iCharts Discussions

[sumesh_sol]

Dear Friends,

Yesterday while talking to Ramesh Raja sir in sb , he mentioned a kind of setup he uses alongwith this Gann study. As such I've no idea of Gann system, hence I tried to collect whatever I could understand during that small conversation. Following are my observations (for long trade, short can be reversed):

1.)Price retraced and consolidating in a clear uptrend.
2.)A breakout kind of candle happens
3.) At this time if MACD line crossed zero line from below giving buy signal + RSI above 60 , then it is a buy. Price will accelerate when ADX becomes bullish ( ADX >25).
4.) For target Fibonacci numbers can be used. SL/TSL is yet not clear to me.

I'm enclosing some examples here and requesting RR sir to enlighten us by correcting and advising wherever required.

This is just a pointer and no way a complete strategy. Just to initiate discussion on his method.

[nelson soibam]

hai sumesh
is this relience ifra wait 2/3 days for long under this observation.

with regards

[rameshraja]

Mr Sumesh

you are perfect in understanding how I go about to takeup trade.. I use this setup when I get buy and or sell signal as per Gann..

[baldewa]

i hear about of gann by rr, there was sale on 30jan of high ofnifty ,as per time calculation, can you please explain.

[zeeshandangra]

To Ramesh

I would highly appreciate if you can explain Gann method application. I know basics about Gann.

Kindly post.

[rameshraja]

Gann methods cannot be explained in a single post.. I am still a student of gann and not well versed with the system

[sumesh_sol]

MTNL..eod
=========

This looks like a buy on account of following:

1.) Divergence on MACD at bottom (25 level)
2.) Breakout from trendline, and then from a consolidation of 02 months.
3.)RSI crossed above 60, MACD line above zero showing bullish signs.

It should be a buy (LTP-30.35) with a SL of 28 on closing basis. Target could be 35/38..
These are all my assumptions, RR sir may correct me if I'm wrong.

Regards,

[rameshraja]

Mr Sumesh

MTNL perfect setup.. Could move as per your analysis.. As of now ADX is dead.. When its above 25, momentum could pickup.

[sumesh_sol]

[sumesh_sol]

ONGC...eod
==========

Similar setup..

[pkholla]

[sumesh_sol]

EXIDEIND...10tf
===========

Let's see how it behaves on smaller timeframe for intra trades...

PS: Prakash : Yes , I knew that about ADX. only word "bullish" was misleading thanks for correcrting

[harinderpal]

dear sumesh / rr sir , shouldn't we enter trade when rsi makes consequitive higher highs above 60. as we know 60 level is a resistance level and more often prices often touch and reverse from this level.

pls guide

[falcon]

Sumesh,

Also note that for MTNL, weekly MACD gave a buy signal yesterday.

Regards
falcon

[rameshraja]

Mr Sumesh

You are picking the stocks where MACD crossing Zero from below and RSI above 60.. High probable trade setup is taking ADX into consideration.. When it moves above 25, then momentum to your buy signal will accelerate.

Very Importantly, first you have to decide about the trend of market by using 50,200 crossover in Daily chart. If crossover is in buy mode and when market corrects and then begin to moveup again, the above setup can have high probable trades.

In Bull market, when 50, 200 crossover is in buy, the instrument tend to pullback to 50 average and thats the place you need to watch the above setup to takeup trades.

Today, thats the reason I told you about Tata Sponge in SB, just don't look at MACD and RSI alone as averages are not in perfect buy mode.. So too ONGC..

Trust this helps you..