iCharts Discussions

[sauraj123]

Hi,

1) Intraday time frame?
2) what should be the Stoploss?
3) its tough to get to know when is the bottom of the channel.So if at 10 AM stock is 2 % up, can we place buy at 1.5%.?, Please suggest ho you do it.?

Thanks

[amitagg]

See responses below

- the spike time should be in first half hour to 45 mins or so...channel time can be 1-2 hrs beyond
Note that "target time" in entire day AND in fact you would see ALL day trending action and in fact even after 3 PM there can be final upward spike

- stop loss : conservative is low of spike (place few ticks below) to get 1:1 risk reward, otherwise 50 percent of spike can be good stop loss because the bottom of channel should be above say 1/3 of spike

- no limit orders...first see spike..then sit and wait for channel getting formed...then can buy at bottom of channel

- note that channel should be "sideways" and not trending upwards or downwards (this would be different pattern then)...hence it is easy to see low of channel

- note that such pattern is also formed on first reversal day after few days fall (when buying sudden happens (spike), selling is absorbed "gradually" then uptrend resumes

- I am more comfortable trading UPTREND (not clear of downward spike and channel though results may be similar)

[amitagg]

Let's all post the possible patterns in early trading hours each day..and see if it can be traded

[pkholla]

Amit: Didnt we have spike and channel in NF itself today?
Prakash Holla

[sauraj123]

Thanks Amitagg for your reply.

few more doubts

1) what kind of stocks any specification high beta, low beta etc or it can be applied to any?

2) request to post some failures if you have come across any?

regards

[amitagg]

Best to trade Nifty Futures stocks....failure is when channel is "upward sloping" or a "upward line" formation after the spike but not otherwise....lets see what happens in future...on given day becuase of any factor markets can turn and so do stocks and hence the stop....

so use only intra-day and sideays channel withoutmuch retracement of spike.......post if u fine one...the live trade would prove everything

[sureenderkalra]

I know you are talking about intraday trade only yet i would like to post a tcs-1M - 5TF chart to get your view on it. I hope you will not mind it.

TCS gave a spike last day and kept hovering sideways the whole day forming just like a ascending triangle pattern. Amit, What do you think about the movement of tcs tomorrow?

[amitagg]

replicate Nifty.....this pattern is a consolidation pattern anyways and likely brea in direction of spike in higher time frames...as i see....Stop 1935....buy break of 1947..target 1967/1972 is a high probability "sideways" trade

[sauraj123]

Hi Amitagg,

Hul Seems to be short as per spike and channel theory...Lests see...its has spiked down in the morning and in channel now.Good short will be 611-612...if comes up.

regards.

[sauraj123]

Hi Amitagg,

After my message it came up till 612...if shorted...CMP 605.5

[amitagg]

great....so pattern worked...i missed it was away...target is 602 Spot !!

[sauraj123]

Hi amitaag,

Havells seems to be a good long..can be bought at 671 spot..stoploss 665 and target can be 685-690...I am not trading just observing.

[amitagg]

see the 7 out of 7th trade working in Maruti....saw after breakput only..but enterd long at 1426 level with stop at 1412 and target 1441 {Futures prices]

right entry as per my parameters below for this pattern would have been 1397 approx.

chart attached....pls pls throw up more such trade patterns because it works wonderfully.....we need to focus aroung 10- 11 pm for such trades.

[amitagg]

chart attached of Maruti

[amitagg]

Sauraj, Havells not a candidate as per my system since too long a sideways action.....i thing it can break either way.....someone told me to buy few days back at 620 with target 670 and it is now at that price. so no trade for me.