Technical Analysis - Practice trades

[aryabhatta]

imho there is zero chance of success with this methodology. Lines criss-crossing, shooting stars and flying saucers are unproven methods and have no credible long term performance records, other than in books which give some small sample results. Moreover trading the markets is hard enough but employing subjective techniques is even harder (imho) simply because disciplined execution will be difficult to implement without clearly written rules especially when your emotions are tested.

MACD crossoevers, trendlines broken or tested with cups and saucers have no statistical relevance and without well defined rules can not be tested.

Imho save your time and expend your effort in something else

 

[mindgames]

AIRTEL

Was looking to trade the RSI vs. Price divergence. Short @ 423.35, on the long red candle. There was also a bearish engulf here.

SL hit today at 443.5.

Couple of mistakes:
1/ This was a very long red candle - leading to a very large SL
2/ Uptrend line hadn't been broken - A mistake I made at the time of entering the trade was that I drew the TL from another point which made it look like the TL had broken on the red candle.

Coal India

The divergence worked this time.... (did not trade it this time).

 

[mindgames]

Trading RSI divergence....well, it works either way...

COAL INDIA

AIRTEL

 

[mindgames]

ASHOK LEYLAND

Price - RSI Divergence

 

[prst]

Is the rsi forming a double bottom ?

 

[mindgames]

Is the rsi forming a double bottom ?

Aha! was tracking the bearish divergence for the past week and missed this new divergence completely...

As for RSI double bottoms and tops, I have no clue whether they have any relevance.

Theoretically, I understand a bullish divergence occurs when price forms a lower low while RSI forms a higher low.

Here price is forming a higher low while RSI is approximately at the same level. Stockcharts.com talks about "Positive-Negative reversals" here (although IMHO, this chart does not appear to satisfy all the conditions convincingly):

http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:relative_strength_index_rsi

Does anyone have any experience with this?

 

[mindgames]

..........

 

[mindgames]

HAVELLS

1/ Higher price swing, lower RSI-7 swing. Bad trade.

2/ Still higher price swing, lower RSI-7. Good trade.

 

[timhuang]

thanks for posting these stock charts, they are really helpful to learn how to trade well.

 

[mindgames]

RAMKY INFRA

Another one for study....