Sunday, August 4, 2013
Jetairways; an Analysis
Monday, July 22, 2013
High Profitability Trading
When it comes to ultimate trading system; everyone
are interested to know about. Obviously it is one of the curious topic
discussed form centuries. Everything started form plotting “X” and “O” on cigarette
packs or placing candles on a sand table. Technical Analysis grew as an industry without
even realizing.
We have witnessed many things in these times Black–Scholes,
quant, expert system, cutting edge software’s, back testing and dozens & dozens of indicators. Let me come
again, where are we today. A time we are bombarded too many techniques, models,
strategies and methods. Few sold over courses and coaching’s few are shown on YouTube
few kept hush-hush. Ultimately, today we
leave in a world where we have too many techniques to follow too many
indicators been invented few paid, few unpaid, few reliable and few aren’t.
After spending centuries of time, and spending huge
amount of money. What we have found? Is it an ultimate trading system? The answer
is no and we won’t find it until we understand the simplest things of stock
market. That’s volatility, price and volume; all these are the basic pillars of
technical analysis. Any indicators, trends, patterns follow these basic principles
of markets.
Stock market is not a Pandora box it’s a simple demand
and supply. There is nothing called as high profitability trading technique,
every system have its own risk. Risk and reward are the basic inherent
variables of any trade using a system. Remember, every system have certain risk
even a risk free model such as Black–Scholes model also had a risk with it. Ultimately
we are left with models which can be applied the only thing that you have to
know is when to apply.
I love Kung-fu Panda, the most
loved part in that movie is “nothing”. The soup-noodles isn't made up of a
special ingredient nor there is any special description about martial arts on dragon
scroll. Similarly we have left out with nothing in stock market. I have literally
seen peoples who make money only using candle sticks and moving averages. And
they are doing well, I regularly hear about a marwadi in Bangalore who use
manual tools for predicting market. And that man is well-known for accuracy. How
did he do that? It is nothing but shear dedication towards market.
This Sunday I was able to interact with an interesting man he is very
close to Indian army. He told “Any army in the world have an average IQ. It isn’t
an IQ that make that difference, it the discipline”. Larry Berman told something
similar “I am a technical analyst; I have people to punch my orders”. Guys, any
bullshit can make money out of market and we have good examples for that: Turtles,
Million Dollar Traders (documentary) and many more. In an official blog of
Rakesh Junjunwala described “people laughed at me when I told I want to be in
stock market”(When Rakesh took a decision to start trading in his college days).
Coming again, we have nothing called as high profitability trading. If there
is so than its you. And only you.
Wednesday, June 12, 2013
Strategy For Gold: Technical Analysis on Request
My last article on gold told about gold coming up to 28k. I was write and the gold have reached 28k, filling the gap.
Click here for previous article on gold
If gold start correcting after this gap filling we may see a support at 27,300-27,400. if the support fail we may see it coming to a support at 26,400-276,500. Gold is a hold
Thursday, May 23, 2013
Technical analysis on Request: Gold
Gold is forming a kind of symmetrical triangle and gave a bullish breakout. Gold will rise around 28k levels and find some resistance. If it manages to go above 29k gold will be on a bull run.
Monday, May 20, 2013
Sunday, April 28, 2013
Weekly analysis of Sensex: 29th April to 3rd March 2013
The market will looking sluggish this week the resistance of
19712 will be a major resistance for this week the market is expected to
have 18624 as a support at lower side. we
are seeing a negative divergence in in Sensex, this may drive to 18624.
Am I bullish on Sensex?
No, I expect a consolidation. We are seeing a risk building
out in Sensex, as per me this week is the week for profits booking. Most of the
short term players may book profit this week.
How much consolidation is good for Sensex?
18510-18000 need to be the support below which market is not
healthy to grab. If market manages to consolidate below 18000 levels we may see
a free fall upto 17500/16900.
Wednesday, April 24, 2013
Sleeping Triangle: An Research and Findings by Sangamesh.K.S Part 1
Sleeping
Triangles
The name
may be fascinating, interesting, curious sometimes weird. The main myth with
this pattern has stimulated my need towards understanding pattern at a higher
level. When we go into, what is it all
about? How this pattern emerged? We come
to know there are 2 major parts in Sleeping Triangle. One is body
and other is the sleeping body of
the triangle. I call it as real body
and sleeping body.
Real Body
As per my observation the real body will be
lengthiest price action before breakout. The real body get into new resistance.
It will touch the higher price, the price action of the real body will be very
high and sometimes it take a short time duration (it may be formed within
couple of days). As the price action with real body is very high. We normally
tend to see RSI and other Oscillators going to a overbought zone.
Sleeping Body
The
sleeping body is the essential part which differs from a regular triangle. The
price action will never tend touch the support (it will touch only once before
giving a breakout) instead try to be at a higher level but the sentiments of
the market drag the price action lower such that it from a channel. The volume will be much lower compared to
real body.
The price action of the sleeping body can be
seen sticking to the upper level. And show the sentiments to be bullish.
Premature breakouts
Sometimes
we may see the price giving premature breakouts which will say the future
breakout (intension of bullish/bearish breakout) and price action.
Breakout
The
breakout will be formed when the price hit the support and when the support is good
the price rebound which cause a breakout.
*T&C Apply
Strategy: Trading using Sleeping
Triangle
When we
see a bullish breakout it is the only level where we can buy. As the price
level is low it is the best opportunity to buy at a breakout and sell at a
higher high. The triangles need to be traded opposite of a triangle. In the
figure above, we can see a triangle which resembles as a descending
triangle. In a descending triangle we
normally place a stop loss above the trend line but here in this sleeping we
need to place a stop opposite to the descending triangle
Types of Sleeping Triangle
These
triangle are of 2 types namely an
·
Ascending
Sleeping Triangle(Bearish)
·
Descending
Sleeping Triangle(Bullish)
An
example of descending triangle forming in Tata Coffee
Descending Triangle
For More details
Contact
Sangamesh.K.S
8904440661
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