Chart Science.....

hello friends,

I have been in the markets for 2 years now, there are a few things about charts that i have learned, some formations that i have started to recognize, some patterns that are commonly traded by whoever is moving these markets. Now, i m going to discuss these beautiful formations with you and tell you what i think is happening out there.......

I dont think reading charts means technical analysis. its just reading the data like you read the tape.....

Appreciation and criticisms are invited, i m here to share and learn, not teach !

pls start from post no 12-13. dead links in beginning

U R Welcome

this is the chart of 5 min essar oil (intraday) . Perfect example of pipe bottoms formation.
Look at candles no 14 and 15.

http://img527.imageshack.us/my.php?image=25741323qj0.png

The size of the candles thet are surrounding the pipes are very small comparatively, which, i assume, means that the big players have decided ehich way to go !

pipe bottoms in nifty. watch the surrounding candles again. this one actually reversed nifty.

http://img246.imageshack.us/my.php?image=fri12yr3.png

How would you interpret candle 14/15

hello rkripal, pipe bottoms and tops are common chart formations that appear on charts. they are called pipe because, simple, they look like pipes. the formation is more meaningfull when the price tries to break out of the range. but faces resistance and comes back to the opening of first candle.

Pipes are powerfull signal as i know they hold less amount of risk when you jump and trade them. you may find it difficult to recognize in beginning days but, if you keep studying them yu, ll know their pottential.

This one breaks the intraday low and comes back in. look at the following candles

http://img215.imageshack.us/my.php?image=29eo7.png

tape thats ok, but what i was asking was that what positions would u like to take at that level? because somewhere in this thread u wrote that "big players had decided each way to go" that sounds very confusing. whould u go with bears or bulls, if u say that u would go with bulls thn how would u say tht traders at others side of the trade are dumbs.

That was ( big players had decided which way to go). If you get a bottom you go long because its a BOTTOM. plus lets talk about dumbs, there is always dumb money present in the markets. the money that is not smart is dumb. and if you are going to ask the market, " when i am going to buy, who is going to sell ?" u, ll never get the answer.

thanks for your interest, i know its a bit confusing for you right now but in next chart you are yourself going to recognize the formation yourself