New Intermed Uptrend!!

[darsh_goswami]

Hey Saint ,..
We all know ur wonderful .
But here i want to know is there any thread exist about chart patterns ? I m intrested to know some patterns ( Head n Shoulders really bugs me up coz i dont know how to predict from it ) can u plz tell me where can i find the turorials regarding patterns n also if there is any book available on patterns n technical analisys ,.. i m having Tech. Ana. A to Z by steven achelis ,..First Edition,.. But i dont understand head n shoulders there so if u can please mail me with explaination to my mail [email protected] ,.. Thankin u
Darsh

 

[avinash]

Hey Saint ,..
We all know ur wonderful .
But here i want to know is there any thread exist about chart patterns ? I m intrested to know some patterns ( Head n Shoulders really bugs me up coz i dont know how to predict from it ) can u plz tell me where can i find the turorials regarding patterns n also if there is any book available on patterns n technical analisys ,.. i m having Tech. Ana. A to Z by steven achelis ,..First Edition,.. But i dont understand head n shoulders there so if u can please mail me with explaination to my mail [email protected] ,.. Thankin u
Darsh

Hi Darsh,

Saint had posted this some time back.Maybe could be of some help to you.

REVERSAL PATTERNS (CONT.)

3. Head and Shoulders Pattern

-Bearish,reversal pattern signalling the end of the current uptrend.
-Basically looks like the silhouette of a human left shoulder,head and the right shoulder.

Like the Double Top,strong volume push prices upwards forming the "left shoulder".The pullback is on lesser volume,then another strong rally on good volume,forming the "head"......but this time,the volume causing this rally although forming higher prices,is now on relatively lower volume as compared to the vol. in the rally causing the left shoulder.....as the stock pulls back to the neckline,and starts rallying again to form the rt.shoulder,now volume is very noticeably lighter.

-The break of the neckline confirms the H & S pattern(Neckline is the line connecting the two troughs on either side of the head).Volume expansion is noticed as the pattern confirmation takes place.......and the stock or index is now in adown trend.(Reverse happens now......vol. expands on the down fall and decreases on a return move up).

Trading-Wise:ENTRY:The first down day below the neckline confirms the pattern.......short below the low of that bar.If it gives a return move,and not able to break the neckline(now that line has become resistance)....short half on that return move,and the other half below the low of the confirmatory bar.
TARGET:First target would be.......calculate the difference from the head to neckline.Add that to the low of the bar that confirmed the pattern.
STOP:The high of the right shoulder.

One Important Condition:Once the neckline gets broken,expect a return move......but at all costs the price should not re-break the neckline upwards.If this happens,it is called a FAILED H&S PATTERN.Like a failed breakdown,this acts as a bear trap.....and is bullish.So get out if that neckline gets broken back upwards...

4. INVERSE H&S PATTERN
-Reverse of the above.
-reversal pattern that ends a downtrend.
-Tradewise,all reverse of above.

Happy Trading!!
Saint

Regds,
Avinash

 

[vizzie]

Hinduja TMT

Stock was lookin good till today.
any bad news for hte counter.

cheers
vizzie

 

[darsh_goswami]

Thankx buddy ,..
Really helpful ,..
Regards ,..
Darsh

 

[Saint]

Thanx Avinash for the post!!

Saint

 

[Saint]

Hi Saint,

I was going through all your articles in this thread,especially the ones where you talk on the various patterns.Excellent.Please also,if you find the time,please explain regarding gaps.

Thx in advance

Dhanya

Shall do,Dhanya.......maybe over the weekend!!

All the best!!
Saint

 

[Saint]

Hey Saint ,..
We all know ur wonderful .
But here i want to know is there any thread exist about chart patterns ? I m intrested to know some patterns ( Head n Shoulders really bugs me up coz i dont know how to predict from it ) can u plz tell me where can i find the turorials regarding patterns n also if there is any book available on patterns n technical analisys ,.. i m having Tech. Ana. A to Z by steven achelis ,..First Edition,.. But i dont understand head n shoulders there so if u can please mail me with explaination to my mail [email protected] ,.. Thankin u
Darsh

Hi Darsh,

Nothing beats the Tech Analysis books by Pring and John Murphy.You can find all that you wish to know from these two authors......if you want to pick one,I'd go for Murphy.Great stuff...........and if you need to learn Chart Patterns online,check out http://www.stockcharts.com/education/

All the best!!
Saint

ps:Always wonderful to know somebody who wishes to learn.Great going,Darsh!

 

[gracec]

Hi Saint
I am quitly learning a lot from your threads here. Many thanks!
Pls let me know, what should be done in present situation of the market?
Shall we sell everything on loss and buy at a later date when mkt improves or just wait and see
Kindly advice
regards
Geeta

 

[darsh_goswami]

Hey thanx Saint ,..
Thanx for ur kind concern towards the newbies like me ,..
Saint ,.. Here i would like to know which one is better Metastock/tradestation/amibroker ?
Currently i m having metastock n Amibroker but i m despo to have tradestation in my hand coz of some indicators which i cant built in metastock ,.. ( i need it coz i m a swing / day trader ). I need to predict somethings with some perticuler indicators which i cant get on metastock ,.. i didnt try amibroker yet ,.. but i might look forward to it to built some indicators ,... but badly lookin for tradestation ,.. if u have any version .. plz do care to write me ...
hoping for the favourable reply ...
Darsh

 

[Saint]

Hi Saint
I am quitly learning a lot from your threads here. Many thanks!
Pls let me know, what should be done in present situation of the market?
Shall we sell everything on loss and buy at a later date when mkt improves or just wait and see
Kindly advice
regards
Geeta

Hi Geeta,

The monthly charts look like a bearish engulfing candle in progress,sign of more downward slide to continue.More correction is set to follow.But I would expect a bounce soon.Sell off your short to intermediate trades in that rally.If you are holding any stks where the charts are still holding up in this fall,a sign of strength.Hold those.Can't be that specific as I don't know the stks you own.Basically,exit all short to intermediate trades on a rally.Sit on Cash for now.Get back in later.

All the best!!
Happy Trading!!
Saint