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

[Saint]

Congratulations for completion of 1000 Posts. It's been a splendid thread and I wish it completes 10000 Posts in future.

Ah,yes.....thank you all for your warm remarks.

Saint

 

[biggles]

Ah,yes.....thank you all for your warm remarks.

Saint

yeah Saint,


great going. best wishes

 

[avinash]

Yep,great going Saint!!

 

[shashank]

Congrats Saint,please continue your teachings.Thanks

Shashank

 

[Saint]

Thanks all!!

Saint

 

[gupta.deep]

Hi Saint & other Senior Members,

I have a query about a trend in the Nifty Daily Charts. I have attached the chart from icharts.net

Do we see a tripple top here and possible bearish signs are there? I am not sure and just putting my curiousty to you guys.

SKG

 

[Saint]

Hi Saint & other Senior Members,

I have a query about a trend in the Nifty Daily Charts. I have attached the chart from icharts.net

Do we see a tripple top here and possible bearish signs are there? I am not sure and just putting my curiousty to you guys.

SKG

Hi SKG,

Had written a post some time back about Double tops and Triple Tops.......do have a look when you get the time.Three hits on the roof does not make a Triple Top,we could very well be in a rectangle sideways pattern.

So far,NIFTY has managed to close above the 2 previous pivot highs and then go sideways,which is bullish.

And moreover,a Triple or Double Top is only a guess from here,it has to take out November lows to confirm a TT reversal.

For now,more Bullish than bearish.....until a move tells us that we may have to think otherwise.

Saint

 

[gupta.deep]

Hi SKG,

Had written a post some time back about Double tops and Triple Tops.......do have a look when you get the time.Three hits on the roof does not make a Triple Top,we could very well be in a rectangle sideways pattern.

So far,NIFTY has managed to close above the 2 previous pivot highs and then go sideways,which is bullish.

And moreover,a Triple or Double Top is only a guess from here,it has to take out November lows to confirm a TT reversal.

For now,more Bullish than bearish.....until a move tells us that we may have to think otherwise.

Saint

Thanks Saint. Forgot that unless otherwise confirmed, the current trend is in operation. Shall certainly look out for the post.

SKG

 

[Saint]

Dear Sir,

This is with reference to above ie re-entry criteria as explained by you for NIFTY daily chart Dt. 29 NOV. Initial trade was stopped on 18th Oct because of last pivot low of 5403 having been taken out. Then the re-entry was made on 23rd Oct once the high of previous candle was taken out.

My question is normally when any trend is broken after a sustained long run, sometimes it leads to formation of bull/bear trap midway. In this case, it might have led to formation of bull trap begining 23rd Oct. How does one preclude this possibility. Else as you say there is really no way to find out on 23rd Oct, whether intial uptrend will resume or downslide shall continue after formation of bull trap. Is observing a tight stop loss the only way to rule out that possibility of bull trap or is there any other clue?

I request you to pl. clarify above and clear the part of cobweb still remaining. Thanx and highest regards!
-Anoop Kumar

Great question as always,Anoop!

Am not sure abt your age,you could be 17,or 71......but call me Saint,throw the Sir out of the window.

Right........we have a chart,we have an uptrend on the weekly charts,therefore we buy the pullbacks on the daily chart.After we have an up bar or two,what is to say that the chart is not going to turn and go down?How do we know?We don't........That is what happened in that reentry,few bars up,and then down it came.Part and parcel of trading.

We merely take our stops,we wait and watch for another entry.......what is presumed is that the reentry will keep making new highs and newer highs,so we buy the pullbacks on the daily within a weekly uptrend.

So we get a pullback on the daily on October 8th,we buy once the previous candle high is taken out.....we get a pullback on Oct 22nd,and the high over that candle would be our next reentry point.

Next we get a similar pullback and we get a reentry point over the high of Nov 12th.But this time,no new highs,instead it pulls back and takes out previous pivot lows.Oct 22nd candle is similar to the Oct 12th candle,why didn't we just buy over that high?Because this pullback has created a bigger fall.......There is now discomfort,there is suspicion,there is caution.....so we do what we do best,We wait!What are we waiting for?We are now waiting for the chart to tell us something that gets us away from discomfort,away from suspicion,away from caution...we are waiting for something to turn up that makes us excited,makes us want to jump in at any cost.And till that point,we wait and watch.

Nov 23rd:Nah,could very well be a mini rally within a decline.
Nov 26th:Hmm,same as above.
Nov 27-29th:Interesting,a yummy sideways pattern.....Hmmm,wonder if this can go up.Let it confirm.Let us wait.
Nov 30th:Yep,we are off.....Buy here,we now have our higher pivot low,taking out recent pivot highs.We are sure that we are right only once we get to 6000.Till then we assume that we would.And if we are wrong,well then we are wrong.So we have stops.

Nov 11th :We are still holding...

The point of all this:If it's a simple pullback after a neat move,buy the pullback once the pattern takes out the previous day's high....Once pivot lows are lower than the previous pivot low,are we in a dntrend?Or sideways trend?Since we do not know,we again wait for a higher pivot low and high,latch on to it,and ride the trend.

Hope that clears at least a few things...

All the best!
Happy Trading!
Saint

 

[anoopkumar]

Dear Saint,

It does clear few things and alot more. My heartful thanx.
As far as addressing you as sir is concerned, I ,like many other members here, prefer to prefix or suffix some respect indicating words with your nick. This is to give respect to your knowledge and appreciate your contribution in learning the intricacies of the stock market, which is quite unparllel. Mere addressing you as Saint gives rather uneasy feeling. I hope you would not mind calling you as "Dear Saint" although a Saint is more respectable than Dear.
Regards!

- Anoop Kumar