Channeled view at RNRL

rajaram.dilipkumar · #11 28th December 2007, 11:21 PM

Quote:

Originally Posted by Bullet

Hi,

Gr8 call winstonn

Its look like a rectangle top waiting for break-out like previous one....

Thanks
BULLET

perfect .... its a step formation not a channel breakout..

winstonn · #12 28th December 2007, 11:30 PM

Hi nobon,

you have used log price scales, hence the misview in the pattern.

Well, There is no channel breakout.
But the stock is resting on lower channel with today giving bullish candle.
Wht would one do when one gets a buy signal on support line?
Obvious resistance would be upper channel- 200 around.

once the channel breaks, we would see higher price.

My set up here was to take advantage of apparent rangebound condition prevailing now!

I hope very thing is clear

See ya,
Winston

noboundries · #13 28th December 2007, 11:40 PM

Winston,idon;t Know About Log Scale,what Is That?

Kindly Explain A Bit'

Thanks

winstonn · #14 28th December 2007, 11:51 PM

Hi nobon,
i googled it and some thing is here:

type of scale used on a chart that is plotted in such a way that two equivalent percent changes are represented by the same vertical distance on the scale, regardless of what the price of the asset is when the change occurs. The distance between the numbers on the scale decreases as the price of the underlying asset increases. This is the case because a $1 increase in price becomes less influential as the price heads higher since it now corresponds to less of a percentage change than it did when the price of the asset was at a lower level. Also referred to as a "log scale".
Logarithmic price scales are generally accepted as the default setting for most charting services, and they're used by the majority of technical traders. Common percent changes are represented by an equal spacing between the numbers in the scale. For example, the distance between $10 and $20 is equal to the distance between $20 and $40 because both scenarios represent a 100% increase in price. Contrast this to "linear price scale

rajaram.dilipkumar · #15 29th December 2007, 12:18 AM

Quote:

Originally Posted by winstonn

Hi nobon,

you have used log price scales, hence the misview in the pattern.

Well, There is no channel breakout.
But the stock is resting on lower channel with today giving bullish candle.
Wht would one do when one gets a buy signal on support line?
Obvious resistance would be upper channel- 200 around.

once the channel breaks, we would see higher price.

My set up here was to take advantage of apparent rangebound condition prevailing now!

I hope very thing is clear

See ya,
Winston

winstonn,

Ya, you are right RNRL looks range bound but
just wanted to inform that trendline(in your first post) has to be tested more than twice atleast . more the number of times a trendline is tested more valid it becomes..inorder to form a channel both the upper and lower trendline has to be parallel ( you have drawn the channel perfectly but the upper trendline you have drawn is not valid) ...
RNRL has got a step formation and an evolving asc triangle formation but both can be confimed only if the b/o above 190 happens with high volumes..till then RNRL is only in a consolidation phase where we look to buy around 135-155 and sell around 185-190..

winstonn · #16 29th December 2007, 12:43 AM

[quote=rajaram.dilipkumar;141392]winstonn,

you have drawn the channel perfectly but the upper trendline you have drawn is not valid [quote]

hi,

there have been two points of contact on upper TT and lower TT? and both the TT's are parallel. Wht's wrong in that?

please correct me if i am wrong.

See ya,
Winston

rajaram.dilipkumar · #17 29th December 2007, 11:47 AM

[quote=winstonn;141394][quote=rajaram.dilipkumar;141392]winstonn,

you have drawn the channel perfectly but the upper trendline you have drawn is not valid

Quote:

hi,

there have been two points of contact on upper TT and lower TT? and both the TT's are parallel. Wht's wrong in that?

please correct me if i am wrong.

See ya,
Winston

you are right winstonn ....... i just didnt see the nov 6th bar which also connects the upper TL channel you have drawn in your first post...

Radhakrishnan K.P. · #18 29th December 2007, 11:58 AM

I dont know much about the graph. Can you suggest whether I can go for RNRL at the current price?

winstonn · #19 29th December 2007, 12:13 PM

Quote:

Originally Posted by Radhakrishnan K.P.

I dont know much about the graph. Can you suggest whether I can go for RNRL at the current price?

you can buy RNRL between 175 to 177 .
keep a stop below lower channel on closing basis.

Book ur 50% at 200, then let's see the movement and act accordindgly.

Seeya,
Winston

kkseal · #20 29th December 2007, 02:02 PM

Never been too sure of this one Never quite understood it's business. However agree with winstonn on the TA. The CS is also a Belt hold.

BTW, Winstonn at iCharts Logarithmic scale is not the default. I'd suggest selecting it while seeking/deciphering chart patterns.

And nice to see you grow beyond wolf-waves

Regards,
Kalyan.