Teach A Man To Fish And.........

[shan2611]

Hello Saint,
I am new to trading and this wonderful thread gives junior members like me, very good idea about how to trade with technical inputs.I really thank you for your efforts at imparting knowledge to others.Your style of explaining is very simple and attractive.

Please clarify my following query.Please excuse me if my query appears very primitive.

As you have explained in your earlier posts, we should follow the trendline.We will be able to spot the change of direction in trendline after market hours.While one is buying a stock which is in uptrend, even when we buy it after delaying it by a day, we will still be able to ride the trend and be able to make some money(our ultimate aim).But how to judge the downtrend of the stock during market hours?Why I am asking this is when we analyse the charts after market hours and come to the conclusion that the particular stock is in downtrend, we will not be able to sell it.By next day, it may have fallen further and we may have lost some more money.Please explain the methods one can adopt during market hours to judge downtrend so that we can limit our loss or sell it while we have considerable profit?

Thanks.
Shan

P.S.
While I find it uneasy to address you in the way I have addressed you in this post, while going through this thread, I have noticed that you prefer in this way.So please excuse me if I sound rude.

 

[Terahertz]

As you have explained in your earlier posts, we should follow the trendline.We will be able to spot the change of direction in trendline after market hours.While one is buying a stock which is in uptrend, even when we buy it after delaying it by a day, we will still be able to ride the trend and be able to make some money(our ultimate aim).But how to judge the downtrend of the stock during market hours?Why I am asking this is when we analyse the charts after market hours and come to the conclusion that the particular stock is in downtrend, we will not be able to sell it.By next day, it may have fallen further and we may have lost some more money.Please explain the methods one can adopt during market hours to judge downtrend so that we can limit our loss or sell it while we have considerable profit?

If the stock goes below the previous pivot low in any day then we should be out of the stock. We can always buy again when we see an uptrend.
Am i right saint. Plz correct me if i am wrong.
and please excuse me for answering in this post. i was just seeing whether i am right or wrong.

 

[rahulg77]

If the stock goes below the previous pivot low in any day then we should be out of the stock. We can always buy again when we see an uptrend.
Am i right saint. Plz correct me if i am wrong.
and please excuse me for answering in this post. i was just seeing whether i am right or wrong.

Hi Terahertz,

According to me if a stock goes below the previos pivot low in any day then it will not be an immediate sell signal. It will come on our watch radar but we would not sell it. A down trend would only be confirmed when it makes another pivot low. According to me confirmation of down trend is important. Ofcourse if the S/L is triggered before hand it would be a different issue.

Again just like you even I am relatively new and hence saint would be best suited to answer this question. But I would suggest that these interactions and application of mind is important as it will clear more doubts and teach us more. If again Saint agrees Looking forward to your view Saint.

Rgds
Rahul

 

[Terahertz]

Hi Terahertz,

According to me if a stock goes below the previos pivot low in any day then it will not be an immediate sell signal. It will come on our watch radar but we would not sell it. A down trend would only be confirmed when it makes another pivot low. According to me confirmation of down trend is important. Ofcourse if the S/L is triggered before hand it would be a different issue.

Rgds
Rahul

Yes, Rahul u are right but i thought the previous pivot low will be our stop loss. if thats not the case is there any other method to calculate stop loss.

Again just like you even I am relatively new and hence saint would be best suited to answer this question. But I would suggest that these interactions and application of mind is important as it will clear more doubts and teach us more. If again Saint agrees Looking forward to your view Saint.

u are right. Such interactions would help us learn even more.

 

[rahulg77]

Yes, Rahul u are right but i thought the previous pivot low will be our stop loss. if thats not the case is there any other method to calculate stop loss.


Hi Terahertz,

U are right too. In an uptrend the trend line itself will act as support and to make a lower pivot low it will have to break the trend line and hence it will be a sell signal. But also what i understood is that to confirm a downtrend we should have another pivot low. So what do we do. Saint could you please explain or am i wrong that to confirm a downtrend we should have another pivot low.

Rgds
Rahul

 

[inxsofme]

Hello Sir,

I am a novice trader with due training in capital markets from BSE, also cleared NCFM and did MBA but i learned a lot from your posts hope u'll keep on blessing us with new material and your insight & guidelines. Your patience and promptness is too great.

Hats off to you....i'll follow your every message.

Gaurav

 

[Terahertz]

U are right too. In an uptrend the trend line itself will act as support and to make a lower pivot low it will have to break the trend line and hence it will be a sell signal. But also what i understood is that to confirm a downtrend we should have another pivot low. So what do we do. Saint could you please explain or am i wrong that to confirm a downtrend we should have another pivot low.

Mr. Rahul it is true that when any stock breaks down below its uptrendline We cannot say surely whether this downtrend would continue or it will bounce back again. But one thing is sure is it is out of trend. Is it right to stay in such stock when we dont know the trend even if we know the downtrend is not confirmed.

 

[rahulg77]

Hi saint,

waiting for your view on the same.

Rgds
Rahul

 

[mgirotra]

Dear Saint

Quick question on identifying a pivot. To identify a pivot high, should both the below statements be true or only the 1st one needs to be true

1. high should be higher than the highs of the bars on either side
2. Low should be higher than the lows of the bars on either side

Same for Pivot low

Also does the extent of diff between the high/lows of the pivot bar and the adjoining bars have any significance

Also If pivot highs and lows are repeating quite often, does this mean that the script is not in a significant trend

Phew. that was a long list.. Hope its not a huge bother

thanks

Mohit

 

[Saint]

Please clarify my following query.Please excuse me if my query appears very primitive.

As you have explained in your earlier posts, we should follow the trendline.We will be able to spot the change of direction in trendline after market hours.While one is buying a stock which is in uptrend, even when we buy it after delaying it by a day, we will still be able to ride the trend and be able to make some money(our ultimate aim).But how to judge the downtrend of the stock during market hours?Why I am asking this is when we analyse the charts after market hours and come to the conclusion that the particular stock is in downtrend, we will not be able to sell it.By next day, it may have fallen further and we may have lost some more money.Please explain the methods one can adopt during market hours to judge downtrend so that we can limit our loss or sell it while we have considerable profit?

Thanks.
Shan

Hi Shan,

If you have been playing that trendline,let us say,you've been buying each time the stock pulls back to the trendline and your idea was to stay in that stock so long that uptrendline holds.So far so good as long as the uptrendline holds.

A crack in the intradays to the downside does not qualify as a break in that trendline till we get a close below that trendline...........but I agree with you,what would you do,while watching that stock intraday,it cracked to the down.It may or may not close below the trendline,but what would you do in such a case?Stick with the plan.......your idea is to get out on a break of trendline.Get out if it breaks.If by the end of day,the stock does not close below the trendline,no problem,that means the trendlines are still valid and you look to reenter.

Happy Trading!
Saint

P.S.
While I find it uneasy to address you in the way I have addressed you in this post, while going through this thread, I have noticed that you prefer in this way.So please excuse me if I sound rude.

Not rude at all,my friend,and don't be uneasy,just friends helping one another out.