iCharts Discussions

[maneesh007]

HI casper bhai,

Please throw some light on this chart of Gold 1 hr (05 dec expiry)...
sorry bro chart is of international Gold, as I trade local ...so mistakenly written as 05 dec expiry...


warm regards,
Maneesh bhardwaj

[casper]

hi maneesh bhai

plz give me some time, i hv no chart with me at this moment

[maneesh007]

ok bhai, time given ...take your time bhai, but before any considerable move...thnk u & god bless u...

[casper]

ok maneesh bhai seen

u r using international market chart which runs 24 hrs and i was foolishly trying to compare it with 13 hrs mcx charts



so naturally, my chart got lots of gaps which in ur chart got filled wid candles

so lets work with ur chart as its more appropriate,

needless to say that the pattern is a head and shoulder, an apparently bearish formation

the pink line i hv drawn is the neck line which should be broken down around 1711.85 range

the blue line on the top is the possible target which is projected downward as another red line as possible target projection

if this goes as per plan, then below 1711 it would go down for 41 points

(or 41 $ i assume)

now the point is

my exp wid h/s says its a nasty pattern, some time it gives full target and even more, spelling doom for bulls and at times, it becomes a bear trap, so during break down, check for + div in lower tfs, if any div comes then dont short, if there is no div around, then only open the short.

even so, after breaking down successfully, going down through red line and after finding some support, getting up with the green line is not very rare

in that case, after breaking down, and falling a bit, it will again show u some divergence in lower tfs , like 5-10 min tf and will go up

so u need to be very careful for spotting this div during fall and if u can successfully spot this div then u can get a long trade from there, for that long trade, latest low should be ur sl and neck line (pink one) will be ur possible target

and if it touches neck line from lower side, along with the green arrow marked path, book ur long and wait for a rejection.... a red candle just below the neck line to open another short


so potentially, this pattern can give u 3 trading opportunity, short-long-short

[maneesh007]

ok bhai , verified & completely understood...Now let's play the game ...& thnk u sooooooooooo much


reagrds
maneesh bhardwaj

[maneesh007]

casper bhai,

charts is of International Gold 15 mins... plz validate this div...


regards
Maneesh bhardwaj

[casper]

join top of price to top of rsi

or bottom of price to bottom of indicator

pink one was + div and red one is - div

now red one has much more candle than 14

so check in higher tfs to find the - div in these also

(like 30/60min)

[maneesh007]

Brother,Sorry for distrubing u again & again...plz check this chart of Gold 30 min , I think we would'nt call it div ...plzz comment

[casper]

no
its not div in 30 min, since 15 min chart has more gaps and in 30 min, its not a div, that means it was a weak case, may be 34 ema in ur 15tf chart cud be the downside target

and its not actually disturbing any way, all of urs posts give me an opportunity to practice more

[maneesh007]

thanks casper bhai... believe me, you are really a rare combo ...



sorry i copied ur trademark pattern of smileys...


warm regards
Maneesh bhardwaj

[maneesh007]

Hi casper bhai,

Sorry to bother u again...bhai plz validate this formation...

[maneesh007]

I got my answer...sorry brother +14 factor

[casper]

this is a - div, but distance between two tops are more than 14 candles, so as rule we need to check it immediate higher time frame to see if there is also div is present or not

suppose next tf is 20min, u saw there is a div but distance is still more than 14. then go ahead one more step and check immediate higher tf for div

for a comparatively secured trade, we need the distance between two tops (or for a +div, two bottoms) to be within 14candles (as we r using rsi 14), and then keep sl on the 2nd top, with some cushion

suppose 2nd top is at rs10, u keep sl at 10.50 or 11 max

[casper]

[maneesh007]