Charts for the Day

prst

Well-Known Member
#53
Hi anil bhai,

I have a query regarding HnS pattern.
Is the below chart of hindalco indicate a failed HnS pattern?
 
#54
Hi anil bhai,

I have a query regarding HnS pattern.
Is the below chart of hindalco indicate a failed HnS pattern?




hi,

No i think head and shoulder is still in progress, and it didnt test the trendline or rather the breakout from a neckline is a not a valid one, I posted two charts, in first one you will see a series of complex H&S in progress..and it still didnt a close below to have a valid breakout...now to introspect further i switched to line charts( i m impressed with martin pring) and you see the last fall even didnt closed below trendline..i m using weekly charts here..i think you had given a monthly one....

Another area of simple price action analysis on your monthly charts if you see closely the second last bar, its a pin bar at support level its a bullish formation and required follow up action...

Whatever i commented on the basis of three classical all time book i always fall back on, i prefer to mentioned here to have validity of thought process...
1) Technical analysis of stock trends
2) Martin pring on price patterns
3) Technical analysis & stock market profits - Richard schabacker

many didnt know richard is the oldest of all and hid book is a great read..a good one i would reccomend on top of list...its a little heard one too...
 

prst

Well-Known Member
#55
it did bounce from the nekline once, but weekly has formed a bearish engulfing now.
looks like it may break the neckline support ..
 
#57


HDIL Possible Symmetrical Triangle in the making?
 
#58
@PRST

was thinking a little bit so adding it here...as you said bearish engulfing is formed, as with candlesticks or price action, one must remember reversal candlestick formations are only warning here its a warning to avoid longs, but not a signal to short...its a different thing...you will ask how??
Actually any reversal signals have importance if there is something to reverse, here prices already in downtrend but the engulfing formed near to support level, so it raises doubt..whether it will be bearish still...the reading of price action signals or candlestick formation should always be taken with the position of pattern where its occurring...
 

prst

Well-Known Member
#59
@PRST

was thinking a little bit so adding it here...as you said bearish engulfing is formed, as with candlesticks or price action, one must remember reversal candlestick formations are only warning here its a warning to avoid longs, but not a signal to short...its a different thing...you will ask how??
Actually any reversal signals have importance if there is something to reverse, here prices already in downtrend but the engulfing formed near to support level, so it raises doubt..whether it will be bearish still...the reading of price action signals or candlestick formation should always be taken with the position of pattern where its occurring...
yes anil bhai,
reversal patterns are warnings and need confirmation on the next candle.
but i thought there was already a short uptrend going on in the weekly chart..