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

[Saint]

Hi Grand Master Saint!!

Tq for showing us the light to trading profitability via simplicity and objectivity observation of the chart. Instead of complicating the chart with various holy grail indicators, we are being taught to use basic techniques which are not affected by subjectiveness. Master Saint, would you consider starting another thread on trading shorter time frame using what you have exposed & taught to us??? Tq!!!

First of all,my friend,no Grand Master business.. Just Saint would do....

If I do find the time,the basics of shorter term version,why not.....probably in this thread

ThanQ for all your kind words.

Saint

 

[bvpraveen]

Hello Saint,

I'm waiting for your views on my question posted in my previous post.

Thanks,
Praveen.

 

[Saint]

Hello Saint and others,

Long time since I've read posts in this thread. This thread had been my first source for basics of TA. I will keep track of this thread now-on-wards.

I've got some questions. Please try to answer them when you find time.

1.How to deal with a sudden long bar with huge volume? This becomes important when the stock is not "popular", etc. For eg. please look at the attached charts.

2. What I'm thinking is we can exit when it reaches one pre-determined target, say 5%. This 5% I think is getting achieved very easily in such kind of charts. For eg. the scripts in the charts achieved 5% the next day. I've noticed some stocks which behaves as explained above.

3. Does that 5% look like gambling? After all money making is the motto of a trader, right? I agree that this is possible only if we trade in low volumes.
This can be helpful for small traders, say who trades with Rs.1 lakh., etc

I'm posting these questions and charts only for learning purpose. Any views are welcome.

Thanks,
Praveen.

Hi Praveen,

Trading the trend is a different kettle of fish.........one tries to get in on trend reversal,and if not at least on some sort of a pullback,and then hopes to ride the trend as long as possible till the trend in that time frame reverses.Easier said than done,but it can be done,and to great profits.

In the case of BLUE BIRD,we have a downtrend followed by a high volume Wide range bar that looks like the start of a new uptrend.What we now look for is a pullback to form higher pivot lows,and then to new highs.Your entry point would be half or a third,in the pullback,and the rest once it makes new highs with a stop at this pivot low.

Playing 5% and 10% can sometimes get tricky......one then tends to limit one's profits and when the fall comes,one ends up holding on to the losses.So careful on that one,my friend.

Best to let the profits run,and trail stop it.....for example,Praj Inds,in its breakout from the sideways consolidation is now a 100% up.Let it run ,go with the trend till the trend takes you out.Have some trail stop in place,that's it.

And,no,making profits having a definite entry,exit,money management systems in place is never gambling........Gambling is anticipating a dntrend and going short in a strong uptrend.Gambling is going long a Sugar Stock that is in a clear cut dntrend quite sure that the price that one gets in is the absolute bottom of that stock.Gambling is not knowing whether to buy 1000 shares or 500 shares,and buying a 1000 shares without knowing why..........gambling is basically doing anything without a set method to the madness.The repeated,methodical and systematic onslaught of the markets .....nah,that's never gambling.Pure Trading.

Do revert if there are any doubts.

All the best!
Happy Trading!
Saint

ps:shall write up on WRB's, a few things, over the next few days.

 

[Saint]

hi saint

thank you very much helping us to learn TA

i have a doubt (may be silly) some where you told during pullback we should wait and when previous days high taken out then we should enter into the trade . if price opens higher than the previous days high and closes below it
then where should we enter

Waiting your reply

Satya

Hi Satya,

Could you give me an example?

Thanks,
Saint

 

[bvpraveen]

Hello Saint,

Thanks for your information.

Trading the trend is a different kettle of fish.........one tries to get in on trend reversal,and if not at least on some sort of a pullback,and then hopes to ride the trend as long as possible till the trend in that time frame reverses.Easier said than done,but it can be done,and to great profits.

Yes, I've read them through out your posts in this thread.

In the case of BLUE BIRD,we have a downtrend followed by a high volume Wide range bar that looks like the start of a new uptrend.What we now look for is a pullback to form higher pivot lows,and then to new highs.Your entry point would be half or a third,in the pullback,and the rest once it makes new highs with a stop at this pivot low.

One doubt here. Please refer to the attached charts. You'd told in the beginning of this thread during the discussion on pivots, that one can buy a half(or what ever), once the previous pivot high is taken and not before. But here you are referring that we can buy in the pullback, where actually the higher pivot low formation is still in progress. Aren't we run in to problem if the pivot low formation doesn't happen and the downtrend continues? Can you please clarify it?

Best to let the profits run,and trail stop it.....for example,Praj Inds,in its breakout from the sideways consolidation is now a 100% up.Let it run ,go with the trend till the trend takes you out.Have some trail stop in place,that's it.

Yes, I too agree with this. We have many kinds of SL like pivots(which you are using), three days low, some % below close/high, etc. Although choosing SL is subjective and ones personal choice, can you please tell us each SL's advantage and disadvantage.

ps:shall write up on WRB's, a few things, over the next few days.

You'd previously explained about WRB's in this thread during the initial days. You can refer them and if you have more points, we would be glad to know them, so that your dont do the rework.

Thanks once again for your explanation,
Praveen.

 

[Saint]

One doubt here. Please refer to the attached charts. You'd told in the beginning of this thread during the discussion on pivots, that one can buy a half(or what ever), once the previous pivot high is taken and not before. But here you are referring that we can buy in the pullback, where actually the higher pivot low formation is still in progress. Aren't we run in to problem if the pivot low formation doesn't happen and the downtrend continues? Can you please clarify it?

Nothing to clarify,my friend.........correct in your understanding.Best to let the market show the way before an entry.I tend to take a small quantity in the pullback though,and pile on in the breakout,but keep all that for later.

For now,allow the stock to breakout and pullback,buy once previous pivot highs are taken out with a stop at the recent pivot low.Calculate the share size and that's that.Breakout trading can have a higher win/loss ration,but whiplashes are frequent,and ouch!,can be painful......but all part of the game!

Saint

 

[bvpraveen]

Nothing to clarify,my friend.........correct in your understanding.Best to let the market show the way before an entry.I tend to take a small quantity in the pullback though,and pile on in the breakout,but keep all that for later.

For now,allow the stock to breakout and pullback,buy once previous pivot highs are taken out with a stop at the recent pivot low.Calculate the share size and that's that.Breakout trading can have a higher win/loss ration,but whiplashes are frequent,and ouch!,can be painful......but all part of the game!

Saint

Hi,

Thanks for your reply.

May be by experience I/we/one can learn a lot and fine tune, what ever one's trading system is.

Thanks once again.

Praveen.

 

[Satyen]

Hi Satya,

Could you give me an example?

Thanks,
Saint

hi

saint sorry for late, this is the chart of advance tech as on 7th feb

please guide us

regards

Satya

 

[rkgoyal_98]

Hi all

Can anyone give me the compilation done by Gobetman2001. The link provoded might has expired.
Thanks
Rajeev

 

[rkgoyal_98]

Hi all,

Since no one responded i made the compilation and PDF from te thread.
Hope it will help new comers. Here is the link

http://www.4shared.com/dir/2016732/53e569ac/TA-Tutor.html
Good Luck
Rajeev