iCharts Discussions

dine · White Belt Joined: 11 Jul 2009 Posts: 73

Bullish Imperfect Close

(open-low)+open > close

Today's Examples : Nifty-1M, TCS-1M, EDUCOMP-1M, SBIN-1M and many more.

Bearish Imperfect Close

open - (high-open) < close

Today's Example: Mphasis-1M .. I don't find anything else for today eod data here.

How to trade Bullish Imperfect Close ?

These scrips tend to have significant resistance around Bull - R1 band.. So Watch out for price action behavior in this band and trade accordingly.. With stops slightly above R1.

Disclaimer: I have not traded this scenario often. Sad

Regards,
Dinesh S.

sherbaaz · Yellow Belt Joined: 27 May 2009 Posts: 543

Following are the Nifty 50 stocks in cash having imperfect close:

Bullish Imperfect Close:

BHARAT PETROLEUM CORP LT
HCL TECHNOLOGIES LTD
INFRA. DEV. FIN. CO. LTD
OIL AND NATURAL GAS CORP.
RELIANCE INDUSTRIES LTD
SIEMENS LTD
WIPRO LTD

Bearish Imperfect Close:

ACC LIMITED
BHARTI AIRTEL LIMITED
HDFC BANK LTD
HINDALCO INDUSTRIES LTD
HINDUSTAN UNILEVER LTD.
INFOSYS LIMITED
KOTAK MAHINDRA BANK LTD
TATA CONSULTANCY SERV LT

Regds,

arnav2007 · White Belt Joined: 29 Jun 2009 Posts: 46

Dear RR sir

kindly let us know some e.g. to take help of imperfect bullish/bearish close in trading.

regards

arnav

sumesh_sol · Brown Belt Joined: 06 Jun 2010 Posts: 2344

nf crossed bull+20 level in the mornign iteself..

Now trying to retrace, so as per rule there will be a buy @ bull level(5240) with reversible SL of LOC (5225)..

Let's see..

rameshraja · Expert Joined: 24 Nov 2006 Posts: 1121

NF is not supposed to break weekly LOC of 5238.10

rameshraja · Expert Joined: 24 Nov 2006 Posts: 1121

I presume, many have not understood clearly the Imperfect close strategy.

Its not a Technical standalone strategy to Short on imperfect Bullish close or to Long on Imperfect Bearish close.

I have observed many a times, that for a stock which has imperfect close in Bullish candle, tend to face lot of selling pressure next day after couple of hours of market open and stocks which has imperfect close in Bearish candle, tend to take support next day after couple of hours on market open.

I have mentioned in shout box, usual time would be around 11.30 AM.. Its not necessarily it should take support or face resistance exactly at 11.30. Many occassions, it would have happened in first 15 minutes itself.

Main idea of filtering the imperfect close is to track only those stocks for long and short with icharts levels or any pivot methodology one follows.. be it CAM or Pivot or Fibonacci.

Once filtering is done on imperfect close, for all imperfect close in Bullish candle, one can look at Resistance level namely BULL level as per icharts, or R3 as per CAM or R1 as per Pivot method for shorting opportunity

And for imperfect Bearish close, one can look at Support level namely BEAR level as per icharts or S3 as per CAM or S1 as per Pivot method for buying opportunity.

Its not a hard and fast rule, it should definitely take support or resist at above mentioned levels. One has to use the chart and look for reversal to happen.

In a nutshell, the basic idea behind imperfect close filtering is only to concentrate on those stocks to look for opportunities to either go for long or short.

C T RAMESH RAJA

vinay28 · Black Belt Joined: 24 Dec 2010 Posts: 11748

I have a doubt. If I use formula given by Dinesh, today's NF data satisfies both Bullish and Bearish Imperfect closes. How does one treat it? The one which is closest to close?

dine · White Belt Joined: 11 Jul 2009 Posts: 73

Vinay,

Today's open 5260.6 > today's close 5257.. So, this is a bearish candle (open > close).. So you only need to check for bearish imperfect close and yes it is a bearish imperfect close... ( and it cant be a bullish imperfect close though the formula satisfies..cos the candle itself is bearish)

Regards,
Dinesh S.

rameshraja · Expert Joined: 24 Nov 2006 Posts: 1121

Formula for Imperfect close:

IMPERFECT CLOSE IN BEARISH CANDLE:

On 25th June, Nifty has made imperfect close in Black candle. The OHLC of the day:

5148.90 5202.90 5098.20 5109.30

Formula : ( HIGH minus OPEN) – OPEN

(5202.90 – 5148.90)-5148.90 = 5094.30

For a perfect close, it should have closed below 5094.30, whereas it has closed at 5109.30. when it closes like this, then its termed as Imperfect Close in Bearish Candle.

IMPERFECT CLOSE IN BULLISH CANDLE :

On 31st May, Nifty has made imperfect close in Bullish Candle. The OHLC of the day:

4900.00 4926.55 4880.20 4916.25

Formula : ( OPEN minus LOW) + Open

(4900 – 4880.20) + 4900 = 4919.80

For a perfect close, it should have closed above 4919.80, whereas it has closed at 4916.25. When it closes like this, then its termed as Imperfect Close in Bullish Candle

chetan83 · Brown Belt Joined: 19 Feb 2010 Posts: 2036

vids · White Belt Joined: 12 Mar 2010 Posts: 102

Dear RR sir
How to calculate LOC / weekly LOC ...

Regards,
Vids

arnav2007 · White Belt Joined: 29 Jun 2009 Posts: 46

Dear R.Raja sir

Kindly look at the excel sheet attached herewith for scanning for imperfect bullish and bearish candle
here candle closed in red are considered for finding whether it was imperfect bearish or not. same with green candle for finding whether it was imperfect bullish close or not.

Kindly tell is it right ?

arnav

bolband_macd · White Belt Joined: 06 Sep 2011 Posts: 104

vinay28 · Black Belt Joined: 24 Dec 2010 Posts: 11748

dear ramesh raja

when you say NF is not supposed to break weekly LOC of 5238.10, which time frame are you talking about or is it instantaneous?