Charts for the Day

[anil_s_trivedi]

Wipro another IT sector company looking weak on higher timeframes...

 

[ravi2126]

If one is trading in a range, and price is landing close to support...it will have few of action...the range of bars is generally narrow before price tested the support...implies price is coming out of narrow range, and in range expansion it tested the desired support zone...so volume should be more if its a move 'down' coming in , but if its a support then probably it would have lower volumes...

Again, its a risk to enter in anticipation of support coming in, so for conservative wait till hourly bar takes high of previous 2-bars...what the old traders used to called it as 2-bar swing highs-lows...it tells strength coming in...Old traders who trades only with price use it more prominently than any other methods...

For conservatives, wait till EOD and initiate action only if high of these support bar is taken out...

Anil'ji if possible can u explain with example

 

[mithu76]

today nifty future made open and high around 8888. is it abnormal?

 

[anil_s_trivedi]

Anil'ji if possible can u explain with example

Dear Raviji,

I am posting sample SBI chart...although volume footprints are not exactly the same...but rest of details are on line...

When we anticipate a crucial support zone then we need to wait for price to test the same...on testing either aggressive ones need to enter with small SL, or for conservatives need to wait till price gives us few clues...

Now, whether this support zone is prominent or not, it is to be analyzed first...Remember one thing for every effort(volume) we need to see result(price) is coming or not...

Observe, weekly chart, the support zone tested by outside bearish bar with high volumes...now if its a weak we need to see follow up...but see prices traded inside this outside bar for two weeks...

Now, on daily chart, observe in Feb prices trading below Jan month lows, so bearish pressure still intact...But the high volume down bars which tested support zone, is not witnessing follow up selling to clear the zone...so it was clear price has another plan...

In base observe, up bars are with above average volumes and bigger spread..this is sign of accumulation process...

While analysing charts, always try to see what price is doing...clearing previous months/week high/low gives signs of strength/weakness...this is all need to read in addition to volume...Price if sustaining below previous months low, and then comes up, it will challenge previous months high...if it overcomes, then bull give their signature that we now have strength...

 

[insursi]

Thanks Anil ji for posting your valuable chart analysis (simple analysis with straight line at its best). Its one of the thread which keeps me visiting traderji.

 

[jain.er]

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[ravi2126]

Dear Raviji,

I am posting sample SBI chart...although volume footprints are not exactly the same...but rest of details are on line...

When we anticipate a crucial support zone then we need to wait for price to test the same...on testing either aggressive ones need to enter with small SL, or for conservatives need to wait till price gives us few clues...

Now, whether this support zone is prominent or not, it is to be analyzed first...Remember one thing for every effort(volume) we need to see result(price) is coming or not...

Observe, weekly chart, the support zone tested by outside bearish bar with high volumes...now if its a weak we need to see follow up...but see prices traded inside this outside bar for two weeks...

Now, on daily chart, observe in Feb prices trading below Jan month lows, so bearish pressure still intact...But the high volume down bars which tested support zone, is not witnessing follow up selling to clear the zone...so it was clear price has another plan...

In base observe, up bars are with above average volumes and bigger spread..this is sign of accumulation process...

While analysing charts, always try to see what price is doing...clearing previous months/week high/low gives signs of strength/weakness...this is all need to read in addition to volume...Price if sustaining below previous months low, and then comes up, it will challenge previous months high...if it overcomes, then bull give their signature that we now have strength...

Anil'ji can v say that same process is going in ABAN

 

[anil_s_trivedi]

Anil'ji can v say that same process is going in ABAN

Dear Raviji,

Yes points are rightly identified by you...Breaching of long term trendline can be taken seriously...You cant catch bottom exactly but indeed it helps in great deal of analysis, what price is telling...Trendline structure analysis helps in how the peers are moving, if all are moving in same manner, it tells sectoral fundamentals changing...so be prepared...

Breaking a trendline doesnt mean trend will reverse, but it surely tells us either trend is on verge of reversing or going sideways...

 

[mithu76]

chek anantraj inverted h&s ,can u imagine before the moov on 20th july

 

[anil_s_trivedi]

chek anantraj inverted h&s ,can u imagine before the moov on 20th july

Dear mithu,

Patterns are not guaranteed ticket to wealth creation, but certainly gives edge to trade, if we are in right direction...

Its a Inv H&S , it can also be classified as flat/Rectangle consolidation...also price is trading in the big range, created by big candle on 3rd June...

There are many instances, when price leaves the pattern with gap up/down...this doesnt mean they are not useful...

Patterns are nothing but accumulation/distribution patterns, it is that period when price just get cooling off after a trending move...this consolidation can take any form...and so it named as H&S, wedges, triangles...etc...etc...