New Intermed Uptrend!!

[Saint]

Hi saint

Did you notice the 30 point jump BLUESTAR INFO made today.
Hope your daughter is well now.

regards

karthik

Hi Karthik,
She's better now.......thank you for asking.BLUESTAR INFO --nice higher pivot low and blast off.If not in,it could still give an opportunity to enter on p/b.Great going,Karthik!!

Saint

 

[roneeth]

Hi Ravi ,
Thanks for those very kind words.I was once upon a time a newcomer groping in the dark and grabbing at every straw.......was difficult just figuring out where to start.Similar story I am sure with yourself.Over time it gets easier.So just sharing these little things to those who are new.I hope someone out there benefits at least a little ........Nah,Ravi,not a teacher A doctor by profession.

Saint

Hope your daughter is fine now.....
Nice to know you are a doctor....

Please keep posting those posts loaded with knowledge....

Regards

Roneeth

 

[Anupama Singh]

Hi Anupama,
Shall describe to the best of my ability.Am no master in Indicators but shall share what I know.

For checking out bearish and bullish divergences,RSI is a good indicator.

RSI:

Definition:RSI is a single line oscillator.It was introduced by Welles Wilder.
Range:0-100.Below 30 is oversold.Above 70 is over bought
Default period:14

BEARISH DIVERGENCE:When the overbought RSI diverges from price,it is called a bearish divergence.i.e The price keeps making higher highs and higher lows,but the RSI begins to make lower highs and lower lows despite the price moving upwards,we call this a bearish divergence.It signals a probable,a possible trend change to the down side.Is it therefore time to dump all your stocks......No!For that we need a sell signal,confirming that the trend has indeed reversed.

BULLISH DIVERGENCE:When an oversold RSI diverges from price,it is called a Bullish Divergence i.e the price keeps making lower highs and lower lows,but the RSI begins to make higher highs and lows despite the price moving downwards,it is a signal of a probable soon to happen change in direction to the up side.Is it therefore a time to buy?....Not yet till we get a buy signal.,confirming that the trend has indeed reversed.

Note:The RSI is most useful when it moves into its oversold or overbought zones, then reverses......not as powerful when it is wandering between 30 and 70.

Hope this helped in some way!

All the best!
Happy Trading!!
Saint

Hi Saint,
Thanks for your reply........thank you also for taking the time to put thoughts into words.And thank you most of all in putting it in so simplistic a way that we newcomers can understand!

Regards,
Anu

 

[nkpanjiyar]

Nah,Ravi,not a teacher A doctor by profession.
Saint

Is a pleasant surprise to know your profession. I can well relate your humbleness and helping nature in this forum with your medical profession. Hope your daughter is well now. Like many others I too got enlightened and benefitted by your numerous posts.
Keep them coming.
cheers,
nkpanjiyar

 

[Saint]

Hope your daughter is fine now.....
Nice to know you are a doctor....

Please keep posting those posts loaded with knowledge....

Regards

Roneeth

Is a pleasant surprise to know your profession. I can well relate your humbleness and helping nature in this forum with your medical profession. Hope your daughter is well now. Like many others I too got enlightened and benefitted by your numerous posts.
Keep them coming.
cheers,
nkpanjiyar

Hi nkpanjiyar,roneeth,
Thx for those kind words!

Saint

 

[Saint]

Hi Saint,
Thanks for your reply........thank you also for taking the time to put thoughts into words.And thank you most of all in putting it in so simplistic a way that we newcomers can understand!

Regards,
Anu

Hi Anupama,
Most welcome!!

Saint

 

[phoenix]

Hi Avinash,
Was a super move today.........No I am still in it.Am pushing my luck a bit.Tomorrow am going to take away a third .....then it's trail stopping time upwards.Raise the stop loss to 90 and let's see how much more she goes.

Happy Trading!!
Saint

Great call,Saint on MSK.......took some off today,but holding on to the rest.Gammon's near target,think that's going much higher as well.Nice ones,Saint......

Phoenix

 

[avinash]

Hi Anupama,
Shall describe to the best of my ability.Am no master in Indicators but shall share what I know.

For checking out bearish and bullish divergences,RSI is a good indicator.

RSI:

Definition:RSI is a single line oscillator.It was introduced by Welles Wilder.
Range:0-100.Below 30 is oversold.Above 70 is over bought
Default period:14

BEARISH DIVERGENCE:When the overbought RSI diverges from price,it is called a bearish divergence.i.e The price keeps making higher highs and higher lows,but the RSI begins to make lower highs and lower lows despite the price moving upwards,we call this a bearish divergence.It signals a probable,a possible trend change to the down side.Is it therefore time to dump all your stocks......No!For that we need a sell signal,confirming that the trend has indeed reversed.

BULLISH DIVERGENCE:When an oversold RSI diverges from price,it is called a Bullish Divergence i.e the price keeps making lower highs and lower lows,but the RSI begins to make higher highs and lows despite the price moving downwards,it is a signal of a probable soon to happen change in direction to the up side.Is it therefore a time to buy?....Not yet till we get a buy signal.,confirming that the trend has indeed reversed.

Note:The RSI is most useful when it moves into its oversold or overbought zones, then reverses......not as powerful when it is wandering between 30 and 70.

Hope this helped in some way!

All the best!
Happy Trading!!
Saint

Hi Saint,
Thanks a lot for explaining on divergences.......was getting confused as quite a few places,I saw this word being used and no idea.Please keep educating us,there's a lot that I have learnt after joining Traderji that is helping me with trading in the stock market.

Regards,
Avinash

 

[Saint]

Great call,Saint on MSK.......took some off today,but holding on to the rest.Gammon's near target,think that's going much higher as well.Nice ones,Saint......

Phoenix

Hi Phoenix,
Same strategy as for MSK for Gammon.......trail stop it upwards.Let's see how much we can squeeze out of it.

Great going,my friend!

Saint

 

[Saint]

Originally Posted by 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

Hi Karthik,Neeraj,Anupama,

We set a technical target so as to calculate risk reward ratio.Below are but a few examples:

Target setting:
1.Breakout from a symmetrical triangle/ascending triangle
Take the highest peak and drop a vertical line to the base of the triangle.Let us call this 'x'.Presuming the breakout point was at 122.The target is now at 122 +x.

Or,draw a line parallel to the base of the triangle through the peak of the first rally.

2.Breakout from a double bottom
Measure the distance between the trough to neckline.Let's call this as 'x'.Now we buy the breakout over the neckline.Target is now the neckline + 'x'

3.Breakout from an Inverse H & S
Same as above,we measure from the deepest point,that is from the inverse head to the neckline.Let 's call this as 'x'.From neckline +'x' is target of that play.

4.Breakout from Flags
Here,we measure the move before entering a flag.Let's call this 'x'.Target is breakout from the flag +'x'

A target is an arbitrary goal,a minimum objective.....after which we are back to raising pivot points and raising stop losses.

Hope this helped answer a few doubts.

Happy Trading!!
Saint