iCharts Discussions

[s.muthuswamy]

This is a three bar pattern composed of an outside bar preceded by an inside bar. In other words , the middle bar is completely sandwiched between the extremes. Such a pattern introduces swift tradable moves in price. More importantly, once the move ends, it is significantly retraced just as the pop gun cork going out and back. It has been noticed that this pattern tends to occur prior to impulsive waves.

A number of stocks and indices have shown such pattern in their charts during the recent times. For example , NF , BN , LIC HF , L&T , PNB and Rel. Capital .
These have exhibited pop gun pattern on the days 21.6.11, 22 and 23 , have respectively risen from 5336,10611,223.2,1677,1046 , 523.6 and fallen to 4951,9940,244.8,1164,1035,377.1

Renuka Sugars shows a pop gun pattern on the days 5.5.11, 6 and 9. On 10.5.11 it falls from 69.35 to 56 on 26.5.11. Then it rises from 56.1 on 27.5.11 to 76.35 on 8.7.11

Look at Escorts on 28.4.11 , 29 and 2.5.11 . It falls continuously from 141.1. Again it has shown a pop gun on 16.8.11,17 and 18. Will it rise to 141 very soon?

The prices shown here are for Futures.
Let us see.

[amitkbaid1008]

[s.muthuswamy]

[chandrujimrc]

Dear Muthusamy,
Thanks for your explanation.How to decide the target?


Chandru.

[maooliservice]

Dear sir

Is this strategy workable for intraday also

Regards

Mohan

[solanki]

[quote="s.muthuswamy"]This is a three bar pattern composed of an outside bar preceded by an inside bar. In other words , the middle bar is completely sandwiched between the extremes. Such a pattern introduces swift tradable moves in price. More importantly, once the move ends, it is significantly retraced just as the pop gun cork going out and back. It has been noticed that this pattern tends to occur prior to impulsive waves.

A number of stocks and indices have shown such pattern in their charts during the recent times. For example , NF , BN , LIC HF , L&T , PNB and Rel. Capital .
These have exhibited pop gun pattern on the days 21.6.11, 22 and 23 , have respectively risen from 5336,10611,223.2,1677,1046 , 523.6 and fallen to 4951,9940,244.8,1164,1035,377.1

Renuka Sugars shows a pop gun pattern on the days 5.5.11, 6 and 9. On 10.5.11 it falls from 69.35 to 56 on 26.5.11. Then it rises from 56.1 on 27.5.11 to 76.35 on 8.7.11

Look at Escorts on 28.4.11 , 29 and 2.5.11 . It falls continuously from 141.1. Again it has shown a pop gun on 16.8.11,17 and 18. Will it rise to 141 very soon?

The prices shown here are for Futures.






sir ji n e idea abut escorts charts daily and weekly

[jjm]

Dear All

Earlier trade based on this pattern marked in chart...RSI + ve div
Same is also seen in Bharti..that stock is periodically forming this pattern
In case of bharti it has given BD

Another stock that can be watched is Infy hrly..all Narrow range bars



JJM

[s.muthuswamy]

It seems the pop gun pattern has not been properly conveyed by me.
This is a three candle pattern representing three periods. Of these the second is inside the range of the first and the third is an outside candle for the second.

[s.muthuswamy]

What is special about the pop gun pattern?

It introduces swift,tradable moves in price. Once the moves end, they are significantly retraced, just like the pop gun going out and coming back.

I was ashtonished to look at the monthly chart of NF from its historic low of 2228 in Oct 2008. The candles of NF for Oct, Nov and Dec 2008 form a "Double inside bar " set up indicating a possible recovery from this low.

Then the next 3 monthly candles corresponding to Jan,Feb and Mar 2009 form a pop gun. From then on , NF rises continuously upto 6349 in Nov 2010(and then begins to fall).

Usially the retracement happens upto 50% - 100% and sometimes more.

When this materialises, where will NF end up?
I am freightened.

The top 3 candles corresponding to Nov,Dec 2010 and Jan 2011
also form a pop gun.

[gokulc]

[s.muthuswamy]

Mr.Gokul
Look into the following which will tell you what you asked in your previous post:

Scrip Pop gun candle Date

NF 23.6.11 Rises from 5336(24.6.11) to 5752(7.7.11)
Falls from 5760(8.7.11) to 5115(5.8.11)
Bank Nifty 23.6.11 Rises from 10611(24.6.11) 11495(7.7.11)
Falls from 11490(8.7.11) to 9940(9.8.11)
DLF 10.6.11 Falls from 232.6(13.6.11) to 206.4(23.6.11)
Rises from 211.3(24.6.11) to 241(8.7.11)
HDIL 23.5.11 Rises from 151.5(25.5.11) to 181.2(7.6.11)
Falls from 179.7(8.6.11) to 148.3 (23.6.11)
This is only a sample.

[gokulc]

[s.muthuswamy]

Mr.Gokul,
Your observation that the monthly candles of NF for Aug, Sep, Oct 2011 form a pop gun is correct.
The rally after the Mar2009 pop gun ends with another pop gun by the monthly candles for Nov, Dec 2010 and Jan2011.
Let us see how the recovery is going to be.
S.Muthuswamy.

[s.muthuswamy]

On 9-1-12 , a no. of indices and scrips formed pop gun pattern and the following are some:

NF, BN , Allahabad bank, Axis bank
Dena bank, DLF ,Escorts, HDFC bank, HDIL ,Hindalco
ICICI , JSW steel, Kotak bank, LIC, LT
PNB, Rcom, Rel.capital, Sesagoa, Tata steel.

All these are rising from that day onwards.

The last time NF made a pop gun pattern was on 23.6.11 and the next day onwards NF rose from 5336 to 5752(7.7.11). The reversal started on 8.7.11 and the fall was from 5760 to 5115(5.8.11) which is more than 100% of the rise.

Let us see how much is NF going to fall this time.

[pkholla]

s.muthuswamy: please clarify. your definition of Pop Gun is big candle, small engulfed candle, big candle OK?
the web article of EWI shows coffee chart with 2 candle Pop Gun with small candle 1st and big engulfing candle next.
Is 2 candle pop gun also valid from your research and knowledge?
Rgds, prakash holla