NEW TRADING METHOD(have look its Goldmine)

Discussion in 'Technical Analysis' started by ronald_peterson, May 17, 2006.

  1. ronald_peterson

    ronald_peterson Member

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    Hi Guys,A simple but highly efficient technique. Iv been following it for long now. Iv also enclosed list of stocks with 10% and 20%, so that u dont get stuck in circuit and pay the penalties.
    For Worksheet pls refer to Software>Coolworks>GAPANA.
    Id like to thank Cool for the hard work.
    let me qoute this from the website.

    "If a stock opens at 100 and the day high is 100, and the previous close is 96, you can short sell the stock around 99.70 with a stoploss of 1 rupee, since the stock would invariable come down to 96 levels to fill the gap.

    If a stock opens at 96 and the high is 96 and it has closed at 100 the previous day, you can buy the share around 96.50 with a stoploss of 1 rupee, since the stock would invariably go up to fill the gap.

    Never go long on a share that has the open, high and the previous close price as the same. For example if a stock has closed at 100 the previous day and the open for the day is 100 and the high is also 100, do not buy that share, untill it breaks 101 and trades for few mins above the levels. You can even short at 99.50 with a stoploss of 1 rupee.

    Previous close, High & Open price same or almost same, then it is called a Triple top formation.-
    Options: Go long only if the triple top is breached decisively or Go short with 1- % stoploss

    Never short sell a share that has the previous days close, todays open and low price as the same. For example if a stock has closed at 96 and the days open and low price is 96, do not short the sell, untill it breaks 95 and trades for few mins below 95. You can buy it at 96.50 with 1 rupee stoploss.

    Previous close, Open & low price same or almost same, then it is called Triple bottom Formation;
    Options: Go short only if the triple bottom is breached decisively or Go long with a 1 % stoploss."

    Now the links to this information

    Stocks opening higher
    http://markets.moneycontrol.com/technicals/opening/higher/index.php

    Stocks opening lower
    http://markets.moneycontrol.com/technicals/opening/lower/index.php

    Imp thing on strong pullback days better off would be to go long on the stocks which open lower.
    And vice versa.

    nOTE= CAME ACROSS SOMETHING REALY IMPORTANT, JUST READ THIS. lUCKILY IV NEVER FACED THIS.
    http://www.traderji.com/equities/7556-strange-problem.html

    Reply if u like this post.
    Happy Trading.
     
    Last edited: Aug 14, 2006
  2. ronald_peterson

    ronald_peterson Member

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  3. kenneth

    kenneth Well-Known Member

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    Hi Ronald,

    Your mail says you have been following does not say you have been trading for few days atleast. The money control report although, has taday's date the rates do not tally. Hence checking the report is waste of time. Could you please recheck and post your comments. May be helpful to all.


    Regards
    Ken
     
  4. ronald_peterson

    ronald_peterson Member

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    Hi ken let me tel u that my idea was to share a good method or say an idea. Regarding the second part of ur question Iv traded 2day in the following
    Reliance Infra which i selected randomly. And if u look at its intraday chart ul understand wat i mean. And let me tel u its my rule that before i get into puttin my money in any kind of calls i atleast check the performance for 2 to 3 weeks, check out the details a bit of TA research n then jump in.
    Any ways thanks.
     
  5. kenneth

    kenneth Well-Known Member

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    Hi Ronald,

    I do appreciate sharing the method. But see the money control report
    LML 46.00 38.30 20.10 40.80 6.53

    and their own site rates.

    Time 10:00 11:00 12:00 13:00 14:00 15:00 Hourly
    BSE 39.40 40.50 40.20 40.15 41.15 40.80 Gainers / Losers
    NSE 39.10 40.40 40.25 40.20 41.20 40.70 Gainers / Losers

    From where did they get the opening price of Rs 46? If the opening is incorrect it leads to wrong analysis.
    I have not checked other stocks

    Regards
    Ken
     
  6. copperdesk

    copperdesk Member

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    Dear Ronald and Ken,

    An interesting idea ronald, i must say.

    @ken, brother www.nseindia.com is also showing the opening as 46. :)

    @Ronald, i followed your moneycontrol links. it is more than 99% times correct. If one can follow wisely, then hmmmm. Let me check it the market tommorow.

    Best of luck.

    Happy Trading.

    CopperDesk.
     

  7. ronald_peterson

    ronald_peterson Member

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    somw minor changes always do occur even the oeder books r some times fudged. but neverthe less track the method 4 a few days n Pls reply wid ur observations.
    happy trading.
     
  8. ronald_peterson

    ronald_peterson Member

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    So guys had look, wat did u observed if u would have shorted the stocks which opened higher 2day u would hav been sittin over a Couch of money. ISnt it ?????????
    Lets c wat happens up nxt.
    Bye guys
     
  9. kenneth

    kenneth Well-Known Member

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    Dear CopperDesk and Ronald,

    Yes I did see the opening price 46 on NSE site and the chart shows the trade to have taken place between 9:55 and 10 a.m and the next price is 39.40. Hence it is not showing in Money control data and also in my intraday data. Today too the opening is greater than yesterdays close many trades have taken place before 10 a.m.

    The method is interesting.

    Anyway since you are following this let us know how practically we can trade.

    Regards
    Ken
     
  10. copperdesk

    copperdesk Member

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    Hello Friends,

    I took this issue even further. Here is another twist in the tail. As per Mr. Larry Potter (Fin. Advisor):

    "One thing that often works as a timing indicator for when to short a stock is the exact opposite of the "10AM" rule, Or "gapout" rule. Here is how it works: If a stock opens weak and falls for a while, at some point it will settle out and probably turn back up for a while. Then if it is indeed going to be weak on the day, it will start falling again. We have found that if the stock falls below the price level it fell to during that first half hour, it will probably fall further. For example, let's say we think ABC is going down today and sure enough it opens at 50 and slides to 47 by 9:45. then it bounces up a bit to say 48 1/2 , but it cannot hold and back down it goes. If it falls below that first half hour low of 47, even by 1/2 a point, chances are great that it will continue to fall on the day. If you were considering shorting ABC that would be about the safest time to try it because it obviously couldn't even hold the first plunge price."

    For complete article pls visit: http://www.ezinearticles.com/?Profiting-From-a-Stock-You-Dont-Even-Own&id=82864

    Happy Trading.

    CopperDesk.
     
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