200 day sma breakout

razx5

Active Member
#1
hello technical analyst friends,today some stocks like bajahind,pbainfra.mukandltd broke their 200day sma.how to calculate target for these scrips as 200day sma breakout is a most reliable bullish signal?
 

sudoku1

Well-Known Member
#2
hello technical analyst friends,today some stocks like bajahind,pbainfra.mukandltd broke their 200day sma.how to calculate target for these scrips as 200day sma breakout is a most reliable bullish signal?
dont read too much in 200 dma.
if u go through the sensex chart from 1991 to 2008 , u will get the answer.:(
comeback of bulls will b marked only on a sensex close abv 18475.
read our ne thread '25th jan bears attack..........'
 
U

uasish

Guest
#5
hello technical analyst friends,today some stocks like bajahind,pbainfra.mukandltd broke their 200day sma.how to calculate target for these scrips as 200day sma breakout is a most reliable bullish signal?
razx5,

Plz read this link ,http://www.traderji.com/148586-post1.html
this guy also entered at 200 DMA.

There is a phenemenon known as 'Mean Reversion' ,(plz google search it ),in that as Price reverses to it's Mean,TAnalyst's has earmarked 200 Days Simple MA to be that Mean (which may not be the case all the time),many has also set Exponential instead of Simple MA.
Now even after we enter on 200 DMA (which was basically the concept based on Mean Reversion & the very term denotes it will reverse) we forget to periodically Exit at far- away points (& simply forget that our 1st Criterion for entry was 200 DMA so never compare the present Price being how far away from it's Historical tendencies,a simple method maybe drawing a vertical point from MA to apex & calculate the Difference in past & then find how much times of that it can go),hence we land up to a situation like that guy.
Monitoring my Stock's Price ,periodically on my entry criterion will guide me when to exit so as to renter again( here plz keep in mind the ND/periods for Bonus etc before exit),in this process we will not only have some Profit but also a fair idea of it's movement pattern,best is to hold 50 to 70 % always constantly & balance we may Job periodically.
This is a subjective method full of folies.

Asish
 
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