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.