Queries From "Teach a Man to..." thread!!

[aad]

Originally Posted by nayadalal

Hello guys,
I have no idea what you are talking about.
Where should a complete novice start?
Thanks
Naya Dalal

This thread has queries posted by learners who learnt from Saint's thread "Teach a man tp fish...". This is a good place to post your queries related to that thread as otherwise, it clutters the original thread.

I think reading this thread from scratch will be the best start for a novice. The link is http://www.traderji.com/trading-tech...-man-fish.html

Regards,

Abhay (AAD)

[Alleppian]

Originally Posted by Saint

Hi Allepian,

Regarding Garnet............thanks to its low volumes and upper/lower circuits,not looking as clear cut.When I get a neater reverse h&s ,shall post it in this thread.
Saint

Thanks Saint. Shalll watch for more volume build up/ or more volume traded stock.
When you are looking for patterns howmuch do you think the minimum average traded quantity for a stock to make the pattern more clear?
Thanks in Advance

[gobatman2001]

Hi!

As per Saint's teachings, we get into a trade if higher pivot highs & higher pivot lows are formed on the weekly charts, not on the daily charts.

My query is ... Do we look at the RSI on the weekly chart or on the daily chart to see whether the stock is overbought or not (ie RSI > 70). Similarly, for other indicators like the TRIX.

I would be grateful if someone can please help me with this query.

Thanks & regards,
Amit

[Saint]

Originally Posted by gobatman2001

Hi!

As per Saint's teachings, we get into a trade if higher pivot highs & higher pivot lows are formed on the weekly charts, not on the daily charts.

My query is ... Do we look at the RSI on the weekly chart or on the daily chart to see whether the stock is overbought or not (ie RSI > 70). Similarly, for other indicators like the TRIX.

I would be grateful if someone can please help me with this query.

Thanks & regards,
Amit

Hi Amit,

A bit uncomfortable with Amit......got rather comfortable with Batman!

Right,let us talk Intermediate trend,look at the weekly chart,and wait for that higher pivot low that it will give you to latch on to.If you are a short term trader,look out for smaller stops and smaller rewards,and trade the higher pivot low on the daily charts accordingly........so different time frame charts as per what you are targetting.

As far as I am concerned,every trade is with a look at patterns and pivots and change of trend.Indicators though could be a help that confirms to you as an added secondary sign.I only use the divergences on RSI and TRIX to give me a warning sign of "hmmm.....is a turnaround in the offing soon?"Other than that ,have not really found use for it.

But I do like the +DI,-DI,ADX......I'll be discussing this later.

Basically my take......am sure another member trades the Stoch to massive profits,yet another trades the RSI,TRIX to huge profits,and someone else trades the MACD to great profits.Some others hardly use indicators to huge profits.................so at the end of the day,it's all about making money.What you use as entry points and exit points,you gotta do some research and some testing till you are comfortable.But money management,no compromise...........that is what separates the Best from the Rest.

All the best!
Saint

[gobatman2001]

Originally Posted by Saint

Hi Amit,

A bit uncomfortable with Amit......got rather comfortable with Batman!

Right,let us talk Intermediate trend,look at the weekly chart,and wait for that higher pivot low that it will give you to latch on to.If you are a short term trader,look out for smaller stops and smaller rewards,and trade the higher pivot low on the daily charts accordingly........so different time frame charts as per what you are targetting.

As far as I am concerned,every trade is with a look at patterns and pivots and change of trend.Indicators though could be a help that confirms to you as an added secondary sign.I only use the divergences on RSI and TRIX to give me a warning sign of "hmmm.....is a turnaround in the offing soon?"Other than that ,have not really found use for it.

But I do like the +DI,-DI,ADX......I'll be discussing this later.

Basically my take......am sure another member trades the Stoch to massive profits,yet another trades the RSI,TRIX to huge profits,and someone else trades the MACD to great profits.Some others hardly use indicators to huge profits.................so at the end of the day,it's all about making money.What you use as entry points and exit points,you gotta do some research and some testing till you are comfortable.But money management,no compromise...........that is what separates the Best from the Rest.

