iCharts Discussions

[singh.ravee]

casper hello,

i am attaching 2 charts of nifty eod. I have already posted first chart which showed double bottom and a probable target of 1150.

The point i m trying to bring out is that overall technical picture is more important than an individual trend.

Let me share one of my today's learning with you.

In 1st chart one can see a double bottom breakout that too on high volume. Next candle one can think of going long for 1150.

Now consider 2nd chart.
1. Stock is in downtrend.
2. Ill defined double bottom.
3. 50 ema = 1090.
4. weekly pivot resistance = 1090.
5. 61.8 % fibo retracement around 1090.
Is anyone interested in going long after reading all this? I dont think so.

Point is this that the bigger picture as presented in 2nd chart is more important than small technical picture as presented in 1st chart. One should trade as per the bigger technical picture. Although i have avoided trading in icici bank as per your recommendation.
I feel satisfied as hitting of one stop loss is avoided.

I think everyday is a leraning day in this market.

Rgds
ravee

[abhideep]

hi all

Can any senior check up TISCO charts and confirm breakout???

Similarly LIChsgFin??

Its closed 2 times above 34ema??

I intend taking positional trades on thursday.

Please guide me.


Regards

[singh.ravee]

casper hello,

it seems as if symmetrical triangle in reliance 60min has broken down.

kindly share your observation.

thnx n rgds

ravee

[girishhu1]

hellow casperji,
bharti had bd from dt in eod chart yesterday. again today a dt is in formation in hourly chart. should we short below 328 with stop loss of 334 for a target of rs 12?
regards,
girish

[casper]

[girishhu1]

[casper]

by perfect dt i mean

any dt (and any other triangle too) where u are drawing tls with two distinct

points, and preferably with 3 distinct point per tl

in case of bharti

the main dt broken down earlier, now u r increasing the down tl of that dt to make another dt, this is not a perfect tl as u dont hv 2 kissing points on that down tl any more (u hv break down in between)

so i will say its not a perfect dt as down tl is already violated

u know bhaiya

in any pattern, the down tl manifests the support and upper tl shows ur resistance

in case of a breaching already a few candles earlier, the support wont be that strong any more, so to show that we have enough support to break, we have to find proper tls

( we break strong sup/resi violently hence the name break out is coming, and that is the reason of fast, very fast move after a break out, so presence of strong sup/resi is very important)

[girishhu1]

[casper]

no no, u r not confusing me at all, i will be back with a detailed reply after the market hours

by da way, just telling u that i was talking about the lower tl only, but i will be back

[girishhu1]

hi casperji,

ok.

check andhra bank. i think it is near to breaking of downpivot in 30 m tf.
just for info
regards,
girish

[casper]

hi girish bhaiyaa

our main problem with the bhartiartl chart is due to its downtl, if its a valid tl then only we can expect a break out by breaking this tl, otherwise , there is no question to break out

now at first, let us consider a cash chart i am posting with this reply, in this chart, its clearly seen that we lack two candles to draw the down tl, so as per this chart, the down tl, in case of 1st violation towards downward level, did not exists, so as per cash chart, the case of 1st break down is not valid, as we have no support line to break

now let us consider the future chart u posted, there also, before downward violation of down tl, we really dont have a proper down tl at all, reasons are

1. the two points u r connecting in future chart to get this tl is too far, in case of a proper support level, a long tl like this should have get more candles touching to it, but we have only two candles doing so, and that too, very far situated candles

2. one of the two candles is abnormally low, which is shown like a very gap down opening of that candle, which is not in tandem with the other candles of that series, so it was an abnormal situation, during pattern selecting, we have to stay way from this candles as far as possible, bcoz it will loose the meaning of the pattern

( the meaning of descending triangle is, lower highs but equal low, which shows that some guys are buying heavily while the stock is going down, its coming down to that buy order, then, due to heavy buying, its taking support and then going up, but as no buyer is seen in upper level, its coming down again, and then again going up due to the support, so we conclude that when the buying power at the lower level is finished, it will have no support and will come down heavily, this is the dt break down)

if we consider these two points as the down tl in future chart, then the essence of the pattern will be lost

3. finally, the upper tl of the pattern is too small in comparison with the long lower tl, so as a whole, it has no symmetry at all

so we can conclude that this down tl is not valid one, hence the question of downward violation is not valid

now let us come to the rejection case

if the down tl is not valid during the 1st bd, then the pattern itself is not valid, so there was no pattern, but then how to trade the down move?

the answer is , we have to short the down move at a resistance and book it near a support, now after a rejection from the pivot levels,that level will be our resistance, so with a sl above this resi, we can short it for the next support

( sorry for late reply, u know bhaiyaa, when u get used to with a pattern, u can just see and say if its valid one or not, but to write why this is valid and why this is not valid u have to think in a cool mind, and test it in various way, i had to test it before i could draw the conclusion that this pattern is not valid one)

ps: in the chart, i have marked a red candle which, one can mistake as a candle taking support from down tl, but if u see minutely, then u will see that this candle has not taken support in that down tl

[singh.ravee]

casper hello,

is it a bullish divergence in bharti in 60 min?

one can think of buying above 327 for 332 and sl= 325

your valuable comments please

thanks and rgds

ravee

[casper]

hii ravee

we have + div in 60min as u posted and - div in 5 min chart

i expect it to go down first then it will come up

( i have seen that smaller tf divergence effects in early trade and higher tf divergence comes in to effect only around 12 o' clock or even later)

[girishhu1]

hi casperji aka tushar,
nicely explained. thanks a lot.
let's hope i would be able to post a valid pattern soon.
regards,
girish

[sherbaaz]