iCharts Discussions

[t.chatterjee]

[shekharinvest]

[Allwell]

Hellow All,

Thanks once again for your reply,

Actually I am searching technical indication because I am surprise market movement sometime. After the carnage in Jan-08, the blue chip stock like Tata Steel went up to all time high level of 930 in May-08 and then all of sudden it collapse to the level of 130-150 in 8-9 months. How can blue chip stock like TISCO fell down to 85% from the top in no time. Analyst always prefer the good fundamental company. Is any change of fundamental in such a short period ?

Similarly entire bull run of 2004-07 the Auto stock went no where. Every one write off Tata Motor after Jaguar deal. But it went up to 120 to almost 1000 level within the period of 9-12 Month in 2009-10. Is any change of fundamental in such a short period ?

That is why I am searching any technical indication of Market. I personally like to follow up 34 day EMA on EOD Basis. Though I am still learning, my experience is if it break either side the stock/NF-BNF will give you 5 to 7% return most of time. But problem is one will never found Top/Bottom in this strategy.

Thanks all of you for time. Keep writing your views

Regards

[Allwell]

[pradeepgolfer]

dijjya

There are more than 100 indicators available.If you have to take each one ,understand how to use them,find out which one works for which stock or market and then paper trade you will spend 5 years minimum before you start making money.
It is good you now use a stop loss.If you would have used a stop loss earlier you would have made consistent profits. But by observing a chart and using a simple reasoning you can learn how to buy and sell immediately.I give one example of such reasonig below.Please go through it.Though I am using a weekly chart the reasoning is valid for any timeframe and any market.
Fudamental analysis decides what company to buy or sell;technical analysis decides when to buy or sell.Technical analysis need not be complicated.You have to observe and understand what the price movement is telling you.
The chart is of NIFTY SPOT WEEKLY.

Notice first that the pivot marked A,5298.85,(5271, NF level) has been providing resistance to the nifty upmove, from October 2009 to present time.Once the NIFTY crossed the pivot high marked C,(5165 NF level) there was an immediate reaction down.Again, when NIFTY crossed the pivot marked D,(5303 NF level), there was a similar reaction which,however, made a higher low.THe Nifty again crossed the pivot high marked E,(5398,NF level) but this time, there was no reaction but a tight trading range, of 4 weeks, around the pivot point marked E, resulted.
Note this trading range has been above the weekly pivot A, for four weeks.This weekly pivot A, has provided resistance to the NIFTY for 9 months.
This is a fact,not an opinion or gut feel.This trading range is an abrupt departure from the behaviour of the NIFTY during the 9 months, preceding July.

I can only suggest two reasons for this happening.The sudden disappearance of downward reactions, suggests that the bears have withdrawn from the market and stopped the aggressive selling, evidenced earlier.THe second reason, is that the bulls have absorbed the agrresive selling, which has led to a trading range.The first reason suggests downward risk is limited to the extent of the trading range low.The second reason suggests that the bulls are in control and opens up the possibility of significant upside leading to an eventual test of all time high.

A retest of the 5349 level is technically possible, though the Dow recovery and closing well ofF the lows, makes it a very low probabilty event.But I cannot rule it out totally.

A clear break of the NIFTY SPOT LEVEL OF 5300 WILL SET UP A TEST OF THE 4700 LEVEL ON THE SPOT.

[t.chatterjee]

[pradeepgolfer]

dijjya
See this swing trading video by market wizard Linda Rachke
There are no indicators used.Only technical observation
http://www.cciclub.com/marketvu/linda-raschke-swing-trading.html
Use of simple things like averages help to make price movements clear. But any other indicator diverts your attention from what is happening in price.
Learn to observe and understand what the market is telling you.The market will always make it's intention clear, before moving.Even the moving averages say diffrent things in a trending market or a trading range.A break of a moving average is not always an indication to sell.In a strong trend, a break of a ma, is a buying opportunity.
Understand that a trend exists in some time frame:if not in 1 min chart it may be in a 2 min chart or a 3 min chart or a 4 min chart...and so on.
I personally do not refer to charts of less than 5 min.This because the profit is too low and I do not scalp
A stop loss should be put below the low which if broken suggests a change of trend.

[gomsi02]

[pradeepgolfer]

gomsi
A higher high and a higher low in a chart is a technical indication not A TECHNICAL INDICATOR
Is that logical enough for you?
Please try to read and understand what I am saying-there are hundreds of techniques without use of indicators.

I suggest you see the video by Linda Rachke who is known as market wizard throughout the world.I have posted the link-have you seen it? You are the one not being positive.

[gomsi02]

[SwingTrader]

Mr. Pradeep,

It would greatly help if you concentrate on teaching what little bit you know about trading/investing. You yourself have admitted that you don't like to use indicators and then you start a thread asking users to post questions on technical indicators? To top it all you go off on a tangent and talk something totally different that is not related in anyway to technical indicators.

You have totally littered the forum with 10-12 topics and you are updating all the topics everyday. It looks like you have no focus.

Just stick to one thread in technical analysis section and just post your ideas there so people can find it. At the moment you have successfully confused even us, leave alone fresh/new traders who are trying to learn something.

Cool down and start posting your core ideas in a single topic. This is, I hope, good advise, take it.

[pradeepgolfer]

Respected Sir
Sorry for the litter but the latest threads have broader subjects,I will not need to 'litter' any more hopefully.
The intention is to help people and dijjya's question was on 'technical indication' and not on any specific indicator.
That was the reason for the deviation.
It is not easy to put 15 years of experience into words but the market has already told me the same thing as you that I know very little about technical analysis.
I am grateful for your company because earlier I could not pay the exorbitant rates your competitors were demanding for intraday charts and it is because of your company that I can do intraday trading.
I hope you are successful because my trading depends only on your company.
Thank you

[tripathi_manu]