I can help you with stock chart reading

[vvonteru]

Re: Dear Mr VV

Can you relook the charts of Rolta (I entered at 170, it has crossed 200 today, I want to add more), Aftek (facing resistance at 58-60 region), and HFCL (entered at 27.80). Their charts are showing marked improvement, just like the market as a whole!

Another question: Don't you think good, a consistent (or sudden) above average volume in a stock is a sign of something immenent---a sign of some dramatic change in the price movement---upwards or downwards movement in the stock price. I want to buy into stocks before they make a upward correction in the stock price, not just find a good trading range.

Thanks!
Kumar

Rolta
-- Can't argue with what happened today on high volume. Hope there will be follow through. When you add more to a position, here are my suggestions.

1. Never add more than 50% of your existing position.
2. Consider adding after multiple of Risk is reached. If you have risked 20 points, wait at least the stock has gained 20 or 40 or 60 points above your buy point.
3. Add only on pull backs. So, don't add now. Stock went above its normal volatility (above upper bollinger band) and may slightly fix in the coming days. Look at LUMAXIND for idea.

The idea is, never make a winning position a losing position.

Aftekinfo
-- You are right. The stock lacks momentum right now. You should have entered after the stock cleared the trading range. One of the reason I go after the sector is for momentum. Look at Banks sector. How they are flying. For short term traders, momentum is everything.

HFCL (511116)
-- I (You might have) don't like how you handled this one. You should have got stopped out. Now I guess you are hoping. Stock is lying in trading range. As you say, if the indexes move up, finally, everything will move. In other case, remove if it goes below the trading range.

Don't you think good, a consistent (or sudden) above average volume in a stock is a sign of something immenent---a sign of some dramatic change in the price movement---upwards or downwards movement in the stock price. I want to buy into stocks before they make a upward correction in the stock price, not just find a good trading range.

I agree buying into stocks that get above average volume.
Everyone wants to buy into a stock before they make a upward correction. There is underlying risk of picking the bottom. Today the market has recovered and may make you feel that way. What if the market went down. Rather, have a consistent approach that defines when you will buy, that gives you an edge. That way, you might have failures. But, overall, the success should override failures.

Guys, look at the stock CLASSIC (Gems sector). Its amazing how it is flying. It doesn't it even give chance to enter. Still, I wouldn't enter until it has a correction.

Also, consider AMARAJABAT. It is in correction. You might have to wait for 1 more day for better entry.

 

[timtomlee]

hi vvonteru,

1. what is ur strategy to identify sectors that are strong and in an uptrend?
for to know about pharma sector, u have BSEHC, but to know about
cement sector, what do u look at, do u look at BSE500 ?, even if u
see sector reports, does that mean all those sectors with maximum of
them in green as on today , means they are in an uptrend?.; Do u
see all the stocks in that particular sector and see whether they are in
an intermediate uptrend, or do u use ur own method of analysing?

2. whats ur take on "crompgreav" as it had good momentum but has fallen
from 1000 levels today at 218?

3. can u suggest stocks that are at low priced but have good momentum
and volatality? do u know any sites providing information on high volatile
low priced stocks?

4. which indicator do u use to know about volatality of stocks?
do u use ADX to identify strength of a trend?

5. whats ur take on following stocks for swing trade?

ACC
SIL
TV18
NUCLEUS
BHEL
SUNPHARMA
CLASSIC
CUB
DRREDDY
DIVISLAB

kindly reply

regards,
sonu m.

 

[vvonteru]

hi vvonteru,

1. what is ur strategy to identify sectors that are strong and in an uptrend?
for to know about pharma sector, u have BSEHC, but to know about
cement sector, what do u look at, do u look at BSE500 ?, even if u
see sector reports, does that mean all those sectors with maximum of
them in green as on today , means they are in an uptrend?.; Do u
see all the stocks in that particular sector and see whether they are in
an intermediate uptrend, or do u use ur own method of analysing?

