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

[GULSHAN1987]

Hi Gulshan,

Thanks for asking. I've to share my experience of new experiences of writing a blog here with you all. To simply put it, it's really tedious; however, I'm having fun!

Since the 4th July launch, I've posted about 29 posts. A couple of members from Yahoo Technical Investor group are also contributing with their charts and articles (in English) and I translate them in "my own shtylu" and publish them. One of them, JK, has volunteered to contribute articles for about 12 weeks, like a serial, on "Trading Rules". JK's slot is on Wednesdays and the first chapter has been published last Wednesday.

All of a sudden, some of the readers have queried on how to type in a regional language. I find Microsoft's Indic language input Tool very useful. It has got a virtual keyboard as well for those who find typing much harder. So, I had to write about that as well. There are quite a few other Indian langauages available with this MS indic language tool. Those of you who are interested may try it.

Also, imo, following up is vital for success. For this ventrue itself, I've posted a couple of chart patterns and given out a list of scrips to watch for but haven't followed them up with the current developments. I've got to watch out for that also.

Also, I've been selected by the Madras Stock Exchange to conduct a paid training course on "Basics of Stock Market Investing". I've made the syllabus covering 1.The basics of FA (with interactive learning) to learn about what to look for in the financial statements, 2. Basics of TA with Trend, Chart patterns 3. Psychology and Money Management. I've prepared a 26 page course materials for the same in Tamil & in English for this one day program.

With such hectic activities along with my regular work, I do find some difficulties to blog in English as well. I just would like to stabilise myself with "one at a time" policy and will start my English blog in the near future.

More than anything else, "maera shtylu" in my blog is not at all formal; just colloquial. I don't know if I can write like that way in English.
For example, about the trendlines, I've written like "kodu podu, rodu podu, tradu podu" with all the words rhyming with "du" script.
This means "when you draw trendline (kodu podu), visualise it as a road (rodu podu) and take your trades along that trend (tradu podu)"
Thanks for giving me a chance to write about my new activity, Gulshan!

-Babu Kothandaraman

well if u cld post it in english as well, it wld be nice , but ok u have time constraints but try if its possible.
i dint get what u meant in the last line "Thanks for giving me a chance to write about my new activity, Gulshan!"

 

[babukraman]

well if u cld post it in english as well, it wld be nice , but ok u have time constraints but try if its possible.
i dint get what u meant in the last line "Thanks for giving me a chance to write about my new activity, Gulshan!"

Cos' you'd asked me to blog in English na! I just took that chance to blah blah my own stuff!

 

[Class]

Is anyone seeing a decending triangle on the Nifty?

Starting from the high around 6,338 decending, with base at around 5,200. Would a break below 5,200 see potential downside to 4,500??

What opinions?

 

[babukraman]

Re: Three Outside Up Bullish

Axis-IT matched 'Three Outside Up Bullish' high priority Bullish Reversl candlestic pattrn on 22nd of July.

Pattern:
a) After an established downtrend, day-one continues the trend with a red candle
b) 2nd day is a long green day that engulfs the body of the first day, closing well above the previous days open.
c) The 3rd day is a green day with an even higher close than the second day.

The other stocks which matched the same pattern are VARUN and ZEEL

Hi besttrader8,
Thanks for posting such nice charts! However, the trade strategy & methodologies are missing.

For this "Three Outside Up Bullish", Can you please explain a bit more on

1. What is this pattern saying on this three candle pattern.
2. Psychology behind this pattern
3. how to trade this pattern
4. If a trade can be taken, the expected target & the Stop loss for the same.

-Babu Kothandaraman

 

[Romeo and Elliott]

Re: Three Outside Up Bullish

Axis-IT matched 'Three Outside Up Bullish' high priority Bullish Reversl candlestic pattrn on 22nd of July.

Pattern:
a) After an established downtrend, day-one continues the trend with a red candle
b) 2nd day is a long green day that engulfs the body of the first day, closing well above the previous days open.
c) The 3rd day is a green day with an even higher close than the second day.

The other stocks which matched the same pattern are VARUN and ZEEL

Hi Besttrader,

Its great to see a candlestick enthusiast :clapping:

Just a few minor points to keep in mind, that its better to keep the 'context' in mind when picking patterns.

context : If, lets say, you want to spot a bearish engulfing, its better to have it after a sustained rise of a few days.

