iCharts Discussions

[amitagg]

Dear All,

I am starting new thread for "Spike and Channel" pattern for Individual Stocks........

of late, I have found it "very successful" for ONE DAY trading...

eg: Titan discussed in Read the Line thread, ITC few weeks earlier, BHEL today.....

the pattern is found in many scrips each day or so and hence a highly profitable set up.

Shall learn more and build on the thread wrt to description of set up etc.

it is a "trend following" set up and has performed well even during contra overall market and successful against Nifty trend.

Regards
Amit

[vinay28]

Ifeel it should be under strategies and not market direction. Anyway, you can't do anything now and admin may shift it if they agree.

[saumya12]

Just post more details for this strategy

Thanks

[sambhaji_t]

Waiting for details

[amitagg]

yes bank was another successful "spike and channel"...4 out of 4...earlier being ITC, BHEL, Titan

spiked to 295 from 285....sideways action very narrow range for multiple time of the uptrend spike.....then broke out..

295-28=10+292 [sideways bottom]=302
or 292+ 10*1.27=305
futures levels....however i exited early.

[amitagg]

as per this pattern, even NF can touch 5865....so shorts should may be initiated early at 5825, 5833 levels.......

[amitagg]

sorry...i meant shorts should NOT be initiated early

[bharatpatel]

where's the chart ?

[amitagg]

chart for DLF and YES BANK spike and channel attached ...missed DLF....otherwise on last 5 occasions, the pattern has worked 100%.

the pattern should be in morni ng 1-2 hrs...can buy at support...without break of resistance after "longer sideways move" following the spike.
win zip file not working

dlf =132.5-127=5.5+132.5=138 target

[amitagg]

attached

[anilraj]

Please also visit DishTV. now trading at 51.45- 51.50.

[amitagg]

I would request ALL to please give chart patterns in morning which resemble the SPIKE and CHANNEL pattern....

RULES [self made]

1) Strictly intra-day pattern
2) Spike above 2% in first hour [one can apply filters and modify as per observation]
3) The breakout should happen by 12-1pm [since prolonged sideways move may imply lack of buying power]
4) Target = i) value of spike + bottom of sideways move
ii) value of spike *1.27 + bottom of sideways move
5) buy at bottom of sideways move and not necessarily after break of resistance
6) buy after sideaways move sufficiently longer than time spend by spike
7) the sideways move should be narrow and not retrace more than 1/3 of the spike [so depicts strength of spike]
Also follow other technical analysis rules for determing 'support and resistance levels' - so reading of stock price movement over larger time frame may add predictive value

Amit

[EssJay]

check out Auro Pharma

[amitagg]

Auro Pharma is a clear breakout trade on all time frames with smallest target 215 [205-189+ 199] and stop 198.
thanks

[amitagg]

Just to add, the while similar pattern can be seen in higher time frames...but owing to market conditions, etc. often the success rate can go down ...so i prefer the intra day pattern starting in morning