Article by Saint on 22nd July
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
