Trading Strategies Using Technical Analysis

[SwingKing]

Raunakji & Other experienced members...

I have seen today many discussion on closing price. I have one question unanswered since long (I mean never gotten any satisfactory reply). Why do we see bar chart which is OHLC when we want to emphasis on closing? Why not line chart (which is chart of closing price)?

Apurv dear,

It is about viewing and analyzing prices for holistic view. Closing prices do not represent the entire day's/week/months/sessions price structure and demand/supply. Its just better this way.

Tc

 

[SwingKing]

Jack Daniel???!!! I do not like it.... U got to find some other brand for me when I am in India...

Sure dear. Anything you want.

Tc

 

[SwingKing]

Raunak, hope you can answer this over the weekend when you have time.

Should we begin accumulating Tata Steel on Monday? It is not at historic highs so it seems that with the excellent results, it could move up significantly over the next week? Thanks.

Trader_man,

Everything depends on what happens on Monday. Need to see how it opens. I'll post it in real time.

Tc

 

[SwingKing]

Raunak Bhai,

What about SAIL ?
191.60 - Is this a good rate to buy ?

Thanks,
Jagan

I won't be looking to go long in this stock for swing trades.

Tc

 

[SwingKing]

Hi Raunak,

What's your take on these stocks from swing trading perspective?

BAJAJHIND bought at 139.15
CHAMBLFER bought at 98.20
IFCI bought at 77.65
JAGRAN bought at 131.40
KSOILS bought at 61.50

Thanks.

Unfortunately, I am not tracking any of them for Swing trade. But I feel sugar stocks should be good to swing trade.

Tc

 

[SwingKing]

Raunak Sir I scared a lot. Please help

What to do with Tata Steel futures?

will it open 20 30 40 % higher ?

There might be an opportunity to go long on the Tata Steel futures in the morning after the gap-up retraces a little bit. Looking forward to Raunak's views on Tata Steel. Thanks.

Adi,

Do you know what type of trader/investor you are. You seem to be too bothered with this trade. Look dear, world is not going to end on Monday. Hence, stop worrying about Tata steel. Luckily the global environment is not that supportive, and hence whatever upomove will happen in tata steel will be subdued in comparison to if markets were extremely strong. Stock will still gap up, but the quantum will be comparatively less. If there is more negative news from China on Monday, then gap up would be largely subdued. Hence, lets see what happens.

Adi, I feel either you are under capitalized or you are not suitable for swing trading. Now, I want to tell you & others something. In no way shall this be misinterpreted as a self promotion on my part of being a great trader. But I think this is important.

Do you know how many contracts I am short on Tata steel? I am short 14 contracts on Tata steel. This means, my losses are going to be 14 times more than what you will suffer. And yet, I have enjoyed and not thought about what is going to happen on Monday. Markets are beyond our control and what is within our control is our ability to manage ourselves. Hence, this is what I am doing.

What will happen on Monday has nothing to do with what will happen on the longer run. In trading, every trade is mutually exclusive of what will happen to the next trade (in terms of result). Hence, just relax and wait for what the screen shows you. As I mentioned earlier, whatever losses we make, will be recovered.

Tc

 

[SwingKing]

Re: Rectangle Pattern

with great gratitude i would like to thank you for the way you have tried to explain the technical analysis patterns. very interesting and informative. by the way while joining the EOD data for the rectangular patterns or any other patterns whether we should join only the high/low tick of the candlestick or the body of the candlestick. hope i am clear. kindly guide me.

by the way is Tata steel shwoing signs of a cup and handle formation

Thanks for the kind words Umesh.

There is no hard and fast rule for this. Just narrow down a band for identifying rectangular/box trades. Even if you identify a trade which does not fit in the exact highs or lows but looks visually effective, try and trade it.

Tc

 

[MurAtt]

Tata steel Futures has been shorted as mentioned before. Trade price average is between 614 - 616.

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Tc

Adi,

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Do you know how many contracts I am long on Tata steel? ... deleted ... [for better visibility of highliged text]

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Tc

Sorry to poke in Raunak .. thoda slip ho gaya aap se typing me ...

 

[SwingKing]

Sorry to poke in Raunak .. thoda slip ho gaya aap se typing me ...

Have corrected it SM Bro.



Tc

 

[gauharjk]

Raunak Sir,

I want to share my story of blunders that caused great losses...

I was a big fan of Irish Hedge fund manager Hugh Hendry in 2009 and followed his views closely on Youtube. He had predicted a Mega Deflation in prices after which there would be Hyper-inflation globally. Sensex had fallen below 9000 levels. Hugh Hendry predicted that deflation would be so massive that Gold would fall to $550 an ounce. At that time, he would buy as much gold as possible and ride the hyper-inflation that was supposedly going to take Gold to 3000$+ levels.

See his video - Mega Deflation First, Hyper-inflation Later - http://www.youtube.com/watch?v=vXCJOBUpMuI

So, I sold all my father's stock in March 2009 and waited for this mega deflation. But it never came. My dad never forgave me for it... the market kept going higher even though US economy is still in deep ****. Unemployment rate kept going higher, housing prices in US kept falling, but the stock market kept going up, thanks to the Trillions of Dollars of Quantitative easing by the US Federal Reserve.

I am a follower of Free Market Austrian Economics ( http://www.mises.org/ ), which predicted a global depression. So, instead of buying valuable shares at super-low prices, I kept waiting in cash.