The following should illustrate :
http://www.hotcandlestick.com/directory/Bullish Three Outside Up.htm
http://www.candlesticker.com/Cs62.asp

Babus question is a good one that must be kept in mind when reading candlesticks - What is the psychology of the pattern.

Some reversal patterns have a clear prior trend as a requirement. What it it means is.. the run has run its run and THEN when the reversal pattern occurs, it becomes significant.

'whipsaws' may seem common on a stock thats not trending, but then they arnt really whipsaws because the pattern itself was not valid as it required a trend prior to it.

Best wishes.

 

[babukraman]

Re: Three Outside Up Bullish

Hi Besttrader,

Just a few minor points to keep in mind, that its better to keep the 'context' in mind when picking patterns.

Best wishes.

@RomeonElliott
Thanks for bringing out the context.
@Besttrader8 aka amitams,
As RnE has mentioned, context is where the pattern needs to be looked at. For example, take a look at the Nifty weekly 20110722.
It's a nice Inverted Head and Shoulder pattern.
1. However, is it at the right place where it's supposed to be for a reversal?
P.S: You seem to find my thread on the other forums to post your charts

 

[babukraman]

Re: Three Outside Up Bullish

Axis-IT matched 'Three Outside Up Bullish' high priority Bullish Reversl candlestic pattrn on 22nd of July.

Pattern:
a) After an established downtrend, day-one continues the trend with a red candle
b) 2nd day is a long green day that engulfs the body of the first day, closing well above the previous days open.
c) The 3rd day is a green day with an even higher close than the second day.

The other stocks which matched the same pattern are VARUN and ZEEL

besttrader8,
As per your chart, AxisBank had been in a sideways market till mid-June. Since then, an upmove has begun. In this upmove, only you've marked your "Three Outside Up Bullish" high priority Bullish Reversl candlestic pattrn on 22nd of July.
I've highlighted your quote "for an existing established downtred".
Don't you see that they(your written points & your chart) are contradicting each other about the trend?
Regards,
Babu Kothandaraman

 

[Romeo and Elliott]

Re: Three Outside Up Bullish

@RomeonElliott

It's a nice Inverted Head and Shoulder pattern.
1. However, is it at the right place where it's supposed to be for a reversal?

Lovely, just what i was thinking. This isnt the place for an INV HnS.

This is emperical observation, over & over -
Bullish signals at higher levels can give a bit of a surge-move but are prone to sudden crasssssshes, ie.. unstable : -

1. They could come out of complex Wave 4 corrections, heading into a wave 5 then suddenly reversing.
2. More dangerously, in a down-trend, sub-waves of a wave 2 showing an impulse on a daily, then reversing into a wave 3.
3. .... other combinations that elude me.

Theoretically we should be able to see these moves on a downside ABC as well, if the structure is complex, followed by a genuine upside impulse. Howeve ive never seen (doent mean it doesnt happen) ABCs forming anything very complex, theres the odd (small) triangulation etc, but thats about it. (If someones seen ABCs getting as complex as this, kindly post, thanks).

 

[babukraman]

Re: Three Outside Up Bullish

Lovely, just what i was thinking. This isnt the place for an INV HnS.

This is emperical observation, over & over -
Bullish signals at higher levels can give a bit of a surge-move but are prone to sudden crasssssshes, ie.. unstable : -

1. They could come out of complex Wave 4 corrections, heading into a wave 5 then suddenly reversing.
2. More dangerously, in a down-trend, sub-waves of a wave 2 showing an impulse on a daily, then reversing into a wave 3.
3. .... other combinations that elude me.

Theoretically we should be able to see these moves on a downside ABC as well, if the structure is complex, followed by a genuine upside impulse. Howeve ive never seen (doent mean it doesnt happen) ABCs forming anything very complex, theres the odd (small) triangulation etc, but thats about it. (If someones seen ABCs getting as complex as this, kindly post, thanks).

@ RnE,
Could you please mark those complex ABC's on the Weekly Nifty chart for those of us like myself who are weak in EW

Thanks in advance!
Babu Kothandaraman

 

[santoshdts]

Hii..

when Iam posting this Nifty is poised @ 5640 levels finding its new direction..
what i found on the Hourly charts, we have a big gap.. so does this give any clue which way Nifty may be heading in next few sessions..

Seniors please confirm:

Image Link: http://imageshack.us/photo/my-images/600/nifty1.jpg/


Regards

Santosh