Hi,
For the past few days I have been seeing much controversy on forum about technical analysis . My opinion is that if you have your home work
done, if you have confidence in yourself ,if you are diciplined, if you want
to learn and succeed, You will develop your own methods and setups and
execute them in your plan and then trade your plans. This way you will
not rely on anyone Ashwani Gujaral Or anybody else.(I respect Ashwani as
he is successful and disciplined trader)
One of the hot scrip on forum has
been PBA infra structure. I am Taking up this scrip for My Actual Method
for swing Trade. I have simple method and I call it "3 indicator method".
On the day when sensex went down to 11008, PBA infrastructure Made
a low of 154 and a high of 167. I spotted this scrip on my chart and
saw my setup giving a buy signal. some people would wait to buy it
above 167 the last bar high but in that case my stoploss would be little
far away at 154 and as I am bit agressive I decided to buy it at nextday
at market opening.
Next, I analysed my 3 indicator method. It is a simple
method comprising slow stochastic, RSI, And MACD. I keep settings for
stochastic as 5,3,3 for Rsi 9 and for MACD 5,34,5.
Notice on PBA infrastructure that stochastic gave the first buy signal RSI
gave second signal and Macd final confirmatory signal. the same is applied
to sell the scrip when a sell signal is generated. I dont buy if this setup
fails to give me buy signal howsoever attractive that scrip might be. In that
event I search for next scrip. See the attched chart it gave me perfect
settings to buy and I placed a buy order the next day at market open
My buy order was executed at 160.25 with a stop at 154 which is just Rs. 6
below 160. Had I bought above 167 my stop would have been Rs. 13 away
from 154.
Now in four days time the stock is up more than Rs. 20 and none
of the Indicators have reached over bought region indicating that there is
still much distance to be covered by the scrip on the up side.
So this is my simple swing trading technique. In conclusion, if you do
your home work properly and trade your technique you do not need the
Famed technical experts to rely upon.
So, this is my "3 indicator method for you". I am pretty certain that many
of you will have your own methods and setups.
Regards,
vinay
For the past few days I have been seeing much controversy on forum about technical analysis . My opinion is that if you have your home work
done, if you have confidence in yourself ,if you are diciplined, if you want
to learn and succeed, You will develop your own methods and setups and
execute them in your plan and then trade your plans. This way you will
not rely on anyone Ashwani Gujaral Or anybody else.(I respect Ashwani as
he is successful and disciplined trader)
One of the hot scrip on forum has
been PBA infra structure. I am Taking up this scrip for My Actual Method
for swing Trade. I have simple method and I call it "3 indicator method".
On the day when sensex went down to 11008, PBA infrastructure Made
a low of 154 and a high of 167. I spotted this scrip on my chart and
saw my setup giving a buy signal. some people would wait to buy it
above 167 the last bar high but in that case my stoploss would be little
far away at 154 and as I am bit agressive I decided to buy it at nextday
at market opening.
Next, I analysed my 3 indicator method. It is a simple
method comprising slow stochastic, RSI, And MACD. I keep settings for
stochastic as 5,3,3 for Rsi 9 and for MACD 5,34,5.
Notice on PBA infrastructure that stochastic gave the first buy signal RSI
gave second signal and Macd final confirmatory signal. the same is applied
to sell the scrip when a sell signal is generated. I dont buy if this setup
fails to give me buy signal howsoever attractive that scrip might be. In that
event I search for next scrip. See the attched chart it gave me perfect
settings to buy and I placed a buy order the next day at market open
My buy order was executed at 160.25 with a stop at 154 which is just Rs. 6
below 160. Had I bought above 167 my stop would have been Rs. 13 away
from 154.
Now in four days time the stock is up more than Rs. 20 and none
of the Indicators have reached over bought region indicating that there is
still much distance to be covered by the scrip on the up side.
So this is my simple swing trading technique. In conclusion, if you do
your home work properly and trade your technique you do not need the
Famed technical experts to rely upon.
So, this is my "3 indicator method for you". I am pretty certain that many
of you will have your own methods and setups.
Regards,
vinay
