New Intermed Uptrend!!

Hi Alok,
Had answered this one some time back to matthew..........just check it out if it helps.

Quote:
Hi pmathew,

Your desire to learn is most appreciated.....I am not sure if I can explain it without drawing a chart,but to put it simply,in a weekly chart,if a stock takes out the previous week's high,we say that it is making ahigher high .If it takes out the previous week's low,we say it's making a lower low .
A series of higher highs and then the stock turns downwards to produce a series of lower lows,we say that the stock has formed a pivot at the top.Then when the stock continues its upward journey forming higher highs and producing apivot that is lower than the previous pivot,we say that the stock is making alower pivot high .
Taking out the pivot high is a continuation of the upward trend.Taking out the pivot low is a continuation of the downward trend.Making a lower pivot high smacks of a possibility in a change of trend.
How do we know for sure?We never do,my friend,for nothing is sure in life and the markets.Therefore we have a Trading Plan,Risk n Money Management and stop losses.

Educate yourself.....and Happy Trading!!

Saint

Just to give an example of a pivot......look at your left hand.Imagine that each finger was a bar on the chart.Therefore we have the first bar(the little finger),the ring finger takes out the high of the little finger and forms anew high......a higher high.The middle finger has taken out the high of the ring finger.....a higher high.Then we have the index finger,this finger forms a lower high as compared to the middle finger......we now have a lower high.The ring,middle and index fingers have therefore formed a pivot.......hope this helped !

Happy Trading!
Saint

SUVEN LIFE SCIENCES : Nice higher pivot low on the weekly before moving upwards.....but lots of resistance from 118 onwards.

GODAVARI FERT :Again a nice find,buy only if it takes out the 87 area and closes over the 87 area.Buy over that day's high with a stop loss of 70 .The target would be 113.....that gives us arisk reward of 1.5:1,so basically depends on your trading plan.There are traders who go for a 1.5:1......I usually go for >2:1.But nice find.Also careful on the low daily vols.

EICHER LTD:Karthik,don't think you missed anything here........this just took off after a long pullback to support,but could not take out resistance of 145-150area.Even if you do take this one over 150,still has tons of supply overhead......of course with great volume anything is possible.Chartswise,stay clear of it if not in.If in,keep tight stop losses and exit if any sign of a fall.

NAHAR SPINNING :Both your Nahar finds look great.Still sitting within an ascending triangle.....but poised to break out soon.Keep watch on this one.Either enter one third here and add the rest on breakout,or wait for breakout and enter then.If you enter here,be prepared for a few weeks of possible sideways movement........your call to make.Nice!!

JB CHEM :Having difficulties trying to take out the 100 area......wait and watch.Will be more interesting after the 100 area taken out.

Hi Saint
Anything interesting on the chart for SUPAN SYNTHETIC BSE 531794
Thanx

Hi saint

We will wait....

By the way did you notice KCP... has nicely taken out the previous resistance of 116 with good volume.. looks to resume the uptrend..

Also I was watching CANFINA HOMES... flared up nicely..but failed to take out stiff resistance at 52.

regards

karthik

Just to give an example of a pivot......look at your left hand.Imagine that each finger was a bar on the chart.Therefore we have the first bar(the little finger),the ring finger takes out the high of the little finger and forms anew high......a higher high.The middle finger has taken out the high of the ring finger.....a higher high.Then we have the index finger,this finger forms a lower high as compared to the middle finger......we now have a lower high.The ring,middle and index fingers have therefore formed a pivot.......hope this helped !

Hi Alok,

Just to give an example of a pivot......look at your left hand.Imagine that each finger was a bar on the chart.Therefore we have the first bar(the little finger),the ring finger takes out the high of the little finger and forms anew high......a higher high.The middle finger has taken out the high of the ring finger.....a higher high.Then we have the index finger,this finger forms a lower high as compared to the middle finger......we now have a lower high.The ring,middle and index fingers have therefore formed a pivot.......hope this helped !

Happy Trading!
Saint