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

[Saint]

Prabhjeet,

How I do things is not the way as described by you.......In some parts,correct,but some salient stuff that I am obviously unable to get through.......have tried to explain many times already!

I am going to make another effort tomorrow.......sincerely hoping that this method is either understood or not understood,but never misunderstood!

Saint

 

[uasish]

Hello Saint,

Apologies for this stupid question. I am little bit confused about pivot. For calculating pivot should we consider main body of the candle or higher / lower points of the candle?

Because we alwayws say that close is very important as thats the point where traders agreed to carry their position and hence thought body is important but when i see charts trend line many time touches lower points of the candle.

Pls clarify

Kind regards,
Shripad

Probably we are confusing ourselves.A Pivot of any bar be it of 1 min Time frame or 1 Yr time frame is quite different then the Pivot points of a Chart.

 

[jamit_05]

Hello Saint,

...For calculating pivot should we consider main body of the candle or higher / lower points of the candle?

Because we alwayws say that close is very important as thats the point where traders agreed to carry their position and hence thought body is important but when i see charts trend line many time touches lower points of the candle.

Hi shrineha,

Recently I had the good fortune to learn from Saint in person. (Thank you Kol members for providing such an oppurtunity; forever indebted. I now have a new found respect for Ashishda's sincerity and intellect.)

Saint started off saying that:
1. Higher highs and Higher lows of consecutive bars is a rally
2. Lower highs and lower lows of consecutive bars is a decline. (There is no trend yet!)
3. The top of the area in between the two, i.e Rally and decline, is the pivot.

Consider the above as a guideline not a definition.

Amit.

PS: Thanks to my roomate SGM, who told me to look at a 1000 charts before asking any further questions (and now I think my eyes are sore). Tks for putting things into perspective SGM. Indeed, it was a pilgrimage of faith!

 

[jamit_05]

Confusion again, the chart has been updated with actual pivots and false pivot cracks, plz. go through charts again, black arrows are actual pivots and red arrows are false pivot cracks

Thank you prabhjeetrana for the persistence in this regard. It is thus that I try and understand finer details. Pls, be aware that I am a rookie. So feel super free to correct me... again and again. Tks.

Since this discussion is about trading this reliance chart at its best. I have attached a chart below showing where entry couldve been made.

The weekly has been up all along. So, we wait for a daily pivot low to be broken. It did on 6/6/07 marked by a Red dotted line.

Following this event, we want a daily pivot high to be broken, which happened on 19/6/07 at the Blue dotted line. This is our entry with a stop at a few points below the prev pivot low at 1666.50. So entry @ 1710, SL @ 1666.50 (risk is Rs.44 per share).

Now our exit comes @ 1875. So our return is Rs.165 per share.

So we have successfully traded it thus far.

Point being, we are trading this daily chart. If I throw in the 10% filter here then my returns diminish from the exit point of 1875 by Rs.188. This is more than our returns of Rs.165.

However, I might add that 10% filter is a thought provoking idea and has its place in trading. I am trying to apply it in a higher time frame chart. Once, I have something concrete I will post.

Amit.

 

[Saint]

Alright,now to clarify some stuff that's been bothering me in this thread.........


Please do get back to me .....I'll do my best to clarify.

What I do NOT want is all kinds of theories propagated as if said by me.......


Saint

 

[Saint]

Saint,

I have been going through this thread quitely for months now and done it couple of times was still unable to digest fully but one joke ??? (was that a joke or the gist of the thread as elaborated by you) from Prabhjeet has cleared the cobwebs of using twin time frames.

Thanks to Prabhjeet and many many thanks to you for this wonderful thread


Shekhar

Yep,Shekhar.........basically I do not advocate you trading off the weekly charts.Simply because I am not sure if you can manage the risk involved.Therefore,always sticking to the formula:Look at the Weekly for Perspective,Trade the Daily charts,meaning the entry,exit,stop losses are all in the daily charts.You are out on a pivot break on the daily charts.

Can't the weekly be traded?Sure,it can.......used to trade the weekly charts in the thread "New Intermed Uptrend",with the monthly as perspective......can you hold the declines,the simple pullbacks,I don't think so,need a bit of stomach there.....

The basics:Look at the larger time frame for perspective,trade the smaller time frame.

Saint

 

[Saint]

In This Year We Have N't Got Move Upwards For Two Weeks In Row.

ONE --UP
FIVE---DOWN
ONE---UP
ONE---DOWN
ONE---UP
THREE---DOEN
ONE--UP
LAST ONE---DOWN

Alpha

Oh,thanks.......but does that help us in any way?Can't we now have a few up weeks in a row now?Sure,we can.Can't we now go on for another few weeks down?Sure we can.

But realise that you are sharing some info........thanks.

Saint

 

[Saint]

REIAGRO may be a good pick nowadayz. The weekly is in an uptrend. The daily is also in uptrend. Posting the charts for both weekly and daily.

Bearish Divergence in RSI in the daily is an area of concern, however.

Cheers
djsinha

I would stay away from it,DJ......looking more and more like a Rising Wedge to me.....which is bearish.

Of course,bearish divs on many indicators,if you do look at them....

Entry was in Dec last week.......this looks like a rally that is now huffing and puffing and seemingly running out of steam.

Saint

 

[Saint]

dear djsinha,

you are right. both daily & weekly are in uptrend. yet, going by the teaching of saint's, i personally feel that position traders should take wait & watch policy for the time being as daily charts of both the broader indices are in downtrend (although weekly charts are, so far, in uptrend).

i may be wrong, please correct me.

regards,

nick

I don't usually look at broader indices to trade a particular stock.....and if I were trading REI AGRO,I would still have bought breakouts in Jan and Feb when mkts were tanking.............but now looking toppy.

I am looking at the gradient,the patterns......I personally would stay away from it.


All the best!
Saint

 

[Saint]

Dear djsinha,
correct me if I am wrong, for drawing an uptrend line,(in your daily chart,) do we have to connect pivot lows are pivot highs. I think we should connect pivot lows.
anyway, REIAGRO must be a good pick I am adding to my watch list, thanks

regards,
Tapaswi.S

Yep,Tapaswi........connect pivot lows.Some connect the low points,some the bodies of the candles........but in an uptrend,only connect pivot lows.In a dntrend,only connect pivot highs.

Unless you are drawing a channel or pattern,etc...

Saint