iCharts Discussions

[vishytns]

Hi Icharts experts,

Please find the attached chart of tata motors. I see a formation of head and shoulders in tata motoros.

Neckline 1014, first shoulder is already formed and I am anticipating the formation of second shoulder. If I look at the chart LOC would very strong resistance to cross. If I assume that prcide will not cross LOCand price falls from there and below 1014 then head and shoulders is confirmed.

If I am correct then Can I Initiate shorts at LOC? Please advice as I am very less experienced in day trading or in technical analysis.

waiting for your reply...

[Padkondu]

[vishytns]

Thanks padkondu,
What is your view on tata motors for this month?
I am expecting a right shoulder to be formed again in tata motors. Please comment and this.
Once again thanks for helping me understand.

[Padkondu]

i attached 60 min chart of tatamotors. it may or may not form the hs pattern as anticipated. but once it does, sell on colse of the candel below the neck line.

further, i put here the daily chart, which dipicts a double top pattern. once the objective of the hs pattern on above 60 min chart is met, it constitutes breach of double top neck line on daily chart, cuasing further downwad move.

this need not happen, it is only an anticipation, one possibility.

they say to trade on evidence, not on anticipation

your evidence is trend, find the trend on your favorite time frame, and trade the trend, to meet the profit objective pertinent to such time frame.

i have been reading about technical analysis much, but not so good while trading. because, reading more and more will only cause confusion. who will teach the interpretation of that knowledge? the more you read, the more you have to experiment with your money. so, find one good momentum trading technique, apply it to your timeframe, keep experimenting with that, simple.

good luck
padkondu

[Padkondu]

instead of forming view, it is better to wait and watch, act on evidence.

[Padkondu]

Dear sir,
please check what has happened to yes bank (daily chart). supported at neck line, if it takes off the previous swing high, the hs pattern becomes invalid. as such, any chart pattern, has to be viewed on its completion and act accordingly. anticipation will cause a mental block (ignore my language, i am poor at communicating in english) and will not allow you to act in the opposite direction, the opportunities that emerge against your view. i am also a learner in the market. my expeience is as little as 3 years in tech analysis. senior members may please comment on this.

regards
padkondu