All the best!
Saint

Hi! Saint,

I know you have been busy and I really appreciate your taking the time to answer our queries.

Where I am getting stumped is ...
On the weekly charts, by the time a higher pivot high and higher pivot low is formed, the RSI is already close to 70 on the daily charts. On the weekly charts, though, the RSI is somewhere around 50.

Fellow members have shared that a stock gets overbought at 70. But, I have noticed that the price keeps going up even though the RSI is at 70.

Eagerly waiting for your post on the ADX. Till then it's back to going through the charts.

A million thanks & best regards,
Batman

[Saint]

Originally Posted by Vinayak

Hi Saint

Your posts and follow up are excellent - top, 5 star rated posts. Keep them coming

This is my second / third reply in this very thread today.

I just saw the thread an hour ago and I suppose by the time I finish this thread, I'd feel like having done a full certification course on charting. No jokes

Great ... simply great !!

Two questions to you if you have the time
----------------------------------------------------

Looking at three stocks, ICICI, EID Parry and Hind Zinc, (well I'm a new commoner here), I get the following ideas

1. EID Parry - Hold or Buy. 165 ~ 175 seems to be a support line. Still one may have to look at a longer term data ?

2. ICICI - Sideways over the last one week. Still a sell signal over the last two sessions (NOT sure if this I charts chart has today's data already. so may be one has to check tomorrow to see if 25th Aug 2006 prices are included)

3. Hindustan Zinc - In a sideways channel between 500 ~ 600. I am unable to decide

But I'd REALLY appreciate your expert comments and questions / corrections to my thoughts

regards
V

I've uploaded the max files allowed. So 1 file may be missing

Hi Vinayak,

EID PARRY :First thing you look at is,is this in an uptrend.If your answer is YES,then only the next thought of buying.Buy declines in an uptrend.Is this an uptrend?NO......and that's that.Don't bother looking for possible supports,etc.Leave it alone.Deploy funds in a clear cut pattern,a clear cut trend.When EID demonstrates a change in trend,then only the next thought of possibly buying.For now,stay clear....

ICICI :Wait n watch mode,let's how it behaves before taking any decision.

HIND ZINC:Same here,are we headed for a crack to the down or not........for now,a wait n watch mode as we don't know the direction that it's about to take.Allow a clear cut direction and then latch on to it.For now,stay clear.

Thank you for your kind words,my friend.

Saint

[gobatman2001]

Hi! Saint,

Can you please share the method that you follow to shortlist stocks (Higher pivot highs & higher pivot lows) for a buy setup.

I mean, do you manually go through all the charts (That's a humongous task). Or do you have some scanner to shortlist stocks and then gone through the shortlisted charts manually.

The reason why I am asking is because I have been spending far too much time looking for buy set ups manually.

PLEASE do help ...

Thanks & regards,
Gobatman

[lvgandhi]

I have gone through the collection of posts by saint. Really it is very much helpful. I would like to know a few more things. All my questions pertains to swing trade.
Reward risk ratio is most important for going into any trade. when a new high is made with a breakout like in federalbnk today(I hope I am not wrong), how to estimate the target?
Second how one fixes entry price. Whether it should be pivot or S1 or R1? Or any other method is used?

[Alleppian]

Originally Posted by Alleppian

Hi Saint !
Thanks for keeping up the good work through different threads and educating us.
Can you please verify the chart I attached and tell me whether my understanding of 'Bump And Run Reversal pattern' in this case of NDTV is correct or not?
Also I would like to know is this pattern is commonly used for analysis?
Thank you saint in advance

Hi Allepian,

Not been around the last few weeks,taking a well deserved break for body and mind......as for NDTV,not too clean,both phases(lead in and bump)although I see what you are looking at.

Have not been looking at Indian stocks individually,but have a look at GMR INFRA....the full pattern has not formed as yet,but very much in the process,isn't it?

Take care,and all the best!

Saint

Thanks saint for the reply

[Saint]

All the best!
Saint