Simple analysis

hareshbhaip · #21 24th February 2008, 12:46 PM

SIMPLE ANALYSIS TECHNIQUES FOR ALL
==============================

For any scrip at any time it works well:
Please note that any markets is running on LEVELS only, but unfortunately we never concentrates on it. If we are LONG, so we hope for HIGHER and if SHORT we hope for DOWN. Market does not any meaning for your LONG or SHORT.

Derrive some levels as under by help of H, L and C:

1. GET PREVIOUS DAY HIGH, LOW AND CLOSE

Next day Trading UP Level: (PClose+(Previous Day High- Low)*0.0729)
Next day Trading DN Level: (PClose-(Previous Day High- Low)*0.0729)

2. GET LAST WEEK HIGH, LOW AND CLOSE (This will valid for whole Next week)

Next WEEK Trading UP Level: (P WEEKClose+(PreWEEK Day High- Low)*0.0729)
Next WEEK Trading DN Level: (P WEEKClose-(PreWEEK Day High- Low)*0.0729)

3. GET LAST MONTH HIGH, LOW AND CLOSE (This will valid for whole Next MONTH)

Next MONTH Trading UP Level: (P MONTHClose+(PreWEEK Day High- Low)*0.0729)
Next MONTH Trading DN Level: (P MONTHClose-(PreWEEK Day High- Low)*0.0729)

If you are using Realtime data, so use 5Min chart and draw 20ema and 200ema

Now magic starts:

On the basis of above levels creation, u have to watch first on Daily levels, if price is above daily up levels, BUY with SL of Daily DN levels. In most cases price may go up and up. Every monday (Start from the week) mostly trend will be decided for the week. Now u have to watch on WEEKLY UP Level. If the price crossed Weekly UP level, so be long without any hasitation with SL of Weekly DN level. This is valid case for PRICE is going UP from daily levels. When price is returning BACK from any high registered, pl keep watching on DAILY UP or WEEKLY UP level for EXIT and New SHORT.

For MAJOR PROFIT GAIN, you have to watch for crossing MONTHLY UP LEVEL. See, Price may rotate between above 6 levels and 20 and 200 emas only. Now u have to watch it up as If price is cutting any line or Level from down to up, you may LONG there and opposite for SHORT.

asnavale · #22 24th February 2008, 12:56 PM

Quote:

Originally Posted by RSI

Hi Ramash
Thanks for the positive feedback.

Hi Anant,
Interesting analysis. This is quite different from what I have done.

Hi Iyer,

First of all thank you for your kind encouranging words. As you have said 'ask and ask' prompted me to take this approach. So, I would add to your phrase: "ask, ask and think differently".

Coming to the 'Exam', I have put my observations below. However I have not drawn any conclusions from these observations.

My Answers to the questions you have framed are:

1. Similarities:

a) In both cases the volume decreases (The volume of previous bar is higher).
b) In both cases the previous bar has higher volume than the bars on either side.
c) In both cases the close is higher than open
d) In both cases the close to high ratio is almost same (for bar 1 the ratio is 98.8% while for bar 2 it is 99.0%)

2. Differences:

a) The bar numbered 1 is on rising portion of trend while bar 2 is on falling portion.
b) The volume for bar 1 is much higher than that for bar 2 (about 2.7 times)
c) The range (High to Low) for bar 1 is larger than the range for previous bar while for bar 2 it is just the reverse.
d) Bar 1 is approaching resistance level while bar 2 is neare to support level.
e) For bar 1 the low is farther from open (difference is nearly Rs 24) while for bar 2 the close is much nearer to open (difference is Rs.5)

I would like to get your comments on my observations so that I can learn to ask and think better.

I have observed the DLF live on Friday. Atleast on two occasions I could see RBS and SBR very clearly. Unfortunately, I don't have the chart right now. May be on Monday I try to post it with my observations.

Regards

-Anant

RSI · #23 24th February 2008, 09:41 PM

Hareshbhai,

Thanks for the information. But I have some doubts.
1. Why the multiplicand in your formula should be 0.0729? What is the significance of this number? Why it cannot be 0.0789 or 1.823 or any other number?

2. Why it should be 20 ema and 200 ema? Why can't it be a combination of 5 ema, 20 ema and 100 ema? Why can't it be a combination of 15 sma and 50 sma? Why can't it be 35 wvma and 155 wvma?
Regards
R. S. Iyer

RSI · #24 25th February 2008, 09:41 AM

As I am unable to upload the next post as a single post, I am splitting it in to two messages.

First part is here
"For every buyer there is a seller" is a very simple statement. It does not convey any information to you. Point to be seen is how that demand has come in and how that has been taken care off. Point to be seen is how the supply has kicked in and what sort of demand was there at that point of time. It is the imbalance between the two that gives us great opportunity to make some money.

