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a layman's approach to break out and break down |
casper
Green Belt
Joined: 02 Oct 2010
Posts: 1315
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Post: #316  Posted: Fri Nov 19, 2010 7:59 pm Post subject: |
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hi vishal got it, now starting reading, it from bulkowsky!!!! must be a gem!!!
thank u sooo much, in fact thanks is a very small word before what u have uploaded.
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singh.ravee
Yellow Belt
Joined: 12 Aug 2010
Posts: 678
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| Post: #317 Posted: Fri Nov 19, 2010 8:22 pm Post subject: encylopedia of charts |
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dear vishal,
kindly post link for rest of the parts for the benefit of a larger group of people.
rgds
ravinder singh.
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girishhu1
White Belt
Joined: 17 Aug 2009
Posts: 316
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| Post: #318 Posted: Fri Nov 19, 2010 8:46 pm Post subject: |
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hellow vishal,
the encyclopedia will be very useful to one and all. you deserve to be lauded for sharing the book. thanks again
regards,
girish
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ravionlinek
White Belt
Joined: 11 Jun 2010
Posts: 97
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| Post: #319 Posted: Fri Nov 19, 2010 9:12 pm Post subject: |
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mrvishal_g
Thanx 4 sharing the book.............. 
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measoldier
White Belt
Joined: 09 Sep 2010
Posts: 36
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| Post: #320 Posted: Fri Nov 19, 2010 10:30 pm Post subject: |
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| Thanks gupta ji. Pls upload other parts also....
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casper
Green Belt
Joined: 02 Oct 2010
Posts: 1315
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| Post: #321 Posted: Fri Nov 19, 2010 11:07 pm Post subject: |
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hi all, as i mentioned earlier that on fri day i will post whatever testing i have made to find true bo and false bo, now i am posting these outcomes as they appear to me.
in short i would say that i have found the strategy good specially for choppy to normal market and definitely not so good during a correction like the present one,
as i have gathered lots of charts so i am not posting any of the chart directly in the forum. instead i have made two doc files which contain the chart, the concept and the result and my comments.
if i post all those things directly in the forum, it will take lots of spaces and at the same time, lots of time to post and lots of time to view.
any one who want to see them, plz download the files and plz provide me with ur feed backs so that together we may find and fix the loop holes
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An approach to find out true break out.doc |
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Lets call spade a spade.doc |
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technocalls
White Belt
Joined: 27 Aug 2010
Posts: 34
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| Post: #322 Posted: Sat Nov 20, 2010 12:01 am Post subject: |
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i m very much new to TA i want to ask u abt the chart its abgship what does it tells?? is it a rounding top what would be the breakdown price and then what would be the target??? plz guide me masters....
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thegani
White Belt
Joined: 03 Nov 2010
Posts: 21
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| Post: #323 Posted: Sat Nov 20, 2010 12:59 am Post subject: Encyclopedia of charts |
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i have link for book of chart pattern
should it ok to post link here,
Last edited by thegani on Sat Nov 20, 2010 1:14 am; edited 2 times in total |
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casper
Green Belt
Joined: 02 Oct 2010
Posts: 1315
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| Post: #324 Posted: Sat Nov 20, 2010 11:40 am Post subject: |
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| technocalls wrote: | | i m very much new to TA i want to ask u abt the chart its abgship what does it tells?? is it a rounding top what would be the breakdown price and then what would be the target??? plz guide me masters.... |
hi technocalls. u have done everything in this chart. now just wait for a break from the trend line and then project downward the linear distance of the high from the trend line, that would be ur target for downside roughly. as per ur chart, a break down from 400 can get a target of 320 roughly, u can go short after a candle close below the trend line, or if u see that it can sustain below 400 in intraday trades then with a little risk u can go short with out getting a candle close also, but candle closing will be a much safer option i guess.
hi thegani, i am not sure if it will be okey or not. but if it is a free material and contains no advertise or copyrighted materials then i hope u can post the link
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newinvestor
White Belt
Joined: 16 Feb 2010
Posts: 120
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| Post: #325 Posted: Sat Nov 20, 2010 5:32 pm Post subject: |
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Casper, you have put in alot of effort to compile this. thanks for sharing.
To understand better, a few questions:-
1. When you are drawing the trendlines for the patterns, take the highs / lows ( the wicks of the candle ) or only the main body?
2. When you say MACD 'bullish'what do you mean? That the histograms are above the zero line? Can you pls define the parameters?
3. When you say 'RSI bullish'what do you mean? Higher lows? Pointing up also?
4. In one place you mention 'RSI going down, and got sell signal also'. What do you mean by 'sell signal'? Going below 50 line?
5. Trade initiation - for example, for long, after one green candle has closed above the trendline, or an intraday buy order sightly above the trendline/breakout line?
