Some Good Steals...
- Thread starter AMITBE
- Start date
- Status
- Not open for further replies.
AMITBE said:
Hi tradebull...before I attempt and answer, I have a query fo you, so please do answer with some deliberation: Could you tell me why you have chosen these scrips for the time frame asked by you.
This may be a good exercise for you, and of course for all of us too, to work out the reasons for narrowing down on certain scrips.
I don't mind answering up front, so please don't get me wrong. I do notice you bring up a few scrips every so often, and would like to understand the reason you pick them.
Look forward.
This may be a good exercise for you, and of course for all of us too, to work out the reasons for narrowing down on certain scrips.
I don't mind answering up front, so please don't get me wrong. I do notice you bring up a few scrips every so often, and would like to understand the reason you pick them.
Look forward.
Few reasons I pick the scripts that I have raised before and now:
1) I am aware that the sectors these scripts are in, is in demand, based on my knowledge.
2) Have got recommenations on them from some other colleagues and not able to get enough info on the scripts background.
3) Want to learn and understand more basics on this domain, with whatever time I have, and have good returns made ofcourse.
I know you are a very good observer, and you would have noticed that I usually come up with queries only during week ends. That is because I try and collect information from various sources through the week and gather and put these in the forum to validate if I am not making a mistake. I am a very small player as of now in the field.
I think I have explained most of my thoughts about myself. Let me know how do I need to improve myself more.
Regards
madhura said:
Hi Amit,
chemplast has crossed 103/104 level, is it a buy now?
thanks
Madhura
chemplast has crossed 103/104 level, is it a buy now?
thanks
Madhura
Hi tradebull...will come back with your query in a bit.
AMITBE said:
Two technical analysis terms that come up often are Double Top and Double Bottom.
I am making some notes here on the dynamics of these, to widen our understanding of a most vital and recurrent theme that appears in almost all charts I have come across. An understanding of these would help in determining a crucially decisive phase in the long or short term trend in the progress of price movement of a scrip.
The Double Top and Double Bottom formations are invariably the true harbingers of an oncoming trend reversal. They are the fulcrum points where an extended up or down trend, or even a short term up or down trend, is about to turn direction.
The Double Top pattern as the term implies, is the formation of two successive peaks that are roughly equal in height, with a mild valley in between. There may be variations, but the typical Double Top marks either a short term or long term change, in the movement of a trend from bullish to bearish.
Assuming the existence of a long or short up-trend, the first peak would mark the highest point of the trend. As such, the peak in itself is a normal occurrence and there is no threat to the up-trend as yet.
At the culmination of the first peak, a decline takes place that would usually drop to a point about 20% from where the peak had started building up. The decline or increase in volume during this pullback has no real significance. The bottom of this decline is normally extended sideway slightly, to give a u shape to the trough being created.
Here begins the second climb and will normally occur with low volume. It then tests the level of the previous peak. At the confirmation of any resistance here, the possibility of a Double Top arises. This pattern now awaits further confirmation, as this resistance may well be just a resistance in the ongoing up trend.
The gap between the peaks may vary, depending on if its a long trend or a short one. It can be a few days, weeks, or months. Another norm with the twin peaks is the exactness in their heights. A slight variance is allowed usually.
The second decline coming off the second peak would be on increased volume, and increased velocity. This indicates that the supply far exceeds demand. Also, a fresh lot of short traders are attracted here, and the price begins to slip steeply. The level at the bottom, where the first peak/climb had begun, is now the crucial support point, and moving down towards it, the Double Top yet remains unconfirmed. Once this support is tested and convincingly violated, the pattern is complete. To extend this further, the newly broken support level would act as a resistance to any attempted upside again, and would normally not get breached as the demand is poor. Here is another opportunity to trade a short. With declining demand and increased supply, the price begins to spin downwards. More supports are broken, and now a bearish down trend is fully in place. The trend reversal has come to pass.
There could be false Double Tops too. The trend is always in force until proven otherwise. Until the key support is broken in a convincing manner with expanded volume, the up trend will remain intact.
A Double Bottom, the formation of which signifies a trend reversal from bearish to bullish, is in terms of its dynamics, an exact inversion of a Double Top.
Im sure the explanation above of the Double Top is clear to understand, in order to conceptualise the workings of a Double Bottom.
Should any member feel interested in a similar explanation of the Double Bottom for clarity, Id be happy to do it.
So much for now.
I am making some notes here on the dynamics of these, to widen our understanding of a most vital and recurrent theme that appears in almost all charts I have come across. An understanding of these would help in determining a crucially decisive phase in the long or short term trend in the progress of price movement of a scrip.
The Double Top and Double Bottom formations are invariably the true harbingers of an oncoming trend reversal. They are the fulcrum points where an extended up or down trend, or even a short term up or down trend, is about to turn direction.
The Double Top pattern as the term implies, is the formation of two successive peaks that are roughly equal in height, with a mild valley in between. There may be variations, but the typical Double Top marks either a short term or long term change, in the movement of a trend from bullish to bearish.
