I can help you with stock chart reading
- Thread starter vvonteru
- Start date
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Can you plz give some important levels on nifty to keep watch on.
1. 3200
2. 3100 (around 3070)
More importantly, I would look at BSE Sensitive Index. 10,000 is the most important psychological barrier.
Piramyd Retail
I would trail the stop at 165/170.
If the market goes down, individual stocks are nothing. Doesn't mean you should reliquish your position. Because, we don't know whether the market is going to continue the downward path tomorrow. Stick with the stops. Let the market determine its next step.
1. 3200
2. 3100 (around 3070)
More importantly, I would look at BSE Sensitive Index. 10,000 is the most important psychological barrier.
Piramyd Retail
I would trail the stop at 165/170.
If the market goes down, individual stocks are nothing. Doesn't mean you should reliquish your position. Because, we don't know whether the market is going to continue the downward path tomorrow. Stick with the stops. Let the market determine its next step.
Last edited:
No matter what I say below, I suggest No Entry to any of stocks. Wait for the market to show the direction. It is still in the break down mode.
JPAssociates
-- Pullback has stretched into the short term trading range below. Let this condition improve. I think this is true for most of the stocks (look at Wipro). These conditions will improve when the market improves.
bharti
--Same as above
HDFC
-- This stock looks like a pull back. But, look at the chart for last 3 to 7 months. It just gained 100 points. Its kind of a slow stock. Anyway, as other stocks in previous days, the pullbacks stretched more into short term trading range due to the market conditions. So advice, avoid for now. Once the market improves, there will be lot of stocks for entries.
Rcovl
-- Are U asking about RCVL. I couldn't find RCOVL. Give the name of the company if it is RCOVL. RCVL is a new stock. I will pass on this one.
Infosys
-- Same story as JP & BH & Wipro etc etc. This tells me that all stocks are breaking down.
GDL
-- I would skip this stock based on chart.
Sugar stocks: Oudh Sugars
-- They look better than other sectors. But, don't take an entry. Wait for the market to become better. Look at attached charts.
JPAssociates
-- Pullback has stretched into the short term trading range below. Let this condition improve. I think this is true for most of the stocks (look at Wipro). These conditions will improve when the market improves.
bharti
--Same as above
HDFC
-- This stock looks like a pull back. But, look at the chart for last 3 to 7 months. It just gained 100 points. Its kind of a slow stock. Anyway, as other stocks in previous days, the pullbacks stretched more into short term trading range due to the market conditions. So advice, avoid for now. Once the market improves, there will be lot of stocks for entries.
Rcovl
-- Are U asking about RCVL. I couldn't find RCOVL. Give the name of the company if it is RCOVL. RCVL is a new stock. I will pass on this one.
Infosys
-- Same story as JP & BH & Wipro etc etc. This tells me that all stocks are breaking down.
GDL
-- I would skip this stock based on chart.
Sugar stocks: Oudh Sugars
-- They look better than other sectors. But, don't take an entry. Wait for the market to become better. Look at attached charts.
Attachments
Dear VVONTERU,
I need yr assistance in intrepreting the chart for intraday.
In the price -vol chart in co-existence with MA curve,suddenly we find very high vol at a particular price.My question is,how to conclude as to whether that price & vol corresponds to selling or buying.(of course for every buyer,there has to be a seller& vice versa).If we know that it is buying,we could also go long & if not we could short.
Could the MA curve throw some light about it?
Invariably,i find that the price either moves up or down a little immediately after that trade,& then takes the opposite direction,crosses the MA & continues the path.We then intrepret as to whether the vol corresponds to buy or sell.By the time we realise,it is too late for day trade.Sometimes,we could still enter profitably.
Pl help me to scientifically intrepret the above happening in the chart during trading hours, if i have not confused you already.
Also in medium liquid stocks,when it is difficult to sell the stock at a particular price for a given vol,suddenly we find high vol at a particular price.Is it manupulation & if so how it is carried out.
Thanks,
ranga
I need yr assistance in intrepreting the chart for intraday.
In the price -vol chart in co-existence with MA curve,suddenly we find very high vol at a particular price.My question is,how to conclude as to whether that price & vol corresponds to selling or buying.(of course for every buyer,there has to be a seller& vice versa).If we know that it is buying,we could also go long & if not we could short.
Could the MA curve throw some light about it?
Invariably,i find that the price either moves up or down a little immediately after that trade,& then takes the opposite direction,crosses the MA & continues the path.We then intrepret as to whether the vol corresponds to buy or sell.By the time we realise,it is too late for day trade.Sometimes,we could still enter profitably.
Pl help me to scientifically intrepret the above happening in the chart during trading hours, if i have not confused you already.
Also in medium liquid stocks,when it is difficult to sell the stock at a particular price for a given vol,suddenly we find high vol at a particular price.Is it manupulation & if so how it is carried out.
Thanks,
ranga
Day Trading (Volume, MA, Medium Liquid Stocks, Price Movement Manipulation)
-- Please read my earlier reply(s) on day trading. In day trading you need the following to excel:
1. Avoid looking at too many things. You will have very less reaction time and attention span. More on this in the next few points.
