Trading Strategies Using Technical Analysis

[stumper]

.....What does Candlestick or for that matter any formation depict?

.....They depict the level of Demand and Supply in the market.

Correct. Ultimate objective of any analysis is to measure shift in Demand&Supply. Volume does allow me to spot out a fakey... but most of the time it is not usefull in gauging the shift in demand and supply (I mean, a spike in volume need not reveal anything at all). Then again, my comments are more biased towards day trading.

Can demand and supply be accurate in absence of volumes?? I think you know the answer to this.

Depends. For me, a Day trader, it does not, with the way i trade. Then again, for some day traders, who heavily reply on T&S, volume is what they look for in the price ladder. Again, my views are limited to my experience as day trader.

 

[Apurv7164]

Hello Apurv

My personal view is that Candle bars by themselves do not give us any edge. You need to interpret the duration "before" and "after" a candle pattern as well. I feel, a candlestick entry signal needs to consider the price action that occured before that specific candlestick and needs to be confirmed with the bars that occur after.

For example: That Doji, had it occured near that downtrend, would have indicated me to wait for a bullish signal. That bullish signal could have been a white engulfing bar (Have attached my own addition to your chart).

Hope i was able to make sense.

I agree Stumper that next day and prebious move is very imp. However, i think that is true when normal doji occurs after down trend. Here we have long legged doji that too without having any tail or shadow above it. I try and interprete this way, stock opened high then some supply came which was eventually got absorbed and then again it went up closing at high of the day which is opening also.... I may be wrong... just my thoughts...

 

[Apurv7164]

Apurv,


Where are the volumes ??


What does Candlestick or for that matter any formation depict?

They depict the level of Demand and Supply in the market. Can demand and supply be accurate in absence of volumes?? I think you know the answer to this.

As a filter any stock below weekly average of 1,00,00,000 over period of 1-2 years is not worth looking at.

Tc

Sirji, again this is one of my weakest point and i never understood volume theories...

people say volume should be low during consolidation... i say why? Do you not think that somebody is accumulating stock and hence volume is high?

People say, extream high volume in downtrend is trend exhaution, i say why cannot it be possible that somebody has aggressively built fresh short positions? same applicable for uptrend...

say for example - doji with high volume on after down move... people say demand came at downtrend... i say why can it not be possible that I silently added my short position at opening and then i left stock for public... my this added short positions created high volume....

I m always confused on volume and have always had failures...

 

[SwingKing]

Sirji, again this is one of my weakest point and i never understood volume theories...

people say volume should be low during consolidation... i say why? Do you not think that somebody is accumulating stock and hence volume is high?

People say, extream high volume in downtrend is trend exhaution, i say why cannot it be possible that somebody has aggressively built fresh short positions? same applicable for uptrend...

say for example - doji with high volume on after down move... people say demand came at downtrend... i say why can it not be possible that I silently added my short position at opening and then i left stock for public... my this added short positions created high volume....

I m always confused on volume and have always had failures...

Dear,

What you think about volumes is not entirely wrong. Volume interpretation in itself is like a different "Field". This is how vast it is.

What I was saying is that don't apply theories on illiquid stocks. Pick liquid one's. Keep volume rules as simple as possible. Regarding volumes, listen to what father's of TA say. Hope you get my point.

But, Stay Liquid.

Tc

 

[Apurv7164]

Dear,

What you say think about volumes is not entirely wrong. Volume interpretation in itself is like a different "Field". This is how vast it is.

What I was saying is that don't apply theories on illiquid stocks. Pick liquid one's. Keep volume rules as simple as possible. Regarding volumes, listen to what father's of TA say. Hope you get my point.

But, Stay Liquid.

Tc

Oh I see what u saying... I am sorry, it was my bad... yes, I can surely follow that I wud apply theories and methods on liquid stocks only...

 

[simple_trader]

Sirji, again this is one of my weakest point and i never understood volume theories...

people say volume should be low during consolidation... i say why? Do you not think that somebody is accumulating stock and hence volume is high?

People say, extream high volume in downtrend is trend exhaution, i say why cannot it be possible that somebody has aggressively built fresh short positions? same applicable for uptrend...

say for example - doji with high volume on after down move... people say demand came at downtrend... i say why can it not be possible that I silently added my short position at opening and then i left stock for public... my this added short positions created high volume....

I m always confused on volume and have always had failures...

It works as support in most of the cases. At the same time, all big crashes start with the same doji.

Happy Trading!

 

[SwingKing]

List of Futures Stocks which will be good for day trading

Sobha Developers
Ruchi Soya
Videocon Industries
Apollo Tyres
Uco Bank
Opto Circuits
IndiaBulls Real Estate
HDIL
Moser Baer
India Infoline
APIL
Sesa Goa
Suzlon
IVRCL
IFCI
Aurbindo Pharma
Tata Chemicals
Patni
Syndicate Bank
OBC
BOI
Maruti
Tata Motors

Kindly pick the direction of trade.

Tc

 

[SwingKing]

Apollo Tyres Future entered at 68.3

SL 67.4

Tc

 

[rrmhatre72]

Apollo Tyres Future entered at 68.3

SL 67.4

Tc

Hi Raunak,

What is the target?

 

[simple_trader]

Raunak,

I do not use PM intentionally. I have enabled it just now. You may send message.

Raunak,

Feel free to PM me. It is privilege to receive message from you .