Random thoughts on technical analysis
- Thread starter orderflow13
- Start date
"We are creatures of habit. We judge the world relative to what we have experienced.
If we're shopping for a mortgage and rates have been in the teens (as they were in the early 1980s) and then drop to 10%, we are elated.
If, however, they've been at 8% and then rise to 10%, we are disappointed. It all depends on your perspective.
The principle of adaptation-level applies to how we judge our income levels, stock prices and virtually every other variable in our lives. Psychologically, relativity prevails..
SIMPLEST FORMS
The moving average is the simplest form of adaptation-level. Moving average crossover rules accurately signal the onset of periods of returns outside the norm, whether
positive or negative. This makes moving average crossovers useful to traders who want to get a boost on entering or exiting stocks or funds.
The oscillator is also based on adaptation-level, although in a slightly different way. Oscillators generally begin by calculating a percentage change of current price from
some previous price, where the previous price is the adaptation-level or reference point. The mind is attuned to percentage changes because they represent returns. If you
bought IFCI stock at 50 RS. and it goes to 80CRS, you make 60% before dividends.
If you bought NIFTY at 4,000 and it rises to 4,030, the same rupee gain, you make 0.75% .
It's the percentage change that counts. Relativity again.
Market's emotional state could be determined by adding up the percentage changes over the recent past to get a sense of the market's
momentum (and oscillators are generally momentum indicators ). So if we compare prices relative to a year ago - which happens to be the most common interval - and we
see that this month the market is up 15% over a year ago, last month it was up 12.5% over a year ago, and 10%, 7.5% and 5%, respectively, the months before that, then
we may judge that the market is gaining momentum and, like a trader watching for the upward crossover of the moving average, we may jump into the market."
original thoughts are of Mr. Coppock, inventor of Coppock curve ,
If we're shopping for a mortgage and rates have been in the teens (as they were in the early 1980s) and then drop to 10%, we are elated.
If, however, they've been at 8% and then rise to 10%, we are disappointed. It all depends on your perspective.
The principle of adaptation-level applies to how we judge our income levels, stock prices and virtually every other variable in our lives. Psychologically, relativity prevails..
SIMPLEST FORMS
The moving average is the simplest form of adaptation-level. Moving average crossover rules accurately signal the onset of periods of returns outside the norm, whether
positive or negative. This makes moving average crossovers useful to traders who want to get a boost on entering or exiting stocks or funds.
The oscillator is also based on adaptation-level, although in a slightly different way. Oscillators generally begin by calculating a percentage change of current price from
some previous price, where the previous price is the adaptation-level or reference point. The mind is attuned to percentage changes because they represent returns. If you
bought IFCI stock at 50 RS. and it goes to 80CRS, you make 60% before dividends.
If you bought NIFTY at 4,000 and it rises to 4,030, the same rupee gain, you make 0.75% .
It's the percentage change that counts. Relativity again.
Market's emotional state could be determined by adding up the percentage changes over the recent past to get a sense of the market's
momentum (and oscillators are generally momentum indicators ). So if we compare prices relative to a year ago - which happens to be the most common interval - and we
see that this month the market is up 15% over a year ago, last month it was up 12.5% over a year ago, and 10%, 7.5% and 5%, respectively, the months before that, then
we may judge that the market is gaining momentum and, like a trader watching for the upward crossover of the moving average, we may jump into the market."
original thoughts are of Mr. Coppock, inventor of Coppock curve ,
Hi Alex u are really marvelous on every aspect of trading I m trying my best to learn more n more as fast as i can but due to time n lack of concentration i think im unable to learn more on chart reading n other softwares.Tried hard to learn chart reading from teach a man of saint but as it is so lenghty n cant sit n read continuosly n age factor n other faults from my side i m unable to go ahead in that line.I want ur help in chart reading learning n easiest software to learn n trade on of nifty.I m following u people in mini flow to trade but i m reading in other threads from many people that people looking that thread for paki pakai I feel one day itself saint will close that thread too n i hav to arrange or find something for trade so better i start now till saint close that thread.Before giving suggestion take a suggestion from me too bro,See the time of ur post man get married soon so u dont hav time at night to wakeup till 3.15AM hahahahaha
Saints system is easy and there is no confusion, u will learn, dont worry, go on this thread started by sam its one stop for learning saints system
http://www.traderji.com/equities/24457-companion-guide-saints-60-minutes-flow.html
and about other things, dont pressurize your self every thing is easy when it comes to learning part in stock market but implementation of it is very very hard, it makes the difference between winners and loosers.
p.s. cant find one good thread . name is ready to start journey .. was addressed to beginners who wanna turn pros.. Asish da added valuable inputs, its an ideal thread for some one who want to start the stock market journey. Dig in to the forum.
