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

[sudoku1]

in bollinger bands ,the middle band is none other than the 20 DMA of the asset being tracked........in overstreched & sharp moves ,the price sometimes tend 2 come out of the bands............& hence it is always advisable never 2 rely only on ane technical instrument.....

 

[Cactus]

Can you elaborate why, Cactus?

Oxy,

I guess u r more experienced than me so your question surprise me , anyway I try to answer your question.

In up-trend we expect that price will retrace but will not break mid band & Visa-versa in down-trend, it is normally expected that it wont..how-ever this is pre assumed theory..it should not but it can.

U know well the stock market follow jungle rules as anything could be happen..

Here is a chart of adlabs..u can check the price continuation at upper band as-well it did not break the mid band from 11 to 12.30+ 3 to 3.30 PM and letter on from 1 to 3 pm the price continuation was either at lower band or below mid band.

 

[rajatheroyal]

I dont belive in any indicator.what i beleive is that chart pattern and only chart pattern are the holy grail of technical trading provided u follow a strict money management.I am ready to chalenge any body who uses any indicator.For eg for one month me and the person who challenges me should be given same amount of capital ,a realtime data.The condition is that he should use any indicators or expert system and i will use my chart patterns only and i am sure that i would gain more than him.

 

[oxusmorouz]

Oxy,

I guess u r more experienced than me so your question surprise me , anyway I try to answer your question.

In up-trend we expect that price will retrace but will not break mid band & Visa-versa in down-trend, it is normally expected that it wont..how-ever this is pre assumed theory..it should not but it can.

U know well the stock market follow jungle rules as anything could be happen..

Here is a chart of adlabs..u can check the price continuation at upper band as-well it did not break the mid band from 11 to 12.30+ 3 to 3.30 PM and letter on from 1 to 3 pm the price continuation was either at lower band or below mid band.

Cactus, I do not intend to post as an authority,but to derive rules from Bollinger bands, one must first understand why the bands are used. With the assumption that prices are normally distributed, Mr.Bollinger induced that 99% of the items would fall within 3 standard deviation from the average. The outliers, if any would eventually fall back into the bands, and hence, considered mean reverting.

Without understanding of assumptions, one is making the primary mistake of theorizing from examples. IMO, this sort of understanding will leading to more confusion than solve any. The set of "pre-assumptions" as you state are merely a reflection of "what you want to see" rather than what is? Perhaps I am mistaken here but I guess it's upto to either of us to rectify it.

 

[RSI]

Without understanding of assumptions, one is making the primary mistake of theorizing from examples. IMO, this sort of understanding will leading to more confusion than solve any. The set of "pre-assumptions" as you state are merely a reflection of "what you want to see" rather than what is?

That is exactly what happens every time a newbie ventures on to internet to learn something about trading. He is bombarded with thousands of indicators and he is shown "selected examples" to prove how wonderful it is and it is the holy grail that he is searching. That is it. Newbie never bothers to learn how that indicator is made and what is the mathematical formula and what is the logic behind that indicator and how twisting a few of these basic parameters make this indicator to behave differently. Thereafter, the newbie learns that it is not what you see is what you get. Disheartened, new search begins for another indicator (perhaps even more magical than earlier one) and the same process is repeated.

 

[Cactus]

Basic understanding of subject is must but TA is a not a small subject writing all the aspect at forum is not an easy jobI am just contributing my experience that I earned .

Anyone who need the detail or basics for Bollinger bands can download the book from here :

http://www.ebookee.com.cn/Bollinger-on-Bollinger-Bands_65784.html

Construction of few indicators are available here

http://excelta.blogspot.com/2007/11/macdmeaning.html

If any-body face problem in download please drop a line here..I will upload the book.

99% of the items would fall within 3 standard deviation from the average. The outliers, if any would eventually fall back into the bands, and hence, considered mean reverting..

Right bro price can be fall within the band but how much..? In up-trend u will buy on dips or short..?

The set of "pre-assumptions" as you state are merely a reflection of "what you want to see" rather than what is? Perhaps I am mistaken here but I guess it's upto to either of us to rectify it.

Watch some more charts.and continuation of price.

 

[Cactus]

new search begins for another indicator (perhaps even more magical than earlier one) and the same process is repeated.

Jack of all master of none………..this is applicable to 80% of peoples…….if one is master of one indicator…..no need for searching an other…….

That is it. Newbie never bothers to learn how that indicator is made and what is the mathematical formula and what is the logic behind that indicator .

Sahab hamari goli hamen hi kyoon de rahe hain………

http://www.traderji.com/words-wisdom/22697-my-dear-analyst.html#post252381

Any way have a look here a tell me do you still say I should suggest some one about construction of indicator……

http://www.traderji.com/equities/24027-technical-analysis-indicators-calculation.html#post217093

And this is not first time……..I had enough incidents at this forum…….

Had hoti hai yaar……..

Anyway thanks for hi-lighting the matter.

 

[Cactus]

I dont belive in any indicator..

TA is like astronomy......we don't belive but if we meet an astrologer......we never face a problem in discussion about our horo........

I am ready to chalenge any body who uses any indicator.For eg for one month me and the person who challenges me should be given same amount of capital ,a realtime data.The condition is that he should use any indicators or expert system and i will use my chart patterns only and i am sure that i would gain more than him.

Try John Murfy or Bulowaski.......either one shall accept your invitation.......chalange.....

We are too small peoples......can not face your chalange...

Best of Luck.

 

[Cactus]

Range Trading

Range trading is a diffrent subject and too simple, one can construct it based on high-low.

Here is an example. Range-1 indicate the possibility at higher side, Range-2 suggest lower side......can be used for stop too......

the range displayed are for next target......for example S.no. 1's range indicate the possible high-low side for s.no-2.

I got it few days back......did not experienced till now ......., will post result little letter......
but looks good.

 

[oxusmorouz]

I'm afraid this entire process looks just a masquerade, a fight for authority on the subject, not a search. No more time wasting from my side, Cactus.