Assuming the existence of a long or short up-trend, the first peak would mark the highest point of the trend. As such, the peak in itself is a normal occurrence and there is no threat to the up-trend as yet.
At the culmination of the first peak, a decline takes place that would usually drop to a point about 20% from where the peak had started building up. The decline or increase in volume during this pullback has no real significance. The bottom of this decline is normally extended sideway slightly, to give a u shape to the trough being created.
Here begins the second climb and will normally occur with low volume. It then tests the level of the previous peak. At the confirmation of any resistance here, the possibility of a Double Top arises. This pattern now awaits further confirmation, as this resistance may well be just a resistance in the ongoing up trend.
The gap between the peaks may vary, depending on if its a long trend or a short one. It can be a few days, weeks, or months. Another norm with the twin peaks is the exactness in their heights. A slight variance is allowed usually.
The second decline coming off the second peak would be on increased volume, and increased velocity. This indicates that the supply far exceeds demand. Also, a fresh lot of short traders are attracted here, and the price begins to slip steeply. The level at the bottom, where the first peak/climb had begun, is now the crucial support point, and moving down towards it, the Double Top yet remains unconfirmed. Once this support is tested and convincingly violated, the pattern is complete. To extend this further, the newly broken support level would act as a resistance to any attempted upside again, and would normally not get breached as the demand is poor. Here is another opportunity to trade a short. With declining demand and increased supply, the price begins to spin downwards. More supports are broken, and now a bearish down trend is fully in place. The trend reversal has come to pass.
There could be false Double Tops too. The trend is always in force until proven otherwise. Until the key support is broken in a convincing manner with expanded volume, the up trend will remain intact.
A Double Bottom, the formation of which signifies a trend reversal from bearish to bullish, is in terms of its dynamics, an exact inversion of a Double Top.
Im sure the explanation above of the Double Top is clear to understand, in order to conceptualise the workings of a Double Bottom.
Should any member feel interested in a similar explanation of the Double Bottom for clarity, Id be happy to do it.
So much for now.
Was trying to collatethe knowledge of Ascending triangle also..
for instance take the double bottom, where the 2nd bottom is higher than the 1st bottom - then it gets into an ascending triangle pattern where a breakout will be positive one ( am i true in saying so?)
going on the same lines in case of Double Top, where the 2nd Top is less than the first one - does it imply a descending triangle pattern where the breakout will be in the negative direction?
Please correct us..
Nagzu
AMITBE said:
Two technical analysis terms that come up often are Double Top and Double Bottom.
I am making some notes here on the dynamics of these, to widen our understanding of a most vital and recurrent theme that appears in almost all charts I have come across. An understanding of these would help in determining a crucially decisive phase in the long or short term trend in the progress of price movement of a scrip.
The Double Top and Double Bottom formations are invariably the true harbingers of an oncoming trend reversal. They are the fulcrum points where an extended up or down trend, or even a short term up or down trend, is about to turn direction.
The Double Top pattern as the term implies, is the formation of two successive peaks that are roughly equal in height, with a mild valley in between. There may be variations, but the typical Double Top marks either a short term or long term change, in the movement of a trend from bullish to bearish.
Assuming the existence of a long or short up-trend, the first peak would mark the highest point of the trend. As such, the peak in itself is a normal occurrence and there is no threat to the up-trend as yet.
At the culmination of the first peak, a decline takes place that would usually drop to a point about 20% from where the peak had started building up. The decline or increase in volume during this pullback has no real significance. The bottom of this decline is normally extended sideway slightly, to give a u shape to the trough being created.
Here begins the second climb and will normally occur with low volume. It then tests the level of the previous peak. At the confirmation of any resistance here, the possibility of a Double Top arises. This pattern now awaits further confirmation, as this resistance may well be just a resistance in the ongoing up trend.
The gap between the peaks may vary, depending on if its a long trend or a short one. It can be a few days, weeks, or months. Another norm with the twin peaks is the exactness in their heights. A slight variance is allowed usually.
The second decline coming off the second peak would be on increased volume, and increased velocity. This indicates that the supply far exceeds demand. Also, a fresh lot of short traders are attracted here, and the price begins to slip steeply. The level at the bottom, where the first peak/climb had begun, is now the crucial support point, and moving down towards it, the Double Top yet remains unconfirmed. Once this support is tested and convincingly violated, the pattern is complete. To extend this further, the newly broken support level would act as a resistance to any attempted upside again, and would normally not get breached as the demand is poor. Here is another opportunity to trade a short. With declining demand and increased supply, the price begins to spin downwards. More supports are broken, and now a bearish down trend is fully in place. The trend reversal has come to pass.
There could be false Double Tops too. The trend is always in force until proven otherwise. Until the key support is broken in a convincing manner with expanded volume, the up trend will remain intact.
