Pattern Trading

Niranjanam · #**401** 25th July 2007, 08:09 PM

Quote:

Originally Posted by kkseal

With you Ajax.

There is absolutely no need for us to categorize ourselves as this trader or that trader, rather utilize every tool at our disposal to extract profits from the market.

And what's so sacrilegious about a pattern trader also following the trend or momentum or a trend trader also making use of patterns?

Regards,
Kalyan.

Great Post Kalyan .

Here is a quote from one of the most successful pattern trader
Daniel J. Zanger

He was up 180% and 22 million in dollar terms in 2006

"Over the last fifteen years, I've spent over 10,000 hours studying every type of chart pattern formation imaginable. From Cup and Handle patterns to Falling Wedges, Ascending Triangles, Bull and Bear Flags and too many others to list here now. And lucky for us these patterns repeat over and over and over again!

I combine these patterns with stocks that have unusually higher rates of growth and low number of shares that float. For the average stock I list, growth rates must be up at least 40% for both earnings and revenues growth for their most recent quarters and most stocks that I list have growth rates up 80, 90, 100 and sometimes up 200% and more. It's these high growth rates combined with stocks that have low number of shares that float that make them so explosive."

So for superior results better check fundamentals also.

Have a look

Niranjanam

pshirurkar · #**402** 25th July 2007, 09:02 PM

wonderful!!!
now in addition to t/a we must search these type of stocks.
anybody having the list of such stocks may please post few stocks here for study.the study will be interesting .

uasish · #**403** 26th July 2007, 07:41 AM

Ashish,
In PFC Fut there seems to be a Pattern ,kindly enlighten ,if there is a Pattern
& what is the possible implications in most of the times.
Plz find a Daily chart here & in the next post a 5min chart.

Asish

uasish · #**404** 26th July 2007, 07:43 AM

The 5min chart.

aca_trader · #**405** 26th July 2007, 07:16 PM

Quote:

Originally Posted by rajesh.sadhanala

Hi Ashish,

I can see double top on 3iinfotech @ 324. The long term trendling is still intact taken from 09th June 2006 to till date however the trendline from 15th dec is broken on Jul 20th.

How does one need to consider the trendlines with the double tops to short instead of waiting till the neckline is breached. This is just to reduce the risk of short position by using the trendlines.

If you see the volumes at the first top is very high compared to the second top.

I would like to see the fellow members comment about it.

Regards
Raj

Hi raj!

For Me, the trendlines on weekly are those drawn on the chart. Besides them, I fail to see any other support up-trend trendline since last May fall.

For initiating a short as soon as a Double Top is formed, we need to take help of indicators. If we find divergences at the second Top, we can short the stock below the low of the top bar with High as Stop & Reverse Point.

So far as trading patterns with the help trendlines are concerned,it'll depend upon a particular trading style of the individual trader. A trendline, may act as a point of support and hence a trader who wants to use double confirmation can wait for any particular trendline to be broken before shorting the stock. One aggressive player may not decide to do so. At the end, it all boils down to individual psychology.

Hope I am clear in expressing myself. Also, any trader should always keep the what-if scenario in his mind while initiating any trade. That is how, the so called failures are converted into winners.

Best Regards,
--Ashish

N.B. :- If a traders' entries are based upon Daily Charts, the scenario is a bit different as here, we can draw another trendline which was broken as pointed out by you. This break was accompanied by a breakout of the resistence level of 300 and an aggressive short position can be initiated at that point.

Further, 3I is not a F&O stock and hence can not be shorted by retail traders as of today.

kkseal · #**406** 26th July 2007, 07:27 PM

Beautiful Asish. Particularly liked the 2nd para.

Nice to see you back my friend.

Regards,
Kalyan.

P.S. I think the pattern of PFC in Uasish's chart would qualify as a flag. (I'll get to know from your reply anyway

)

aca_trader · #**407** 26th July 2007, 07:33 PM

Quote:

Originally Posted by uasish

Ashish,
In PFC Fut there seems to be a Pattern ,kindly enlighten ,if there is a Pattern
& what is the possible implications in most of the times.
Plz find a Daily chart here & in the next post a 5min chart.

Asish

Hi Ashish!

First of all my apologies for not being able to answer you earlier. It would have helped you today.

The pattern is well-defined on 60 Minute chart as an descending triangle. Today, the neckline was successfully re-tested.
Please refer to the chart attached.

Best Regards,
--Ashish

aca_trader · #**408** 26th July 2007, 07:36 PM

Quote:

Originally Posted by kkseal

Beautiful Asish. Particularly liked the 2nd para.

Nice to see you back my friend.

Regards,
Kalyan.

P.S. I think the pattern of PFC in Uasish's chart would qualify as a flag. (I'll get to know from your reply anyway

)

Hi Kalyan!

Thanks a lot for your encouraging words.

Of Course, in PFC, before break-out the pattern could have been classified as Pennant (Flag with Ascending Triangle). If the pattern fails and reverses from here, we should first aim for the target of Ascending Triangle and thereafter for the target of flag.

Best Regards,
--Ashish

kkseal · #**409** 26th July 2007, 07:55 PM

Yes it's a pennant; but 'ascending' triangle Asish?

Regards,
Kalyan.

rajesh.sadhanala · #**410** 26th July 2007, 07:57 PM

Quote:

Originally Posted by aca_trader

Hi raj!

For Me, the trendlines on weekly are those drawn on the chart. Besides them, I fail to see any other support up-trend trendline since last May fall.

For initiating a short as soon as a Double Top is formed, we need to take help of indicators. If we find divergences at the second Top, we can short the stock below the low of the top bar with High as Stop & Reverse Point.

So far as trading patterns with the help trendlines are concerned,it'll depend upon a particular trading style of the individual trader. A trendline, may act as a point of support and hence a trader who wants to use double confirmation can wait for any particular trendline to be broken before shorting the stock. One aggressive player may not decide to do so. At the end, it all boils down to individual psychology.

Hope I am clear in expressing myself. Also, any trader should always keep the what-if scenario in his mind while initiating any trade. That is how, the so called failures are converted into winners.

Best Regards,
--Ashish

N.B. :- If a traders' entries are based upon Daily Charts, the scenario is a bit different as here, we can draw another trendline which was broken as pointed out by you. This break was accompanied by a breakout of the resistence level of 300 and an aggressive short position can be initiated at that point.

Further, 3I is not a F&O stock and hence can not be shorted by retail traders as of today.

Thanks Ashish for the lucid explanation. What If scenario is the stop when there is false breakout or breakdown. Btw, are you using Arthimetic or Log Scale in your charts.

Raj

Similar Threads for: Pattern Trading
Thread	Thread Starter	Forum	Replies	Last Post
Trading With Chart Pattern	soumya_b	Technical Analysis	206	19th October 2008 07:14 AM
The Head and Shoulders Pattern	Traderji	Technical Analysis	11	1st November 2007 06:53 PM
NTPC Chart Pattern	gcvikranth	Trading on Technicals	4	27th November 2006 09:09 PM
Gold intraday pattern	CageRattler	Metals	0	30th October 2006 02:57 PM
CAD Seasonal Pattern	CageRattler	Forex	0	29th May 2006 02:42 PM