Can you pls explain the process of entering a trade? Sometimes,it looks as if one is trying to get on to a moving bus.
Regards
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SwingTrader
Site Admin
Joined: 11 Aug 2006
Posts: 2903
Location: Hyderabad, India
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| Post: #326 Posted: Sat Nov 20, 2010 6:08 pm Post subject: |
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mrvishal_g,
Do not post links to copyrighted content here. Your previous posts have been removed.
_________________
Srikanth Kurdukar
@SwingTrader |
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chandrujimrc
Brown Belt
Joined: 21 Apr 2009
Posts: 1683
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| Post: #327 Posted: Sat Nov 20, 2010 7:41 pm Post subject: a Layman"s Approach To Breakout And Breakdown |
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Dear Casper sir.
Thank u very much for your service.Can u post your view about BPCL which is in descending triangle pattern.
chandruji
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casper
Green Belt
Joined: 02 Oct 2010
Posts: 1315
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| Post: #328 Posted: Sat Nov 20, 2010 8:21 pm Post subject: |
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| newinvestor wrote: | Casper, you have put in alot of effort to compile this. thanks for sharing.
To understand better, a few questions:-
1. When you are drawing the trendlines for the patterns, take the highs / lows ( the wicks of the candle ) or only the main body?
2. When you say MACD 'bullish'what do you mean? That the histograms are above the zero line? Can you pls define the parameters?
3. When you say 'RSI bullish'what do you mean? Higher lows? Pointing up also?
4. In one place you mention 'RSI going down, and got sell signal also'. What do you mean by 'sell signal'? Going below 50 line?
5. Trade initiation - for example, for long, after one green candle has closed above the trendline, or an intraday buy order sightly above the trendline/breakout line?
Can you pls explain the process of entering a trade? Sometimes,it looks as if one is trying to get on to a moving bus.
Regards |
now im happy that at least u have gone through the materials, because nobody has asked a question so far.. so i can guess how much everybody read it so far!!!!
replying one after another
1.when drawing a pattern, we will mostly stick to the real bodies, if we could find both of our indicators are in our favour, and market is also positive for the trade then we can consider shadows also. even in case of a choppy market, if we get most of the real bodies then we can consider 1-2 shadows also.
plz try to find a pattern with 6 points viz 3 low and 3 highs instead of 4 point, such as 2 low and 2 highs, but this is not very hard and fast rule and this may depend on risk taking attitude of the trader. still classically its good to get real bodies instead of shadow
2. macd bullish means any of the following
a. histogram is above zero line
b. macd has got a software generated buy move and going up.
c. macd has just crossed over the trigger line.( plz note macd indicator consists two lines, one is macd line,it is generally darker, and another in trigger line, which is 9 ema in standard setting, a cross over of trigger line by macd in an upward motion is considered bullish.)
3.rsi bullish means
a. rsi got a buy signal by the software
b.rsi simply rising
c rsi is making higher low in a somewhat choppy move
4.sell/buy signal is automatically generated by jcharts, be it jchart eod or any real time jcharts
in order to see them we have to right click on the j chart while its open, to bring the pop up menu and select show buy/sell signal option
5.the idea of this set up is to take a position before an actual bd /bo takes place, so trend line breaking and candle closing is not important, it worked well but i cant expect to get a perfect break out signal in this kind of corrective market. that's why, i advised that this set up can not work in panic stricken market
HOW TO ENTER (during a normal market)
1. find the pattern. ( we dont need bo/bd to occur. just find triangles and other patterns before their bo/bd)
2.see the corresponding macd, check if its in ur favour or not
corresponding macd means, the particular part of the macd which formed during the pattern formation, then check if there is any buy/sell signals already generated on macd or not. may be a buy signal has been generated 2 days ago and then macd is going up, in this case u plz conclude that macd is STILL in buy mode same goes for sell signals also.
3. now check the rsi in same fashion.
4. now if u see everything is okey as per the table i wrote, u can enter on this running bus
in case of intraday trading, i have taken trades during pattern formation before the trendline violation as the pattern, rsi and macd confirmed the out come.
if u want to trade in this fashion u can, and if u want to get the tl violated, u can wait for that also, but then the main significance of the set up, viz, signaling a bo/bd before the bo/bd takes a lil beating
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casper
Green Belt
Joined: 02 Oct 2010
Posts: 1315
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chandrujimrc
Brown Belt
Joined: 21 Apr 2009
Posts: 1683
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| Post: #330 Posted: Sat Nov 20, 2010 8:58 pm Post subject: a Layman"s approach to breakout and breakdown |
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Dear Casper sir.
Thanks a lot for your quick response.Sorry I missed to mention TF but you are correct,it is Eod only.
chandruji. 
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