Trading Strategies Using Technical Analysis

[rajeabc]

I respectfully disagree SM.

Markets always oblige the majority. It only obliges the minority when it is about to turn. Had former not been the case, the phrase trend is your friend would be of no value.

Tc

Raunak ,

Do we really need majority(head count) to decide the trend ? or majority follow the trend ?

If FIIs and DIIs are bullish then can retail investors/or few small broker who are giving call to short Nifty turn the table ?

I always trade the trend and with a stop loss (learned on this forum only)

 

[darshanmantri]

Nice Explanation. I liked it. I am new for trading, Please tell me how to start, i mean from where u get graphs? and all?? i opened my account in Sharekhan. so how to get graphs? MA? Volumes, and other things.

 

[Apurv7164]

Buddy, tatamotors had a extra ordinary news event today. It did not follow the resistance area. It blew off all shorts. Generated good volume in the candle.

That's how analysis goes, some of them will be wrong. Nothing can be done. You were right.

Happy Trading!

No buddy... market it always right... Expect the unexpected that is the game of trading...!!! I m lovin it...

 

[Apurv7164]

Friends,

In my personal opinion and experience, we should never ever combine TA with the FA... I know I am challenging style of many people here including our most senior and experienced guru like Raunak... Please don't take it personally guys...

Here are my points -

1> When we combine TA with FA in our decision of trading, many times we end up converting our trading call into investment...
2> Many times we can't follow - "Plan your trade and trade your plan"
3> Many times it happens that something looking extreamly good on chart but fundamentally company is scrap, we dont trade and ultimately we r missing opportunity

I only mix those 2 aspects in the case of investment - if i want to invest in something, i wud use TA for the right entry time...

Folks, please dont take my challenge personally, challenging ur opinion or way or stlyle is not to be offensive, it is just raising one more point for brainstorming...

Brainstorming is the best to get rid of -ve,
Apurv

 

[rajeabc]

Friends,

In my personal opinion and experience, we should never ever combine TA with the FA... I know I am challenging style of many people here including our most senior and experienced guru like Raunak... Please don't take it personally guys...

Here are my points -

1> When we combine TA with FA in our decision of trading, many times we end up converting our trading call into investment...
2> Many times we can't follow - "Plan your trade and trade your plan"
3> Many times it happens that something looking extreamly good on chart but fundamentally company is scrap, we dont trade and ultimately we r missing opportunity

I only mix those 2 aspects in the case of investment - if i want to invest in something, i wud use TA for the right entry time...

Folks, please dont take my challenge personally, challenging ur opinion or way or stlyle is not to be offensive, it is just raising one more point for brainstorming...

Brainstorming is the best to get rid of -ve,
Apurv

Apurv ,

Thanks for a long post. But, sorry to be rude , I could not understand what you want to say ?
Do you mean if we see a SELL SIGN using TA and next day there is some improvement at fundamental side and stock jump 5-10% even then we should sell as we had sell trigger ?

Please correct me .

 

[Apurv7164]

Apurv ,

Thanks for a long post. But, sorry to be rude , I could not understand what you want to say ?
Do you mean if we see a SELL SIGN using TA and next day there is some improvement at fundamental side and stock jump 5-10% even then we should sell as we had sell trigger ?

Please correct me .

No buddy,

I meant to say is when we r planning our trade for trading, we need to stick to TA and shud not look at FA...

In your example - if we sell short and tomorrow we see some news coming about fundamental improvement, we don't need to still sell short further but we need to look at our initial technical plan.... in most cases, technicals and charts run ahead of fundamentals. If my trade does not hit stop loss, i usually stick to my trade unless it is taking unusually long time to run in my favor (example brandhouse, it is not hitting SL and neither it is moving in my favor....)

What i mostly do is, I most of the time don't even look at CNBC or any other business channels.. trust me, 99.99% of the time, i dont even know what company does (when i m analyzing for technical trading).... I surely study fundamentals when i have something for investment....

It may be only personally to me but mixing those two methods have always confused me... i have many examples of past wherein i bought something for short term trading and looking at their fundamentals i converted them as my investments... and as a result i many times got into liquidity crunch...

let me know if this clearifies your doubts...

 

[Apurv7164]

my recent example - trading in HFCL... if i had looked into fundas, i wud never have traded... when i happened to talk to my dad about this trade of mine, he told me how bogus this script is... i said whatever it may be, i liked it for short term swing and i traded and made 10 % profit...

 

[rajeabc]

No buddy,

.. in most cases, technicals and charts run ahead of fundamentals.......
.....

let me know if this clearifies your doubts...

Thanks Apurv ,

I strongly disagree with your above line. How is it possible ? How can an output lead input ?

news, economics data , fundamental of stocks are inputs which go to primary TAs mind (expert) and the TAs take action based on these inputs. And then all small TAs, experts follow those out come after observing the change in form of technical output.

Technical Indicators are based on old data then how can they lead ? DATA lead technical Indicators.

 

[rajeabc]

my recent example - trading in HFCL... if i had looked into fundas, i wud never have traded... when i happened to talk to my dad about this trade of mine, he told me how bogus this script is... i said whatever it may be, i liked it for short term swing and i traded and made 10 % profit...

why did you trade ?

 

[Apurv7164]

Thanks Apurv ,

I strongly disagree with your above line. How is it possible ? How can an output lead input ?

news, economics data , fundamental of stocks are inputs which go to primary TAs mind (expert) and the TAs take action based on these inputs. And then all small TAs, experts follow those out come after observing the change in form of technical output.

Technical Indicators are based on old data then how can they lead ? DATA lead technical Indicators.

Usually, all the economic and fundamental developments are known to certain insiders well in advance which we call smart money... i mean they know it well before news get published/released in market.... Smart money start flowing in or out in other words they take action before news is declared.... and that action can be cought on chart.... I personally believe that chart is way of being ahead about internal developments... all the positives or negatives are plotted on chart before news come in public... my opinion, may be not correct....