Teach A Man To Fish And.........

djsinha · #**1151** 30th January 2008, 07:13 AM

Quote:

Originally Posted by Saint

Hi Rangarajan,

Presuming you are a position trader from the question above.

Here we are looking at long term charts,weekly and daily.

Have a look at SAIL weekly charts.Now look for a pullback that is evident on the weekly charts,which means a downtrend on the daily charts.That is lower pivot highs and lows on the daily.Once we get a break(ie higher pivot lows and highs),enter.

Now what was wrong with that pivot high of 280 in Nov?Why can't we wait for another pullback,and then angle in using the daily charts?And then enter over the highs.

Answer:GRADIENT of the slope.

It gives us some clues as position traders........they tell us,"Alright,let's get ready to sell what we have,coz' we're gonna get it much lower than this in the fall that is to come."

Not the time to buy.........Time to lighten up on what you have,or stand aside waiting for an opportunity to get in if you are not in it already.

Have a look at the daily chart of SAIL.

Saint

Wonderful Saint. The trendline-trading this counter for nearly 1 yr and exiting on the ascending wedge breakdown towards the right side of the chart is just superb. Hats off to you.
I want to just add something. Prices are seen to rise parabolically here. By parabolic rise, I mean, if you look at the treandlines you'll find that:

slope of trendline 3 > slope of trendline 2 > slope of trendline 1
(I've marked trendlines 1,2 and 3 in the attached pic for your easy reference.) Now the rule here is that, in case of parabolic price rises over a period of time, once your steepest trendline gets broken on the downside, exit fully.
Here our steepest trendline is trendline-3. So Rangarajan, even if you have entered at 280 levels on 2/11, you have a signal to exit on mid-November, when that long black bar (encircled one in the pic) breaks trendline-3 on the downside. May be you could have exited half or one-third on this signal and the other half or two-thirds on the asc wedge breakdown as was nicely pointed out by Saint.

Cheers
D. J. Sinha

djsinha · #**1152** 30th January 2008, 10:17 AM

Quote:

Originally Posted by sanx

Saint ,its an excellent thread .Appreciate the sharing of knowledge of what you know to others .
Will be looking forward to learning and contributing to thread (if I can ) .

my first analysis

,having a look at RPL , it has consolidated from past 3 days and we can expect a breakout(uptrend) any time soon ?

Even after consolidation for 3 days ,we were expecting a breakout and start of uptrend ?; But it can break that and go downtrend also?

Dear Sanx, I would advise you to see candlestick chart and decide on breakout/ breakdowns. U'll get precise signals there. A simple line graph doesn't give much signals and can often misguide you.

I've attached the candlestick chart for RPL. I'll not say it's a consolidation because consolidations typically occur after a huge rally. But, here it has occured after a decline. And I personally wouldn't go long on this for the simple reason that it has shown a gap up which is not supported much by volumes. So chances are there that the gap will get filled up on the downside.

Cheers
djsinha

rangarajan · #**1153** 30th January 2008, 07:29 PM

Quote:

Originally Posted by Saint

Hi Rangarajan,

Presuming you are a position trader from the question above.

Here we are looking at long term charts,weekly and daily.

Have a look at SAIL weekly charts.Now look for a pullback that is evident on the weekly charts,which means a downtrend on the daily charts.That is lower pivot highs and lows on the daily.Once we get a break(ie higher pivot lows and highs),enter.

Now what was wrong with that pivot high of 280 in Nov?Why can't we wait for another pullback,and then angle in using the daily charts?And then enter over the highs.

Answer:GRADIENT of the slope.

It gives us some clues as position traders........they tell us,"Alright,let's get ready to sell what we have,coz' we're gonna get it much lower than this in the fall that is to come."

Not the time to buy.........Time to lighten up on what you have,or stand aside waiting for an opportunity to get in if you are not in it already.

Have a look at the daily chart of SAIL.

