Did U find these systems/tools useful......

[Cactus]

Bollinger Bands

Bollinger Bands are based on MA + Standard Deviation……Few peoples use the bands as support & resistance levels…. And this theory work correctly in range-bound market as buy near lower band & sell at mid or near upper band or sell near upper or mid band and buy near lower band……….

But …….I feel this is not the correct interoperation of the tool……… it is much better to check the continuation of price rather than looking at weather it is near upper-mid or lower band…….

The continuation of price at upper band indicate a bullish trend and buying at dips or near mid band is better option rather than shorting or selling……and visa versa …….continuation at lower band indicate sell…….

We can check the continuation of price at upper band in DLF & Bharti & at lower band in Ranbaxy.

Here ……..this is to be noted…….when price is appearing near upper band…….mid-band can be used buying point or support whereas if the continuation of price is at lower band mid band can be used as selling point or resistance level.

 

[Cactus]

Columbas,

Can u eleborate some more what u want to prove by comparing peaks of stock and RSI........?

BTW I do not use RSI and MACD both for trading purpose.

 

[columbus]

Columbas,

Can u eleborate some more what u want to prove by comparing peaks of stock and RSI........?

BTW I do not use RSI and MACD both for trading purpose.

The charts themselves are self explanatory. I want to prove a simple
point that OFTEN it is worth following RSI charts.

Coming to your BB charts ,I think they are over-stretched in X-axis and
hence the Bollinger belts have somewhat lost their relevance. In order to
have proper impact, the X-axis should not be more than twice of y-axis.

 

[Cactus]

I try to clear ur query with my point of view.......

Every tool........no matter it is RSI/MACD/Stock-hastic or other.....is result of average based calcuation.....

& that is the reason that every tool shows it's reaction little late.

for example the 5 days average of a stock which is continuely rising since last 5.... will be lesser than stock price......

same rule is applicable for any other tool.

hope clear......

Atleast RSI catches bottoms and peaks ,but not always.

I am giving 2 live examples of HDFCBANK and DLF.

HDFCBANK

The peak price of this bank is not peak value of its RSI but it was far below.
Similarly Peak value of RSI is not coincident with peak value but still moved
up from this value.

DLF

The bottom value of RSI coincident with LOW value of RSI once mometum
set in this counter.(Of course this is not LOD ).Peak of RSI is definitely
coincidented with Peak price or HOD.

As outcome of the poll reflects,the tool , RSI ,roughly catches the PEAKS
and TROUGHS.

 

[Cactus]

What u r saying man......."

Did u had a dream that I am going to post about BB......? Because the original massage u posted at 10.49 whereas I posted BB post after 11 30PM...?

From where BB came at 10.49 PM....?

and till now it shows 0 viewing .......so how can u say it streched....?

The charts themselves are self explanatory. I want to prove a simple
point that OFTEN it is worth following RSI charts.

Coming to your BB charts ,I think they are over-stretched in X-axis and
hence the Bollinger belts have somewhat lost their relevance. In order to
have proper impact, the X-axis should not be more than twice of y-axis.

 

[columbus]

What u r saying man......."

Did u had a dream that I am going to post about BB......? Because the original massage u posted at 10.49 whereas I posted BB post after 11 30PM...?

From where BB came at 10.49 PM....?

and till now it shows 0 viewing .......so how can u say it streched....?

Cactus,

Check the times once again, my post came at 1217 after your's.

 

[Cactus]

columbus,

I guess either u r little confused or trying to confuse......

check ur post no 60 in which u posted the chart ........

after that I posted my BB post after 11.31 Pm. about ur eleboration... post no 62.

then u posted at 12.17 with strech theory.......

Now tell me what u was trying to prove with post no 60 ?

and did I asked ur eleboration about ur post no 60 or my BB post no 61 ?

Cactus,

Check the times once again, my post came at 1217 after your's.

 

[columbus]

columbus,

I guess either u r little confused or trying to confuse......

check ur post no 60 in which u posted the chart ........

after that I posted my BB post after 11.31 Pm. about ur eleboration... post no 62.

then u posted at 12.17 with strech theory.......

Now tell me what u was trying to prove with post no 60 ?

and did I asked ur eleboration about ur post no 60 or my BB post no 61 ?

cactus,

I have nothing to prove ,every thing is self-explanatory.

 

[oxusmorouz]

Here ..this is to be noted.when price is appearing near upper band.mid-band can be used buying point or support whereas if the continuation of price is at lower band mid band can be used as selling point or resistance level.

Can you elaborate why, Cactus?

 

[Cactus]

Columbus,

Actually I asked your elaboration about your post No-60 but with your exploration when you included stretch theory in post no 62……..I got little screwed…….., Sorry bro if any-where I hurt your feelings.

About the peak of stock/RSI……..I already explained…….again……RSI is an effected tool but every tool is result of MA based calculation so react little letter……..this is why the peak of price and RSI with high in HDFC and low in DLF are not same……
It may or may not be…….

Oxy……,

have to leave, Will reply in eve……..