Trading With Chart Pattern

[moneygurukul]

Dear nick,
Please keep up the good work and keep us updating your findings.I know it takes a lot of time/dedication to go through the charts. Many a times h&s patterns fail mainly because of volumes.I have a feeling this particular pattern would fail coz according to this pattern the target price of unitech should be negative or somewhere less than 20 rs.Sorry i dont have my charts as of this moment hence just replying through eyeballing the charts you have posted.
all the best my friend

A reversal pattern will only reverse the current uptrend, if any reversal patterns target is lower than the point from where current uptrend started, the target should be taken as the point from where uptrend started.

 

[nick721156]

A reversal pattern will only reverse the current uptrend, if any reversal patterns target is lower than the point from where current uptrend started, the target should be taken as the point from where uptrend started.

dear freind,

what i have understood from your reply is that if we consider the pattern in unitech as H&S; then it is a reversal pattern as it is getting formed in the uptrend. if we go by the rule of target in case of H&S pattern then in this case, target is much lower which is practically may not happeing. therefore, the practical target will be the point from where the head started forming i.e. around 220. am i right? if anything i am missing please clarify.

regards,

nick

 

[moneygurukul]

dear freind,

what i have understood from your reply is that if we consider the pattern in unitech as H&S; then it is a reversal pattern as it is getting formed in the uptrend. if we go by the rule of target in case of H&S pattern then in this case, target is much lower which is practically may not happeing. therefore, the practical target will be the point from where the head started forming i.e. around 220. am i right? if anything i am missing please clarify.

regards,

nick

With due respect to fellow boarders, the ratio between Shoulder height and the Head Height is too much skewed and hence the pattern may not be truly classified as a H&S though all other criteria confirm. A reliable H&S should have Shoulder Height between 33%-75% of the Head Height from Neckline.
My version of Unitech weekly chart is attached.

if we go by the rule of target in case of H&S pattern then in this case, target is much lower which is practically may not happeing. therefore, the practical target will be the point from where the head started forming i.e. around 220. am i right?

There is a bit of gap in understanding over here. It's not from where the Head Started to form, rather it's he point from where Uptrend which is now forming a reversal pattern did start. In case of Unitech, there was a long consolidation at sub-10 level from where the uptrend started with a breakout. Hence, the target of any reversal pattern even on yearly chart would be 10 and not below that.

 

[nick721156]

With due respect to fellow boarders, the ratio between Shoulder height and the Head Height is too much skewed and hence the pattern may not be truly classified as a H&S though all other criteria confirm. A reliable H&S should have Shoulder Height between 33%-75% of the Head Height from Neckline.
My version of Unitech weekly chart is attached.



There is a bit of gap in understanding over here. It's not from where the Head Started to form, rather it's he point from where Uptrend which is now forming a reversal pattern did start. In case of Unitech, there was a long consolidation at sub-10 level from where the uptrend started with a breakout. Hence, the target of any reversal pattern even on yearly chart would be 10 and not below that.

dear friend,

you are right. it can't go beyond that i.e. below 10.

regards,

nick

 

[nick721156]

dear friends,

hotel leela is forming symmetrical triangle pattern. volume is contracting too. should wait for a breakout in any direction.

comment please.

regards,

nick

 

[nick721156]

dear friends,

abb daily has formed descending triangle in downward trend. volume is contracting too. likely to go down further.
comment please.

regards,

nick

 

[djsinha]

Nick, some wonderful charts and observations from you. Keep it up, boss.
Cheers
D J Sinha

 

[nick721156]

Nick, some wonderful charts and observations from you. Keep it up, boss.
Cheers
D J Sinha

thanks yaar.

regards,

nick

 

[nick721156]

ABB weekly : falling wedge is forming in the downtrend. Volume contracting. In daily, too, descending angle is forming. So, there will be downward trend for sometime before we can expect a turnaround.

Agro tech foods weekly: H&S forming in the uptrend. Volume part not very encouraging.

Please comment.

Regards,

Nick

 

[nick721156]

Dena bank weekly : H&S formation taking place in uptrend. volume part is almost agreeing the pattern. neckline is inclined downward. will go down.

asking for comments.

regards,

nick