A Double Bottom, the formation of which signifies a trend reversal from bearish to bullish, is in terms of its dynamics, an exact inversion of a Double Top.
Im sure the explanation above of the Double Top is clear to understand, in order to conceptualise the workings of a Double Bottom.
Should any member feel interested in a similar explanation of the Double Bottom for clarity, Id be happy to do it.
So much for now.
I am making some notes here on the dynamics of these, to widen our understanding of a most vital and recurrent theme that appears in almost all charts I have come across. An understanding of these would help in determining a crucially decisive phase in the long or short term trend in the progress of price movement of a scrip.
The Double Top and Double Bottom formations are invariably the true harbingers of an oncoming trend reversal. They are the fulcrum points where an extended up or down trend, or even a short term up or down trend, is about to turn direction.
The Double Top pattern as the term implies, is the formation of two successive peaks that are roughly equal in height, with a mild valley in between. There may be variations, but the typical Double Top marks either a short term or long term change, in the movement of a trend from bullish to bearish.
Assuming the existence of a long or short up-trend, the first peak would mark the highest point of the trend. As such, the peak in itself is a normal occurrence and there is no threat to the up-trend as yet.
At the culmination of the first peak, a decline takes place that would usually drop to a point about 20% from where the peak had started building up. The decline or increase in volume during this pullback has no real significance. The bottom of this decline is normally extended sideway slightly, to give a u shape to the trough being created.
Here begins the second climb and will normally occur with low volume. It then tests the level of the previous peak. At the confirmation of any resistance here, the possibility of a Double Top arises. This pattern now awaits further confirmation, as this resistance may well be just a resistance in the ongoing up trend.
The gap between the peaks may vary, depending on if its a long trend or a short one. It can be a few days, weeks, or months. Another norm with the twin peaks is the exactness in their heights. A slight variance is allowed usually.
The second decline coming off the second peak would be on increased volume, and increased velocity. This indicates that the supply far exceeds demand. Also, a fresh lot of short traders are attracted here, and the price begins to slip steeply. The level at the bottom, where the first peak/climb had begun, is now the crucial support point, and moving down towards it, the Double Top yet remains unconfirmed. Once this support is tested and convincingly violated, the pattern is complete. To extend this further, the newly broken support level would act as a resistance to any attempted upside again, and would normally not get breached as the demand is poor. Here is another opportunity to trade a short. With declining demand and increased supply, the price begins to spin downwards. More supports are broken, and now a bearish down trend is fully in place. The trend reversal has come to pass.
There could be false Double Tops too. The trend is always in force until proven otherwise. Until the key support is broken in a convincing manner with expanded volume, the up trend will remain intact.
A Double Bottom, the formation of which signifies a trend reversal from bearish to bullish, is in terms of its dynamics, an exact inversion of a Double Top.
Im sure the explanation above of the Double Top is clear to understand, in order to conceptualise the workings of a Double Bottom.
Should any member feel interested in a similar explanation of the Double Bottom for clarity, Id be happy to do it.
So much for now.
Thanks,
nkpanjiyar
naga2054 said:
Great Explanation Amit. These TechBits make us ascend towards the orbit of TA.. ,
Was trying to collatethe knowledge of Ascending triangle also..
for instance take the double bottom, where the 2nd bottom is higher than the 1st bottom - then it gets into an ascending triangle pattern where a breakout will be positive one ( am i true in saying so?)
going on the same lines in case of Double Top, where the 2nd Top is less than the first one - does it imply a descending triangle pattern where the breakout will be in the negative direction? Please correct us..Nagzu
Was trying to collatethe knowledge of Ascending triangle also..
for instance take the double bottom, where the 2nd bottom is higher than the 1st bottom - then it gets into an ascending triangle pattern where a breakout will be positive one ( am i true in saying so?)
going on the same lines in case of Double Top, where the 2nd Top is less than the first one - does it imply a descending triangle pattern where the breakout will be in the negative direction? Please correct us..Nagzu
Yes, a breakout from an ascending triangle would invariably be unambiguous and firm. The trend has already been defined to the up and a pre-momentum push already in place.
In a double top, if the second peak is significantly short or long, it's not really a double top. Further, if the second peak is short but within the orb of the double top, we are looking at a trend reversal which could come as a swift fall mainly, whether there a descending triangle forms or not. In a short term reversal, the price would seek some old support level below the support at the double top, and there could be some activity at this support now, with no descending triangles. Up or down trends need not be in triangular formations.
- Status
- Not open for further replies.
| Thread starter | Similar threads | Forum | Replies | Date |
|---|---|---|---|---|
| F | Do you know that HDFCBANK,ICICIBANK OR ANY HI FI BANK LITERALLY STEALS YOUR MONEY | Loans | 4 |
Similar threads
-
Do you know that HDFCBANK,ICICIBANK OR ANY HI FI BANK LITERALLY STEALS YOUR MONEY
- Started by ford7k
- Replies: 4