Trading With CrossOver And BB

[cnbondre]

Savant sir Ji,

Thanks for your comments on Aban. I will hold my Aban 245@ Rs.722 till your sell signal.

cnbondre

 

[Sunny1]

Hi Savant, thanks for the reply
Forgot to mention thaT I have taken only first entry and others are just paper trades.
also forgot to mark last exit. Can you guide stop loss for each entry , that will be helpful.

Also is there any method to know that crossover is valid or not?
because sometimes am not sure whether to enter or not.

Sunny,

a) First LONG Entry Is Correctly Taken & Exit For The Same Should Have Been
Any Of The Previous Bars Which Had Pierced Upper BB Than The One Marked.

b) Second LONG Entry Is Also Perfectly Executed, But Am Not Sure Regarding
Your Marking 'Short' Because That Should Be Marked Exit Of Earlier Long
Entry.

c) Your Last LONG Entry Is Also Correct, Since You Have Not Marked Any Exit
& Your Query Of S/L Means You Are Holding The Long Entry For Monday.
Therefore, Your S/L Would Be Bearish Crossover For This Or Alternatively
LOW Of The Entry Bar, Whichever You Prefer.

Happy & Safer Trading

SavantGarde

 

[SavantGarde]

Sunny,

While, No System Can Predict BUY/SELL With 100% Accuracy, There Are Things With Crossover That One Will Only Learn Through Practice & Observing & Fire In Your Belly..

a) Shape Of SMAs Before & After Crossover

b) Once You Have Gained Some Insight Into A Particular Stocks Behavioural Pattern With Relation To Crossover, You Will Be More Sure Footed In Your Entries & Exits.

S/L Is Very Subjective & Can Be Based On Risk Per Trade, Risk % Per Trade & Etc..... But If You Want To Follow S/L Based On Crossover Then A Bearish Crossover Should Be Your Stop Loss.

Happy & Safer Trading

SavantGarde

Hi Savant, thanks for the reply
Forgot to mention thaT I have taken only first entry and others are just paper trades.
also forgot to mark last exit. Can you guide stop loss for each entry , that will be helpful.

Also is there any method to know that crossover is valid or not?
because sometimes am not sure whether to enter or not.

 

[asnavale]

Hi,asnavale,

Thanks for your graph on Aban (06/06/2009).
What shall we expect on monday? looking at yesturday's close of 1008.15 on BSE.

CNB

Hi CNB,

Savantji has already answered your question. All that is correct as of upto today's chart. I would like to add these additional observations. For this I have attached three charts:

1) From first chart, SMA5 has already crossed below SMA6 on 11-06-09 and price is below SMA9. The BBs are narrowing. For the last six days ABAN is closing lower and lower. Price is likely to go down further
2) From second chart, EMA5 has gone below EMA6 suggesting continuation of downward movement.
3) From third chart (based on linear regression) the close is approaching the sell trigger line (or you can call it trailing stop loss line). The trigger would be activated if ABAN closes below 996 on Monday.

I can infer this much from the current status of the chart. However, market can throw surprises and throw out all our conclusions and expectations.

Regards

-Anant

 

[cnbondre]

Hi, Anant

Thanks form the bottom of my heart to you & Savantji for the explainations on Aban. I am always facinated by charts, but can'nt read it. Charts posted with explaination is a great interactive and long lasting learning experience.

CNB

 

[columbus]

-Anant

Anant,

Good charts ,take care they are elongated in y-direction.

 

[asnavale]

Anant,

Good charts ,take care they are elongated in y-direction.

Hi Columbus,

The charts are not elongated vertically. Only relevant portions were cut and pasted from full screen charts. However, I will keep in mind the point so that in future the charts appear proportionate.

Thanks for the suggestion.

-Anant

 

[SavantGarde]

Hi Anant,

Ever Since You Brought Up The EMA, My Mind Has Been Buzzing On This & In My Quest For Things Simple, I Am Posting This Chart Of ABAN Based On Just One Single EMA-20.

Your Opinion Shall Be Of Great Importance, In Taking This Forward.

Happy & Safer Investing

SavantGarde

 

[SavantGarde]

Hi Anant,

Missed Mentioning In Earlier Post....That I Usually Start With A Single Squiggly To Build On....

Happy & Safer Investing

SavantGarde

 

[SavantGarde]

Hi Anant,

Something Else That I Noticed On The Chart Of ABAN Posted By You, Is The Inverted 'V' Shape Of The Upper BB, Now The Question Remains Whether We Shall Witness As Big An Inverted 'V Like The Earlier One...But On The Earlier One Price Hasn't Corrected As Much As The Present One.

Happy & Safer Investing

SavantGarde