vjay ji,

One of my long term setup warrant scrips to be qualified if it trades above 200 SMA..while for swing trades there are two categories...first is when scrip is above 200 but retrace towards 50 sma..while other is scrip is below 200 but price action is flattening near 50 sma...

I look out for base formation setups, it may be near 200 sma or near 50 sma...bases can be flags, rectangles, cup with handle patterns... I look out for low volume consolidation in bases and price action if tight the better it is...

Entry after BO...?
 




Current rally doesnt seems to be a broad based...In above charts watch the pain in midcaps and smallcaps still not done...while nifty is purely running on large caps and banking stocks...

As nifty is above 21/50/200 sma its in uptrend...First sign of weakness can be seen only below 10700 levels...

Bank nifty too in uptrend, again till 26050 not taken out on downside its up only...

With earning season going on and elections results due next week....expect the rangebound action...
Entry after BO...?
during consolidation either you can buy at breakout or lower end of consolidation...it all come down to position sizing...If you are initiating position at lower end of consolidation then your trade size should be less than normal..while at breakout you can have your normal size...

I mix my size at various spots...like lower end of consolidation...if i missed that zone then at 21 sma...or at 50 sma....or at breakout...

Only problem is when you initiate position inside consolidation zone you are risking your capital for the uncertain time, price will remain inside the zone...sometimes price remains inside consolidation zone for few weeks to months...that will be surely a frustrating part here...

So its best to look out for breakout. you can manage it well by initiating it on hourly and then more on daily confirmation...

Many ways to trade, choose what best for you...
 
how to read todays candle,anil'ji....?
Closing wise if compared to previous day we still close above prev days high...but on individual basis. we lost a strong holding of closing near highs...
overall still good till holding above breakout zone...At best it can have retest of breakout zone...below that its futile to hold the trade...