Charts for the Day

[anil_s_trivedi]

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• 
  Watch the update of 12 pm when mentioned 4997 as good support, at there bears failed to move market down(no bearish setup follow up) and market rallied up
  Key zone now is 5060 and 5025 below this 4945-65 zone
  Reason for posting chart is sometimes trade is easier if we shut our indicator based approach, or rather price only focus gives good rewards
  Another moving average setup called 'fast rise' as watch prices came bact to test 200 sma and 50 sma too moved down, but didnt give bearish crossover and market at key support level, so 10 sma entry is a must one

 

[anil_s_trivedi]

Many investors/traders got confused when approaching a particular stocks. so i am listing a checklists it may not be a complete one but still it offers some basic things one should always looked on...

Analysing a Chart

Always try to read chart naked, I mean without any indicators, studies or expert advisors
(Why indicators is a price derivative and focus should be on price only)
What stage the stock is inUptrend/Downtrend or rather Accumulation(consolidation) Uptrend (Distribution)Consolidation - Downtrend
How strong is the trend
Draw Trendlines (they are must to define what trend/flow stock is in)
Spot price patterns and bar reversals(1 bar or two bar multiple bar reversals)
Was there a breakout recently
Are there any wide range candles in direction of trend
Are there any gaps in direction of trends
Key support and resistance areas
Is stock in middle or end of trend
- Look out for position of breakout
- Pullbacks ( if already two-three pullbacks in uptrend more chances of price reached overbought zone)
- Fibonacci studies

Ideally Fundamentalist argue that Technicals are bullshit and they take on company with only 5min of analysis. Although I am not a stubborn kind of person, but let me tell you, if you are interested in building a positions in few stocks which you had identified and wanted to get in, in a logical manner then please study chart history for as many years as you can, bcoz certain characteristics will often get repeat in some stocks, it may be due to institutions approached in certain pattern of accumulation and distribution
These patterns of stocks get repeated in that particular stocks. Analysis should be done in all timeframes. That means monthly/weekly and daily.
Previous key breakout levels on higher timeframe charts is a must to hold level.
Than position initiation part can be approached with looking after bar patterns/candlesticks, and position of moving averages
Indicators looking should be last part
Please note prices always moves in a way to trap majority of participants. As you must have noted bullish breakout in Bear markets failed to move up, and indicator under study must have already overbought, and if prices fail then it is due to it is unable to maintain overbought status and thus it implies we are in a bear market.

 

[doctor_a]

ranbaxy didn;t participated in rally of last three four days..now its moving towards 478 zone where supports exists with head and shoulder pattern any decline below 478 on 15min charts in intra day tomorrow will give opportunity to short sell or bounce back from 478 can be use to long the stock with stoploss below 478

 

[prst]

Many investors/traders got confused when approaching a particular stocks. so i am listing a checklists it may not be a complete one but still it offers some basic things one should always looked on...

Analysing a Chart

Always try to read chart naked, I mean without any indicators, studies or expert advisors
(Why indicators is a price derivative and focus should be on price only)
What stage the stock is inUptrend/Downtrend or rather Accumulation(consolidation) Uptrend (Distribution)Consolidation - Downtrend
How strong is the trend
Draw Trendlines (they are must to define what trend/flow stock is in)
Spot price patterns and bar reversals(1 bar or two bar multiple bar reversals)
Was there a breakout recently
Are there any wide range candles in direction of trend
Are there any gaps in direction of trends
Key support and resistance areas
Is stock in middle or end of trend
- Look out for position of breakout
- Pullbacks ( if already two-three pullbacks in uptrend more chances of price reached overbought zone)
- Fibonacci studies

Ideally Fundamentalist argue that Technicals are bullshit and they take on company with only 5min of analysis. Although I am not a stubborn kind of person, but let me tell you, if you are interested in building a positions in few stocks which you had identified and wanted to get in, in a logical manner then please study chart history for as many years as you can, bcoz certain characteristics will often get repeat in some stocks, it may be due to institutions approached in certain pattern of accumulation and distribution
These patterns of stocks get repeated in that particular stocks. Analysis should be done in all timeframes. That means monthly/weekly and daily.
Previous key breakout levels on higher timeframe charts is a must to hold level.
Than position initiation part can be approached with looking after bar patterns/candlesticks, and position of moving averages
Indicators looking should be last part
Please note prices always moves in a way to trap majority of participants. As you must have noted bullish breakout in Bear markets failed to move up, and indicator under study must have already overbought, and if prices fail then it is due to it is unable to maintain overbought status and thus it implies we are in a bear market.

