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

jamit_05 · #**1471** 9th April 2008, 12:22 PM

Hello Saint,

Am seeing an hourly chart of Nifty, which is in an uptrend. Now entries in 5 min are sought. The chart is attached.

5 min has broken a pivot low and is now in a downtrend. A break of a pivot high is awaited. However, the pivot high in this case is vague.

Do the two red horizontal lines mark pivot highs. If so, they aren't they a little odd and hence allowing a lot of room for subjectivity.

How do you suggest one should tackle this?

Amit

jamit_05 · #**1472** 9th April 2008, 12:46 PM

Quote:

Originally Posted by prabhjeetrana

Saint I have attached the charts with the questions using Nifty, plz. explain the entry strategy

Regards

You must be annoyed by now since I butt-in to answer every question of yours? Please do not be. Nor feel any compulsion to revert back to any of my answers. I do it merely with the hope that if wrong then I will be corrected.

So here I go again

You asked:

"Do we wait for uptrend to turn into downtrend to enter short or look for a start of a decline in downtrend to go short?"

Answer:
In this case we wait for an uptrend to turn into downtrend. However, if you were trading the weekly chart, by referring to the monthly chart then you would to the later. And like you suggested to catch a start of a decline we could enter at the reversal of one-bar.

You may ask "Why the distinction?" Remember Saint said
"WHY? That's the way longer time frames behave.....and this is the way shorter time frames behave."

I have attached a chart with my answers in thin black colored fonts. Please care to take a look and revert.

Amit.

Saint · #**1473** 9th April 2008, 12:50 PM

Quote:

Originally Posted by prabhjeetrana

Thanx Saint, will try to grab whet you teach in your further posts and may be try to clear my mind.

Just one question Saint that has been bothering me. As you have told that we look at larger time chart for perspective and trade shorter term chart. Suppose both weekly and daily is in uptrend and suddenly daily breaks the pivot low. My question is :-

1. Where should we reenter, at the start of a new rally (higher lows and highs on daily bars) or do we wait for pivot high to be taken out again for entry

2. When do we pyramid

Hi Prabhjeet,

"The answer to prabhjeetrana's first question is that we enter at the break of a pivot high in daily. We cannot enter merely at the next rally, since it is not proof enough of the change of daily trend. But a break of a pivot high is."

Same as said by Amit above to your first question......only above pivot high confirmation on the daily,different story though if you are trading only the weekly charts and not looking at the daily charts(as described in last few posts in previous page).

Where to add?Every time we get a pivot low,and then goes on to break that prev pivot high,add there and raise stop loss to that very pivot low......Once again,same as above,the add entries like the initial one is a break above previous pivot high.

All the best!
Saint

Saint · #**1474** 9th April 2008, 12:59 PM

Quote:

Originally Posted by jamit_05

Hello Saint,

Now my question:

Pivot highs are broken in two ways.

Case 1: by making a previous higher pivot low.
Case 2: by making a previous double bottom or a lower pivot low.

Therefore, do I enter at the break of a pivot high irrespective of the above two cases?

My argument really is, Case 1 sounds more solid but then again we want to cathc trends. So there is chance that due to addition of such a filter we might lose out on few such trends. As a result we might be in a situation where we'll end up with a comparatively longer streak of losses.

Please comment.

Amit.

Hi Amit,

If we get a higher pivot low and then a break above previous pivot highs,much yummier..........But either way,we are waiting for that pivot high to crack before entry.....even if we get a lower pivot low and then a blast off move above previous pivot highs.

There is,basically,no change in that downtrend till that previous pivot high is taken out.

So,as far as pivot method is concerned,we wait till pivot highs are taken out........but do have a look whether a breakout from a falling wedge or a descending triangle failure gets you into the trade even before pivots crack.

Saint

Saint · #**1475** 9th April 2008, 01:02 PM

Quote:

Originally Posted by raosrinivas

Tapaswi, right mostly saint is very calm, but he can get angry at times, i remember a thread where saint had a very heated discussion with another member, i don't remember if that member is still in or out . may be this same thread, but long back

hahahaha

.......are we having discussions now about my temper or lack of it?About saintliness or the lack of it?

As said before,a human like any other with the full package of weaknesses......no different from anyone here!

Now let's get back to trading talk...

Saint

Saint · #**1476** 9th April 2008, 01:15 PM

Quote:

Originally Posted by shrineha

Great stuff Amit,

Thanks for explaining it with clear points marked. It cleared my doubt about Pivot with more clarity.

Hello Saint, based on your teaching today I have tried to Fish 'Kaushalya Infrastructure', would keep a watch on how it goes. My entry was at 37 and stoploss at 28.

Thanks once again.

Kind regards,
shrineha

Hi Shrineha,

I wouldn't trade it because of the low volumes.........if I were planning an entry,I would be looking to enter only on a break of 44.5(43.4 being the previous pivot high)with a stop at 33.

Saint

Saint · #**1477** 9th April 2008, 01:17 PM

Quote:

Originally Posted by benwae

Dear Saint,
I am a new member and also a newbie. I hope by joining your forum will improve my knowledge and skill in stock trading. Thank you for welcoming my membership.
Best regards
Wong Benwae

A warm welcome to the forum,Benwae........wishing you all the best!

Saint

Saint · #**1478** 9th April 2008, 01:18 PM

Quote:

Originally Posted by myvineet

what a words of wisdom!!!...write it & paste it on my pc table

no words are enough to thanx u boss...

regards

Most welcome,Vineet.....and thank you for the kind words.

Saint

Saint · #**1479** 9th April 2008, 01:20 PM

Quote:

Originally Posted by reji

Dear Saint,

I refer to the above post by Shrineha. Considering the "low volume"of this scrip, I presume you would avoid this one. Kaushalya being in the downtrend for some time, had it been better, if he could wait till the previous weekly pivot high of 40.85 to be taken out to enter?

Regards

Reji

P.S. Congrats.You joined the "5000"Club

Ah,Reji ,you've already answered the question......

Sorry for the ignorant question....Which 5000 club?

All the best!
Saint

prabhjeetrana · #**1480** 9th April 2008, 01:50 PM

Quote:

Originally Posted by Saint

Ah,Reji ,you've already answered the question......

Sorry for the ignorant question....Which 5000 club?

All the best!
Saint

Saint he's congratulting you for 5000 posts, dont know what size the cake should be for accomodating 5000 candles, coz. each of your post was just like a candle lightened.

Thanks for great work