My Swing Trading :3 Indicator Method

[GKHERA99]

how you decide macd ,rsi and stochastics levels which are giving u buy signals/sell signals.please amplify the fig for each parametre separately both for buy and sell.

 

[praki73]

Respected senior members,

In the forum i came to know that lots of them use TA and FUNDAMENTAL analysis, usually i follow the tips given by others and make nominal profit, but i dont how to do analysis on my own, will please some body guide me how to do the analysis properly, pl. suggest any websites/books/CD. I am residing in Banglore, if some body coaches me regarding the analysis, i will be greatfull, my mobile no: is 9448862985.

Thanks,

R. PRAKASH

 

[joy_verma]

Hi GKHERA99,
they are same for buy/sell. macd(5,35,5) sto (5,3,3) Rsi(9)
you can experiment with rsi by using different period and/or using 20/80
or 30/70 overbought or oversold horizontal lines etc. Try reading in detail
about these 3 indicators because a deep understanding of the the indicators
is essential.
vinay

 

[GKHERA99]

dear joy my question is how i come to know that a particular indicator is telling that now buy and now sell u tell me those figures.setting fig i have understood from ur graph.please tell exact fig above which when a particular line crosses indicates buy/sell.thanks

 

[GKHERA99]

my question is what is the figure for these indicators which tell now to buy or now to sell.to put it straightaway how u arrived that pba is in buy mode.tell me the figure above which line crosses indicate buy/sell mode.i am new to technical analysis please guide with good links where i can learn.

 

[joy_verma]

Hi GKHERA99,
That's why I said study these indicators in detail .
here is a link
http://stockcharts.com/education/

 

[kuldeep49]

Hi,
For the past few days I have been seeing much controversy on forum about technical analysis . My opinion is that if you have your home work
done, if you have confidence in yourself ,if you are diciplined, if you want
to learn and succeed, You will develop your own methods and setups and
execute them in your plan and then trade your plans. This way you will
not rely on anyone Ashwani Gujaral Or anybody else.(I respect Ashwani as
he is successful and disciplined trader)
One of the hot scrip on forum has
been PBA infra structure. I am Taking up this scrip for My Actual Method
for swing Trade. I have simple method and I call it "3 indicator method".
On the day when sensex went down to 11008, PBA infrastructure Made
a low of 154 and a high of 167. I spotted this scrip on my chart and
saw my setup giving a buy signal. some people would wait to buy it
above 167 the last bar high but in that case my stoploss would be little
far away at 154 and as I am bit agressive I decided to buy it at nextday
at market opening.
Next, I analysed my 3 indicator method. It is a simple
method comprising slow stochastic, RSI, And MACD. I keep settings for
stochastic as 5,3,3 for Rsi 9 and for MACD 5,34,5.
Notice on PBA infrastructure that stochastic gave the first buy signal RSI
gave second signal and Macd final confirmatory signal. the same is applied
to sell the scrip when a sell signal is generated. I dont buy if this setup
fails to give me buy signal howsoever attractive that scrip might be. In that
event I search for next scrip. See the attched chart it gave me perfect
settings to buy and I placed a buy order the next day at market open
My buy order was executed at 160.25 with a stop at 154 which is just Rs. 6
below 160. Had I bought above 167 my stop would have been Rs. 13 away
from 154.
Now in four days time the stock is up more than Rs. 20 and none
of the Indicators have reached over bought region indicating that there is
still much distance to be covered by the scrip on the up side.
So this is my simple swing trading technique. In conclusion, if you do
your home work properly and trade your technique you do not need the
Famed technical experts to rely upon.
So, this is my "3 indicator method for you". I am pretty certain that many
of you will have your own methods and setups.
Regards,
vinay

Hi,
I recently came across this post which has left me a little confused. Looking at your chart, the day Sensex came down, 13th April, PBA Infra made a low. On that day, neither of your 3 signals took place. There was no stochastic signal (that happened on the next day, 17th April). Similarly, the RSI signal took place on 18th April and the MACD signal on 20th April. So on what date did you place your buy order? If it was on 20th April, it was on 4th day after the PBA Infra (and Sensex) bottom. But on that day the price never touched 160.25 (the trading range was 163.15 to 179.55). Please let me know where I am going wrong in my analysis?

 

[joy_verma]

Hi kuldeep49,
you hit the nail on the head.That's very good we should not
accept things at face value. the trade was executed on 17th apr. At first
sight it might appear jumping the triggers, but as you know my main analysis
is based on elliottwave. Sensex ended a small correction on 13th april and a
small wave up was also finished on this day(see elliottwave count for sensex
thread message no. 62 chart, message 58 and 60. So I had extra tools to
jump in. So I made an early entry the next (trading) day which was april 17.
But not every one will have excess to such extra tools and in that case
standard setup will apply, and my entry would have been delayed for a few
more days. But you pinned me man as my Trading dicipline was poor
as I was taking little bit unwarranted risk .
Thanks , for showing such a deep interest in this method.
Regards,
vinay

 

[joy_verma]

Hi,
Mcleod russel is another candidate for swing trade. It hit a swing low
of 117 on 28 april. Stochastic went into oversold zone on around
that date . macd (5,34,5) went below zero line while Rsi remained
above o/s zone. This indicator went into o/s zone around 4th may.
On chart one can see three indicators giving buy signals one after
another. though macd has given buy only today so I have jumped this
signal on anticipation and also looking the macd histogram sloping up
positively. Obviously , I have bought this scrip around 130 above the
127.40 level high of april 28 bar. Let us see how this swinger behaves
in the coming days. the stop loss is bit lower at 117 though it can
also be placed at todays low.
Regards,
vinay

 

[huineng]

Dear Vinay,
In some charts when the colour codes are not explained, should I understand Red colour as the fast line or the Blue colour as the fast line?(Slow stochastics, MACD).Please guide. Thank you.
Kumar