New Intermed Uptrend!!

[sanioc]

Maruti Udyog and Jain Irrigation are set to achieve new highs. The first one is going to be disinvested within this Financial Year and the latter one is a good long-term bet with the potential of attracting FIIs.

regards
San

 

[alokdaga]

SESA GOA---flying today.Doing great.........

I hope that people new to the market and are interested in the tech.aspect of the market as well.....hoping you guys have at least EOD Charts,if not intraday.
If anyone is interested,just pull out your EOD charts of SESA GOA-Daily Charts.Sesa Goa made a top of 882 on March 8th,after which it's had a long pullback.It made a pivot low on March 23rd at 705,then on Apr 18th another pivot low at 651,another pivot low of 635 on May4th,May 26th-it touched a new pivot low of 611,and again a new pivot low at 569 on June 13th.
As Sesa Goa makes these lower pivot highs and lows,what do we do?Nothing.....we sit on hands and wait.We do not buy in anticipation,we do not guess the bottom.....we simply wait!
Then on June 30th,it made a pivot low of 577......it has just made its first higher pivot low.Are we in an uptrend?No....not yet.If you are a bit aggressive,you can take some here with a stop loss just a few Rs below the previous pivot low.....i.e569-3=566.
If you are not comfortable that Sesa Goa has not given a clear Buy Signal,you are absolutely right........nowSesa Goa moves up and takes out the previous pivot high at 619.Now the BUY SIGNAL has been triggerred....Entry at ,maybe 621-622,with a stop loss now at 577-3=574(why 577=coz that's the previous pivot low,the 3 is to give it some room and to not get thrown out of a trade d/t some volatility that day).Now on July 14th,the stock pulls back to 643 and starts to rise again.....where's our stop loss now,still 574.Now Sesa Goa moves up and takes out the previous pivot high of 715......now we raise the stop loss to 643-3=640(643=previous pivot low).
We therefore get to stay in the trade........and although Sesa Goa is at 726,the money that you are sure of in your pocket is only from 621 to 643...you are now in clear profit though,this trade is adefinite winner,then as the stock makes higher pivot lows,we get to raise the stop loss.....the more we raise our SL,the more money we are sure off from this trade....we keep doing this till we are stopped out.
We can therefore make money by just going with the flow.We may not know a thing about any indicators,although they do help us.Just looking at a price chart,with pivot analysis,and probabaly a few patterns will earn us big time,my friends.Hope this helps a few of you who are starting out......

Wishing you the very best!
Happy Trading!
Saint

Can you summarise the trading rules for Pivot i.e. how do we treat a bar as pivot bar.

Thanks

Alok

 

[karthikmarar]

Can you summarise the trading rules for Pivot i.e. how do we treat a bar as pivot bar.

Thanks

Alok

Dear Alok

Looks like you are confusing pivot points for Day Trading with what is explained in Saint's Excellant post. Please refer my latest post in the metastock section.

Thanks

karthik

 

[Saint]

ABB has exceeded the target posted........I am still holding,or should I have exitted today?

Thx in adv
Avinash

Hi Avinash,
Yep......it's exceeded target.Still looks good........for now,hold.Let's wait n watch.We'll just trail stop it and let's see how much we can squeeze out of this one.

Saint

 

[Saint]

Hi Alok,
Had answered this one some time back to matthew..........just check it out if it helps.

Hi pmathew,

Your desire to learn is most appreciated.....I am not sure if I can explain it without drawing a chart,but to put it simply,in a weekly chart,if a stock takes out the previous week's high,we say that it is making ahigher high .If it takes out the previous week's low,we say it's making a lower low .
A series of higher highs and then the stock turns downwards to produce a series of lower lows,we say that the stock has formed a pivot at the top.Then when the stock continues its upward journey forming higher highs and producing apivot that is lower than the previous pivot,we say that the stock is making alower pivot high .
Taking out the pivot high is a continuation of the upward trend.Taking out the pivot low is a continuation of the downward trend.Making a lower pivot high smacks of a possibility in a change of trend.
How do we know for sure?We never do,my friend,for nothing is sure in life and the markets.Therefore we have a Trading Plan,Risk n Money Management and stop losses.

Educate yourself.....and Happy Trading!!

Saint

Just to give an example of a pivot......look at your left hand.Imagine that each finger was a bar on the chart.Therefore we have the first bar(the little finger),the ring finger takes out the high of the little finger and forms anew high......a higher high.The middle finger has taken out the high of the ring finger.....a higher high.Then we have the index finger,this finger forms a lower high as compared to the middle finger......we now have a lower high.The ring,middle and index fingers have therefore formed a pivot.......hope this helped !

Happy Trading!
Saint

 

[Saint]

Hi Saint

It's regarding FourSoft. You may be remembering that i took it at 83.5. At that time i have set a target of 104 for it. Today it reached till 105 and than dropped to 101.5 at close. Now if i should book profit on monday or there is still steam left in it.

regards
Neeraj

Hi Neeraj,
Super trade,my friend........very nice.Personally,would take 1/3rd profits here(why?If this one dumps,my mind is going to go into the would've,could've should've mode......so would satisfy that urge by taking a third off the table).Then I'd raise my stop loss to 90.5(a bit below the low of today) and try to squeeze out of this trend as much as possible.Great going,my friend......nice!!

Saint

 

[Saint]

Maruti Udyog and Jain Irrigation are set to achieve new highs. The first one is going to be disinvested within this Financial Year and the latter one is a good long-term bet with the potential of attracting FIIs.

regards
San

Hi San,
Technically,Maruti Udyog sat in a a symmetrical triangle for more than a year and is now breaking out and looking to resume its uptrend.As for Jain Irrigation,nice pullback and also looks higher.Both nice ones,San.

Saint

 

[karthikmarar]

Hi Saint

I am back again

Saint, If you have the time can you please explain how to set the targets for a stock (Resistances?), esp.. when the stock is trading at its highest value and still going strong..(fibonnaci ratios?)

Thanks

karthik

 

[neeraj4u]

Hi Neeraj,
Super trade,my friend........very nice.Personally,would take 1/3rd profits here(why?If this one dumps,my mind is going to go into the would've,could've should've mode......so would satisfy that urge by taking a third off the table).Then I'd raise my stop loss to 90.5(a bit below the low of today) and try to squeeze out of this trend as much as possible.Great going,my friend......nice!!

Saint

thanx Saint for all these good words, but that's all because of the support and knowlegde i am getting from you and other seniors of this wonderful forum.
By the way i am also curious about the question asked by karthikmarar. Pl take out some time and answer that. it will be really helpful for all of us.

regards
Neeraj

 

[Saint]

Hi Neeraj/Karthik,

Shall do.......just give me a bit of time.Just going out for a midnight snack.

Saint