Pattern Trading

kkseal · #**171** 5th February 2007, 08:49 PM

Quote:

Originally Posted by bvpraveen

Hello all,

As we'd previously discussed about volume in HDFC breakout, I need one more clarification.

When we look for volume confirmation in case of breakout in daily charts, is it enough if we look for such confirmation in daily charts alone? Or as Joy had told do we need to look out for lower time frames(hourly, 5min, tick data, etc) in every instance of breakout?

Secondly, in case of high volume confirmation, should the volume distribution be some what even(say for eg. somewhat increasing volume for last 3-4 bars in hourly chart, when we look for breakouts in daily charts). Because if we look at some charts which has given breakouts, if we try to see them in lower time frames, the volume is very high for just one bar.

For eg. look at the attached REL 3min chart (I don't have infrastructure to get tick data chart).

Regards,
Praveen.

Hi Praveen,

For REL see the 5day, 15min charts at Icharts (LiveChart) & you'll have a better view of the Price-Vol picture. See how the vol wanes everytime the stock enters a congestion zone and then spurts everytime it breaks out of the zone. From the same chart it seems the immediate support would be around 525 - 530 Here we had a longish congestion pattern with slight upside bias.

If we have read the demand-supply picture correctly, then the stock wouldn't require too much volume (which isn't bad in any case) to move up from here. There'll be strong resistance though at arnd 650 levels.

Regards,
Kalyan.

bvpraveen · #**172** 5th February 2007, 09:05 PM

Quote:

Originally Posted by kkseal

Hi Praveen,

For REL see the 5day, 15min charts at Icharts (LiveChart) & you'll have a better view of the Price-Vol picture. See how the vol wanes everytime the stock enters a congestion zone and then spurts everytime it breaks out of the zone. From the same chart it seems the immediate support would be around 525 - 530 Here we had a longish congestion pattern with slight upside bias.

If we have read the demand-supply picture correctly, then the stock wouldn't require too much volume (which isn't bad in any case) to move up from here. There'll be strong resistance though at arnd 650 levels.

Regards,
Kalyan.

Thanks once again for detailed explanation. Understood all the points well.

Thanks,
Praveen.

kkseal · #**173** 5th February 2007, 09:17 PM

Quote:

Originally Posted by bvpraveen

Thanks once again for detailed explanation. Understood all the points well.

Thanks,
Praveen.

My pleasure friend. I'm learning with you. In fact i should be thanking you as you've been a great catalyst to my learning.

Regards,
Kalyan.

bvpraveen · #**174** 5th February 2007, 09:55 PM

Quote:

Originally Posted by kkseal

My pleasure friend. I'm learning with you. In fact i should be thanking you as you've been a great catalyst to my learning.

Regards,
Kalyan.

Glad to hear that

J_D · #**175** 5th February 2007, 10:00 PM

THanks Praveen for your reply on Cranes Software.. Still long way to go in interpreting...

It was a good educative reply through charts.. Thanks again..

John..

bvpraveen · #**176** 5th February 2007, 10:02 PM

Quote:

Originally Posted by J_D

THanks Praveen for your reply on Cranes Software.. Still long way to go in interpreting...

It was a good educative reply through charts.. Thanks again..

John..

Thats okay, John

Praveen.

bvpraveen · #**177** 5th February 2007, 10:42 PM

Hello all,

Bharat forg is forming a symmetric triangle. The purpose of posting this scrip is the coincidence of a strong resistance line and the upper trendline of symmetric triangle. The stock faces huge resistance at that critical point. Lets see how it acts at that crucial point.

Praveen.

aca_trader · #**178** 6th February 2007, 09:09 AM

Dear Friends!

The patterns for today are:

ABB - Diamond (Both on Weekly & Daily)
IFCI- Flag (High & Tight)
RCOM- Channel
REL- Descending Triangle

Best Regards,
--Ashish
http://tradingtalks.blogspot.com

bvpraveen · #**179** 6th February 2007, 10:14 AM

Quote:

Originally Posted by aca_trader

The patterns for today are:
......
RCOM- Channel
......

Hello Ashish,

1. What SL you had used for RCOM? In this case its not pivot low. I think you'd used support line as the SL.

2. Similarly what SL you had used for REL?

Praveen.

aca_trader · #**180** 6th February 2007, 08:19 PM

Quote:

Originally Posted by bvpraveen

Hello Ashish,

1. What SL you had used for RCOM? In this case its not pivot low. I think you'd used support line as the SL.

2. Similarly what SL you had used for REL?

Praveen.

Hi Praveen!

Both are based upon fibonicci expansions/retracements confluences.

Best Regards,
--Ashish
http://tradingtalks.blogspot.com

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