From very long days this support is
working very crucial all the time. Before market makes a big move we have seen this
type of violation as I have pointed it on my charts. I am bullish on market until
the market maintains a bullish trend. Recently MACD was unable to give a
positive signal, yet I am bullish because I feel market is likely to follow trend
line.
Disclaimers: This is completely a Knowledge based and Doesn't Contain any "Buy/Sell Tips".Stocks mentioned in this article are not to be viewed as recommendations for buying or selling."They are experiments" and they can move in either-way.
Showing posts with label Technical Analysis. Show all posts
Showing posts with label Technical Analysis. Show all posts
Sunday, March 18, 2012
Monday, March 5, 2012
Saturday, March 3, 2012
Trading Triangles-Introduction
Triangles are some geometrical figures which are formed on
charts. Unlike triangles having 3 point of contact, triangles in technical
charts are formed when supports/resistance and tend line to meet at a single
point.
Each triangle in charts comes with different shapes. Always
triangles are classified under continuation pattern. The world “continuation”
say that the trend is going to be same (uptrend or sideway or downtrend) and
continue to follow the previous trend.
(Technical Analysis of Financial Markets by Jhon. J. Murphy,
page no.129)
But, according to Edward and Magee in there book “Technical
Analysis of Stock Trends 9th Edition”... they classify triangles
under Reversal (Page99).
Why are triangles formed?
Its pure psychology that, a price of a stock always moves in
a trend. And a trend has two different terms those are support and resistance.
Some times the supports and resistance show some unusual variations forming a
triangle.
In every triangle
there is one constant either it is support/resistance and the price form
uptrend/downtrend forming a triangle, opposite to the constant line. (Except in
symmetrical triangle).
What are the parts of triangle?
There are many types of triangles. But, there are few things
common in them.. Those are as follows:
- Support & Resistance (SAR): Every triangle has a support and resistance. The reason for these SAR helps you in many ways. Sometimes when a triangle fail to make itself a triangle. SAR plays a very important role, by showing the path of the triangles.
- Uptrend/Downtrend line: It is one of the most important parts of a triangle because it shows the behaviour of a price action. This uptrend line also play a very important role in measuring the future price action of a stock.
- Breakout Up/Down: when an uptrend line choreograph price action to break its support/resistance. The real sentiments of market play a real role and that’s the reason why we always see for a breakout. A breakout is always seen as a conformation of an uptrend/downtrend.
- Throwback/Pullback: These are only seen when there are poor bullish/bearish sentiments in market. It is also an indication of a fail-break.
- Gap: A gap is a gap in price movement of a stock. We normally see gaps during breakouts (some times even in Fail-breaks). There are various types of Gaps and the gap that we see during a breakout is a breakaway gaps.
- Cardle: most of people never consider cardle an important tool. A cardle is a place where the S/R and uptrend/downtrend line meet. It is a point of collision of two lines. But according to few, a cardle is going to help us determine it as triangle or wedge. It is also called apex/ point of interaction.
Types of Triangle
There are 3 types of triangle
namely..
·
Ascending
triangle
·
Descending triangle
·
Symmetrical triangle
Art of placing Targets, Stop-loss and Entry in Triangles
Ascending Triangle
Descending Triangle
To be continued ....
Thursday, February 16, 2012
Sri Renuka Sugars
Predicting market isn’t “butter chicken” these days. But I
have tried my best to answer your quire "What a student can answer" .. I have given you some levels which
are going to be major supports and resistance (some magical levels which are
going to be good tops and bottoms).. As you can see the stock had performed bad
more than expected..
Right know I want to be neutral on Renuka sugar because MACD
have shown bearish indication but, it can make sudden bullish indication. After stock crossing 51 levels it is having
multiple resistances.
I am not “shy” to use
the world “only a god can predict this
stock”.. Apart crossing 100D-MA there is nothing positive about this
stock.. More over all, market sentiments
can change anytime. There is a kind of risk factor..
Note: Don’t buy/ sell
any stock on recommendation from friends/relatives/a student like me.. Go with
a proper analysis, risk reward ratio and most important a GOOD STOP-LOSS.
