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

sachin_jain3 · #**1631** 22nd May 2008, 10:26 PM

Quote:

Originally Posted by Saint

Hi Sachin,

First it's important to analyse if you are trading the weekly charts......which means we honour previous pivot lows and highs on the weekly charts......If it's the weekly pivot low that you are looking at,the last pivot low before the dntrend was on the week ending 20/12/07 at 5676.70.....If and when this pivot breaks,the uptrend is over......No such thing as making lower pivot highs to confirm the end of an uptrend......Break of prev pivot lows and you are out of that trade.

On the other hand,if you are a long term trader,benefitting from the Primary Uptrend,your entry was in July 2003 and still in the trade.........If lower pivot highs are made and then previous pivot lows are broken at 4468,your trade that started at 1140 would have come to an end as the Bear takes over.

And if you were trading the weekly chart uptrend using the monthly as backdrop,then again you would have exitted in the third week of Dec and probably reentering soon once 5300 is taken out.

Any of the ways,the break of previous pivot lows is the end of that uptrend on that time frame........no more confirmation is required.

And remember,in an uptrend we are looking at previous pivot lows.......in a dntrend we are looking prev pivot highs........Break of pivot lows is what we are looking for to exit.

Hope this helps to clear some doubts........do get back if doubts persist.

All the best!
Saint

Thanks for the Reply Saint,

As far as I am concerned i am trading the Primary uptrend and not the weekly trend. In that case should i be looking at the monthly chart rather then the weekly chart. I have tried to identify the pivot highs and lows in the nifty monthly chart this time. Please have a look at the chart attached. I have identifed the Pivot Lows (yellow circles), pivot highs (sky blue circles) and the entry (red circle). Is this looks good? Also since the last pivot low, PL1 (4468) was higher then the one before, PL2(4448), so this uptrend is still intact. Is that interpretation correct.

And if i were to do a trendline on this chart (marked blue), the trendline is still valid and the uptrend continues by that standard also. Is that correct?

I couldnt understand this statement of yours "And if you were trading the weekly chart uptrend using the monthly as backdrop,then again you would have exitted in the third week of Dec and probably reentering soon once 5300 is taken out." Maybe its a more advanced concept, and i need to read the thread again to understand.

Thanks,
Sachin

maddy_invest · #**1632** 22nd May 2008, 10:50 PM

Hi Saint,

I was looking into the chart of COMPUAGE.It has recently formed a Wide range bar. Is it advisable to trade in it now? The volume is not very impresive.

Maddy

sachin_jain3 · #**1633** 23rd May 2008, 11:32 AM

Quote:

Originally Posted by Saint

Shall do,Sachin...

Saint

Thanks for the reply Saint,

I have posted some more clarification on the same thread after for reply. Please find time to reply.

Thanks,
Sachin

babidash@hotmail.com · #**1634** 23rd May 2008, 09:42 PM

Hello SAINT,

I am quite new to stock market and the forum too...yesterday fast_rizwaan told me about (Teach a man Fish). Till now I read up to 15 pages and I am a fan of yours. In one sentence I can say "YOU ARE ROCKING MAN

"

I think you are the most Unselfish and knowledgeous person. The way you are explaining with example is really amazing. Thanks again for all the help and support you have been giving to newbie’s like me.

Regards,
bABIDASH

anilsingh1977 · #**1635** 25th May 2008, 11:18 AM

Hi Saint,

I am new to technical analysis and I am trying to learn it reading this great thread of yours. I an looking for your insight into the script that I bought few days back.

If I read the charts correctly both weekly and daily charts were in uptrend on 20th May. I took my position aftert the previous pivot high (309) was taken out on daily charts. I bought at 320 thought it was late. I calculated Stop-loss as 267.1-1.1= 266.

It started to move downwards since 21st.

I would really be thankful if you can answer my following queries:

1) rights and wrongs that I did in the process of buying this script and

2) how about entering immediately after a higher pivot low has formed instead of waiting for previous pivot high to be taken out?

Thank-You,
Anil

jamit_05 · #**1636** 26th May 2008, 03:32 PM

Quote:

Originally Posted by Saint

What you described in your chart is the way it is done..........trail stops raised on new highs formed.......but in that particular example you had posted,the other rule kicks in.....7 up days in a row + steep gradient......raise stops to 2 candles back till stopped.

All the best!
Saint

Tks for the reply.

jamit_05 · #**1637** 26th May 2008, 03:43 PM

Quote:

Originally Posted by anilsingh1977

Hi Saint,

I am new to technical analysis and I am trying to learn it reading this great thread of yours. I an looking for your insight into the script that I bought few days back.

If I read the charts correctly both weekly and daily charts were in uptrend on 20th May. I took my position aftert the previous pivot high (309) was taken out on daily charts. I bought at 320 thought it was late. I calculated Stop-loss as 267.1-1.1= 266.

It started to move downwards since 21st.

I would really be thankful if you can answer my following queries:

1) rights and wrongs that I did in the process of buying this script and

2) how about entering immediately after a higher pivot low has formed instead of waiting for previous pivot high to be taken out?

Thank-You,
Anil

Aadaa varze Anil sahab,

It would be nice if you'd mentioned the scrips name. Therefore, I am assuming a few things while I answer the questions.

Firstly, after the weekly goes into uptrend, like it did on the 20th we are advised to wait for daily to go into a downtrend. Once it does, we wait for it break a pivot high which is when we enter. This should probably answer your first question.

Secondly, yes that is done if the higher-pivot low looks "yummy". This is the word Saint would use.

I mean, if the bottom formation of the pivot low seems solid like when it forms a range or a strong basing then one might risk an entry with a tight stop.

Regards.

anilsingh1977 · #**1638** 26th May 2008, 04:23 PM

Hi Jamit, thanks for ur explanation.

Script name is CAIRN.

I would also appreciate if Saint can give give his guidance too.

Regards,
Anil

djsinha · #**1639** 26th May 2008, 04:51 PM

Quote:

Originally Posted by anilsingh1977

Hi Jamit, thanks for ur explanation.

Script name is CAIRN.

I would also appreciate if Saint can give give his guidance too.

Regards,
Anil

Hi anil,
I've attached the daily and the weekly chart with coments on those. As far as the daily and the weekly are concerned, both of them are in uptrend. So you need not worry. Even the monthly is in uptrend making this stock a candidate of primary uptrend.Your SL is 266 on the daily...as you correctly pointed out.
So just wait and watch. I hope when you had taken position..you had done so in accordance with MM rules. So even if your SL is hit in near future...you'll not feel much pain.

Cheers
D J Sinha

jamit_05 · #**1640** 26th May 2008, 05:47 PM

Quote:

Originally Posted by anilsingh1977

Hi Jamit, thanks for ur explanation.

Script name is CAIRN.

I would also appreciate if Saint can give give his guidance too.

Regards,
Anil

Yes, first the daily has to go into a downtrend. Then buy at a daily pivot high break. Saint, pls attest.

Tks.

PS: As a matter of fact, I am waiting for the same