2. Have a tool which can execute orders fast. Don't have some thing which takes you to another page for confirmation and then executes the order. Those are good for End of day trading.
3. Bargain for low commissions on day trading. You need low commissions because U will be trading a lot as U will get lot more signals in day trading.
4. Determine before hand (before sesson starts) what stocks you will day trade. Use volume, beta (volatility) of the stocks as the criteria as the selection. You need high volume, medium price, medium to high beta stocks. Further, determine what direction these stocks have chance of trading. U do that looking at EOD data on a daily chart using EMAs. I talked about it in previous emails. Also, look at the charts I am attaching. U will have an idea. Basically, what I am saying is, U need to decide whether to go long or short before hand for a stock.
5. Restrict to only 2 stocks for watch list. If you don't see any movement for couple of hours, then start looking at another 2 stocks. Not at any point of time you will be looking at more than 2 stocks. Try to restrict looking at 10 stocks in general. That way, Ur mind will get tuned with their price movements. After a while, U will know them more and your actions will get aligned with their movements.
6. Avoid looking at 1 minute chart in a day chart. Its close to imposible to make decisions on 1 minute chart because of noise.
7. Now, coming to what indicators you will be using.
a. Look at 5 day chart. I don't know whether you have the tool which shows 5 days of data. In this, use 1 minute time frame. I know U are confused at this point based on what I said on point 6. But, here we are looking at 5 day chart. Read next how this makes a difference.
b. U will be using EMA(8) min and EMA(50) min. Since we are using 5 day chart instead of 1 day chart, this effects the EMA calculation. They will take out the noise.
c. U will be using MACD with line and Histogram (atleast histogram). Again, hopefully Ur tool has these.
8. Methodology (I tried to avoid revealing this info. in earlier replies. I was tempted though). My friend will kill me if he knows I am revealing this info. But, its ok. I am not doing it any more.
Hope, you will make money of it. Hey, atleast can you keep this a secret? (Ya right!!!
).
a. As in EOD trading, we need enter and exit points that make you money. But, unline EOD trading, you have less time to make decisions and there is lot of volatility. So, you need clarity.
b. We will be using crossovers for this. When 8 min EMA crosses above 50 min EMA, you buy. Similarly, if 8 min EMA crosses down 50 min EMA, you will sell short. When the ema crosses over, wait for pull back (pull up in case of short). Patience!Patience! Patience! before triggering. It is better to avoid then do it wrong. Crossover is Ur ultimate test.
c. If you want to be 80 % correct, then U will confirm the crossover using 5 min timeframe on 5 day chart. Remember, it will take some time for the crossover to appear on 5 minute chart after it appears on 1 minute chart. What this may mean is that you will enter at higher (lower for short) point than you would do using 1 minute chart. But, it will avoid false crossovers. So, you might make less money, but U will make consistently. 1 minute chart can be used to help you get ready for upcoming crossover.
d. MACD histogram is also helpfull for confirmation. Lines above the 0 bar means bullish. Below bearish (I know U know). So, when 8 crosses above 50, we are going from bear to bull. See whether it is happening in MACD for confirmation.
e. So, I have talked above about entry. How about exit. As in my EOD trading, U need adopt immediate 50% profit booking methodology. When U enter, U immediatly decide at what price the reverse crossover is going to happen (approximatly). This is your stop point.
f. If the stock moves in your direction, U should take 50% profits and move the stop where U entered for break even. Without this U will not survive. Because, in a day, the stocks show lot of noise. What goes up in the morning, comes down in the evening. U will be left withnothing on your plate, inspite of your hardword. U need income to continue for next day, just like people working in office do. Final exit will come when the reverse crossover happens.
9. In order to make money in day trading, U have to be a perfect person. U should not have fear or greed (applies to EOD too). You have to follow methodology to the core. No exceptions. Believe me, this is going to be hard. U will get greedy once U start seeing the money flowing.
10. Never trade when U are tired. Day trading will suck lot of your energy. If you are tired, take a break. Further, if you have lost a lot of money (% of capital), don't trade for couple of weeks.
Price Manipulation
-- This is a given thing. We can restrict it by picking stocks that have good average volume, medium price and no gaps in price movement. If you want to know price manipulation, read The stock operator book, biography of Jesse Livermore.
-- Please read my earlier reply(s) on day trading. In day trading you need the following to excel:
1. Avoid looking at too many things. You will have very less reaction time and attention span. More on this in the next few points.
2. Have a tool which can execute orders fast. Don't have some thing which takes you to another page for confirmation and then executes the order. Those are good for End of day trading.
3. Bargain for low commissions on day trading. You need low commissions because U will be trading a lot as U will get lot more signals in day trading.
4. Determine before hand (before sesson starts) what stocks you will day trade. Use volume, beta (volatility) of the stocks as the criteria as the selection. You need high volume, medium price, medium to high beta stocks. Further, determine what direction these stocks have chance of trading. U do that looking at EOD data on a daily chart using EMAs. I talked about it in previous emails. Also, look at the charts I am attaching. U will have an idea. Basically, what I am saying is, U need to decide whether to go long or short before hand for a stock.