i
i hav some queries regarding chart analysis. please answer them at your liesure.:

1. how do we find the current trend for a scrip. should we use trendlines (ie. the uptrendline is not broken indicating a uptrend) or certain ema, say 13EMA direction should give us the trend ?
2. do u feel candlesticks are good at indicating reversal points ?
do u trust weekly candles more then the daily ?
several instances, i found that during long downtrends, none of the reversal patterns worked.

thanks in advance

 

[anil_s_trivedi]

@PRST

1. how do we find the current trend for a scrip. should we use trendlines (ie. the uptrendline is not broken indicating a uptrend) or certain ema, say 13EMA direction should give us the trend ?

--- My preferred way to look at trend is with trendlines and moving averages combined. i mean averages on weekly charts first then on daily charts, bcoz daily will have trendline breaks more often, it is still important for early exits i must say that...and regarding moving averages yes they are important it is my second line of analysis to view daily chart with daily/weekly/monthly 5 ema high-low levels to ascertain strength or weakness, sustaining above monthly high is most bullish case, iprefer 5 ema and 10 sma for short term trades, also position of moving averages do matter i.e. placement of 50 and 200 dma


2. do u feel candlesticks are good at indicating reversal points ?
do u trust weekly candles more then the daily ?
several instances, i found that during long downtrends, none of the reversal patterns worked.

--- let me tell you all patterns are prone to failure not only candlesticks but yes so called H&S .etc... too...the thing is you are the not only one who is seeing these pattern, and i always tell institutions prefer to have their own method of distribution...and this is what i always focussed to find on a chart while doing historical price analysis, how the things getting distributed, i mean it is slow and quiet or volatility is the buzzword...how scrip respecting moving averages..if it is not expect future supports at MA's prone to fail...i must say you should read any material relating to 'Price action' will increase your thinking on naked chart reading..and finding good trades...merged those study with point 1 analysis above (trendlines & MA's) and thing will be in place...

Wanted to write a long post, but time constraints...yes please share your views of chart reading and post it so we can cross examine...

Nobody is expert, all are learners in this world...

 

[anil_s_trivedi]

The only problem we human suffered is trying to search an easy way..i mean as per my analysis...90-95% of time spent by trader goes on searching for holy grail, expert advisors or indicators... and only 5% time on chart analysis and price reading...
I encountered many traders, one is trading qith 10 SMA on weekly//monthly/daily/Hourly charts...only one moving average...what a dedicated man that must be...
I too use indicators, and mostly momentum ones only after finding price setups..sometimes indicators such a momentum ones also give good stocks to identify and then trades see price action..but mostly its price first only...

so stop searching for holy grail and focussed the method in line with your Nature..i mean if have patience trade trend following if dont be a swing trader...

 

[prst]

The only problem we human suffered is trying to search an easy way..i mean as per my analysis...90-95% of time spent by trader goes on searching for holy grail, expert advisors or indicators... and only 5% time on chart analysis and price reading...
I encountered many traders, one is trading qith 10 SMA on weekly//monthly/daily/Hourly charts...only one moving average...what a dedicated man that must be...
I too use indicators, and mostly momentum ones only after finding price setups..sometimes indicators such a momentum ones also give good stocks to identify and then trades see price action..but mostly its price first only...

so stop searching for holy grail and focussed the method in line with your Nature..i mean if have patience trade trend following if dont be a swing trader...

rightly said.
when our system fails 1 or 2 times, we dump it and look for another system.
we always think that there is a holy grail system which never fails..

 

[anil_s_trivedi]

Posting a chart of nifty 5min price action, its not a detailed one, but the point i m telling yesterday is keep looking for specific patterns or bars setup...
pin bars(tail bars), inside bars, outside bars, engulfing pattern failure...etc..
master one or two, and your trading will be more easier..also you can combine your present system if warranted. The problem with looking through expert advisors is they paint bars to uptrend and downtrend, and we are accustomed to see only these and no other details, so we miss price action in general...

In future i will post a detailed one with more analysis part...

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[anil_s_trivedi]

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[anil_s_trivedi]

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