Monday, February 13, 2012
Chambal Fertz: saw a sudden reversal
In recent days Chambal had shown a negative cross-over by crossing 100D moving average.. later we have witnessed a sudden reversal.
Monday, January 30, 2012
Sunday, January 29, 2012
Saturday, January 21, 2012
What is STYLE OF LEARNING? Part-3
I was pretty busy with my schedule due to which I was unable
to post anything regarding “style of learning”. As I am a voluntary student of
psychology, I do learn it as a part of my study. It’s pretty interesting to
hear that “we all learn” even a student in classroom or even a person working
in his office or a athlete who is preparing himself for Olympic games. Everyone
do learn, but in there way. In there unique way of learning called “style of
learning".
Let me give some interesting
fact about learning. How learning can be used in a freaky way. It’s better to start with an example right?
You all have seen “Magic” how magicians perform some trick
to which you say “how did he do, that?”
Later you find he actually played with
your “attention”.
Let me show you a video
Did you see that!!!!! Ha!! you may be
calling it a gimmick/trick/illusion etc. But basically it a part of learning
model.
What did he really do?
Sincerely he
played with your style of learning. He
used your disadvantage of “Visual learning”. He knows that your brains Major source of data is collected from
your eyes. So, he distracted your eyes with some freaky moves (I think you have seen his hands when performing) where
your brain understands it as “grabbing a
ball” but it isn’t that. It is because of his body language. “Where he is saying you that he is gabbing that
ball”
As I always say, every learning
style has its own “Advantage and Disadvantage”.
So, I am committed to post only advantage of style of learning. "No Black Magic"
So in my next article
I will be posting “how to use and develop your, style of learning”
Monday, January 16, 2012
Thursday, January 12, 2012
Geometric Ltd: what did i say?
What did i say?
It is around a month i had told that Geometric Ltd will go into a correction and head for a higher high. yes my dear friends i was right and the stock moved as i had predicted.
What's new?
there is nothing new for know. nor i had posted this to predict a reversal nor continuation. just to say that i am right.
Tuesday, January 3, 2012
Tata Motors: Breakout in Symmetrical Triangle
I was looking for this for more than 15days month. Know we
have seen a positive breakout in the Symmetrical Triangle. As this is my 1st
time working on symmetrical triangle I don’t want to take any risk. I have gone
with a stop loss of 184 and hooked Tata Motors
I have started working on targets.
“I hope my measuring technique is correct. I feel it’s
better to use fib lines to identify the resistance of Tata Motors”
Thursday, December 29, 2011
Tata Steel: Regular Bullish Divergence
No one trusted me when i told i found a reversal. I am still bullish. the reason to be bullish is because we have seen some divergence in TATASTL. we may expect some positive sentiments in market.
Hear tata stl is making LL, but MACD is making HL. As the divergence is not strong. we need to play with "Caution"
statuary warning: Go with a Stop Loss. As I have told you "I am not playing for Profit, I am playing for my EGO". profit doesn't matter. you are picking a stock with downtrend. so risk is very high.
What is STYLE OF LEARNING? Part-2
Friends in last article I had told you about Style of
learning. Know in this part, I will be explaining how to know where you belong.
Hear we will be doing something called as “behavioural analysis”. Your behaviour
is a reflection of your Sub-conscious mind and we will be trying to know what’s
going into your mind. The analysis that we are doing is by a very famous psychologist
called Fleming’s VAK Model
Hear we will be looking at some behavioural question to know
yourself better from what you actually are.
Take a paper and note down answer as “Yes”, “No” and “occasionally”
Note: all the heads namely audio, visual, and kinaesthetic
need to be answered separately.
Auditory Learning
- You read very loud, so that you can hear your voice
- You are good at grammar
- You always love to speak. But hate to right
- I enjoy songs and concentrate on lyrics in song
- I cant keep quit for long time
Visual learning
·
I am good at spelling
·
When I read I want complete silence
·
I love colours and fashion
·
I can understand graph, charts &figures.
·
I am good in understanding sign language.
Kinesthetic learning
- I can’t
sit for long time. At least I start playing with my hand or shake my leg
- I don’t
have good handwriting and I am not good writing long answers
- I like
science lab
- I love
adventure and good at sports
- I build
models and experiment/play with it.
