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

[jamit_05]

Hi Amit

This is Sanjib. I have been visiting this forum since february and its been a really good learning experience (which happens obviously when we come in contact with pros like you and Saint and UAshish.

San

First things first... me is not a PRO... actually far from it. But, temporarily I might sound like one. And let me assure you that it is only an effect of attentively listening to the REAL PROS for two days.

Hi Amit

Now if you can bear with some of my stupid questions...

With ref to your chart, could you please explain why the exit came @ 1875. Am still trying to get a hold of the "Pivots".

Thanks

San

Exit was at 1875, since it was a pivot low.
To know what a pivot is and why we exited there you will have to sincerely read this entire thread.
To start off you might want to download pdf of ECKO <good work dude>

 

[benwae]

Dear Saint,
I am a new member and also a newbie. I hope by joining your forum will improve my knowledge and skill in stock trading. Thank you for welcoming my membership.
Best regards
Wong Benwae

 

[myvineet]

It was indeed a great pleasure to have met up with you.....and totally agree with SGM,a 1000 charts,maybe more....and everything just springs out of the charts.....yep,occupational hazard is sore eyes,but worth it!!

Just to clarify that one point........what does the word"guideline" or "definition" mean?

Either way,what I mean is ivot high is at 100,meaning my entry IS at 101 as per my filter given.

It's rigid,it has to be like that every time,again and again.......there is no compromise,the entry is there always,stop loss always below the previous pivot lows........Everything is a hard and fast rule,will not budge from it!..

All the best!
Saint

what a words of wisdom!!!...write it & paste it on my pc table

no words are enough to thanx u boss...

regards

 

[Reji]

Great stuff Amit,

Thanks for explaining it with clear points marked. It cleared my doubt about Pivot with more clarity.

Hello Saint, based on your teaching today I have tried to Fish 'Kaushalya Infrastructure', would keep a watch on how it goes. My entry was at 37 and stoploss at 28.

Thanks once again.

Kind regards,
shrineha

Dear Saint,

I refer to the above post by Shrineha. Considering the "low volume"of this scrip, I presume you would avoid this one. Kaushalya being in the downtrend for some time, had it been better, if he could wait till the previous weekly pivot high of 40.85 to be taken out to enter?


Regards

Reji

P.S. Congrats.You joined the "5000"Club

 

[shrineha]

Hello Reji,

Interesting comment. The reason for me doing this trade was on the daily chart 4 white candles in a row with low of 3rd high candle taking out the high of 1st candle and 4th one moving higher. Also one high volume day with upmove on 4th of April. but in the restrospection I think you are right that I should have waited for additional confirmation about taking out of previous pivot high.

Just curious on what kind of filter you guys apply when it comes to volume? How much volume is high volume, how much much is medium volume ?

Are low volume stock always strict 'no no' when it comes to TA?Apologies if repetition of questions.

Apologies . still do not know how to post a chart.

Kind regards,
Shrineha

 

[Tapaswi.S]

Right-on Tapaswi......and yes clear divergences.....and a host of other factors to be considered as explained earlier.......may chug on a bit more,or maybe not.....But personally,I would pass on this one.

Saint

Thanks Saint,
I went through you posts above regarding RELAGRO, Got your point.

Best Regards,
Tapaswi.S

 

[Tapaswi.S]

I think I have angered you with all the wrong explainations of your theories, will try to dig deeper into your theories and will keep my mouth shut till then.

Regards

Dear Prabhjeet,
just look at the photograph of saint. can this man ever get angry??? never ever

Tapaswi.S

 

[Saint]

Too much has been said without understanding too little. Let me take some time to explain whats the essential difference b/w how I would and Saint would be different.

Accoding to Saint whenever a Pivot low would be cracked on shorter term chart ,we will look at longer term time frame and if the trend is up we will just get out of long trade and wait for pivot high to be taken out before going long again, but according to my strategy we dont wait for pivot high on shorter time frame to be taken out again instead we take the position on long side as soon as previous bar high is taken out on short term chart. Low of the last bar is taken as stoploss.

