I can help you with stock chart reading

[lovehuman]

Hi vvonteru,

First of all thanks for this great thread. You have forced many of us to rethink on the trading strategy and then jump into this game. I can bet that your thread served as an excellent eye opener for many of us. Great views put forward in a great way. Excellent work!!!

I would also like to take this opportunity to discuss one of my issues... I rate myself good in exiting the trades (with good profit or with less loss, making good use of stop loss, etc). However, I struggle to find correct entry points. Based on Elder's second book "Come to my trading room" and some of your entry strategy I tried scanning the scripts. Right now I am using ema1 (8 days) > ema2 (22 days) > ema3 (200 days) + MACDSignal. However the number of stocks I am getting out of this scan are very few and already too much oversold (as per RSI). I also use RSI, Force Index, MACD Histogram.

Do you have any tips for me? I know it is personal choice of indicators, but what would you suggest to me for improving entry?

Thanks a lot.
LoveHuman!

 

[vvonteru]

Hi vvonteru,

First of all thanks for this great thread. You have forced many of us to rethink on the trading strategy and then jump into this game. I can bet that your thread served as an excellent eye opener for many of us. Great views put forward in a great way. Excellent work!!!

I would also like to take this opportunity to discuss one of my issues... I rate myself good in exiting the trades (with good profit or with less loss, making good use of stop loss, etc). However, I struggle to find correct entry points. Based on Elder's second book "Come to my trading room" and some of your entry strategy I tried scanning the scripts. Right now I am using ema1 (8 days) > ema2 (22 days) > ema3 (200 days) + MACDSignal. However the number of stocks I am getting out of this scan are very few and already too much oversold (as per RSI). I also use RSI, Force Index, MACD Histogram.

Do you have any tips for me? I know it is personal choice of indicators, but what would you suggest to me for improving entry?

Thanks a lot.
LoveHuman!

RSI is an oscillator, used in Trading Range. Use that for entry condition. For setup, ema1 (8 days) > ema2 (22 days) > ema3 (200 days) + MACDSignal, you should get plenty. Recently, due to steeper index action, there might some going of the net due to MACD cross down. I suggest taking MACDSignal out of setup criteria when scanning. But, when U are looking at the chart, then apply. MACD works best when the stock is nicely trending. When the stock is consolidating, MACD doesn't work. Let me attach what I got from Amibroker. You should find more of these files in my thread.

 

[Raju]

Hi VV,

Thanks for the info.Being a newcomer I am reading/learning and then trading.I am gaining exp. and am using very less amount , as this learning exp may or may not profit me.Actually I had already bought Nocil , yesterdays volumes were good and price was also seen rising , so I had decided to goin for Nocil without any much know of the company .I am planning to exit within 1-2 days.

Raju

Thanks for all the info.

 

[shethharsh]

Hello ,

Can you please share your views on Vishal Exports . Does it seem to be under any accumulation pattern .

Harsh

 

[Arwin_24]

RSI is an oscillator, used in Trading Range. Use that for entry condition. For setup, ema1 (8 days) > ema2 (22 days) > ema3 (200 days) + MACDSignal, you should get plenty. Recently, due to steeper index action, there might some going of the net due to MACD cross down. I suggest taking MACDSignal out of setup criteria when scanning. But, when U are looking at the chart, then apply. MACD works best when the stock is nicely trending. When the stock is consolidating, MACD doesn't work. Let me attach what I got from Amibroker. You should find more of these files in my thread.

Hello Sir!
how are you?
thank you very much for ur previous help
I have bought of the some shares:
bindalagro 33.20
balramchini 87.5
chlorideind: @ 45.10
hmt: @ 87.75
Itc: @ 183.10
sakhtisugar: @ 127
kotharisugar: @ 19.75
plz help me out with these shares.can u tell me the prospects of these shares of week or two.Thank you!

 

[vvonteru]

Hi VV,

Thanks for the info.Being a newcomer I am reading/learning and then trading.I am gaining exp. and am using very less amount , as this learning exp may or may not profit me.Actually I had already bought Nocil , yesterdays volumes were good and price was also seen rising , so I had decided to goin for Nocil without any much know of the company .I am planning to exit within 1-2 days.

Raju

Thanks for all the info.

I would advise U to read some books. Play with low amounts. More time U spend learning to trade, better Ur results will be. Good Luck.

Vishal Exports
--First Price action. Then volume for confirmation. Even if volume is showing up, U wait for price action before U act. In any case, no matter what, I don't like this stock for N no. of reasons.

