Trading Strategies Using Technical Analysis

[crown]

@Crown

This formation is called a Flag-Pole formation.
The previous rise being called a Pole and the current consolidation as Flag.

B/o from this formation would be above 284 wherein target would be calculated as the size of the pole i.e. roughly 100 pts.

Taking of position would/should have been at lower TL of the flag so as to minimise risk (SL being the lower TL) in case of a failure. In case of b/o and retest at least you have some % margin protection.

Hope this clears your confusion wrt this pattern.


Again there are many patterns in TA and all have mostly target of 100% from b/o levels. Only thing is you need to know which pattern and what to calculate for target i.e. Pole length for Flag Pole, Head height in HnS, Cup height in CnH, Triangle height in Traingle, etc.

For that you can visit investopedia.com and look around ...

:cheers:

Thanks SM bhai

I have tried calculating the targets with the help of chart patterns like flag, rectangle, triangle, wedges, pennants, cup & handle etc. But my problem is many times (around more than 50% of the time), the target is never met. May be because of myself choosing wrong scripts or some other reason. Like in this chart, if I calculate the target with Flag Pattern, it will be around 380. But that will be only operational if the price violates the resistance and keep moving up. Because, I have taken the trade in advance I don't know how to deal it.

And SM bhai can you please shed some light on the another issue also.

Further, the very painful problem is the level of buying the stocks. When I decide to take long trade in a script, I dont know how to handle it during the next day, when market opens. What I do, is to buy the script at whatever price it is available (which many times around 2-4 % more than the closing price on which basis I decide); therefore, it is eating most of the profit, which should have been there if I would have been able to enter the trade at appropriate level. Because, many times the script comes down around 2-4% and then I have to wait with tensed mind.

Thanks bhai for taking the pain

 

[MurAtt]

Yes Crown .. it happens ....

b/o s generally have a retest .. and that is where you should enter.

See DLF chart ... 348 was b/o level. Came to 348 y'day and today see .. 365/- again.

I was waiting for entry and it never came to 348 in the next 2/3 days .. so left it.
Y'day it did come BUT my mind was elsewhere .. though I did trade DLF today BUT that was intra based from 349 to 363.

Same with RCap .. see the b/o and then no retest .. BUT y'day it retested b/o levels and today bounced again.

So we have to be patient and this patience HAS TO BE cultivated else our entries and exits both will be wrong.

Again, sometimes we just miss it .. and since the scrip is very strong it may just move on after b/o .. happens .. can't help it .... all part of the game ...

We win some .. we lose some ... just make sure that the ones we win are more than the ones we lose

:cheers:

 

[dp33770]

Hi ,
I am going through the entire thread since past 4/5 days but as more I read I gets more confused.
My aim is to keep a trade for 10 to 20 days (Maximum a month). Could you please suggest few below thinkgs for me.

1. which chart shall I use( Candlestic 30 Min, Daily etc)
2. As there are lot of strategies which are mentioned here which will suit my requirement more appropriately ? So that I will try to learn tht effectively.
3. Do I need to consider only High priced/High volumes Stocks ?
4. Is there a way where I can see which are the stocks eligible to trade or I need to monitor all trades on daily basis to identify if any of these matching the buy criteria.

 

[SwingKing]

Hi ,
I am going through the entire thread since past 4/5 days but as more I read I gets more confused.
My aim is to keep a trade for 10 to 20 days (Maximum a month). Could you please suggest few below thinkgs for me.

1. which chart shall I use( Candlestic 30 Min, Daily etc)
2. As there are lot of strategies which are mentioned here which will suit my requirement more appropriately ? So that I will try to learn tht effectively.
3. Do I need to consider only High priced/High volumes Stocks ?
4. Is there a way where I can see which are the stocks eligible to trade or I need to monitor all trades on daily basis to identify if any of these matching the buy criteria.

Let me tell you what you are asking me to do.

You are asking me to be YOU.

Dear this is not how trading works. You must know the answers to these question. Do some work and work hard. Dont expect easy money.