The category which is have more “yes”, that is
your “Style of learning”.
“In my next part I will be posting an article on HOW TO USE YOUR LEARNING TYPE?”
To be continued…
What is STYLE OF LEARNING? Part-1
What is Learning?
Learning is acquiring new or modifying existing knowledge, behaviors, skills, values, or preferences and may involve synthesizing different types of information. The ability to learn is possessed by humans, animals and some machines. Progress over time tends to follow learning curves.
Learning is acquiring new or modifying existing knowledge, behaviors, skills, values, or preferences and may involve synthesizing different types of information. The ability to learn is possessed by humans, animals and some machines. Progress over time tends to follow learning curves.
Every person has his own style of learning. It happens with everyone,
everyone learn. It is not limited to a student. Even in an organisation we need
learning, it is an endless process which will continue as long as you are alive.
Types of learning
- Auditory Learning: In this type of learning a person/student grasp from what they ear and hear it. These are the type of people who are effective in hearing and don’t give much importance what they see. In some case these types of people also finds unnecessary when your teacher write on your board. What really happen in there brain? They copy all the sentence/world/rhythm and remember whole thing as it is. When needed they recover from the part which is situated at upper part of your ear called as “Auditory Cortex” which store, what we hear.
- Visual Learning: The people of this category are said to prefer to sit at 1st bench in there school days. They look at body language, what is written on board etc. These are basically “see and learn” group, who love to see and copy that image in there brain. The image you see is stored in a part called “Optical Cortex”. When you need any information you remember by an image in your brain.
- Kinesthetic Learning: In early psychological expedition this type of learning was underestimated. Later they found the real power of Motor cortex and association cortex. I don’t want to confuse you all. It is learning by experiment where you actually feel, touch and experience. These are the things what an employee do in his early days of this job and carry on. The reason why many company ask your work experience. Actually they are not asking your work experience they are asking your kinaesthetic experience. That is how well you are connected to your job.
How brain work in
learning process?
Our brain is a wonderful process machine each and every part of you
brain are given there specified job and they do there job collectively. In above
we have seen how our brain collects information. Know all the collected
information is processed and a mental picture emerge(your brain think from
the collected data you are having in your brain) this is done by a part of our brain called “Association
Cortex”
“This is my 1st part where I have described how your brain works collectively for your learning. In later
parts I will be explaining you how to identify yourself? And where do you fall
in these categories. This is a universal principal; it is not only applicable
learning Technical Analysis, but also many things in your life. It might be
your regular curriculum or something Weird what I do”
To be continued…..
Sunday, December 25, 2011
Tata Steel: Updated Version
Hello friends a month back I have spotted the reversal and
told you that I am “neutral” on buying Tata Steel. There wear many reasons to
be neutral. But I have told you that “Tata Steel is in a downtrend, and follow
the channel”. Tata Steel doesn’t reach your support and resistance. Thus caused
a bit nervous and confused but, I was right saying Tata Steel in downtrend.
Today I am once again back saying I have once again spotted
a reversal. This time it’s not “Profit Factor” it’s “EGO Factor”.
This time I am playing Tata Steel with targets of
370/375/380+. SL 340
Note: When you are
uncertain in buying any stock “Never Buy”. It not only creates confusion, it
leads you in a state of “Panic”, which cause you to make low profit, sometimes
loss. I have avoided Tata Steel as was not confident in buying.
Thursday, December 22, 2011
Reliance Industries Ltd: catching a falling knife
There is no reason to be bullish.. Yes I am confident in
saying that. From last few days we have seen ril.bo in downtrend. Know we have
not seen any sign of a “reversal”. It is better to stay away from this stock.
If reliance manage to break that downtrend channel. We may
think to hook it. As per know “avoid it”
Tata Motors: Waiting for breakout
90% I am bullish,
10% I am not.
We have seen a bullish crossover in MACD, where we have seen
2 main possibilities for buying. I can blindly buy, but I am waiting for “c”.
If we see a positive breakout then it is a potential buy. I have not willing to
take a risk as it is my 1st time playing with “Symmetric Triangle”
We have seen a potential crossover
MACD: we have seen a positive crossover
MACD: zero line/centre line crossovers
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