Some Good Steals...

Originally Posted by roneeth

Hello Amit! Hope you are doing with your flu....
Guj Nre Coke at 168.... Very nice Regards Roneeth

Originally Posted by AMITBE

Hi tradebull...before I attempt and answer, I have a query fo you, so please do answer with some deliberation: Could you tell me why you have chosen these scrips for the time frame asked by you.
This may be a good exercise for you, and of course for all of us too, to work out the reasons for narrowing down on certain scrips.
I don't mind answering up front, so please don't get me wrong. I do notice you bring up a few scrips every so often, and would like to understand the reason you pick them.
Look forward.

Originally Posted by madhura

Hi Amit,
chemplast has crossed 103/104 level, is it a buy now?

thanks
Madhura

Originally Posted by naga2054

Zeroed down on the following stocks..
Amit, if u can look into..

BajajAutoFinance
Heritage Foods
Titanor Components

Nagzu

Originally Posted by AMITBE

Two technical analysis terms that come up often are Double Top and Double Bottom.
I am making some notes here on the dynamics of these, to widen our understanding of a most vital and recurrent theme that appears in almost all charts I have come across. An understanding of these would help in determining a crucially decisive phase in the long or short term trend in the progress of price movement of a scrip.
The Double Top and Double Bottom formations are invariably the true harbingers of an oncoming trend reversal. They are the fulcrum points where an extended up or down trend, or even a short term up or down trend, is about to turn direction.

The Double Top pattern as the term implies, is the formation of two successive peaks that are roughly equal in height, with a mild valley in between. There may be variations, but the typical Double Top marks either a short term or long term change, in the movement of a trend from bullish to bearish.
Assuming the existence of a long or short up-trend, the first peak would mark the highest point of the trend. As such, the peak in itself is a normal occurrence and there is no threat to the up-trend as yet.
At the culmination of the first peak, a decline takes place that would usually drop to a point about 20% from where the peak had started building up. The decline or increase in volume during this pullback has no real significance. The bottom of this decline is normally extended sideway slightly, to give a ‘u’ shape to the trough being created.
Here begins the second climb and will normally occur with low volume. It then tests the level of the previous peak. At the confirmation of any resistance here, the possibility of a Double Top arises. This pattern now awaits further confirmation, as this resistance may well be just a resistance in the ongoing up trend.
The gap between the peaks may vary, depending on if it’s a long trend or a short one. It can be a few days, weeks, or months. Another norm with the twin peaks is the exactness in their heights. A slight variance is allowed usually.
The second decline coming off the second peak would be on increased volume, and increased velocity. This indicates that the supply far exceeds demand. Also, a fresh lot of short traders are attracted here, and the price begins to slip steeply. The level at the bottom, where the first peak/climb had begun, is now the crucial support point, and moving down towards it, the Double Top yet remains unconfirmed. Once this support is tested and convincingly violated, the pattern is complete. To extend this further, the newly broken support level would act as a resistance to any attempted upside again, and would normally not get breached as the demand is poor. Here is another opportunity to trade a short. With declining demand and increased supply, the price begins to spin downwards. More supports are broken, and now a bearish down trend is fully in place. The trend reversal has come to pass.
There could be false Double Tops too. The trend is always in force until proven otherwise. Until the key support is broken in a convincing manner with expanded volume, the up trend will remain intact.

A Double Bottom, the formation of which signifies a trend reversal from bearish to bullish, is in terms of its dynamics, an exact inversion of a Double Top.
I’m sure the explanation above of the Double Top is clear to understand, in order to conceptualise the workings of a Double Bottom.
Should any member feel interested in a similar explanation of the Double Bottom for clarity, I’d be happy to do it.
So much for now.

Originally Posted by AMITBE

Two technical analysis terms that come up often are Double Top and Double Bottom.
I am making some notes here on the dynamics of these, to widen our understanding of a most vital and recurrent theme that appears in almost all charts I have come across. An understanding of these would help in determining a crucially decisive phase in the long or short term trend in the progress of price movement of a scrip.
The Double Top and Double Bottom formations are invariably the true harbingers of an oncoming trend reversal. They are the fulcrum points where an extended up or down trend, or even a short term up or down trend, is about to turn direction.

The Double Top pattern as the term implies, is the formation of two successive peaks that are roughly equal in height, with a mild valley in between. There may be variations, but the typical Double Top marks either a short term or long term change, in the movement of a trend from bullish to bearish.
Assuming the existence of a long or short up-trend, the first peak would mark the highest point of the trend. As such, the peak in itself is a normal occurrence and there is no threat to the up-trend as yet.
At the culmination of the first peak, a decline takes place that would usually drop to a point about 20% from where the peak had started building up. The decline or increase in volume during this pullback has no real significance. The bottom of this decline is normally extended sideway slightly, to give a ‘u’ shape to the trough being created.
Here begins the second climb and will normally occur with low volume. It then tests the level of the previous peak. At the confirmation of any resistance here, the possibility of a Double Top arises. This pattern now awaits further confirmation, as this resistance may well be just a resistance in the ongoing up trend.
The gap between the peaks may vary, depending on if it’s a long trend or a short one. It can be a few days, weeks, or months. Another norm with the twin peaks is the exactness in their heights. A slight variance is allowed usually.
The second decline coming off the second peak would be on increased volume, and increased velocity. This indicates that the supply far exceeds demand. Also, a fresh lot of short traders are attracted here, and the price begins to slip steeply. The level at the bottom, where the first peak/climb had begun, is now the crucial support point, and moving down towards it, the Double Top yet remains unconfirmed. Once this support is tested and convincingly violated, the pattern is complete. To extend this further, the newly broken support level would act as a resistance to any attempted upside again, and would normally not get breached as the demand is poor. Here is another opportunity to trade a short. With declining demand and increased supply, the price begins to spin downwards. More supports are broken, and now a bearish down trend is fully in place. The trend reversal has come to pass.
There could be false Double Tops too. The trend is always in force until proven otherwise. Until the key support is broken in a convincing manner with expanded volume, the up trend will remain intact.

A Double Bottom, the formation of which signifies a trend reversal from bearish to bullish, is in terms of its dynamics, an exact inversion of a Double Top.
I’m sure the explanation above of the Double Top is clear to understand, in order to conceptualise the workings of a Double Bottom.
Should any member feel interested in a similar explanation of the Double Bottom for clarity, I’d be happy to do it.
So much for now.

Originally Posted by nkpanjiyar

Crisp, lucid and straight. Nice elicitation Amit.
Thanks,
nkpanjiyar

Originally Posted by naga2054

Great Explanation Amit. These TechBits make us ascend towards the orbit of TA.. ,
Was trying to collatethe knowledge of Ascending triangle also..
for instance take the double bottom, where the 2nd bottom is higher than the 1st bottom - then it gets into an ascending triangle pattern where a breakout will be positive one ( am i true in saying so?)
going on the same lines in case of Double Top, where the 2nd Top is less than the first one - does it imply a descending triangle pattern where the breakout will be in the negative direction? Please correct us..Nagzu