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Baby Steps ( Beginners Guide ) |
sangi
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Joined: 19 Jan 2008
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Post: #31  Posted: Tue Aug 07, 2012 3:45 pm Post subject: |
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| jdpt wrote: | In this case, price had closed below the 5181 support level but ended up rising back up above it.
If you had believed that this was a real breakout and sold this pair, you would've been seriously hurtin'!
Looking at the chart now, you can visually see and come to the conclusion that the support was not actually broken; it is still very much intact and now even stronger.
To help you filter out these false breakouts, you should think of support and resistance more of as "zones" rather than concrete numbers.
One way to help you find these zones is to plot support and resistance on a line chart rather than a candlestick chart. The reason is that line charts only show you the closing price while candlesticks add the extreme highs and lows to the picture.
These highs and lows can be misleading because often times they are just the "knee-jerk" reactions of the market. It's like when someone is doing something really strange, but when asked about it, he or she simply replies, "Sorry, it's just a reflex."
When plotting support and resistance, you don't want the reflexes of the market. You only want to plot its intentional movements.
Looking at the line chart, you want to plot your support and resistance lines around areas where you can see the price forming several peaks or valleys. |
hi jdpt,
baby steps frm baby pips..
(If you had believed that this was a real breakout and sold this pair, you would've been seriously hurtin')
chng the wordings accordingly a u chng the chart.
good work. Pl. check with PT whether u can reproduce this in forum.
rgds,
Sangi
P.S. No bad intention |
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jdpt
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| Post: #32 Posted: Tue Aug 07, 2012 6:34 pm Post subject: |
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Dear Transcap69, shrikanthiyer, p_wangdu many many thanks to you all for your wishes. p_wangdu ji a special thanks to you for your b'day wish and for giving three dimonds to this thread from your hoard. 
Regards
JDPT 
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jdpt
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| Post: #33 Posted: Tue Aug 07, 2012 9:18 pm Post subject: |
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Hi sangi, thanks for correcting me dear and yes you are absolutely correct about taking material from bp, bp is one of my reading stuff too and i'm just putting my reading material with my corrections in this thread for them who only knows "there is a stock market", the main reason behind opening this thread is save their precious time to seeking such kind of material over www.
thats it.
Sangi once again thanks alot for your feedback & i request to you keep posting & give your suggestions and guide us time to time to add more value on this thread.
Regards
JDPT
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Just Trade What you See. |
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jdpt
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| Post: #34 Posted: Wed Aug 08, 2012 10:30 pm Post subject: |
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Other interesting tidbits about support and resistance:
•When the price passes through resistance, that resistance could potentially become support.
•The more often price tests a level of resistance or support without breaking it, the stronger the area of resistance or support is.
•When a support or resistance level breaks, the strength of the follow-through move depends on how strongly the broken support or resistance had been holding.
With a little practice, you'll be able to spot potential support and resistance areas easily. |
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druzva
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Joined: 26 Oct 2010
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| Post: #35 Posted: Thu Aug 09, 2012 5:07 am Post subject: |
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| Jdpt good thread. It will be beneficial for new folk. I am also new to TA will benefit for sure ( runy) |
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jdpt
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| Post: #36 Posted: Fri Aug 10, 2012 12:15 pm Post subject: |
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runy, thanks a ton for your positive feedback 
Regards
JDPT
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prabit
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| Post: #37 Posted: Fri Aug 10, 2012 8:48 pm Post subject: |
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| jdpt, very good material, thanks a lot for sharing valuable knowledge. |
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jdpt
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| Post: #38 Posted: Sun Aug 12, 2012 12:15 pm Post subject: |
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| your welcome prabit |
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jdpt
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| Post: #39 Posted: Sun Aug 12, 2012 1:34 pm Post subject: |
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Japanese Candlestick
Japanese candlestick is most popular charting type among tradres. Candlestick charts are thought to have been developed in the 18th century by Munehisa Homma, They were introduced to the Western world by Steve Nison in his book, Japanese Candlestick Charting Techniques.It is most often used in technical analysis of equity and currency price patterns.
Japanese candlestick chart is a combination of a line-chart and a bar-chart, in that each bar represents the range of price movement over a given time interval, which makes it easy to see the relationship between the opening and the closing prices for specific periods of time (e.g. for a day, an hour or 5 minutes). The thick part of the candlestick is called the real body. It shows the distance between the opening and the closing prices for the period of time the candle represents. If the closing price is higher than the opening price, the body is white. If the closing price is lower than the opening price, the body is black. The thin lines above and below the candlestick body are called shadows.
Last edited by jdpt on Sun Aug 12, 2012 2:16 pm; edited 2 times in total |
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jdpt
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| Post: #40 Posted: Sun Aug 12, 2012 1:40 pm Post subject: |
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Examples of the bullish and bearish candlesticks
Note: Colours for each candle type can vary depending on the charting software that you use. |
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amitkbaid1008
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Joined: 04 Mar 2009
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| Post: #41 Posted: Sun Aug 12, 2012 9:49 pm Post subject: |
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| jdpt wrote: | Other interesting tidbits about support and resistance:
•The more often price tests a level of resistance or support without breaking it, the stronger the area of resistance or support is.
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And more chances of getting it broken and more often breakout/breakdown with explosion. |
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sethu45
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| Post: #42 Posted: Mon Aug 13, 2012 4:16 am Post subject: |
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| Worthfull writeups. Nobody will share or post like this in this world as everybody is selfish and have intention to get succeed for themselves. There are many traders who have suffered and suffering by this market. Please you may give a simple solution finally to take care of their living, if possible. Good work. Keep going. |
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jdpt
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| Post: #43 Posted: Mon Aug 13, 2012 9:08 pm Post subject: |
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| amitkbaid1008 wrote: | | jdpt wrote: | Other interesting tidbits about support and resistance:
•The more often price tests a level of resistance or support without breaking it, the stronger the area of resistance or support is.
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And more chances of getting it broken and more often breakout/breakdown with explosion. |
Amit ji, thanks a ton for your addition.
Regards
JDPT |
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jdpt
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| Post: #44 Posted: Mon Aug 13, 2012 9:14 pm Post subject: |
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| sethu45 wrote: | | Worthfull writeups. Nobody will share or post like this in this world as everybody is selfish and have intention to get succeed for themselves. There are many traders who have suffered and suffering by this market. Please you may give a simple solution finally to take care of their living, if possible. Good work. Keep going. |
Thank you for your support sethu45 hope I will be sincere to this.
Keep visiting here and feedback.
Regards
JDPT
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jdpt
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| Post: #45 Posted: Wed Aug 15, 2012 5:00 pm Post subject: |
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आप सभी को स्वतंत्रता दिवस की हार्दिक शुभकामनायें....
Regards
JDPT  |
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