 

[mansukh]

Mangalam Cements has broken out on high volumes (for 4 days). What might be the perspective next week. Can I enter in this now, or go short

 

[vvonteru]

bindalagro 33.20
-- Uptrend is there. I don't see any negative.

balramchini 87.5
-- I don't like the stock at the current price level. Downtrend is still intact. See weekly chart for 1 year. Since there is volume, give it a chance with a stop at the low of last 3 1/2 months. Should be around where U bought. So, nothing to lose if U held on to the position. 120 is the resistance.

chlorideind: @ 45.10
--Couldn't get it in icharts.in

hmt: @ 87.75
--Above the down trend line, which touches at 70 (look at weekly with 1 year span). I would have liked better price action. Narrow price range above short term ema (8 or 10 or 13) makes me nervous. Sustainability of such price action is hard. Other than that, stock looks ok with good volume. Try to have a plan for better entries.

Itc: @ 183.10
--This stock has been such a failure. It was a leader in the bull market before May. After that, there was initial leadership. Then, sleeping all through. Test your patience!!!

sakhtisugar: @ 127
-- I don't understand why U bought. Can U give me the reasons. Its in clear downtrend. U can say that looking at the chart from any distance. 3 times it failed with resistance from 50 day EMA.

kotharisugar: @ 19.75
--Nothing impressive. Again, give Ur reasons why U bought. In any case, U are in 3 sugar stocks. If sugar goes down, U go down by 3 times. Why so much exposure. Why not choose the best sugar stock and put all the money in that stock. Atleast U save the commission. In future, limit 1 stock per sector.

Mangalam Cements has broken out on high volumes (for 4 days). What might be the perspective next week. Can I enter in this now, or go short

Very nice chart. Perspective for next week. Market indices (Sensex & Nifty) have been up for a 4 days with good volumes. They are in overbought condition with some price resistance. Ideally, I would like them to go past the resistance and then pull back. Still nothing is lost. I am still bullish on the market.

Mangalam is in uptrend. Either U go long or stand aside. Since its overbought (U don't need an indicator to tell), ideally U would wait for it to pull back before U enter.

About shorting, I have seen Kirk (www.kirkreport.com) shorting Gold when it was its peak. His reasoning at that time was that its in overbought condition and in day or two traders will take profits. He lost money several times and gained some. And its true that there are high chances of Mangalam pulling back. But, its a hard play only professionals can handle. Can U handle it? I have never done it myself. Further, do you have this kind of trade as part of Ur trade plan. Having as part of the trade plan matters. Because, if U don't and U take this trade, U may lose and go away thinking it won't work. Having it part of plan will make U trade similar trades again and again. That will give U results that U can compare and improve on. My suggestion is to not do it.

Kirk Track Record
http://www.kirkreport.com/portfolio2006.html
See how he shorted GLD on bigcharts.marketwatch.com based on the trade date

May 18, 2006:
- Cover 1000 shares of GLD at $64.88 (cost was $65.81): profit $930.00 (+1.4%)

May 18, 2006:
- Cover 4000 shares of IWN at $71.32 (cost was $72.45): profit $4,520.00 (+1.6%)
- Cover 5000 shares of GLD at $67.50 (cost was $68.71): profit $6,050.00 (+1.8%)

May 4, 2006:
- Cover 1000 shares of GLD at $66.99 (cost was $66.53): loss $460.00 (-0.7%)

May 2, 2006:
- Cover 1000 shares of GLD at $65.76 (cost was $65.55): loss $210.00 (-0.3%)
- Sold 300 shares of PEIX at $36.94 (cost was $33.00): profit $1,182.00 (+11.9%)

April 25, 2006:
- Cover 1000 shares of GLD at $62.63 (cost was $62.91): profit $280.00 (+0.5%)

April 20, 2006:
- Cover 1000 shares of GLD at $61.09 (cost was $63.10): profit $2,010.00 (+3.2%)

 

[cooltetra]

Hats off to you....
what keeps u motivated?


Best Regards
Coool.

 

[vvonteru]

Hats off to you....
what keeps u motivated?


Best Regards
Coool.

2 years back I realized I loved trading. Trading is something I never get bored. I can take a trading book and read several chapters in a row. I look at charts of stocks one after another. I can and I am doing this day in and day out. Still I am not bored. So, that keeps me going. Everyone should find in their life some kind of interest. I think I found that interest in trading. I will see how long it will last. Having said that, I am taking a break from this thread for next couple of weeks. See U later. Good Luck with your trading.