Currently, we don't have tools that can display sector charts. Only website that offers sector data is http://www.ndtvprofit.com/bb/default.asp?Pass=Indices. I had to go through so much strain in getting sector data. I wrote java code to scrape sector info from websites. Every day, after I load data, I run AmiBroker code to generate sector charts. When I talk about sector performance, I am not talking about 1 day. I am looking at the sector just like a stock.

2. whats ur take on "crompgreav" as it had good momentum but has fallen
from 1000 levels today at 218?

Its a split. Don't trust all what U see in iCharts. Specially these kinds. They don't adjust split on all stocks. Something wrong with their split code.

3. can u suggest stocks that are at low priced but have good momentum
and volatality? do u know any sites providing information on high volatile
low priced stocks?

Low priced stocks in most cases have less volatility (hence they are low priced). I don't know any website.

4. which indicator do u use to know about volatality of stocks?
do u use ADX to identify strength of a trend?

I use ADX for scanning. For volatility of a stock, I use ATR. U can get ATR of a chart from icharts.in.

5. whats ur take on following stocks for swing trade?

ACC
-- Looks good. Less momentum. But, going slow and steady.
SIL
-- I like the chart. Would be nice if it pulls back more for entry.
TV18
-- Very good. Ready for entry. Sector, Media and Entertainment is doing good.
NUCLEUS
-- Looks good. Missed an entry
BHEL
-- Very nice upward volume. Would have been better if it pulled back more. It may not give it though.
SUNPHARMA
-- Doing good. Missed an entry 3 days back.
CLASSIC
-- What to say?
CUB
-- Good one in Banks. Look in BSE.
DRREDDY
-- If you observe Pharma stocks, they are going slow and steady. But are doing good.
DIVISLAB
-- Can't argue

You are picking good stocks. You should share what site and criteria you are using so it would be helpful to others.

This is what I got from my scan.

1. 523229 BHARAT SEATS BSE (Enter above 200 day average), Sector: Auto Ancillaries which is doing good.
2. 531144 EL FORGE LTD BSE (Couldn't get sector info)
3. 532341 LOGIX MICRO. BSE Sector: IT Small/Medium
4. PATNI NSE Sector: IT Large (Below 200 day average)

Some momentum stocks not ready for entry but for stalking.
1. SEAMECLTD SOUTH EAST ASIA MARINE ENGINEERING & CONSTRUCTION LIMITED NSE
2. 502090 SAGAR CEM. BSE
3. CLASSIC
4. AMARAJABAT

 

[makri]

hello

Pl give me advice about

gitanjali gems
chemplast sanmar
3i infotech

makri

 

[kumar7]

Re: Dear Mr VV

QUOTE=vvonteru;54234]Rolta
-- Can't argue with what happened today on high volume. Hope there will be follow through. When you add more to a position, here are my suggestions
1. Never add more than 50% of your existing position.
2. Consider adding after multiple of Risk is reached. If you have risked 20 points, wait at least the stock has gained 20 or 40 or 60 points above your buy point.
3. Add only on pull backs. So, don't add now. Stock went above its normal volatility (above upper bollinger band) and may slightly fix in the coming days. Look at LUMAXIND for idea.

The idea is, never make a winning position a losing position.
[/COLOR]


I took position in this stock because of the following reasons:

a) Its quarterly and yearly results was expected on the 8th Aug. Around 1-2nd Aug. The trading volume had started increasing in the anticipation.

B) Low valuation: It was in the range of 220 to 280 for many months.; and the fundamentals have seemed to have improved. Like all good stocks it had corrected.

c) IT companies had reported good results: trong dollar.

I'll keep in mind your advice about re-entry and adding more.


Aftekinfo
-- You are right. The stock lacks momentum right now. You should have entered after the stock cleared the trading range. One of the reason I go after the sector is for momentum. Look at Banks sector. How they are flying. For short term traders, momentum is everything.

I entered this stock at 50-51, sold at 59. It has been trading with above average volume for the last two weeks: serious fight between the bull and bears! They declared excellent results, but pramotors have low holdings, hence controlled by operators. It is the infamous KP stock. More importantly, aftek is holding stake in SEEKPORT, a potential goldmine. It was battered more than it deserved.! I will re-enter soon.



