iCharts Discussions

[sunrays]

hi all
most of the newbies once entering the market r in a mood 2 get rich overnight widout making much of an attempt to analyse the importance of the structural moves in any market....price shud be taken as the sole criteria of making investments cos even the best of the companies luk worse if u get stuck @ a higher price...at the end of the day u want profits from the price n not much from the day 2 day affairs of the company be it gud or bad................my idea of starting this thread is to create awareness about the logic of demand-supply analysis n how can one adapt to this theory to benefit from the company listed in the market..........

three things we consider here is 1.demand zone 2.supply zone....3 equilibrium which is not an easy thing cos when u make an attempt to start thinking of investing/trading the market is either overbought or oversold....................who decides market is ob/os nothing but the price...............1.for a a trader to identity a demand zone is important to go all out n buy 2.for a seller to identity a supply zone is critical..........................................instead of worrying 2 much about where the market may go in next couple of weeks/days its more important to know in which of the zone market may enter and hw do we go about identifying these zones is important ........................................................i follow the 34 ema on eod charts along wid pivot points monthly to identiy demand-supply zone with rsi divergence to support the logic




DEMAND ZONE- stock/index trading abv 34 ema on EOD and also abv (monthly pivot-can make ur case strong for going long ) is pivotal for me 2 go long or cover short positions ...here the buyers may throng the street wid all the weapons to kill the unrealistic bears who come n shout for corrrections


SUPPLY ZONE...-stock/index trading blw 34 ema on EOD and also monthly pivots(can be used to make ur case even stronger) for me 2 go either short/cutback on ur long positions ....here the sellers may have no passions in killing the unruly bulls offlate..................

NOTE1-trading abv/blw monthly pivot may make ur case even stronger...one may get an insight on it once u keep trading

NOTE-one may book profits based on R1/R2 IF long n cut down on ur losses of a short position on a candle close abv 34 ema
S1/S2 cn be used to book profits if short or may trail sl just abv 34 ema n cut losss on a candle close abv 34 ema


i'll be posting stocks/index and strategies regularly for newbies(myself new) to make our trading more technical than conventional and benifit more from the common perception that we get from the charts

[sunrays]

1.DLF

DLF has been consitently trading blw the 34 ema on EOD for the past 5 days n blw the monthly pivot ..so one may consider going short on dlf as it may be the sellers who cud do the rounds for the next couple of days n sl shud b a close abv the 34 ema eod which cud indicate a likely reversal

[vishytns]

Sunny,
Very informative. Keep going with more and more stock techincals.
Vishwanath

[svkum]

SUNRAYS,
This system of demand /supply needs some refinement.
if yu follow this system
in month of october , dlf is above 34 ema and also above pivot point , yu could have taken long position based on this , but dlf has come down from 390 to 350 during the month.

Thats why it needs refinement to take care of such abnormilities.
s v kumthekar

[sunrays]

thnx for taking interest in the post SVkum sir n vishytn

yes sir i agree 2 wat u said ....but here i tried to explain when a particular stock/index enters into a demand-supply zone.........like in the case of dlf the demand zone happened to have started in the month of september when the monthly pivot n the 34 ema on eod were running togethere n the price was close to 310 and price took off to the comfort of the demand zone the same month it took out R2 on monthly pivot n october if u see it was very much close to R1...So clear case of profit booking arnd 400 levels .....now the bulls certainly luk a bit tad weak until they appear again.............n as far as going long in the month of october is concerned i wud not as 34 ema on eod is far...the idea is to attempt long/short near 34 wid consolidation patterns around 34 or a blow out candle or blow down candle near these lines

[SyndicateTrader]

Dear Sunrays,

I really appreciate your efforts to explore new set ups based on demand and supply.

Want to suggest you to confirm the same on higher ime frames like weekly charts. In case of DLF it is altogather different picture on weekly charts, there is a solid flat trend line present at 340-345 levels. DLF took support last week at that level and now getting ready for a big upmove..
There is inverted head and shoulder price pattern is also clearly visible in weekly chart, with that flat trend line as neck line..
So be cautious, please find below chart for better understanding..

Regards,
Syndicate Trader

[vishytns]

Hi,

Following are my observations on DLF

1. First Inverted head and shoulder formed with neck line at 335-340. if we consider the shadows candles formed at 335-340. Target of this head and shoulders is 403 and looks like it is achieved during the upmove. There is one more theory that price would retrace back to neck like after the neck line break out. If we consider this we almost retraced to 345. Will it retrace fully to 335 (where 34 ema in weekly charts also present)?
2. DLF is forming one more inverted header and should whose neck line is at 400 (393-395).

Syndicate Trader/Sunny, Please correct me if my observations are wrong.

Vishy

[casper]

sunrays/ syndicate trader (st junior!!!!)/ vishy

wonderful findings, looks like the thread is already started rocking!!!
the more we discuss the more we enrich . so plz keep it up

[SyndicateTrader]

Thanks casper for the encouragement...

Dear vidhytns,
You are absolutely right. The level of 400 is very significant, even on higher time frames..

If you see below in Monthly charts, DLF is forming a classic base and is getting ready for a mark up.. above 400 levels...

Happy trading

Regards,
Syndicate Trader (ST Junior )

[vishytns]

Sunny/SyndicateTrader/Casper,

Please look at the daily charts of JKTyre
1. Can we consider 155-160 as good demand zone? It has formed triple bottom.
2. If we refer to 15 minutes chart there is a NVK. Can we expect JK Tyre to move up?
3. RSI is in oversold zone.

Please comment.
Vishy

[SyndicateTrader]

Hi Vishytns,

It may form a tripal bottom, but since april it is trading in a range of 150 on lower side and 210 on higher side. Actually after rallying from 50 to 210 it is consolidating in this range.. It is better if you buy it above 210, as nobody knows how much time it will remain in this trading zone.. If you are a short term trader then yes you can buy this around current level with a strict S/L at 145 and with a target of 200. But for positional investment you should wait for break-out above 210.

You can even look out for other opportunities like DCHL. It has recently given a break out above 142-143 levels.

Casper, How about this one??

Regards,
Syndicate Trader

[casper]

[sunrays]

this post is in no way related to our basic premise of demand-supply
but it cud be of some help for us to identify candlesticks n their ability to give the next short term directional move

the following pic is of an evening star pattern [img][/img]

evening star-The first part of an Evening Star reversal pattern is a large bullish green candle. On the first day, bulls are definitely in charge, usually new highs were made.

The second day begins with a bullish gap up. It is clear from the opening of Day 2 that bulls are in control. However, bulls do not push prices much higher. The candlestick on Day 2 is quite small and can be bullish, bearish, or neutral (i.e. Doji).

Generally speaking, a bearish candle on Day 2 is a stronger sign of an impending reversal. But it is Day 3 that is the most significant candlestick.

Day 3 begins with a gap down, (a bearish signal) and bears are able to press prices even further downward, often eliminating the gains seen on Day 1


NOTE- in the nifty spot chart the day 3 hasn't had a gap dwn apart from every other candle resembles a likely/tentative evening star..

pls click on the nifty chart 2 get a enlarged view

[vishytns]

sunny,
Charts are missing.
Vishy

[sunrays]

vishytns u cn check nifty spot eod chart