Saint

Thank you Saint,
I was wondering as to why you had not replied.
As usual .Very good teaching for future guidance with visual chart.
I did exit @255 with loss.
your initial lesson on pivot,did not say this aspect of slope gradient ,wedge etc.
Men become wiser by experience & i am no exception!
Many so called stalwart analyst gave a BUY call at 280 with Tgt beyond 300.
You have now taught when to exit aswel if the trade is against you.
By the way Saint,pl accept my compliments once again on yr knowledge sharing on pivots,i am a more confident trader & Investor nowadays ,courtesy Saint.
Happy trading.

rangarajan · #**1154** 30th January 2008, 07:32 PM

Thank you djsinha for the additional material.Very good stuff.
Look forward to more from you.

djsinha · #**1155** 1st February 2008, 11:11 PM

Quote:

Originally Posted by rangarajan

Thank you djsinha for the additional material.Very good stuff.
Look forward to more from you.

Thank you Rangarajan for those warm comments. You are most welcome.

Saint · #**1156** 1st February 2008, 11:20 PM

Quote:

Originally Posted by djsinha

Wonderful Saint. The trendline-trading this counter for nearly 1 yr and exiting on the ascending wedge breakdown towards the right side of the chart is just superb. Hats off to you.
I want to just add something. Prices are seen to rise parabolically here. By parabolic rise, I mean, if you look at the treandlines you'll find that:

slope of trendline 3 > slope of trendline 2 > slope of trendline 1
(I've marked trendlines 1,2 and 3 in the attached pic for your easy reference.) Now the rule here is that, in case of parabolic price rises over a period of time, once your steepest trendline gets broken on the downside, exit fully.
Here our steepest trendline is trendline-3. So Rangarajan, even if you have entered at 280 levels on 2/11, you have a signal to exit on mid-November, when that long black bar (encircled one in the pic) breaks trendline-3 on the downside. May be you could have exited half or one-third on this signal and the other half or two-thirds on the asc wedge breakdown as was nicely pointed out by Saint.

Cheers
D. J. Sinha

Great going,DJ.......Your Inputs,as always,most appreciated.Keep em coming!

Saint

Saint · #**1157** 1st February 2008, 11:23 PM

Quote:

Originally Posted by rangarajan

Thank you Saint,
I was wondering as to why you had not replied.
As usual .Very good teaching for future guidance with visual chart.
I did exit @255 with loss.
your initial lesson on pivot,did not say this aspect of slope gradient ,wedge etc.
Men become wiser by experience & i am no exception!
Many so called stalwart analyst gave a BUY call at 280 with Tgt beyond 300.
You have now taught when to exit aswel if the trade is against you.
By the way Saint,pl accept my compliments once again on yr knowledge sharing on pivots,i am a more confident trader & Investor nowadays ,courtesy Saint.
Happy trading.

Thanks for all the kind words,my friend......Sorry for the delay,and lack of anything substantial in this thread last few weeks.In the middle of shifting countries,can be a real headache!

Saint

djsinha · #**1158** 1st February 2008, 11:48 PM

Quote:

Originally Posted by Saint

Great going,DJ.......Your Inputs,as always,most appreciated.Keep em coming!

Saint

Thank you Saint for your hearty compliments.
Cheers
djsinha

uasish · #**1159** 2nd February 2008, 09:40 AM

Quote:

Originally Posted by Saint

Thanks for all the kind words,my friend......Sorry for the delay,and lack of anything substantial in this thread last few weeks.In the middle of shifting countries,can be a real headache!

Saint

Atleast now you are in India & may be some day come to Kolkata.

johnbest · #**1160** 2nd February 2008, 12:23 PM

Quote:

Originally Posted by gobatman2001

Hi! Raju,

Have uploaded the file again. Here is the link ...

http://www.************/file/32274581...686/Saint.html

Cheers ...

Dear gobatman2001

pls upload it again as it is not there.....

have a nice day
JB