I can help you with stock chart reading

Hi VV,

As per your opinion I had exited STERLITE before it falled below 450.Thanks for info.Please can u give me op. for
1.NOCIL
2.INDIABULLS
3.ITI

Regards,
Raju

SESAGOA
-- Let it come out of the sideways action. If you have read about V pattern in my previous reply, the other extended pattern is \__/. SESAGAO is at the bottom, going sideways. Wait for upward action for entry.

1. S Kumars (Icharts code: skumarsynf)
-- Looks good. Out of the pullback.

2. Nitco Tiles (nitco)
-- Price action is ok. After an extended upmove, trying to stabilize. Average volume is not good enough. Liquidity is the key.

3. Praj Industries (prajind)
Kind of forming a traingle pattern. Let it break out of the pattern before U get excited. I don't recommend playing breakouts.

4. Amara Raja Batteries (amarajabat)
-- This stock has been consolidating for long time. Tested successfully 50 day EMA. See chart with Weekly for 1 year duration to get better idea on entry. Use Weekly for entry when you see lot of sideways consolidation action on daily.

5. Adlabs Films (adlabsfilm)
-- Nice price action. Enter after pullback. This is the kind of price action we want to see. Uptrend followed by pullbacks.

STERLITE (STER)
-- I mentioned to U that 450 was the support. At the point, the stock was 475. Sterling ATR = 20. How hard it is for STER to below 450. Probably around a day or two. Support and Resistances are at a price point. But, its hard to pin point a stock to a particular price point. As U see STERLITE tested 450 (not exactly 450) and is trying to go up. I still like it as long as it does not come back to the trading range between 300 and 450. Making entries multiple times is not wrong except for losing commissions to the broker. Traders do it all the time to get the perfect entry.

NOCIL
-- Avoid. Price is not trustable. Look chart for weekly for 1 year duration. If U are interested, wait for next pull back. By that time, it would have moved above the down trend line in weekly.

INDIABULLS
--Can't argue with the chart. U didn't tell me if U already have it. If U don't, wait for pullback before entry. Don't ever make a mistake of entering a trade above bollinger band. Thats for profit taking only.

ITI
--See July 2005. Long bars and then slept the rest of the time. Are we going to see something similar again. Unless U are already into it, how are U planning to enter the stock. Tradability is the key for (short term) traders. Compare ITI with Adlabs Films (adlabsfilm).

One more thing Raju, please don't take decisions based on my analysis. Do your analysis and compare with mine. Then take it based on what U think is right.

vv
views tata chemical from long term prospective.

Long bars. Careful with stops. Weekly chart looks better than daily. On daily, there was an extended pull back. It will take couple of days to week to see better chart. So, if U say long term, lets apply weekly time frame. I think it looks good with MACD cross up, histogram positive and with nice pull back for entry. Volume is not so great during period June to Sep compared to earlier times.

Hi vvonteru,

First of all thanks for this great thread. You have forced many of us to rethink on the trading strategy and then jump into this game. I can bet that your thread served as an excellent eye opener for many of us. Great views put forward in a great way. Excellent work!!!

I would also like to take this opportunity to discuss one of my issues... I rate myself good in exiting the trades (with good profit or with less loss, making good use of stop loss, etc). However, I struggle to find correct entry points. Based on Elder's second book "Come to my trading room" and some of your entry strategy I tried scanning the scripts. Right now I am using ema1 (8 days) > ema2 (22 days) > ema3 (200 days) + MACDSignal. However the number of stocks I am getting out of this scan are very few and already too much oversold (as per RSI). I also use RSI, Force Index, MACD Histogram.

Do you have any tips for me? I know it is personal choice of indicators, but what would you suggest to me for improving entry?

Thanks a lot.
LoveHuman!

RSI is an oscillator, used in Trading Range. Use that for entry condition. For setup, ema1 (8 days) > ema2 (22 days) > ema3 (200 days) + MACDSignal, you should get plenty. Recently, due to steeper index action, there might some going of the net due to MACD cross down. I suggest taking MACDSignal out of setup criteria when scanning. But, when U are looking at the chart, then apply. MACD works best when the stock is nicely trending. When the stock is consolidating, MACD doesn't work. Let me attach what I got from Amibroker. You should find more of these files in my thread.

Attached Files

	NDaysLowAndPullBack.txt (2.1 KB, 54 views)
	BowTieAndPullBack1.txt (2.2 KB, 22 views)
	CrossoverShort.txt (3.0 KB, 30 views)
	NDaysHighAndPullBack1.txt (2.0 KB, 24 views)

Hi VV,

Thanks for the info.Being a newcomer I am reading/learning and then trading.I am gaining exp. and am using very less amount , as this learning exp may or may not profit me.Actually I had already bought Nocil , yesterdays volumes were good and price was also seen rising , so I had decided to goin for Nocil without any much know of the company .I am planning to exit within 1-2 days.

Raju

Thanks for all the info.

Hello ,

Can you please share your views on Vishal Exports . Does it seem to be under any accumulation pattern .

Harsh

Hello Sir!
how are you?
thank you very much for ur previous help
I have bought of the some shares:
bindalagro:@ 33.20
balramchini:@ 87.5
chlorideind: @ 45.10
hmt: @ 87.75
Itc: @ 183.10
sakhtisugar: @ 127
kotharisugar: @ 19.75
plz help me out with these shares.can u tell me the prospects of these shares of week or two.Thank you!

I would advise U to read some books. Play with low amounts. More time U spend learning to trade, better Ur results will be. Good Luck.

Vishal Exports
--First Price action. Then volume for confirmation. Even if volume is showing up, U wait for price action before U act. In any case, no matter what, I don't like this stock for N no. of reasons.