No harm in that provided you are trading the intermediate uptrend........that is the weekly charts.There is a difference in the way weekly behaves and the daily behaves.......Let's get to it.In a monthly uptrend,weekly goes into declines and on to newer highs,only every now and then a downtrend.But if you are trading the daily charts looking at the weekly as perspective........then that method does not work.Too much of ins and outs as we try to guess and anticipate entries.

No harm though if you don't mind losing quite a bit in brokerages and overtrading to get that absolute bottom.......but can get very painful after some time.

To reiterate:

TRADING THE WEEKLY-----LOOK AT MONTHLY UPTREND------YOU ARE LOOKING AT WEEKLY DECLINES TO ENTER,MEANING THE MOMENT THE PREVIOUS BAR'S HIGH IS TAKEN OUT,WE ARE IN.

TRADING THE DAILY-----LOOK AT WEEKLY UPTREND-----YOU ARE LOOKING AT DAILY DECLINES,BUT HERE YOU ARE NOT ADDING THE MOMENT THE PREVIOUS BAR'S HIGH IS TAKEN OUT,YOU ARE INSTEAD WAITING FOR PREVIOUS PIVOT HIGHS TO GET TAKEN OUT TO ENTER.

WHY?That's the way longer time frames behave.....and this is the way shorter time frames behave.

I have not been advocating too much about weekly trades purely because I don't think the risk can be managed by the readers of this thread who are usually the beginner..........There really is no harm in doing so if you can manage it.

This strategy has an advantage of taking much less riskier
entries but the disadvantage is that we will get caught in many false moves.

Actually if you are talking about trading the weekly charts,more or less correct........but very wrong if you are trading the daily charts.....You are putting money at great risk by anticipating an entry in a dntrend,and of course the very many false moves.

For anyone thinking that I have just jumped the gun without understanding what Saint has taught, plz. be assured that I have read Saint's all the teachings atleast 5 times and was trying to just put few of my modifications to work. Though I will like to add that my modification is not as good as original and everone should follow Saint's strategy only

No harm in adding,modifying,changing and finally making it yours..........

There was another question asked somewhere by JAMIT that why I have taken 10% filter for pivot cracks, well the reason is that there are many bull and bear traps for smaller traders and I have tested it myself tht 10% filter has allowed me to stay in many times during false moves, will illustrate it using charts given by Saint

I would never use the 10% filter simply because I want to get out if pivots crack.......As said before,I do not want to second guess the market.Pivots crack,I'm out......If fake-out,will look to reenter....so no question of filters,etc.But no harm in trying out new things though.....

All the best!
Saint

ps:Sorry for the caps above.......they are meant to emphasise the point.

 

[Saint]

I may be wrong.....don't take offence. But I thibk, there's nothing called false pivot crack. A pivot crack is a pivot crack.....we shud take it as a warning. A warning that downtrend may begin.....Now since it's a warning only....downtrend may as well not begin right after the pivot crack and the price may tend to go up. But it's for our own safety.
Well some of you may say that......since price is sometimes going up even after a pivot crack....we shud not exit.......well if you spot higher low and higher highs even after a pivot crack...u can re-enter.....it'll cost only the brokerages......but that's worth it...i think .......specially if you consider the safety and the soundness of risk-management that this strategy provides.

Now dear prabhjeet, to answer your querry......u shud exit at all black arrows.....giving disregard to those red arrows. I remember Saint reiterated many times that stoploss hit shud be paid regard to. Now red arrows are also stoploss hit cases...so we shud respect those and exit......remember, it's a system generated exit strategy...your system is giving u warning signals.....so better u shud follow it...isn't it?....

Cannot add more to the above......Agreed,DJ!

Saint

 

[Saint]

Presuming I am a Weekly Chart Trader.....and I want to look to enter ABAN OFFSHORE.....I look at the Monthly Charts,I see a breakout,.........now I look at the Weekly charts,and I try to buy the moment the weekly decline is arrested and starts to rally.....I am not waiting for new pivot highs.

All the blue arrows are pivot lows and declines and will try to enter once price starts to shoot off,usually signified by taking previous bar's high,or above the high of a sideways consolidation.

Saint

ps:This chart is only telling pivot lows and possible entry areas.