Trading Strategies Using Technical Analysis

[enigmaticme]

Hello everybody,

I'm a little confused regarding TA in low liquidity stocks or you can say when a stock is consolidating in a narrow range with low volumes.

Problem:
When i see chart of such script is doesn't show actual open/high close.. eg the usually open very high or very low compared to actually price prevailing in the market.. is it appropriate to take it as it is or should i remove whipsaws and the apply TA..

http://img35.imageshack.us/img35/2396/visaka.jpg

Thanks,
enigmaticme

 

[SwingKing]

Hello everybody,

I'm a little confused regarding TA in low liquidity stocks or you can say when a stock is consolidating in a narrow range with low volumes.

Problem:
When i see chart of such script is doesn't show actual open/high close.. eg the usually open very high or very low compared to actually price prevailing in the market.. is it appropriate to take it as it is or should i remove whipsaws and the apply TA..

Thanks,
enigmaticme

Always stay in stocks which have good liquidity. Even during consolidation the liquidity should be good.

Tc

 

[Esse]

Short GMRInfra. Keep Stop Loss at 61.5 and 63 (For aggressive traders)

CMP 58.15

Target: 55 and 51

Dear Raunak,

Are you still short on this counter (GMR Infra) or have you covered the positions. I was asking from the view point that I wanted to short this counter now. Is it advisable? Pl oblige

Thanks
Esse

 

[SwingKing]

Dear Raunak,

Are you still short on this counter (GMR Infra) or have you covered the positions. I was asking from the view point that I wanted to short this counter now. Is it advisable? Pl oblige

Thanks
Esse

Esse I had exited the counter around 56.3 levels. It was low on volumes plus it was not volatile. Hence got out from it.

Tc.

 

[classy]

nice post .how can i get afl?plzzzz give afl to use it

 

[Esse]

Dear Raunak,

I am 2 lots short on the nifty at 4900. Could you kindly advise as to what should be done at this point of the mkt.
Thanks

 

[SwingKing]

Dear Raunak,

I am 2 lots short on the nifty at 4900. Could you kindly advise as to what should be done at this point of the mkt.
Thanks

Esse,

Had I been in your shoes, I would have kept a stop loss of 5110 (conservative) and 5180 (if aggressive). We are in high volatility environment and hence stop losses need to be wide. You are in the right side of the market and moving up would require a lot of buying. As of now, data still favors short trade.

Hope this helps.

Tc

 

[SwingKing]

nice post .how can i get afl?plzzzz give afl to use it

What are you looking for Classy. Can you please elaborate.

Tc

 

[widewings]

Hello Raunak,
How r u? Thank you for your support. Like I said, 10EMA, 20EMA and 50MA and standard MACD settings are working fine in 5 min. chart for intraday in nifty. Just one thing to clear. As I enter into a trade on crossovers, when shall I exit or reverse the position? It gives good points. But when I hold the position, sometimes loss. What should I do? One thing is for sure that when there is a crossover, it definitely gives points. 100 out of 100 TIMES. Just dont know when to exit. Which indicator should I use to exit and how???
I am using http://www.bazaartrend.com/ live chart. Now I have decided to go for Amibroker. Can you please help me with the AFL for this? Which create Buy/Sell signal with these settings? I tried to modify the AFl you posted but couldn't do it. Please help me with this.
Thanx a lot again.
Anurag

 

[SwingKing]

Dear Adi and Widewings,

Either keep a fixed target (range of 30 - 50) points or use trailing profit protection of price crossing and closing above the 10 EMA or 20 EMA in volatile conditions. Hope this helps.

Tc