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

[srisara]

Saint,

somehow i overlook this thread, but today went through all your posts here.

It is really a fabulous effort from you to bring all of the TA one by one with examples.

This thread will be come "Mother of All Threads" one day. I hope it will become a One-Stop Learning place for all who wish to learn TA.

again.. great going my friend...

its truly Saintly Saint here for us....

Satya....

 

[rahulg77]

yes i think I am clear about it. So when we stalk a stock that is moving up from a down trend we do not take position. We wait for it to rise, retreat and then we buy if it takes a turn around higher than the previous pivot low. Am I following it so far.

Another question- when a trend is rising and it turns around for a very very minor correction will it still be called a pivot or how much fall is required.

Sorry for asking too many questions but i like to be very clear in the learning process. Let me know when i start bugging you .

Rgds
Rahul

 

[Saint]

Saint,

somehow i overlook this thread, but today went through all your posts here.

It is really a fabulous effort from you to bring all of the TA one by one with examples.

This thread will be come "Mother of All Threads" one day. I hope it will become a One-Stop Learning place for all who wish to learn TA.

again.. great going my friend...

its truly Saintly Saint here for us....

Satya....

Thank you for your warm remarks,my friend.

Saint

 

[Saint]

Thank you Saint for your efforts.

Just found out abt this thread.Looking fwd to your posts.

Regards,
Jay Raj

Most welcome,Jay.You had lots of questions.Would be glad to help in any way possible.

Saint

 

[Saint]

dear saint,
you are a real saint helping people to gain knowledge without expecting anything in return. Keep it up. May God shower the choicest blessings on you.

Thank you for your kind words,Rakamath...

Saint

 

[Saint]

TRADING using TRENDS,PIVOTS,SUPP/RES

THE BUY SET-UP

Okay,now that we know what an Uptrend is,and that come what may,we will stick to our rules,which is:First detect the change in trend which requires a higher pivot high and low,then once we are in an uptrend,we BUY DECLINES.

Now comes our next point of worry........yes we got our uptrend,and now the declines.But when do we buy?Do we buy on the first day?Is there anything else we are looking for before we come to that decision?

Have a look at the chart of EDUCOMP below.We have a decline after that big bar.Bearish candle No 1,we do nothing.We wait.Bearish candle No 2,we do nothing.Bearish candle no 3,things looking more and more juicy.Then we get that bullish candle.That first bullish candle is still making lower highs and lows,but is giving us an indication that bulls are gaining in strength.Now we are ready to strike,and yet,we do not move.We now look to buy,we do not buy as yet.We buy when the next candle takes out the previous candle's highs.

We are in the trade.Our stop is the low of that pivot ie 254-2(to give it some room)=252

In EDUCOMP,we are getting our next buy set up as of now.We have three bearish candles and then that bullish candle so far reflecting a change in sentiment and therefore a possible change in direction.And like before,a buy set up means we look to buy,we do not buy as yet.When the next candle takes out this week's high,then the trade is triggerred.

Happy Trading!
Saint

 

[Saint]

yes i think I am clear about it. So when we stalk a stock that is moving up from a down trend we do not take position. We wait for it to rise, retreat and then we buy if it takes a turn around higher than the previous pivot low. Am I following it so far.

Another question- when a trend is rising and it turns around for a very very minor correction will it still be called a pivot or how much fall is required.

Sorry for asking too many questions but i like to be very clear in the learning process. Let me know when i start bugging you .

Rgds
Rahul

Great going,Rahul......yes absolutely.And yes to your 2nd question as well.

And no,you are not bugging me at all.........in fact I am thrilled that you are thinking and asking questions.That day when I am going to get bugged by a sincere student,will never come!

All the best!
Saint

 

[Saint]

Just a few charts..........

Below is the chart of POLYPLEX CORP just denoting how the trendlines are drawn.

The Uptrendlines therefore act as Support,once cracked to the downside,notice how the Downtrendlines act as resistance.

In what way does this knowledge help us in our trading?We detect a change in downtrend,and we enter the stock,once again using all that we have learnt so far.The trendlines allow us to stay in that trade as long as the trendlines hold.

The moment we get a close below the Uptrendline,we are out.If you are looking to short,wait for a feeble rally towards the former uptrendline.That's an area to short.

Vice versa for the downtrendlines.......Have a look at the 2nd chart of POLYPLEX,self explanatory.

Happy Trading!
Saint

 

[Saint]

Another thing that one has to keep watch for is the gradient of the pullback.Take a look at the chart of BEML.All are pullbacks before the stock moved on to new highs.But look at the angle of the present pullback.Not saying that BEML will not see new highs,but that BEML will take more doing unlike before to see new highs again.

All the other pullbacks,BUY the declines.But pullbacks like these,best to stay away until it does something that will make us interested again.

Happy Trading!
Saint

 

[gandharvashu]

Hi Saint!

Nice again. Again trying to help others.