New Intermed Uptrend!!

Hi Saint,
MSK PROJECTS -- super call.You had called for a target at 100,now at 107.Are you already out....or planning to exit tomorrow?Please explain your strategy.

Thanks

Regards
Avinash

Hi Saint,
There's a lot of talk in one of the other posts regarding bearish divergences,bullish ones using an indicator,etc.Please help clarify whenever you find the time.

Thanks yet again.

Anu

Hi Anupama,
Shall describe to the best of my ability.Am no master in Indicators but shall share what I know.

For checking out bearish and bullish divergences,RSI is a good indicator.

RSI:

Definition:RSI is a single line oscillator.It was introduced by Welles Wilder.
Range:0-100.Below 30 is oversold.Above 70 is over bought
Default period:14

BEARISH DIVERGENCE:When the overbought RSI diverges from price,it is called a bearish divergence.i.e The price keeps making higher highs and higher lows,but the RSI begins to make lower highs and lower lows despite the price moving upwards,we call this a bearish divergence.It signals a probable,a possible trend change to the down side.Is it therefore time to dump all your stocks......No!For that we need a sell signal,confirming that the trend has indeed reversed.

BULLISH DIVERGENCE:When an oversold RSI diverges from price,it is called a Bullish Divergence i.e the price keeps making lower highs and lower lows,but the RSI begins to make higher highs and lows despite the price moving downwards,it is a signal of a probable soon to happen change in direction to the up side.Is it therefore a time to buy?....Not yet till we get a buy signal.,confirming that the trend has indeed reversed.

Note:The RSI is most useful when it moves into its oversold or overbought zones, then reverses......not as powerful when it is wandering between 30 and 70.

Hope this helped in some way!

All the best!
Happy Trading!!
Saint

Hi Anupama,
Shall describe to the best of my ability.Am no master in Indicators but shall share what I know.

For checking out bearish and bullish divergences,RSI is a good indicator.

RSI:

Definition:RSI is a single line oscillator.It was introduced by Welles Wilder.
Range:0-100.Below 30 is oversold.Above 70 is over bought
Default period:14

BEARISH DIVERGENCE:When the overbought RSI diverges from price,it is called a bearish divergence.i.e The price keeps making higher highs and higher lows,but the RSI begins to make lower highs and lower lows despite the price moving upwards,we call this a bearish divergence.It signals a probable,a possible trend change to the down side.Is it therefore time to dump all your stocks......No!For that we need a sell signal,confirming that the trend has indeed reversed.

BULLISH DIVERGENCE:When an oversold RSI diverges from price,it is called a Bullish Divergence i.e the price keeps making lower highs and lower lows,but the RSI begins to make higher highs and lows despite the price moving downwards,it is a signal of a probable soon to happen change in direction to the up side.Is it therefore a time to buy?....Not yet till we get a buy signal.,confirming that the trend has indeed reversed.

Note:The RSI is most useful when it moves into its oversold or overbought zones, then reverses......not as powerful when it is wandering between 30 and 70.

Hope this helped in some way!

All the best!
Happy Trading!!
Saint

Hi Karthik,
BLUESTAR INFO :Very nice higher pivot low on the weekly.....hope you got this breakout before it happened,but get ready for some resistance around the 165 area.
Saint

Dear Saint
your each post is filled with such an academic profeciency that it always lefts the reader craving for more.You have an excellent art of explaining such complex things to even a novice...your way of expressing the subject is simple and sweet but still filled with knowldge.....
just keep on posting such masterpieces again and again....
By the way are you a teacher by profession??????
regards
RAVI T

Hi Saint

Thanks for your detailed and simplified explanation. I learnt a lot from your post.

Regards

Suja

Hi Ravi ,
Thanks for those very kind words.I was once upon a time a newcomer groping in the dark and grabbing at every straw.......was difficult just figuring out where to start.Similar story I am sure with yourself.Over time it gets easier.So just sharing these little things to those who are new.I hope someone out there benefits at least a little ........Nah,Ravi,not a teacher A doctor by profession.

Saint

Dear Saint .
A noble profession and a nobel handle - Saint .
Hope your daughter recovers soon .
Thanks for all your guidance to us .
Vinsu