Tc

 

[SwingKing]

Namaste Raunak Sir,

I have been seriously reading the whole of this thread of yours from the past two days or so. And, seriously talking, I wish I could have gone through the thread earlier before starting my own thread. Because, whatever I learned on my thread with lot of pain, has already been posted by you long time ago; and that would have saved a lot of time.

Therefore, may I take the advantage of posting my understanding of Nifty overhere and expecting your corrective and guiding comments.

Regards

Yes you can definitely post it here.

Tc

 

[SwingKing]

Which other thread bro ?

SM bro,

There was a thread "Nifty daily price analysis" in equities section. Used to post it there. Dont do it anymore.

Tc

 

[SwingKing]

Namaste Raunak Sir,

I have been seriously reading the whole of this thread of yours from the past two days or so. And, seriously talking, I wish I could have gone through the thread earlier before starting my own thread. Because, whatever I learned on my thread with lot of pain, has already been posted by you long time ago; and that would have saved a lot of time.

Therefore, may I take the advantage of posting my understanding of Nifty overhere and expecting your corrective and guiding comments.

Regards

Learning through your own mistakes is expensive, but it is also one of the most effective ways to learn. I have learned that way. Hence dont feel bad about opening your own thread. That was a bold move and you did well. Keep it up.

Tc

 

[Piuvbn]

Raunakvai(very difficult to say Raunak)
Always I am learning from this thread,everyday something new,knowing where to look for required knowledge(an example---SM vai's where to look for learning pattern in previous post),lots of thanks for all that. Also don't want to clutter the thread with my novice talk thats why stay away from replying,though sometime very hard to control the urge of conveying my gratitude to all of you and Traderji.com(like now). My best regards.
Partha Roy

 

[SwingKing]

Raunakvai(very difficult to say Raunak)
Always I am learning from this thread,everyday something new,knowing where to look for required knowledge(an example---SM vai's where to look for learning pattern in previous post),lots of thanks for all that. Also don't want to clutter the thread with my novice talk thats why stay away from replying,though sometime very hard to control the urge of conveying my gratitude to all of you and Traderji.com(like now). My best regards.
Partha Roy

Partha,

Thanks for the kind words.

The more you convey your thoughts, the faster you will learn. There is no 'novice' thought. A question is a question. As simple as that. Keep asking and keep learning. In the process, I will get to learn from you too.

Tc

 

[saivenkat]

I love u Raunakji for TITAN... I made couple of thousands....

Dear Apurv, Just as swing trade, your Thanks to Raunak is valid. Please dont mistake me, as this may look somewhat harsh a bit. He could have made one or two threads, and just give calls blankly, though we may learn blindfolded but not understand. How long will that be?

But in my View, its not for which Raunak is aiming here for that little spoon feed. Rather he wants to learn us the fundamentals, the technicals of the market, i mean the analysis part,and wants us to become self reliant. Thats the reason for him to wear the mantle of the mentor. And its the reason he takes pain to post strategies, techniques etc in between.

Think a while, Do we come and follow his thread, when he keep on posting, theories, techniques, fundamental analysis only? May be one or two, and then naturally our mind, will never compromise to have the WILL for learning, and in the process will give a pass to this thread, saying," Oh, this is no different"

But then, when the calls are given, that which is the outcome of his toil and sweat, and that are happily followed by him, guiding us in every mode, naturally the inclination to learn will increase.

HENCE, THIS bloody mind BEGINS TO THINK, "if we practice 'n follow the guidelines,one day or other why not we can become like RAUNAK"and then starts to work harder and harder towards the goal.

I don't know, what i said above suits to you pals here or not, but for me, i keep on learning and i am proud to say that my learning curve is becoming increasingly higher.

Hats off Raunak for your splendid work, so Apurv bhai, we all love Raunak for his love and care, for his sincerity and IMO, it should not just end with TITAN OR COLGATE PALMOLIVE.

Regards
Saivenkat