My charts (and yours too........)

babukraman

Well-Known Member
ITC
12-24-2010
Babu Kothandaraman

Last week, I was actually asking for some help from either or all of the EW, VSA or other experts regarding the behaviour of ITC. Well! Now, it has given us some clues.
Needless to say that the stock has been in a trading range between 165 and 180 and languishing to reach the Upper channel for a while. This has resulted in a descending triangle pattern at the top of the up move. Usually, the descending triangle is a bearish continuation pattern in a fall.

If reaching the Upper channel has been a struggle, then “the least path of resistance” should logically be through the Lower channel a.k.a the Support at around the 165 levels. But surprisingly, the stock has taken this Support seriously for the past four weeks and hasn’t even tried to break it down. So, we can term this level of Support as a stronger one. At this level, it has formed a Perfect Bullish Up bar reversal pattern with the volume just a shade more than the 5-day MA of Volume. This pattern has also broken out the short-term down trend line within the channel.
The RSI and STOC has also broken out the down trend line. The indicators are showing +ve divergences.
Even though, the Volume is just average, RSI and Price breakout suggests a “Buy” for a target of 180 with a SL below 164.
Happy trading!
:D Trailing Stop Loss below 175 levels
 

dhootankur

Well-Known Member
TUBEINVEST

Just trying my hands on GARTLEY and even would be good for learning experience. I am just posting this to have learning experience and will watch it if it works as per expectation or not.
Below is bearish gartley setup with having almost similar ratios as required for perfect gartley. Problem is pt D which I have calculated is kind of spike or one day upside, else if I consider congestion area then D pts. ratio comes exactly at 78.6 of XA which is required.
Would execute a trade if and only if next day or in coming days stock closes below last days candle and next day crosses its low. Kind of 2 day low reversal technique.
This is just a simulated environment I am talking abt not the actual trade I will execute as I don't have much experience on this.



Let's c how it shapes to...will update as an when if target is hit or SL is done, btw SL would be some pts abv pt D i.e 158 in this case.

Any comments from masters of this pattern :thumb:
 

prst

Well-Known Member
Go with higher time frame.
Babu, Osp2osp,

thanks a lot for the useful reply.
I was confused so I sold half my holdings at current price and held rest of them.
it turned out that the longer time frame (daily) showed the correct signal to hold.
sold half at 403 yesterday and today price surged to 408..
it was better if there was a 60 minute chart on google finance/or any site, which would have less whipsaws.

thanks..
Prashanth