Reading The Price Action

[smj1960]

Hi Friends,

Hello.

 

[franclinfrancis]

how can success in stock market pls help
me

 

[NANDAMAD]

in post no.4 in 1st page anil sir refers to consolidation, acceleration and distribution. Kindly any one can expalin what is DISTRIBUTION?

 

[NANDAMAD]

Thank you copy paste, very kind of you.

 

[NANDAMAD]

Hi friends,

The same tata motors chart of yesterday i posted, but todays is a more detailed one, i am doing bar analysis on this chart, most of the readings mark on the chart itself.

The point i want to make today, is for validity of any pattern the position where its occurring is of prime importance, rather than indication by bar itself. I mean in consolidation zones majority of patterns are prone to failures, while if there is a evidence of prior trend and pattern occurred it will be most sought entry on charts.

On chart there is difference between simple reversal(marked by diamonds) and key reversal(green & Red bars), simple reversals are explained there, for key reversal refer following formulaes..

Key upside reversal - O<Ref(L,-1) AND (C>Ref(L,-1) OR (C>Ref(C,-1)))
Key downside reversal - O>Ref(H,-1) AND (C<Ref(H,-1) OR (C<Ref(C,-1)))

Now the question comes in wandering mind, how will the damn 'congestion' need to be identified...for this there is a simple reading you can do, hope it will serve your purpose.

RULE: ANY TIME PRICES OPEN OR CLOSE ON FOUR CONSECUTIVE BARS,
WITHIN THE CONFINES OF THE RANGE OF A �MEASURING BAR,� YOU HAVE
CONGESTION. THIS IS REGARDLESS OF WHERE THE HIGHS AND LOWS MAY
BE LOCATED. A �MEASURING BAR� BECOMES SUCH BY VIRTUE OF ITS PRICE
RANGE CONTAINING THE OPENS OR CLOSES OF AT LEAST 3 OF 4
SUBSEQUENT PRICE BARS.

It has been taken from joe ross...the maker of famous 1-2-3 pattern

Apart from this studies, i am also always looking at weekly and monthly pivots, as you must know floor traders in early days would have great respect for daily pivots,as an investor on daily time frame i am more inclined towards weekly and monthly pivots, just overlay on chart and see the pivot strengths...pivot concepts today got well extended with camarilla and other pivots...most of traders i had interaction with study camarilla pivots, and they judge the day on the basis of it with respect to closing and pivot levels. i mean whether the day was extended day, rangebound day like that...

Thats for the day...need a break..wife calling!

O= open L=low c= close h= high pl tell me what is Ref?

 

[manojborle]

O= open L=low c= close h= high pl tell me what is Ref?

Ref can be used to refer previous values for selected array.
So ref(L, -1) means you are referring to low of prev bar, if it is -2 then it will be low of bar before last bar and so on

 

[anil_s_trivedi]

O= open L=low c= close h= high pl tell me what is Ref?

Dear Nandamad,

It is metastock code to call previous bars. If used like C>Ref(C,-1) means todays close is greater than close of previous bar...

similarly, C>Ref(C,-2) means, todays close greater than close two days ago.

 

[niftyoption]

Dear manojborle Sir,

Pls go through this chart , is it Woulf wave in bank nifty weekly chart

spot

 

[manojborle]

Dear manojborle Sir,

Pls go through this chart , is it Woulf wave in bank nifty weekly chart

spot

First of all, No Sir please I am very young and inexperienced to be called Sir.
It's not a classic Wolfe wave I guess, Swings are not clear its more like a channel.

 

[XRAY27]

Dear manojborle Sir,

Pls go through this chart , is it Woulf wave in bank nifty weekly chart

spot

Manoj will answer this ...i'm just adding my two bytes here... as the time taken from 1 to 3 is more then 3 to 5 they are not symmetrical in terms of time ,so it cannot be vaild wolfe...