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

[djsinha]

Saint,

Rallis EoD upto 18th Jan ,the day DJ should have exited.
My Query:=

1)Shall we consider these type of stocks where the daily vol is abnormally low.
2) Shall we also look at the Candle strenght as per the upper & lower shadow.
3) Shall we also look at the Patterns as Trend line / Triangle etc.

Asish

Hi Asish,
Great reflections on Rallis. Really, you posted some valid questions, which infact I should have asked to Saint. I'm waiting for Saint to reply..

But Asish, can you explain what is candle strength? I mean under which circumstances (real body/ shadow) can a candle show strength?
Cheers
djsinha

 

[djsinha]

DJ,

Chart attached!

Saint

Now I learnt something totally new from this post of yours. Very interesting...

First, after getting a higher pivot low in an uptrend, I should not wait for the higher pivot high to form......Infact to max profits I shud enter when the scrip trades few rupee above the prev pivot high......But Saint, doesn't it violate the fact that we should buy as close to the support as possible.....Esp I'm asking b'coz it may so happen that I bought as soon as the prev pivot high is overtaken and after sometime the price retraces back and hits my stoploss.

Second, the exit strategy you suggested was really very good. That of consulting daily charts while trading the weekly and take a call when pivot breakdown happens in the daily.

Cheers
djsinha

 

[Saint]

Saint,

Rallis EoD upto 18th Jan ,the day DJ should have exited.
My Query:=

1)Shall we consider these type of stocks where the daily vol is abnormally low.
2) Shall we also look at the Candle strenght as per the upper & lower shadow.
3) Shall we also look at the Patterns as Trend line / Triangle etc.

Asish

Hi Asish,

1)I generally stay way clear of stocks where the daily volumes are low.

2)The gap down was bearish that particular day........forming that almighty tail to the top and plonking right back is a signal of bearishness.Not saying that highs and lows are not important data to be considered,but finally,on a daily chart,the open and close tell us a lot about candle strength.........and what we should the following day.

3)Always do.........


Saint

 

[Saint]

Now I learnt something totally new from this post of yours. Very interesting...

First, after getting a higher pivot low in an uptrend, I should not wait for the higher pivot high to form......Infact to max profits I shud enter when the scrip trades few rupee above the prev pivot high......But Saint, doesn't it violate the fact that we should buy as close to the support as possible.....Esp I'm asking b'coz it may so happen that I bought as soon as the prev pivot high is overtaken and after sometime the price retraces back and hits my stoploss.

DJ,it's like this............lower pivot high,lower pivot lows,lower pivot highs,lower pivot lows(aka dntrend),then a higher pivot low(hmmm....are we going up from here?No trade yet.....just a thought!!),now it goes past that previous pivot high(BUY!!).......We have our uptrend,we enter long,we put our stops below the pivot low,and then spent next few days to weeks raising stops till stopped.

Trading trends......we try to get in once we get a break above the previous pivot highs........no talking supports and resistances.Basically that previous pivot high is resistance,thereby the pullback to form a higher pivot low,and then a breakout over that resistance........Focus your attention to the Pivots,rest will take care by itself.

And yes,my friend,in trading,we buy the breakout over prev pivot highs,putting that stop loss at prev pivot lows and we get taken out sometimes........and when we don't,we earn big.......all part of the game!

Second, the exit strategy you suggested was really very good. That of consulting daily charts while trading the weekly and take a call when pivot breakdown happens in the daily.

Cheers
djsinha

Ah,great........but have this feeling you need a few more charts.Have been wanting to do this for some time.........a revision on trends and pivots,etc.....soon when I can find the time.

Saint

 

[v_sadanand]

Just have a look at the attachments below.....nothing like a picture to make things look better.

All the best!
Saint

Thanks Saint,
Your analysis would go a long way in making the technical analysis pretty simple to understand.
Could you please focus more on the basics with more attachments?????

Thanks,
Sadanand.

 

[uasish]

Hi Asish,

1)I generally stay way clear of stocks where the daily volumes are low.

2)The gap down was bearish that particular day........forming that almighty tail to the top and plonking right back is a signal of bearishness.Not saying that highs and lows are not important data to be considered,but finally,on a daily chart,the open and close tell us a lot about candle strength.........and what we should the following day.

3)Always do.........


Saint

Thanks for your views.

 

[Saint]

Thanks Saint,
Your analysis would go a long way in making the technical analysis pretty simple to understand.
Could you please focus more on the basics with more attachments?????

Thanks,
Sadanand.

Yep,......shall do.

Saint

 

[manikwadhwa]

Sir,

I m posting the chart of ALMUNIUM WEEKLY MCX,I went through your very thread.

Your valuable comments are needed ,so that,I can be sure of my analysis for the chart.

1.At bar "A" one can add 50% of the quantity.Because trendline "BLUE" has been broken.

2.At bar "B" one can add another 50%,but ,it is iffy so one should wait.

3.At bar "C" one has stopped out of the trade taken at bar "A" and even one has taken trade at bar "B"

4.At bar "D" one can buy 50% as the trendline "GREEN" has been taken out.

5.At bar "E" one can add another 50% as the previous pivot high has been taken out.

Sir ,is this the right way to catch the change of trend?

with regards,

manik

 

[djsinha]

Sir,

I m posting the chart of ALMUNIUM WEEKLY MCX,I went through your very thread.

Your valuable comments are needed ,so that,I can be sure of my analysis for the chart.

1.At bar "A" one can add 50% of the quantity.Because trendline "BLUE" has been broken.

2.At bar "B" one can add another 50%,but ,it is iffy so one should wait.

3.At bar "C" one has stopped out of the trade taken at bar "A" and even one has taken trade at bar "B"

4.At bar "D" one can buy 50% as the trendline "GREEN" has been taken out.

5.At bar "E" one can add another 50% as the previous pivot high has been taken out.

Sir ,is this the right way to catch the change of trend?

with regards,

manik

Absolutely BRILLIANT my friend Manik. Three cheers for you.
Dj Sinha

 

[djsinha]

Sir,

I m posting the chart of ALMUNIUM WEEKLY MCX,I went through your very thread.

Your valuable comments are needed ,so that,I can be sure of my analysis for the chart.

1.At bar "A" one can add 50% of the quantity.Because trendline "BLUE" has been broken.

2.At bar "B" one can add another 50%,but ,it is iffy so one should wait.

3.At bar "C" one has stopped out of the trade taken at bar "A" and even one has taken trade at bar "B"

4.At bar "D" one can buy 50% as the trendline "GREEN" has been taken out.

5.At bar "E" one can add another 50% as the previous pivot high has been taken out.

Sir ,is this the right way to catch the change of trend?

with regards,

manik

I want to add sth to you chart analysis, Manik. See here though at bar A the blue resistance line has been taken out, but volumes are absurdly low. So basically.......lack of strength....and hence it cudn't maintain itself above the resist line week after week.
But at the bar between D and E on your chart, volumes support the breakout....and hence the rally afterwards.
Cheers
djsinha