5. Restrict to only 2 stocks for watch list. If you don't see any movement for couple of hours, then start looking at another 2 stocks. Not at any point of time you will be looking at more than 2 stocks. Try to restrict looking at 10 stocks in general. That way, Ur mind will get tuned with their price movements. After a while, U will know them more and your actions will get aligned with their movements.
6. Avoid looking at 1 minute chart in a day chart. Its close to imposible to make decisions on 1 minute chart because of noise.
7. Now, coming to what indicators you will be using.
a. Look at 5 day chart. I don't know whether you have the tool which shows 5 days of data. In this, use 1 minute time frame. I know U are confused at this point based on what I said on point 6. But, here we are looking at 5 day chart. Read next how this makes a difference.
b. U will be using EMA(8) min and EMA(50) min. Since we are using 5 day chart instead of 1 day chart, this effects the EMA calculation. They will take out the noise.
c. U will be using MACD with line and Histogram (atleast histogram). Again, hopefully Ur tool has these.
8. Methodology (I tried to avoid revealing this info. in earlier replies. I was tempted though). My friend will kill me if he knows I am revealing this info. But, its ok. I am not doing it any more.
Hope, you will make money of it. Hey, atleast can you keep this a secret? (Ya right!!!
).a. As in EOD trading, we need enter and exit points that make you money. But, unline EOD trading, you have less time to make decisions and there is lot of volatility. So, you need clarity.
b. We will be using crossovers for this. When 8 min EMA crosses above 50 min EMA, you buy. Similarly, if 8 min EMA crosses down 50 min EMA, you will sell short. When the ema crosses over, wait for pull back (pull up in case of short). Patience!Patience! Patience! before triggering. It is better to avoid then do it wrong. Crossover is Ur ultimate test.
c. If you want to be 80 % correct, then U will confirm the crossover using 5 min timeframe on 5 day chart. Remember, it will take some time for the crossover to appear on 5 minute chart after it appears on 1 minute chart. What this may mean is that you will enter at higher (lower for short) point than you would do using 1 minute chart. But, it will avoid false crossovers. So, you might make less money, but U will make consistently. 1 minute chart can be used to help you get ready for upcoming crossover.
d. MACD histogram is also helpfull for confirmation. Lines above the 0 bar means bullish. Below bearish (I know U know). So, when 8 crosses above 50, we are going from bear to bull. See whether it is happening in MACD for confirmation.
e. So, I have talked above about entry. How about exit. As in my EOD trading, U need adopt immediate 50% profit booking methodology. When U enter, U immediatly decide at what price the reverse crossover is going to happen (approximatly). This is your stop point.
f. If the stock moves in your direction, U should take 50% profits and move the stop where U entered for break even. Without this U will not survive. Because, in a day, the stocks show lot of noise. What goes up in the morning, comes down in the evening. U will be left withnothing on your plate, inspite of your hardword. U need income to continue for next day, just like people working in office do. Final exit will come when the reverse crossover happens.
9. In order to make money in day trading, U have to be a perfect person. U should not have fear or greed (applies to EOD too). You have to follow methodology to the core. No exceptions. Believe me, this is going to be hard. U will get greedy once U start seeing the money flowing.
10. Never trade when U are tired. Day trading will suck lot of your energy. If you are tired, take a break. Further, if you have lost a lot of money (% of capital), don't trade for couple of weeks.
Price Manipulation
-- This is a given thing. We can restrict it by picking stocks that have good average volume, medium price and no gaps in price movement. If you want to know price manipulation, read The stock operator book, biography of Jesse Livermore.
Last edited:
Excellent reply & thank you.
Infact,yesterday after posting my query,for the first time, out of curiosity,i started reading yr thread from the begining & not only found it useful & very interesting,but most of my doubts were earlier answered by you,under different context.I missedit all these days.
To be honest,this thread is equally imparting knowledge like Saint's recent one 'Teach a man to fish' which i really enjoy reading.The compliments paid to you by Saint,speaks the quality of yr thread.
Yes,as rightly pointed out by you,i have to purchase a s/w,having provisions for 5 day chart,if i have to improve my day trading.
By the way,pl give yr views on the sudden increase in vol at particular price ,intraday.
Also, yr comments reg Bse stocks,ICSA(531524) & Ankur drugs,both from investment point of view & intra day trading.
I hope to see more of yr contributions in this forum.
All the best,
ranga
Infact,yesterday after posting my query,for the first time, out of curiosity,i started reading yr thread from the begining & not only found it useful & very interesting,but most of my doubts were earlier answered by you,under different context.I missedit all these days.
To be honest,this thread is equally imparting knowledge like Saint's recent one 'Teach a man to fish' which i really enjoy reading.The compliments paid to you by Saint,speaks the quality of yr thread.
Yes,as rightly pointed out by you,i have to purchase a s/w,having provisions for 5 day chart,if i have to improve my day trading.
By the way,pl give yr views on the sudden increase in vol at particular price ,intraday.
Also, yr comments reg Bse stocks,ICSA(531524) & Ankur drugs,both from investment point of view & intra day trading.
I hope to see more of yr contributions in this forum.
All the best,
ranga
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