Experiments in Technical Analysis

[karthikmarar]

Dear Ashish, Ananth

Thanks for pointing out the error. I should read encirled 3 for bearish cross over above the zeroline and encircled 4 for zeroline cross over. I have corrected the concerned post.

Ashish, I think Indicators can aid the pattern Trader. A study of indicators during formation of patterns will be quite Interesting. Would definitely take it up when time permits.

Ananth, Yes we try will cover as much as possible ( I do hope to keep up the promise )

warm regards

karthik

 

[karthikmarar]

Hi Karthik,

I was just watching a old movie on cable which I love and I think i can aptly put the name of the movie here Lage Raho Munna Bhai . Great work for the forum.

Rgds

Rahul

Hi Rahul

. Thanks

regards

karthik

 

[karthikmarar]

Re: Experiments in Technical Analysis - Trading the MACD

Hi Friends

we will continue with the MACD Discussions....

DIPs and HOOKs

Let us look at a situation when the stock is in an up trend and the MACD line is above the signal line. You will notice that the MACD line temporarily converges towards the signal line and diverge again. We will call them DIPs.
Some times the MACD line even briefly dips below the signal line and bounce back. We will call these HOOKs.

The DIPs and HOOKs normally indicate brief pullbacks in the up trend and provide good add-on or pyramiding opportunities.

In the same manner DIPs and HOOKs occur during the downtrend when the MACD line is below the signal line. These indicate temporary pull up during down trends and present good shorting opportunities.

Chart-4 present examples of the Dips and Hooks during a up trend.

regards

Karthik

 

[rpc]

hi karthik
Nice to start MACD explanation.I am sure everyone will be benefitted by it.
with best wishes
rpc

 

[softtouch]

Hi softtouch

Here is the corrected MS exploration for Mabiuts.

regards

Karthik

Hi Karthik,

Nice to see your post in this forum,really appreciate your hard work and efforts u r taking to improve knowledge of people .............i like specially when u r coming up with any new topic.......u r really dashing man..................btw......do you have exploration files for MABIUTS-H (improved version by anant) for Metastock ?.........Can you please send that link to download the files?
Thanks
Softtouch.

 

[karthikmarar]

Hi rpc and Softtouch

rpc, Thanks for the wishes. I do hope this will benefit the newbie.

Softtouch, really appreciste your kind words. Mabiuts-H was developed by Ananth. But as I understand Ananth is not familiar with Metastock. I will try to translate it with Ananth's permission, when time permits.

regards

Karthik

 

[karthikmarar]

Re: Experiments in Technical Analysis - Trading the MACD

Hi Friends

We will continue with the Dips and Hooks...

It will be nice if we can indicate the Hooks on the Indicator and the chart. We will represent the DIPs during the up trend as green dots on the Indicator and green up arrows on the charts. Green stars will represent the HOOKs. On the Chart the HOOKs will be coincide with a BUY.

In the same way DIPs during a downtrend will be represented by an orange dot on the Indicator and an orange down arrow on the chart. The HOOKs will be represented by a orange star and will be accompanied by a sell signal on the chart.

The DIPs are good add-on/short term trade opportunities during the up trend and good warning points during the downtrend.


The HOOKS represent a stronger Buy/Short opportunities if we combine with other indicators. Sideways markets produce lot of alternating Hooks
Of course we have to have a lot of discretion when we used the Dips and Hooks. Later we will take some example to see how we can use these additional signals.

Regards

Karthik

 

[asnavale]

Hi rpc and Softtouch

............................

.................Mabiuts-H was developed by Ananth. But as I understand Ananth is not familiar with Metastock. I will try to translate it with Ananth's permission, when time permits.

regards

Karthik

Hi Karthik,

I am indeed unfamiliar with MS Code. As many members use MS and have asked in the past for MS code, I will appreciate if you can kindly do the MS code for modified MABIUTS-HB for use of all the members.

The modified MAIBUTS-HB code is available as attachment in the following link:

http://www.traderji.com/71573-post197.html

Regards

-Anant

 

[kkseal]

Re: Experiments in Technical Analysis - Trading the MACD

Hi friends

My friends say that I have a knack for complicating simple things. I do hope that will not be the case here.

Not at all Karthik; rather you, Anant liven up simple, mundane things by providing new perspectives to them.
Like your trying to reduce whipsaws in MA crossovers by smoothening the base EMA; Anants attempt to reduce the lag of MAs by using MA Histograms instead. Whatever be the results (no system can be 100% full-proof) the thinking, the effort itself is enlightening & inspiring for lesser folks like myself.

Waiting for you to arrive at MACD Histograms & (even more eagerly) for what Anant has mentioned as Zero lag MACD.

Regards,
Kalyan.

 

[softtouch]

Hi Karthik,

I am indeed unfamiliar with MS Code. As many members use MS and have asked in the past for MS code, I will appreciate if you can kindly do the MS code for modified MABIUTS-HB for use of all the members.

The modified MAIBUTS-HB code is available as attachment in the following link:

http://www.traderji.com/71573-post197.html

Regards

-Anant

Yes Karthik, we will appreciate if you devlope the same modified MAIBUTS-HB code...........for Metastock users in Traderji Forum Group & also would like to request for heat map code for metastock users.

We are waiting for your positive reply on above.

Thanks
Softtouch.