I can help you with stock chart reading

timtomlee · #**911** 27th August 2006, 12:18 AM

Hi VV,

We can use MACD INDICATOR for "overbought/oversold" level for
swing trade.

DAVE LANDRY in his book on "SWING TRADING" suggested using
3/10 oscillator to check overbought/oversold levels. I tried the
same with MACD indicator and it worked! (This method works best
in trending stocks, having good momentum)

MACD - 3,10,1.

If MACD value is below "0", that means the stock is oversold and when
it crosses just above "0" value, we can go long.

But i advise to use this along with other "oscillators" like RSI,
SLOW STOCH or WILL'SR%. This will give a better idea.
If the above macd indicator is used alongwith, say, SLOW STOCH, and if
both confirm "oversold" level, then we are sure about our method.

Changes will be made after VV's reply, if any.

Kindly reply,

Regards,

Sonu M.

vvonteru · #**912** 27th August 2006, 12:28 AM

Quote:

Originally Posted by timtomlee

For those who find UPPERCASE straining, I am reposting in Sentence Case.

"Two diffeent MACD indicators"

1st. indicator - MACD (8,50,1)
2nd. indicator - MACD (50,200,1)

If 1st. indicator is below "0" value, that means 8 day ema below 50 day ema,
bearish for intermediate term.

If 2nd. indicator is below "0" value, alongwith the 1st. indicator, bearish for long term.

Now, as 1st. indicator is rising above "0" value, but 2nd. indicator is below "0"
value, we must be cautious before entering the market. If both are rising above "0" values, we can go long.

So far it works good.

Quote:

Also, if both the indicators are above the "0" value for a long time, and the
2nd. indicator is trending more than the 1st. indicator (we can do this by visual inspection), then we can expect correction any time. Therefore,
be cautious in such scenario before going long.

Can you give an example. I was looking at SATYAMCOMP. It was not clear, unless you want to fit in the result.

Quote:

Hope this helps. Alterations will be made after VV's reply, if any.

I am also researching on "STOP LOSS" and "TRAILING STOP LOSS" using
MACD and MOVING AVERAGES.

I will update it in future.

Regards,

Sonu M.

For trailing stop loss, try Adaptive Moving Average.

Thanks for trying.

timtomlee · #**913** 27th August 2006, 01:05 AM

Quote:

Originally Posted by vvonteru

So far it works good.

Can you give an example. I was looking at SATYAMCOMP. It was not clear, unless you want to fit in the result.

Hi VV,

Thanks for trying. No one can fit in result.This is my trial phase, there is bound to be an error. I think the error would be in the values i quoted, but basically what i said was, 2nd. indicator is trending more than 1st. indicator,
that means, 2nd. indicator is more acute than 1st. indicator. Below i have
attached chart of SATYAMCOMP. Please go through, if u still feel it is not working, i will alter my findings.

Regards,

Sonu M.

vvonteru · #**914** 27th August 2006, 02:30 AM

Quote:

Originally Posted by timtomlee

Hi VV,

Thanks for trying. No one can fit in result.This is my trial phase, there is bound to be an error. I think the error would be in the values i quoted, but basically what i said was, 2nd. indicator is trending more than 1st. indicator,
that means, 2nd. indicator is more acute than 1st. indicator. Below i have
attached chart of SATYAMCOMP. Please go through, if u still feel it is not working, i will alter my findings.

Regards,

Sonu M.

In this case, it did work. I understand the reasoning behind what you are getting at. What U are looking for is, if difference between short term ema (8) and intermediate term ema (50) is reducing compared to difference between 50 day ema and 200 ema, then a correction can be expected.

But, if go and look at the chart earlier to May, there were several times MACD(8,50,1) went below MACD(50,200,1). This did result in correction, but not a lot like in May.

MACD(3,10,1) also looks good. Good work.

timtomlee · #**915** 27th August 2006, 07:30 AM

Quote:

Originally Posted by vvonteru

In this case, it did work. I understand the reasoning behind what you are getting at. What U are looking for is, if difference between short term ema (8) and intermediate term ema (50) is reducing compared to difference between 50 day ema and 200 ema, then a correction can be expected.

But, if go and look at the chart earlier to May, there were several times MACD(8,50,1) went below MACD(50,200,1). This did result in correction, but not a lot like in May.

MACD(3,10,1) also looks good. Good work.

Thanks for ur response and encouragement. I am still finetuning it and will
elaborate more on "CORRECTION" in future. So far it has worked, and by your response, many will now use this method and benifit it. I have started a new thread in "TECHNICAL ANALYSIS" section about this system and named it
"THREE MACD INDICATOR METHOD". I have also credited u with my findings. Here is the link:
http://www.traderji.com/technical-an...or-method.html

Once again thanks for ur encouragement. I am doing intermarket analysis and
will update it soon.

Regards,

Sonu M.

shethharsh · #**916** 27th August 2006, 10:38 AM

Can anyone give me TA views on educomp . I entered the stock at 547 yesterday at someones recommendation that it'll touch 600 . Please give me fair opinions .

Harsh

mainak · #**917** 27th August 2006, 02:57 PM

Hi VV,

Need your analysis of RUCHI INFRASTRUCTURE & FCS SOFTWARE. Planning to enter on Monday.

Mainak

Raju · #**918** 27th August 2006, 07:24 PM

Hi VV,

Need your analysis of Indian Oil (IOC ). Planning for Intraday on Monday.(28th Aug 2006)

Thanks in Advance,

Raju

vvonteru · #**919** 27th August 2006, 09:20 PM

Quote:

Originally Posted by shethharsh

Can anyone give me TA views on educomp . I entered the stock at 547 yesterday at someones recommendation that it'll touch 600 . Please give me fair opinions .

Harsh

It has already gained 30% in the last week. Also, 600 is above the bollinger band. It will be hard for the stock to keep up the momentum. It might pull back and probably move above. If it does, it will be 600 and beyond.

RUCHI INFRASTRUCTURE
--Low priced stock with low volume. Easy to manipulate. 25 is the resistance.

FCS SOFTWARE
--Looking at the stock from Oct 05, it is not impressive. Almost 80% of the time, it was below 50 day ema, with out a trend. It had a failed attempt to trend in May. Volume right now is considerably lower than that in May.

IOC
-- According to my methodolgy, the entry was on Friday. However, Friday's close is not far from where I would have liked to enter. So, go ahead and enter with adjustment to position size and stop loss.

For Monday:
GESCOCORP - Mahindra Gesco Developers
ATR(14) = 60
CMP = 721
Entry = 770
Stop = 600 (between 2*ATR & 3*ATR and below low of 8/14/2006 as this was the start of the new uptrend)
Profit = Trail Stop
Position Size = Please use Excel calculator.

If you are not using or entering trades in the position size excel, you are not serious as a trader. One of the hard and boring part of trading is book keeping. But, if you don't, how do you analyze your profits and loses. Can you do business without book keeping?

drsmathew · #**920** 27th August 2006, 11:26 PM

hi,
I have been a regular watcher at this thread,and have been able to gather a lot of positive information.Need TA help on the following scripts,

1.Vsnl
2. centiry Textiles
3.Hindalco

regards,
sil

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