Reading The Price Action

[nitingosavi]

ANIL sir,
Last 2 days i was reading and was trying to understand candle closing analysis posted in this thread.

is this the rgt interpretation ? any hrly close above or below range is needed now ?

nifty fut hrly

actualy this kind of thing worked yesterday in NATURAL GAS hrly chart.

 

[anil_s_trivedi]

ANIL sir,
Last 2 days i was reading and was trying to understand candle closing analysis posted in this thread.

is this the rgt interpretation ? any hrly close above or below range is needed now ?

nifty fut hrly

actualy this kind of thing worked yesterday in NATURAL GAS hrly chart.

Dear nitinji,

I think you are asking on 'Fakey' setup. If so then it just needs to see that bar breaches that outside bar and move back again into the range of outside bar, only to break in opposite direction.

PLease clarify, what exactly are you looking at...

 

[nitingosavi]

Dear nitinji,

I think you are asking on 'Fakey' setup. If so then it just needs to see that bar breaches that outside bar and move back again into the range of outside bar, only to break in opposite direction.

PLease clarify, what exactly are you looking at...

NO actually i was confused what I am asking for.

actualy i didnt had anything abt fakey setup in mind. I was just looking at the outside bars.. in both chart.and other bars closed in that range.

now the question redefined....are those the fakey setups..? and u have already answered it.! I think yes .. but those outside bars dont have any inside bar after it.(?)

Natural gas zoomed up! posting that chart again with some changes.. the bars i marked earlier as key reversal bars were just "reversal bars"

 

[ELAGIRI4SpU]

tks, many

elagiri


to dear a s t

 

[ELAGIRI4SpU]

i don't KNOW how to express my sincere HEARTFELT TKS to u and ur family members (BS]S[/B]A]AS [/B]they are supporting to ur hard works)

even though i am trading since nov 2011 without this PA Study knowledge, i mean drawing vertical lines on H VOL to Cl on Bars

Hats Off to u, dear A S T

elagiri

 

[nitingosavi]

Anil Sir,

Trend line break and retest,

I have observed Many times, trend line is broken and retested but it crosses the trend line stays above/below it for some time, and then again breaks it then gives some what desired directional move.

can we still call it as TL break and retest ?

If you can spare some time and some charts.. to explain(?)

what should be entry points then ?

 

[anil_s_trivedi]

Anil Sir,

Trend line break and retest,

I have observed Many times, trend line is broken and retested but it crosses the trend line stays above/below it for some time, and then again breaks it then gives some what desired directional move.

can we still call it as TL break and retest ?

If you can spare some time and some charts.. to explain(?)

what should be entry points then ?

Trendline Break & Retest is a trade where it occurs is more important for it playful significance.


Case -1

For ex: If TLBR is occuring while stock is turning up from a prolonged downtrend, then it should be played with caution, as it can be a case of breakout failure.

Tip here is observed volume during this scenario, it should be low relative to recent selling bars. Volume below this trendline consolidation has to be low, so that breakout volume can be meaningful.

Case-2

If trend is already up, and we are trading TLBR setup while having a consolidation/correction. During this scenario, chances of breakout failure is less, as we are with ongoing trend.

Tip here is, In this whole uptrend, where this consolidation occuring, is this is a first consolidation area after market turned up, or its third-fourth consolidation area. Why it matters is, if you are trading first consolidation after uptrend, chances of continuing is up, but if you playing late consolidations in uptrend, viz -4th/5th then chances of failure are higher.

Now on volume in this case is relative lower than the volume coming in recent uptrend.
Note here, volume in uptrend consolidation is always lower than volume while the stock itself is changing its trend from down to up. In short volume during consolidation in case-2 is always lesser than volume during consolidation in case-1.


------------------------------------

Now coming to your part, why it goes up/down at trendline before proceeding and what should be entry.

One can go full wither on breakout or wait to play on retest. ON retest too, you have two options either go on trendline touch, or go on the high of peak, from where this stock is correcting after a breakout.

If you had gone long on trendline retest, then SL can be your affordability wise.

But recent observations by me, i had seen stock after retesting come below trendline and spent few bars below it, without breaking low of immediate 'trough' prior to breakout. So that is safe area for conservatives to add their positions if at all it comes.

----------------------------

Every setup has failure, there cannot be 100% successful setup, but we as a trader/investor need to get into that sweet point where things dont turn much sour for us...

 

[ludhianewala]

Dear Anil sir, I have just read the first page of the thread, there are no charts on the page which I think might have got deleted, without them it is getting difficult to understand. If anybody has a backup kindly share.

Thanks and regards.

 

[anil_s_trivedi]

Dear Anil sir, I have just read the first page of the thread, there are no charts on the page which I think might have got deleted, without them it is getting difficult to understand. If anybody has a backup kindly share.

Thanks and regards.

Dear ludhianewala,

Try to open the imageshack link. In that image is not displayed, but 'Download Image' option is there...download it..it is working for me...

Else i am in process of already searching my backup. But it is taking time...

Reply, if its possible...

 

[anil_s_trivedi]

Trendline Break & Retest is a trade where it occurs is more important for it playful significance.


Case -1

For ex: If TLBR is occuring while stock is turning up from a prolonged downtrend, then it should be played with caution, as it can be a case of breakout failure.

Tip here is observed volume during this scenario, it should be low relative to recent selling bars. Volume below this trendline consolidation has to be low, so that breakout volume can be meaningful.

Case-2

If trend is already up, and we are trading TLBR setup while having a consolidation/correction. During this scenario, chances of breakout failure is less, as we are with ongoing trend.

Tip here is, In this whole uptrend, where this consolidation occuring, is this is a first consolidation area after market turned up, or its third-fourth consolidation area. Why it matters is, if you are trading first consolidation after uptrend, chances of continuing is up, but if you playing late consolidations in uptrend, viz -4th/5th then chances of failure are higher.

Now on volume in this case is relative lower than the volume coming in recent uptrend.
Note here, volume in uptrend consolidation is always lower than volume while the stock itself is changing its trend from down to up. In short volume during consolidation in case-2 is always lesser than volume during consolidation in case-1.


------------------------------------

Now coming to your part, why it goes up/down at trendline before proceeding and what should be entry.

One can go full wither on breakout or wait to play on retest. ON retest too, you have two options either go on trendline touch, or go on the high of peak, from where this stock is correcting after a breakout.

If you had gone long on trendline retest, then SL can be your affordability wise.

But recent observations by me, i had seen stock after retesting come below trendline and spent few bars below it, without breaking low of immediate 'trough' prior to breakout. So that is safe area for conservatives to add their positions if at all it comes.

----------------------------

Every setup has failure, there cannot be 100% successful setup, but we as a trader/investor need to get into that sweet point where things dont turn much sour for us...