All best wishes and marriage part we can continue it in chit chat thread till we get old
http://www.traderji.com/equities/24457-companion-guide-saints-60-minutes-flow.html
and about other things, dont pressurize your self every thing is easy when it comes to learning part in stock market but implementation of it is very very hard, it makes the difference between winners and loosers.
p.s. cant find one good thread . name is ready to start journey .. was addressed to beginners who wanna turn pros.. Asish da added valuable inputs, its an ideal thread for some one who want to start the stock market journey. Dig in to the forum.
All best wishes and marriage part we can continue it in chit chat thread till we get old
By alex_laxya
I showed how most new comers loose money by averaging the falling stock, which is going weaker and weaker on the chart by every mean of technical analysis,with the fall and guys hope for 55 % odd rise ... its near suicide
This ex for traders and not for investors ( def of investr. is who hold more than 3 years.. not even 1 ) and one exception is for advance and experience traders is when we saw reversal on chart but its very subjective and need more experience and need rare talent.So better avoid averaging.
Alex
thanks your tachnic is fine to win stock bazar
By alex_laxya
Before everything read above again and again.We here talking about various trading ideas and technical analysis but it doesnt mean we clouding our mind while trading.Once you ready with your tools parameters and money management rules there is no jumping.
I am starting this thread for sharing and discussing thoughts on Technical Analysis as a concept ,concept of hedging by ta tools,trading options by using TA tools such as boilinger bands,stop loss technique and while doing so how to apply safe zone principal so your stoploss would not get triggered falsely,making targets using Fibonacci ,TA of a sector as a hole ,ta of crude oil,and also technical analysis of dollar-rupee pair(as i heard its launching on friday,i am not sure whether its tradable for retail traders or not)but dollar is imp for i.t.stocks and also for crude oil.
Here is one thing i am believer of simple trading tools,no complex things,although we may discuss here various things that doesn't necessarily means we must apply all things same time at same stock and take a trade.It means considering different setups according to different market condition.
I remember once long ago ,our finance teacher told one thing while he was covering the subject of technical analysis is.."OK guys now u learned, this is Dow theory,this is up trend & that is downtrend, this is head & shoulder & this is peanut formation n u think u beat the street then u mistaking most important objective of technical analysis. TA is not identifying the trend,as my 11 year son will tell, now market is going up by only seeing higher highs ON CHART,but technical analysis's one of major objective is predicting when the trend is reversing".
For Indian market sometimes global market is important and some time domestic conditions important,so we must adjust trading strategy according to changing market conditions.Your trading tools are as good as the MARKET CONDITIONS.Also i personally don't believe in state of the art softwares can change your financial life.They are as good as you.They are helpful for ease the hassle only.So welcome to everyone to share there ideas with others and help each other.
By alex_laxya
Before everything read above again and again.We here talking about various trading ideas and technical analysis but it doesnt mean we clouding our mind while trading.Once you ready with your tools parameters and money management rules there is no jumping.
I am starting this thread for sharing and discussing thoughts on Technical Analysis as a concept ,concept of hedging by ta tools,trading options by using TA tools such as boilinger bands,stop loss technique and while doing so how to apply safe zone principal so your stoploss would not get triggered falsely,making targets using Fibonacci ,TA of a sector as a hole ,ta of crude oil,and also technical analysis of dollar-rupee pair(as i heard its launching on friday,i am not sure whether its tradable for retail traders or not)but dollar is imp for i.t.stocks and also for crude oil.
Here is one thing i am believer of simple trading tools,no complex things,although we may discuss here various things that doesn't necessarily means we must apply all things same time at same stock and take a trade.It means considering different setups according to different market condition.
I remember once long ago ,our finance teacher told one thing while he was covering the subject of technical analysis is.."OK guys now u learned, this is Dow theory,this is up trend & that is downtrend, this is head & shoulder & this is peanut formation n u think u beat the street then u mistaking most important objective of technical analysis. TA is not identifying the trend,as my 11 year son will tell, now market is going up by only seeing higher highs ON CHART,but technical analysis's one of major objective is predicting when the trend is reversing".
For Indian market sometimes global market is important and some time domestic conditions important,so we must adjust trading strategy according to changing market conditions.Your trading tools are as good as the MARKET CONDITIONS.Also i personally don't believe in state of the art softwares can change your financial life.They are as good as you.They are helpful for ease the hassle only.So welcome to everyone to share there ideas with others and help each other.
By alex_laxya
ema +ve crossover along with stretched effect from its mean line, gives good buy signal.s & p may see strong supply zone around 980 to 1000. after such vicious fall market tend u soak in supply before moves up.
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