HFCL (511116)
-- I (You might have) don't like how you handled this one. You should have got stopped out. Now I guess you are hoping. Stock is lying in trading range. As you say, if the indexes move up, finally, everything will move. In other case, remove if it goes below the trading range.

Points well taken and I agree!

I agree buying into stocks that get above average volume.
Everyone wants to buy into a stock before they make a upward correction. There is underlying risk of picking the bottom. Today the market has recovered and may make you feel that way. What if the market went down. Rather, have a consistent approach that defines when you will buy, that gives you an edge. That way, you might have failures. But, overall, the success should override failures.

This point I would like to discuss more, but later!



Guys, look at the stock CLASSIC (Gems sector). Its amazing how it is flying. It doesn't it even give chance to enter. Still, I wouldn't enter until it has a correction.

Good find! Thanks for your pertinent advises and prompt reply.

 

[ramakrishnaiah]

Vvonteru,

If you have programmed entry and setup criteria in Amibroker, Can you share the code with us?..

I have installed Amibroker and am trying to configure it to generate BUY signals, I am unable to program it

If I put EMA(20,9) > EMA(50,9), it throws error. Please share some input on how to configure Amibroker for coding entry and setup criteria.

Also, I download EOD Bhav copy from NSE everyday. Is there a program utility to update EOD data to amibroker databse?..

Thanks
Shankar

 

[kurian]

haii vvonteru
i am very new to TA.i am doctor by profession .now i am in to day treading.
can you pls tell me were i can get those e-books u recommented .can to tell me where i can get intraday charts live.i dont see any use in using stochatic and macd in daily charts in intraday treading .can u tell me some tips in intraday trading like i use to go short at 10.30 am everyday
thaning u
dr kurian
kerala

 

[timtomlee]

You are picking good stocks. You should share what site and criteria you are using so it would be helpful to others.

Thanks for ur encouragement. whatever i have learned is from u, the books u have suggested are real gems

the site i visit is twonahalf.com, i suggest u to visit that site. it provides basic information of which stocks are in uptrend, candelstick bullish/bearish patterns
52 week high/low, speed of trend,etc. register urself first, they send u an activation number, activate ur account, and get started.

although i do not entirely follow their recommendations, i do go to icharts.in
and do my own discretional analysis. i think some member in traderji has started that site, i got the site info from here itself, so for more information,
visit http://www.traderji.com/equities/7623-something-share-about-my-system.html?highlight=twonahalf

vvonteru, plz consider the following

1. what is ur opinion on "historical volatility" that dave suggests, do u use it?
u said u use ATR, from what i have learned, u use 3*ATR as ur initial risk R.
This i think u use it for stop loss, however i dont' know how do u use it to
measure volatility of stocks? what range tells u it is highly volatile?

2. does the 3/10 oscillator that dave suggests, is MACD value of FAST 3 EMA,
SLOW 10 EMA, smoothed by 1 EMA, i.e 3,10,1. If this calculation is right,
can u suggest any indicator similar to "HISTORICAL VOLATILITY" and its
values?

kindly reply as u always do

regards,

sonu m.

 

[vvonteru]

hello

Pl give me advice about

gitanjali gems
chemplast sanmar
3i infotech

makri

gitanjali gems
-- Wait for 8 EMA cross 50 and then pull back. I am sure it will do this time.

chemplast sanmar
-- Wait for pull back before you enter.

3i infotech
--Wait for 8 EMA cross 50 and then pull back.

Market has come out of the trading range. It is up 3 days. Will pull back pretty soon. At that time, consider these stocks for entry.

Day Trading Info
-- http://www.traderji.com/44907-post62.html
-- You might have to use brokers software. There is some free software in Software section for day trading: http://www.traderji.com/software/6866-coolworks.html
-- I see that you got hold of the e-books.

 

[Niranjanam]

Hello Friends

An Excel tool to get ATR
http://rapidshare.de/files/29023509/ATR.xls.html

For Many other excel tools

http://www.traderji.com/software/7597-excellent-excel-freewares-ta.html

Regards
Niranjanam