RSI · #25 25th February 2008, 09:41 AM

Here is the second part

For example (a hypothetical one), if there was a demand for 10000 shares, was there a supply of 10000 shares at that point of time? If there was, then how that supply has come? Was it dumped all at once as soon as the buyer was spotted? Were the sellers overanxious to offload their stocks? Were the sellers scrambling to sell? Was there much bargaining by the seller to supply these 10000 shares? If there was, how much more the buyer had to pay to get these 10000 shares? How much time did it take to complete this transaction? Above all, what effect did this have on price? Did the price jumped up like a rocket? Or did the price remain as it is even after completing the whole transaction? Or did the price tank after absorbing this supply? If you do not think about these things, you may simply conclude that 10000 shares were brought by someone and 10000 shares were sold by someone.

Fresh1043 · #26 25th February 2008, 11:52 AM

Don't know how to open attached doc Only Traderji page is displayed when I downloaded it

RSI · #27 25th February 2008, 02:03 PM

Quote:

Originally Posted by Fresh1043

Don't know how to open attached doc Only Traderji page is displayed when I downloaded it

Document is a microsoft word document in .doc file format. If you are using Windows operating system with Windows Office suite, you should be able to view it. But I could not understand what you tried to say "only Traderji page is displayed when I downloaded it".

Try to download it again and try to open in word programme.
I sincerely hope this helps
R. S. Iyer

mnandini28 · #28 25th February 2008, 04:55 PM

Quote:

Originally Posted by hareshbhaip

SIMPLE ANALYSIS TECHNIQUES FOR ALL
==============================

For any scrip at any time it works well:
Please note that any markets is running on LEVELS only, but unfortunately we never concentrates on it. If we are LONG, so we hope for HIGHER and if SHORT we hope for DOWN. Market does not any meaning for your LONG or SHORT.

Derrive some levels as under by help of H, L and C:

1. GET PREVIOUS DAY HIGH, LOW AND CLOSE

Next day Trading UP Level: (PClose+(Previous Day High- Low)*0.0729)
Next day Trading DN Level: (PClose-(Previous Day High- Low)*0.0729)

2. GET LAST WEEK HIGH, LOW AND CLOSE (This will valid for whole Next week)

Next WEEK Trading UP Level: (P WEEKClose+(PreWEEK Day High- Low)*0.0729)
Next WEEK Trading DN Level: (P WEEKClose-(PreWEEK Day High- Low)*0.0729)

3. GET LAST MONTH HIGH, LOW AND CLOSE (This will valid for whole Next MONTH)

Next MONTH Trading UP Level: (P MONTHClose+(PreWEEK Day High- Low)*0.0729)
Next MONTH Trading DN Level: (P MONTHClose-(PreWEEK Day High- Low)*0.0729)

If you are using Realtime data, so use 5Min chart and draw 20ema and 200ema

Now magic starts:

On the basis of above levels creation, u have to watch first on Daily levels, if price is above daily up levels, BUY with SL of Daily DN levels. In most cases price may go up and up. Every monday (Start from the week) mostly trend will be decided for the week. Now u have to watch on WEEKLY UP Level. If the price crossed Weekly UP level, so be long without any hasitation with SL of Weekly DN level. This is valid case for PRICE is going UP from daily levels. When price is returning BACK from any high registered, pl keep watching on DAILY UP or WEEKLY UP level for EXIT and New SHORT.

For MAJOR PROFIT GAIN, you have to watch for crossing MONTHLY UP LEVEL. See, Price may rotate between above 6 levels and 20 and 200 emas only. Now u have to watch it up as If price is cutting any line or Level from down to up, you may LONG there and opposite for SHORT.

Can Anybody pls clarify a few points which go as:

1. What is the significance of the constant 0.0729 ? (same qs. as Mr. Iyer )
2. Are these calculations generally used for finding out the Next day Prices ?
3. For the MONTH - should it not be PREMONTH DAY High?
4. Why 5 Min-chart, 20 & 200 EMAs only? (same doubt as Mr. Iyer )

Completely

Nandini

hareshbhaip · #29 25th February 2008, 06:36 PM

All Members,

The reply is as under:

1. This is fibobacci figure which works well all the time, nothing new
2. You may keep your position intact, if the next day price is above Daily UP level.
3. For, MONTH data it is as LAST MONTH's HIGH, LOW and CLOSE. It is not Last months's first or last day.
4. You can use in realtime datafeeds for 5Min Period for good result. See, there are too much significance of time frame and is wide subject. But i use this period and u all will get good result too. In 5Min 20ema means representation of 100 Minutes and for 200EMA it is a result for 1000 Minutes trading equivalent to 15 HOURS. In mostly price may come to 200EMA line and u can get best ENTRY or EXIT as applicable. First try it on historical databse then let me inform the result.

H PATEL

RSI · #30 25th February 2008, 07:56 PM

Hareshbhai,

Thanks for the clarification. I wish it were really as simple as that.