Stocks To Keep A Close Eye On
- Thread starter SavantGarde
- Start date
- Tags afl amibroker
- Status
Savantji,
i have been reading a lot these days on investopedia and all ur earlier posts on this thread. what i gather is
* the buy signal triggers when SMA 5 crosses SMA 6.
* To observe BB (9,2) to see if the price is closer to upper band or lower band.
From what i understood on reading on BB on investopedia, it means if the price is closer to upper bb, generally it would reverse and is nt ideal point for buying.
however, i got confused when tried to read the attached charts of MRPL and VOLTAS.
both mrpl and voltas : crossover has jst happened. However both MRPL and VOLTAS are close to their upper bb.
1) Does this mean when the cross over happens, it is bound to pierce the upper bb in these cases.
2) if yes, then how is watching the bb important to determine whether we should buy the stock or not.
3) when the cross over happns, how do u calculate the target for a particular scrip.
These are first two charts i have tried to read. pls guide me where i m going wrong n sort out my confusion.
i have been reading a lot these days on investopedia and all ur earlier posts on this thread. what i gather is
* the buy signal triggers when SMA 5 crosses SMA 6.
* To observe BB (9,2) to see if the price is closer to upper band or lower band.
From what i understood on reading on BB on investopedia, it means if the price is closer to upper bb, generally it would reverse and is nt ideal point for buying.
however, i got confused when tried to read the attached charts of MRPL and VOLTAS.
both mrpl and voltas : crossover has jst happened. However both MRPL and VOLTAS are close to their upper bb.
1) Does this mean when the cross over happens, it is bound to pierce the upper bb in these cases.
2) if yes, then how is watching the bb important to determine whether we should buy the stock or not.
3) when the cross over happns, how do u calculate the target for a particular scrip.
These are first two charts i have tried to read. pls guide me where i m going wrong n sort out my confusion.
Attachments
Last edited:
Hi Raj,
Let me explain your questions one by one:
There seems to be a misunderstanding on your part with respect to the two tables. The upper small table is the new triggers generated on 17-7-09 after the market hours based on the End-of-Day (EOD) data. These will be executed on the next trading day (in this case on 20-7-09). The target price is the price which the stock is expected to reach. The Stop loss price is the lowest price upto which we wait. In case the stocks reaches or goes below the stop loss price (based on closing price, not intraday price) then we sell it with whatever loss we incur. Otherwise we wait till the target price is reached. There is no fixed time frame for reaching the target price. But generally it occurs in a short period, ranging from a few days to a couple of weeks. Once target is reached either sell the stock or wait for a new target with a new stop loss which will be posted after the target is reached. You can see this for HEROHONDA at the bottom of my post as Option 1 and Option 2.
This part of your question relates to the second bigger table. This is where you have got confused. This second table is daily update of the triggers which were generated earlier. For example, CAIRN gave BUY trigger on 16-7-09 (End of Day) and the Buying was done on 17-07-09 at the 'Buying price' (230.45) for a Target price of 274.00 to be achieved. The CMP is the latest closing price of the stock. This is given to see where we stand with respect to our Buying price and Target price.
The posted table is actally from Excel. In excel you can save the excel sheet as a web page. (HTML file) Just go to 'Save as' and the select .html as file type. All formatting like fonts, colors etc are done in Excel itself. Now open the HTML file in browser (Internet explorer/FireFox/Safari/Google Chrome whatever you use). When the HTML file is loaded press 'SHIFT' key and 'Print Screen' keys together. (Print Screen key is near F12 key). A snapshot of the screen will be copied into memory. Now open Paint program and paste the copied screenshot by pressing Control-V and the image is pasted. Now you can do any editing of the image if required and save the file as PNG, JPG, BMP or any other compatible format. Upload this file to Imageshack.us website and copy the 'Direct link' which is given by Imageshack when you upload. Paste the link in your post. That's all.
The procedure with details for uploading images, charts etc. is given in Traderji under the Topic 'Announcements'. You can follow those instructions.
I hope you got the information you needed. In case of doubt please post here.
-Anant
Pooja,
Although your query is for Savant, let me try to reply - atleast I would know how much I have learnt in the past 3-4 months
1. Piercing the Upper BB by itself does not trigger a sell. There are other things like a green candle followed by a red one which may indicate a "short term" sell.
2. If the stock is in a weekly or monthly uptrend, then normally the price will react near the upper BB and come down a bit but then would continue to uptrend. If you look at the charts you posted, during the market uptrend from March till May/June, the candles were touching the upper BB more often than not but did not come down sharply.
3. If you are a long term investor and assuming the uptrend is clearly still seen on weekly charts, such times when prices come near the lower BB are good times to add more to your existing position. However you will need to read other indicators and more importantly have conviction in your position to be able to do that.
4. If you notice the stop loss prices that Savant puts out along with fresh triggers, usually they are such that they will not be triggered by a short downmove after touching the upper BB. So, depending upon our timeframe, we can stay put in the stock. But if you are looking only for a 3-4 day timeframe kind of move, buying when the 5/6 crossover happens and selling after the price comes down after touching the upper BB might give you results.
Regards,
Enygma.
Although your query is for Savant, let me try to reply - atleast I would know how much I have learnt in the past 3-4 months
1. Piercing the Upper BB by itself does not trigger a sell. There are other things like a green candle followed by a red one which may indicate a "short term" sell.
2. If the stock is in a weekly or monthly uptrend, then normally the price will react near the upper BB and come down a bit but then would continue to uptrend. If you look at the charts you posted, during the market uptrend from March till May/June, the candles were touching the upper BB more often than not but did not come down sharply.
3. If you are a long term investor and assuming the uptrend is clearly still seen on weekly charts, such times when prices come near the lower BB are good times to add more to your existing position. However you will need to read other indicators and more importantly have conviction in your position to be able to do that.
4. If you notice the stop loss prices that Savant puts out along with fresh triggers, usually they are such that they will not be triggered by a short downmove after touching the upper BB. So, depending upon our timeframe, we can stay put in the stock. But if you are looking only for a 3-4 day timeframe kind of move, buying when the 5/6 crossover happens and selling after the price comes down after touching the upper BB might give you results.
Regards,
Enygma.
- Status
Similar threads
-
to keep record of stocks i will be following- Started by Gandhar.
- Replies: 5
-
-
-
-
Is it ok to buy Stocks keeping the current market scenarios in mind or should I wait
- Started by greg4u
- Replies: 10