Chart Science.....

the tape · #81 18th June 2008, 04:33 PM

Hi,

Today was a rough move by the market, surprised everyone around 12.30.......anyways..........

In HDIL today,

you can see about 25 candles and most of them have upper and lower shadows.......

The two that i have marked are the odd ones............. they are perfect bearish candles.......... all the other have shadows............. right !!!!!!!!!!!!!

A simple logic.

Later HDIL was hammered down with the market……..

The one marked yellow is a hanging man…………..

segul · #82 18th June 2008, 06:34 PM

hello tape,

Very nice charts with candle-volume relation.

do u think pattern on nifty-futures, the candle-vol relation indicating a new low.

regards.

the tape · #83 18th June 2008, 09:18 PM

Quote:

Originally Posted by segul

hello tape,

Very nice charts with candle-volume relation.

do u think pattern on nifty-futures, the candle-vol relation indicating a new low.

regards.

Hi segul,

i am not sure how u r relating price and volume, kindly tell in brief.........

In your chart, as you can see, there's this morning star kind of formations appeared while approaching new lows, that is not bearish..............

the volume is also picking up at those lows, that suggests more participation,
and more participation suggests demand...............

I have already planned to go long nifty, if able to get at 4450, recent lows offer a tremendous tight stop, rest we will watch............

bye

uasish · #84 19th June 2008, 07:49 AM

the tape,

90 % trader never understand the importance of Candelstick,personally i look chart only in candelstick format,your effort to educate us is commendable.

Asish

skarpio · #85 19th June 2008, 08:36 AM

Quote:

Originally Posted by trader111

[...]The pattern can definitely be coded, but wonder who will be willing to share the code...and why that person shall do so.

This can probably help one get started with coding an indicator.

segul · #86 19th June 2008, 09:22 AM

Quote:

Originally Posted by the tape

Hi segul,

i am not sure how u r relating price and volume, kindly tell in brief.........

In your chart, as you can see, there's this morning star kind of formations appeared while approaching new lows, that is not bearish..............

the volume is also picking up at those lows, that suggests more participation,
and more participation suggests demand...............

I have already planned to go long nifty, if able to get at 4450, recent lows offer a tremendous tight stop, rest we will watch............

bye

hi tape,

what i ment to say was the down move is picking up volumes and the up move is on lower volumes, so a new low or retest of the lows might be possible.

regards.

trader111 · #87 19th June 2008, 05:34 PM

Quote:

Originally Posted by uasish

the tape,

90 % trader never understand the importance of Candelstick,personally i look chart only in candelstick format,your effort to educate us is commendable.

Candlesticks are highly underrated if consideration is given to the amount of work people put up for wolfe waves and colorful indicators

. Had tried that year ago:
http://www.traderji.com/technical-an...tml#post111887

actually it was a candlestick thread which brought me to register but as soon as I did it was deleted owing to controversies

Quote:

Originally Posted by skarpio

This can probably help one get started with coding an indicator.

coding is never that simple... atleast for me...

the tape · #88 19th June 2008, 06:29 PM

Hi there,

Whenever price moves, it attracts attention…………..simple

When price makes a move with rapid speed, it attracts more attention and the move is less likely to last.

Rallies that are slower and gradual are more likely to last as the general trend is clearer.

Go for the stocks that have primarily moved in trends not in jerks……… though a lot of times stocks can climb huge percentages in those small and speedy moves…….. but, trading the slower ones can increase the probabilities.

Look at litl, it’s a slow rally. Notice the volumes, everyone is happy with higher prices.

Now, look at jindal steel, covered the whole upmove in only 2 candles, look at volumes, they definitely attracted attention.

hanandelvi · #89 19th June 2008, 11:20 PM

Tape, you are a dude!!!

I've just started trading and, very obviously, am have a rough ride. Your information and insights on reading and understanding charts is really commendable. Keep up the good work.

And education is the best gift you can give anyone.

Cheers

the tape · #90 20th June 2008, 04:34 PM

Hello people,

What a day for trading. ( specially for those who trade in clearly biased trends ).

Most of you probably have heard this………….THE CHART ALREADY KNOWS THAT THE NEWS IS COMING.

It was very clear from the morning that most of the traders in nifty were really eager to see the lower prices. The morning candles were clearly in line with the phenomenon that I explained in post # 89

Here is the chart of nifty, it was clearly a gradual rally, no sudden moves, the rally in nifty lasted in near about 13-14 candles…………now that is what we call a CONSISTENT RALLY.

The volumes supported the rally perfectly………..probably the smoothest morning rally on nifty I have seen in days.

As it was the primary rally, there was definitely more to go…………( with obviously, taking other cues that the candles were providing )

The second wave of the rally began at 11.54 ( primarily triggered by inflation figures ). Though one can argue that the sell off at 11.54 came because of inflation. But, it was quite visible in the morning action that there were no signs of bottom……….