BreakOuts

rahulg77 · #41 31st August 2006, 09:52 PM

Quote:

Originally Posted by karthikmarar

Hi

Is GPIL Breaking out? The MACD, Trix , ADX all looks good. Checkout.

Regards

Hi karthik,

GPIL made a decent move today. RSI is in overbought. do not know if it is a concern and also prices ran and pulled back at the end of the day forming a inverted hammer ( actually not really a hammer as the shadow above the body is not that long).

Rgds

Rahul

karthikmarar · #42 31st August 2006, 10:12 PM

Quote:

Originally Posted by rahulg77

Hi karthik,

GPIL made a decent move today. RSI is in overbought. do not know if it is a concern and also prices ran and pulled back at the end of the day forming a inverted hammer ( actually not really a hammer as the shadow above the body is not that long).

Rgds

Rahul

Hi Rahul,

RSI can remain about 70 for long. The question here is whether RSI is a OB/OS indicator. Wilder never mentioned it as OB/OS indicator in his book 'New concepts in Technical Trading'. He talks mainly about Divergences and failure swings. I use RSI mainly for divergence indications only.

regards

Karthik

rahulg77 · #43 31st August 2006, 10:31 PM

Quote:

Originally Posted by karthikmarar

Hi Rahul,

RSI can remain about 70 for long. The question here is whether RSI is a OB/OS indicator. Wilder never mentioned it as OB/OS indicator in his book 'New concepts in Technical Trading'. He talks mainly about Divergences and failure swings. I use RSI mainly for divergence indications only.

regards

Karthik

So what would be a better signal for OB/OS indicator. ROC??

Also to see divergence, Do u use bar charts or line charts. I was discussing this one of the members of the forum and we discussed that since RSI is based on close prices we should also see the price chart for divergence using close i.e line chart. Would that be correct. I am attaching two charts of J.P Associate. One has line chart( drawn using close of the prices) and it shows price is range bound and RSI is decreasing and the other with bar chart, in that price also shows decrease. As per martin pring if price refuses to follow RSI, price always leads and hence might show a reversal. He calls this reverse divergence. So what is more appropriate to use divergence.

Regards

Rahul

aad · #44 31st August 2006, 11:33 PM

Quote:

Originally Posted by pkjha30

http://www.traderji.com/attachments/...ug_25_2006.png

Thanks Pankaj...

Abhay

karthikmarar · #45 31st August 2006, 11:50 PM

Quote:

Originally Posted by rahulg77

So what would be a better signal for OB/OS indicator. ROC??

Also to see divergence, Do u use bar charts or line charts. I was discussing this one of the members of the forum and we discussed that since RSI is based on close prices we should also see the price chart for divergence using close i.e line chart. Would that be correct. I am attaching two charts of J.P Associate. One has line chart( drawn using close of the prices) and it shows price is range bound and RSI is decreasing and the other with bar chart, in that price also shows decrease. As per martin pring if price refuses to follow RSI, price always leads and hence might show a reversal. He calls this reverse divergence. So what is more appropriate to use divergence.

Regards

Rahul

Hi rahul

I prefer the stochastic for a OB/OS indicator.

Agree with you that ideally the close price should be considerd. However most of the time when real divergennce takes palce they are quite pronounced and it does not matter whether you take the close price or not.

Only one chart enclosed by you. Any way I have drawn the line through close prices and I dont see any divergences. The prices are currently declining and this is also clearly visible in the vaning momentum and the stochastic oscillator. Dont start looking for minor divergences. When good divergence happens there is hardly any need to draw line as they will be clearly visible as the full moon in the sky

Enclosing my chart ...

regards

Karthik

rahulg77 · #46 1st September 2006, 04:36 PM

Ok Karthik,

Point taken. I think you are right about how it should be visible to the eye.

Rgds

Rahul

jaykiru · #47 2nd September 2006, 01:33 AM

Breakouts In IDBI @ Seniors

Jay

lohiya · #48 4th September 2006, 07:26 PM

I see nalco on yhe verge of one's dream breakout based on its fundamentals. Counter views are most welcome.

rahulg77 · #49 6th September 2006, 08:33 PM

Hi Karthik,

Is also a divergence in ROC valid. I was seeing the chart Of Mc Dowell. It had a breakout with very good volumes but I did not enter the trade because of the -ve divergence. Views on the same would be appreciated.

I am sorry there was a good bo on j.P and wanted to post it yesterday but cold not. A pull back or consolidation could give us another entry point.

Rgds

Rahul

P.S Attaching the chart.

rahulg77 · #50 6th September 2006, 08:51 PM

Hi,

satya, Karthik and other traders who do BO trading, I was seeing the charts of Alstom Project and wanted to know something. If we draw an ascending triangle and the price moves out of the ascending trendline. It does not BO but consolidates sideways and then BO above the resistance line. Should we doubt such a move or just re adjust our trend line. Have attahced both the charts.

Also I wanted to know what else apart from the BO do u all see to decide on entry and exit. I was trying to use traderjis three day high/ low for exit but many a times after BO a share moves sideways or pull backs before moving on. So we get out of many trades. Should we wait for it to move for soemtime before we use that method.

Rgds

Rahul

Similar Threads for: BreakOuts
Thread	Thread Starter	Forum	Replies	Last Post
scanning for breakouts	cmlee	Software	9	23rd August 2007 07:58 PM
Don't Buy Stocks On The Way Down; Stick To Breakouts	albertpravin	Equities	4	1st October 2005 08:17 PM