iCharts Discussions

[rk_a2003]

Hi zhkzhk ,

Thanks for posting your Method in detail. The charts posted in the links are not reader friendly,not so legible

List of scrips:Reliance, Infosys ,Wipro,Bajaj Auto,Tata communications.

I hope no limitation for number of scrips

RK

[zhkzhk]

Hi rk_a2003

Regarding “charts not clear”. Once you open the link and see the chart. Right click on the chart and select the “save image as” . Save it on your computer wherever. Then when you open the save image it will be clear. Try it and let me know.

As far as the how many stocks please no more than two. Because others will also ask, if I have the time I will do all. I trade, hence time is limited. I hope you understand.

zhkzhk

[rk_a2003]

Ok! I will do that

Now my scrips as per limit are Wipro,Reliance

Thanks

[zhkzhk]

Hi rk_a2003

I have Reliance and TCS stocks showing Buy and Sell zones with text. If you cant see the charts properly, look at my post I wrote how you can resolve the clarity.

There are the Links:

https://docs.google.com/leaf?id=0B8OOAWEc03LDMTY2NjQzYTktZTdiZC00YWQ2LTlhNDUtYjkxMmI2OGIxMDlh&hl=en_US


https://docs.google.com/leaf?id=0B8OOAWEc03LDMjc3MGM3ZWQtYzBjNS00MjcwLThjMjYtMmQyMmQ0OTM4NWQ5&hl=en_US

I hope it helps, let me know the graphics are understandable.

zhkzhk

[rk_a2003]

Hi zhkzhk

The problem is resolved.Thanks!

RK

[zhkzhk]

Hi rk_2003

Sorry can't do a graphic analysis on Wipro. I looked at the chart and there is a Sell Zone 409.5/401.25. Let the price came up in the zone area. Then sell the stock or buy Put options or buy a spread, by selling the higher price put option say around 430 stk price.

Even if you sell the stock I would buy protective. Buy 415 call. This is your protection just in case the stock goes up. This is for only experienced option traders.

Hope that helps.

zhkzhk

[rk_a2003]

Thanks Zhkzhk

( give us some easy name to address you )

[Kedarjd]

Hi Zarir,

Thnx for sharing your zone base trading technique,I just read through your posts but haven't actually accerssed your Google Doc Links ( as cann't open them from office ) But i am going to do that first thing in the evening. As i am a working professional i am looking for some trading strategy where i do not need to be glued to screen all day along.And trades that can be done over few days ( swing trading),which i believe is what exactly your system can give me.

Thanks and kind regards,
Kedar

[zhkzhk]

[chandrujimrc]

hI zhKzhk,

Can you explain about canbank,bharatforg and sesagoa.


chandru.

[zhkzhk]

[zhkzhk]

Detail explanation how to determine volume on day of trade:

This is an easier explanation the one I posted earlier regarding volume check.

For example if you are SELLING a stock, locate the highest volume of an up day in the resistance zone area. (See chart of SBIN) The Volume of daily price bar the day you take the trade coming into the resistance zone should be between 8 to 10 percent less then the highest volume day in the zone area.

It is not the previous day; it’s the volume of the stock the day you take the trade. Let’s say for example the sell zone area in SBIN starts from 8/5/11 to 8/12/11. Now we have to determine the highest volume of up day in that zone area. That day happens to be 8/9/11 with volume = 29, 53,666. You know this info. When the price next time whenever retraces up to sell zone area (let say on Nov. 20th price is headed in the zone after market opens) Hence you start calculating the volume on Nov.20th. We have to check it against vol. of 29, 53,666 which was the highest vol. on 8/9/11.

Calculation steps:

1. Calculate: 29, 53,666 * 8.5 %( I have expl.why bet. 8 to 10%) = 2, 51,061.

2. 29,53,666 – 2,51,061 = 27,02,604 ( 8.5% less )

3. 27, 02,604 or less not more should be the total day’s volume for Nov. 20th.

4. Divide 27, 02,604 by 6.25 hr. = 432,416 vol. per Hr.

5. know to calculate for the 20th: take 3.5hr.(mentioned in the descp.)

6. Multiply it by 432,416(hr/vol) = 15,13,458 to get the vol. after 3.5 hrs in the market on Nov. 20th

7. check around 12.45, should not be trading over 15,13,458 shares, less the better +/- 0.50% allowed

8. If after 30/45 mins (say at 1.30pm) if the ratio is staying the same take the trade.

9. And if the volume (15, 13,458 goes over by 2.75 %( mentioned in descp) then do not take the trade (e.g. if vol is 15,51,295) Let it go to the next higher sell zone and evaluate again.


Explanation of Ratio: say at 1.30pm you are checking again that is 4.25hrs into the market. Now take 432,416 * 4.25 = 18, 37,771 Hence if you see this volume around 1.30pm, that’s keeping the same ratio.

Link for chart: https://docs.google.com/leaf?id=0B8OOAWEc03LDYTc4ZTMxNDEtYWM1NC00YTM4LWJhYmUtM2Q0OWEwY2VhM2Vi&hl=en_US


For example if you are BUYING a stock, locate the highest volume of a down day in the Buy zone area. Then follow the same steps of volume check.

I hope this explanation makes it easier to understand volume check. Please let me know if this helps. Then I can gauge your understanding.

Zarir

[zhkzhk]

Just my thoughts to trader’s questions:

First let me thank every one for their kind words.

No worries. I know we all get frustrated from time to time. I had mentioned regarding my technique, some where in the post that my technique is just "one mans opinion" there are lots of good ones out there.

I finally came around this technique is because I have gone through many of the indicators, and "I" found that they did not help "ME" in my trading. Most of them were laggard, meaning after the price has already finished performing. I am not against any; I feel that they do not help me in my trading.
The Zone trading is in my opinion is kind of a projected concept. It tells you to look at the past and project the future price. I am an Edge trader, so I feel this technique gives me an “EDGE”. Others might differ.

I feel that Fibonacci projections do give future price projections and I do use them in my trading at significant highs and lows.

The zone trading also does not put a trader in which a trader can get whip sawed for different reasons. Prices do react to news, earning, and other outside circumstances. Like now with the European crisis, the market is volatile.

Zone trading is kind of swing trading, and it did help me because I did not have time to sit in front of the computer to day trade. So it depends on ones circumstances.

I think that day traders can also take advantage of this technique. Actually they can use this same technique even on a lower time frame. Can be 2, 3, 5 or even 10 minutes. And they can visually find the same zones.

I hope I am helping traders who need it.

Have a great day
Regards
Zarir

Yes I do post on Stocks - under Markets too whenever I have been asked a question.

[vinay28]

zarir, thanks. now it's clear except for following doubt:

Do your your statements "3. 27, 02,604 or less not more....." and "9. And if the volume (15, 13,458 goes over by 2.75 %.... " apply for buy also or do they get reversed? e.g. "....or more not less" and ".....if volume goes under 2.75%...."

[tans987]

ZHK,

It is very difficult to understand any strategy without charts. Please give example with charts. The given link for chart is not proper as the message shows,

"This webpage is not available
The webpage at https://docs.google.com/leaf?id=0B8OOAWEc03LDYTc4ZTMxNDEtYWM1NC00YTM4LWJhYmUtM2Q0OWEwY2VhM2Vi&hl=en_US might be temporarily down or it may have moved permanently to a new web address.."

Regards,

Tans987