BreakOuts

karthikmarar · #51 7th September 2006, 01:53 AM

Hi Rahul

Looks like there is some confusion regarding ascending triangles. In an ascending Triangle if we connect the the previous tops it would form a horizontal line. If we connect the bottoms it should form as ascending line.

May be you are just talking about the trend line only. Yes, when the price takes a temporary excursion belw the trend line we have to draw a new line to include this low. That is why it is important to wait for the confirmation of a trend line break. It could be a temporary excursion outside the line. Ahh... makes it difficult for us , isn't it? This is where other indications like volume and momentum comes intopicture so that we dont get stopped out too early.

I am enclosing the chart of APIL showing the trendline. Also enclosing a chart showing ascending triangles, tough not a perfect one. But it does give you the idea.

warm regards

Karthik

oops, Please chart name wrongly mentioned as Mcdowel, it should read APIL.png

karthikmarar · #52 7th September 2006, 02:20 AM

Quote:

Originally Posted by rahulg77

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.

Hi rahul

Ofcourse Divergences in ROC are important signals.

For looking at the divergences either connect all the peaks in the price chart and the indicator or connect the bottoms. You cannot connect the peaks in the indicator and connect the bottoms in the price chart.

of course a minor divergence did happen in Mcdowell and the corresponding decline also happened. Now the stock looks likely to continue its journey northwards.

Chart enclosed.

warm regards

karthik

softtouch · #53 7th September 2006, 03:56 PM

Quote:

Originally Posted by karthikmarar

Hi rahul

Yes Reia has to cross the resistance zone arounf 135 to have any up trend. The chart enclosed

Aban is already in a uptrend , expected to move up further. again chart enclsoed.

regards

karthik

Karthik,

How do we get buy and sell indicators on daily charts ?...........can u please explain ?...........is it possible to get the same on intraday charts even ?

rahulg77 · #54 7th September 2006, 05:31 PM

Quote:

Originally Posted by karthikmarar

Hi Rahul

Looks like there is some confusion regarding ascending triangles. In an ascending Triangle if we connect the the previous tops it would form a horizontal line. If we connect the bottoms it should form as ascending line.

May be you are just talking about the trend line only. Yes, when the price takes a temporary excursion belw the trend line we have to draw a new line to include this low. That is why it is important to wait for the confirmation of a trend line break. It could be a temporary excursion outside the line. Ahh... makes it difficult for us , isn't it? This is where other indications like volume and momentum comes intopicture so that we dont get stopped out too early.

I am enclosing the chart of APIL showing the trendline. Also enclosing a chart showing ascending triangles, tough not a perfect one. But it does give you the idea.

warm regards

Karthik

oops, Please chart name wrongly mentioned as Mcdowel, it should read APIL.png

Hi Karthik,

Thanks for your explanation. Actually when i wrote resistance line in my query I meant the horizontal line which connects the top cause technically it would also be a resistance line. Sorry I am not always good with words and thanks for the clarification

Also once it has broken what other indicators to u see to chk momentum.

Rgds

Rahul

srisara · #55 7th September 2006, 05:42 PM

Quote:

Originally Posted by karthikmarar

Hi Rahul

Looks like there is some confusion regarding ascending triangles. In an ascending Triangle if we connect the the previous tops it would form a horizontal line. If we connect the bottoms it should form as ascending line.

May be you are just talking about the trend line only. Yes, when the price takes a temporary excursion belw the trend line we have to draw a new line to include this low. That is why it is important to wait for the confirmation of a trend line break. It could be a temporary excursion outside the line. Ahh... makes it difficult for us , isn't it? This is where other indications like volume and momentum comes intopicture so that we dont get stopped out too early.

I am enclosing the chart of APIL showing the trendline. Also enclosing a chart showing ascending triangles, tough not a perfect one. But it does give you the idea.

warm regards

Karthik

oops, Please chart name wrongly mentioned as Mcdowel, it should read APIL.png

Karthik,

great post from you my friend, you have cleared many doubts regarding the ascending triangles.

great going my friend.

Satya

munchikana · #56 7th September 2006, 06:17 PM

Quote:

Originally Posted by karthikmarar

Hi rahul

Ofcourse Divergences in ROC are important signals.

For looking at the divergences either connect all the peaks in the price chart and the indicator or connect the bottoms. You cannot connect the peaks in the indicator and connect the bottoms in the price chart.

of course a minor divergence did happen in Mcdowell and the corresponding decline also happened. Now the stock looks likely to continue its journey northwards.

Chart enclosed.

warm regards

karthik

Dear Karthik,
Whenever you post a chart in the forum, I have one request to you. Kindly keep the background colour of the chart as white. APIL chart posted by you contains black background colour. It is quite difficult to read the numbers and other indicators in the chart especially if the background colour of the chart is dark.
With regards
Munchikana

karthikmarar · #57 7th September 2006, 08:41 PM

Munchikana

Thanks for the feedback. I will keep this in mind next time I post a chart.

regards

Karthik

karthikmarar · #58 7th September 2006, 08:48 PM

Quote:

Originally Posted by softtouch

Karthik,

How do we get buy and sell indicators on daily charts ?...........can u please explain ?...........is it possible to get the same on intraday charts even ?

Hi Softtouch,

The Buy and sell signals are generated by the trading system and I have included the code to plot these on the charts. Yes we can have these on intraday charts too.

If interested checkout my thread "Experiments...." for the codes to do the same in Amibroker . You can do similar thing in Metastock too. In metatock it is possible to plot the Buy/Sell arrows and Buy and Sell texts. But we cannot plot the Buy and Sell prices. You will find the codes for metastock exploration too in my thread.

warm regards

karthik

casoni · #59 8th September 2006, 12:29 AM

hello everybody,
enclosed chart with guru comments , 5 weighted indicators have given sell,this is what commentry tells ,

munchikana · #60 8th September 2006, 12:52 PM

Hi all,
Check out Hindustan Zinc (bse ticker code: 500188). Seems to have a good breakout with very good volume. Breakout happened two days ago. There was a gap opening on 06/09/2006 (breakout gap) to assure this breakout. Unfortunately, I noticed it only today. I donot know how I missed this one. Seems to be a good breakout from a long trading range. Unfortunately there seems to be a lone trade at Rs. 535/- in opening minute today just to fill this breakout gap. I think we must ignore this freak trade and still consider that the breakaway gap is remaining unfilled. Does anybody have any answer to a strange situation like this. Please post the answer here. Hope for the best.
With regards
Munchikana

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