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

[Saint]

Thank you Saint. Your trailstoploss chart of abb has cleared concepts of tailing stoploss with me. It has helped to a great extent. I have admirer of your thread I read vorciousely but seldom I write. Thanks again Sir.
Mohan Agnihotri

Most welcome,Mohan.......and let's drop all formalities like Sir.A friend helping another friend.

Saint

 

[Saint]

Hi Saint,

Thanks for your detailed explanation with charts.



Saint, I've learned this concept in this thread itself. My actual question is : "Can't we move up the stop loss to the immediate stop loss(which is just forming now, say 75% complete, which has not taken out the previous pivot high yet) which is about to take out the previous pivot high?" Why do we need to wait for the previous pivot high to be taken out?

I remember your words in this thread, while explaining when to enter the trade:"...after three bearish candle, we had one bullish candle and we need to enter that trade once the previous candles high is taken out and the previous low will be our stop loss....". Haven't we found out pivot low here?

[Please leave out this question, if I'm digging into it]

Praveen.

The whole idea of waiting for the previous pivot high to be taken out is to allow the charts to tell us what to do.We would not want our intellect and mind to participate in this exercise.We want our eyes to see the very obvious resumption in trend,we want our eyes to see the previous pivot highs being taken out,and we want it to get as automatic as possible.

When we raise the stop loss on getting a bullish candle after many multiple bearish candles,prematurely thinking the pivot has been formed,only to see more bearish candles the next few days and taking us out of the trade,that wouldn't be too smart on our part,would it...............as said before anticipating a pivot can be detrimental for that trade.

What we want is to get in and stay in for as long as we possibly can.........allow therefore the previous pivot high to be taken out and then only raise stops.

Been there,done that,my friend.......therefore this friendly piece of advice.

As for the question on the Entry,shall clarify it later with some charts.

All the best!
Happy Trading!
Saint

 

[mfire]

Dear Amit
You have a great thing by making available the important posts. I am unable to download this file due to some browser problem. I am trying this from 3/4 days. Is there any other way to get this important file. My email address is [email protected].
Thanks in advance.
Mohan Agnihotri

 

[Saint]

We'll be going over money management,few things,at a later date.......for Gaps related stuff,have a look at http://www.stockcharts.com/education/ChartAnalysis/GapsandGapAnalysis.html

All there....

Saint

 

[Saint]

FAILURE PATTERNS :

Simply put,it is a pattern that heads in the reverse direction than what is expected.We expect a neckline of a H&S breakdown to be a bearish sign.We expect a trough break from a Double Top to head south.We expect a Rising Wedge after an uptrend to break down.We expect an Ascending Triangle breakout to head north.We expect a WRB breaking out of a consolidation to initiate a move to the up.We expect a WRB bearish candle in an established downtrend to resume its downtrend and make newer lows.

A failure pattern is something that acts opposite to that which is expected.

An ascending triangle breaks down,that is a pattern failure.An ascending triangle breaks out,and then the next bar negates the breakout bar.That is pattern failure.A wrb breakout from a consolidation that gets negated(negation meaning the low of the breakout bar is taken out),that is pattern failure.A neckline breakdown in a h&s pattern reverts and goes back into the neckline,and takes out the high of the rt shoulder......that is pattern failure.So on so forth.

These are beauties to trade especially if one could go both ways in a trade............beauties because when everybody is looking for a breakout after a consolidation,so are we all.But a negation of the bar sends everyone into the hope,pray mode.Negation of the breakout bar sends us into caution mode.We are out of that trade if the low of the breakout bar is taken out.But as the majority hope and pray for something to happen,convincing themselves on how great this company is,etc etc and the super fundamentals,and growing economy,etc,etc........we reverse positions and benefit from the move down.

Failure patterns break the expected move..........they SHOCK the trader trading the preceeding move.

Learn to identify them,and get out of a trade when you see them in action......and reverse the trade to great profits.

All the best!
Happy Trading!
Saint

 

[Saint]

In the example below,we have BOM DYEING giving us a sideways consolidation on the daily charts,before we get a WRB gap-up breakout that initiated a move upwards.With every newer pivot high,we have been trail stopping upwards.Then we get a nice breakout bar to new highs,and an immediate slap down negation the very next bar.

We have a Breakout Bar Failure......If you were in this trade,get out the moment the low of the previous breakout bar is taken out.If you weren't in the trade but looked on at this mouth watering prospect of neat move down(all this if you could go short).........short the low of the breakout bar failure,and enjoy the ride!

Happy Trading!
Saint

 

[bvpraveen]

The whole idea of waiting for the previous pivot high to be taken out is to allow the charts to tell us what to do.We would not want our intellect and mind to participate in this exercise.We want our eyes to see the very obvious resumption in trend,we want our eyes to see the previous pivot highs being taken out,and we want it to get as automatic as possible.

When we raise the stop loss on getting a bullish candle after many multiple bearish candles,prematurely thinking the pivot has been formed,only to see more bearish candles the next few days and taking us out of the trade,that wouldn't be too smart on our part,would it...............as said before anticipating a pivot can be detrimental for that trade.

What we want is to get in and stay in for as long as we possibly can.........allow therefore the previous pivot high to be taken out and then only raise stops.

Been there,done that,my friend.......therefore this friendly piece of advice.

As for the question on the Entry,shall clarify it later with some charts.

All the best!
Happy Trading!
Saint

Hi Saint,

Thanks for your explanation. They are clear to me now.

Ofcourse we learn a lot from past experience. Its important we learn not only from our experience, but from others as well. Thats a true learning.

Praveen.

 

[Saint]

Hi Saint,

Thanks for your explanation. They are clear to me now.

Ofcourse we learn a lot from past experience. Its important we learn not only from our experience, but from others as well. Thats a true learning.

Praveen.

Great going,Praveen.........as the famous saying goes,"He is a fool who does not learn from his own experiences.He is a smart person who learns from his experiences.......but the wise man ,he learns from the experiences of others."

As always,great questions......

Saint

 

[Saint]

If you are not into looking through each and every thread in this forum,and accidentally chanced upon this one.........do have a look at the belowmentioned thread by Ivan.Read it,absorb it,assimilate it.....

http://www.traderji.com/equities/8108-rules-masters.html

All the best!
Saint

 

[gobatman2001]

Re: Queries From students of Saint

Hi Amit,

If trading the short term,both......when trading the intermed term,the weekly .

Saint

Hi! Saint,

Many many thanks for your reply. One last query on Resistance levels (I hope)

Attached is a chart of APIL on which I have drawn the resistance levels for a short term point of view.

I have used the line chart since it's easier to the eye to identify the levels.

I would be grateful if you could please have a look at the same and please let me know if I have drawn the resistance levels correctly.

Also, if you could please reply to the questions that are on the chart.

I can't thank you enough for all the help, Saint.

Warmest regards,
Amit