Pattern Trading

bvpraveen · #**181** 7th February 2007, 09:15 PM

Quote:

Originally Posted by aca_trader

Hi Praveen!

Both are based upon fibonicci expansions/retracements confluences.

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

Ashish,

I couldn't understand, how you arrived at that SL, based on fibonacci tools. I studied the above tool on both the charts. In REL, it seemed like the SL was at fibonacci retracement 61.8 level. But please explain the below questions:

1. Is REL's SL at fibonacci retracement level -- 61.8?
2. What you are referring by fibo. expansion -- fibonacci fans? If so I tried that too, but couldn't get how you arrived at those SL using fibo fan.
3. No luck with RCOM's SL.

I would be glad if you can answer them.

Thanks,
Praveen.

bvpraveen · #**182** 7th February 2007, 09:37 PM

Hello all,

Some more patterns and breakouts identified. Any views are welcome.

1. AfteckInfo - Upside breakout from channel.
2. Infosys - Upside breakout from rectangle. (Is that breakout volume enough to considered as 'confirmation' volime?)

I'm posting the patterns in this thread, so that we all can learn by discussing about the plus and negative of each ones view. Please feel free to comment on the posts.

Regards,
Praveen.

kkseal · #**183** 8th February 2007, 12:53 AM

Quote:

Originally Posted by bvpraveen

Ashish,

I couldn't understand, how you arrived at that SL, based on fibonacci tools. I studied the above tool on both the charts. In REL, it seemed like the SL was at fibonacci retracement 61.8 level. But please explain the below questions:

1. Is REL's SL at fibonacci retracement level -- 61.8?
2. What you are referring by fibo. expansion -- fibonacci fans? If so I tried that too, but couldn't get how you arrived at those SL using fibo fan.
3. No luck with RCOM's SL.

I would be glad if you can answer them.

Thanks,
Praveen.

Hi Praveen,

The keyword in Ashish's post is 'confluences'. You have to draw Fib retracement lines from two or more Swing highs and extension lines from the swing lows and see the areas where the most no of lines fall i.e. the areas of confluence or cluster zones. These are the likely S/R lvls.

Common tactics of daytraders but can also be used in Swing Trading.

Regards,
Kalyan.

aca_trader · #**184** 8th February 2007, 02:02 AM

Quote:

Originally Posted by bvpraveen

Ashish,

I couldn't understand, how you arrived at that SL, based on fibonacci tools. I studied the above tool on both the charts. In REL, it seemed like the SL was at fibonacci retracement 61.8 level. But please explain the below questions:

1. Is REL's SL at fibonacci retracement level -- 61.8?
2. What you are referring by fibo. expansion -- fibonacci fans? If so I tried that too, but couldn't get how you arrived at those SL using fibo fan.
3. No luck with RCOM's SL.

I would be glad if you can answer them.

Thanks,
Praveen.

Hi Praveen!

Please find enclosed the charts explaining the SL levels. I hope these will serve the purpose.

Best Regards,
--Ashish

aca_trader · #**185** 8th February 2007, 02:07 AM

Hi Friends!

The patterns for today are posted here. & here.

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

aca_trader · #**186** 8th February 2007, 02:13 AM

Quote:

Originally Posted by bvpraveen

Hello all,

Some more patterns and breakouts identified. Any views are welcome.

1. AfteckInfo - Upside breakout from channel.
2. Infosys - Upside breakout from rectangle. (Is that breakout volume enough to considered as 'confirmation' volime?)

I'm posting the patterns in this thread, so that we all can learn by discussing about the plus and negative of each ones view. Please feel free to comment on the posts.

Regards,
Praveen.

HI Praveen!

1. I am afraid that AftekInfo chart is not updated.
2. Yes, Infy had a BO but the target of rectangle already achiened when volume came in the stock and the day of upside BO had no volume. Options would have helped but I am still trying to figure out how to find liquid stock options.

Best Regards,
--Ashish

bvpraveen · #**187** 8th February 2007, 10:21 PM

Quote:

Originally Posted by aca_trader

Hi Praveen!

Please find enclosed the charts explaining the SL levels. I hope these will serve the purpose.

Best Regards,
--Ashish

Hello Ashish,

After spending some time over those two charts, I can understand them to some extend. Since I don't have much knowledge about Fibonacci, I couldn't interpret it more. If you don't mind, can you please answer this question:

When should we use SL based on these Fibonacci confluences?

Praveen.

bvpraveen · #**188** 8th February 2007, 10:23 PM

Quote:

Originally Posted by kkseal

Hi Praveen,

The keyword in Ashish's post is 'confluences'. You have to draw Fib retracement lines from two or more Swing highs and extension lines from the swing lows and see the areas where the most no of lines fall i.e. the areas of confluence or cluster zones. These are the likely S/R lvls.

Common tactics of daytraders but can also be used in Swing Trading.

Regards,
Kalyan.

Hello Kalyan,

Thanks for your information. As I'd said in my previous post, I don't know much about fibonacci. At present I'm learning patterns in depth. Should I need to learn fibonacci now? How much important are they?

Thanks,
Praveen.

bvpraveen · #**189** 8th February 2007, 10:27 PM

Quote:

1. I am afraid that AftekInfo chart is not updated.

Sorry for that. Didn't notice them.

Quote:

2. Yes, Infy had a BO but the target of rectangle already achiened when volume came in the stock and the day of upside BO had no volume. Options would have helped but I am still trying to figure out how to find liquid stock options.

I'm sorry Ashish. Couldn't get what you are telling. When did it achieve its target? Yesterday?

Praveen.

game4trade · #**190** 8th February 2007, 10:49 PM

Hi Ashish,

First of all many thanks for starting such a good thread and sharing your work with all of us. I am learning a lot from your charts and a regular visitor of your blog.

Can you share your comments on JETAIRWAYS.

Regards,
Ashish.

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