Alphabets "W" and "M"

jallanankit

Well-Known Member
#1
I was introduced to alphabets in my tender age.. never thought they could be used in trading as well..

"W" and "M" are two of those..

This can b plotted with two Moving Averages(One say a 7 MA and the other 21MA)

Now, The concept is very basic..

W indicates that the market has made a double bottom and has moved from the bottoms..

M suggests that market has tried to cross the highs twice and has indeed failed to do so and indicates tht we are going to have a bearish period..(the definition of period can be made from the TF we r using to catch the W's and M's..eg: a W or M on a 1 min chart has lesser value than on an hourly chart.. However, this combination of W and M with 7 and 21 MA works good in a 5 min chart..)

This is a rare thing tht u come up with regular W's and M's but yes u do get more often in smaller TF than in larger ones.. Chart below explains more of it..!!


Now checkout for W's and M's using the 7MA, (the blue colour line in the charts) and the 21 MA has got nothing to do with the formation of M and W but indeed tht is plotted to be used as a crossover system(a general MA crossover system).. generally, the 4th line of M or W will be cut by the 7 MA on the 21 MA quite early which means tht u r ready for the trade and once the W or M is confirmed, u can add to ur positions..


But yes the success rate of this trades is high..!! do checkout the charts below and

Lets go to the kindergarten age.>!! Lets Do Trading with the basics.. (abcd....lol..):D
 
#2
Yes, Ankit, I too, look for W's and M's, them being the easiest analytical tools.

But charts please, seems like they didn't get uploaded :)
 
#3
Hello I appreciate your new thread approach, If you want then we can use this thread for discussion of chart patterns. Not only text book method and definition. I mean to say how with knowledge of simple chart patterns we can execute trades. I have found that vivid idea of patters and other basic technical are more important than AFL or following others methodology of complex indicator blindly. Let me know, then we together will start discussion here.
What is your opinion?
 

jallanankit

Well-Known Member
#5
Thts much better...DM...
coz understanding a complex AFl is much more time confusing and difficult rather than to understand a concept and use it..!!
U can go ahead with the chrt patterns..!! must b of help to all..!!
 

columbus

Well-Known Member
#6
#8
Thank you Ankit,

I have been using Technical for few years. I have seen that most basic things in Technical Analysis(TA) are

  1. Trend
  2. Valid Support
  3. Valid Resistance
  4. Basic patterns
  5. Volume
  6. Some Basic Candle Stick patterns

Appert from this we use different Indicators like

  1. MACD
  2. Stochastic
  3. RSI
  4. SAR
  5. BolingerBand
  6. ADX
  7. Aroon
  8. CCI
  9. VIX
  10. William %R
  11. ATR
  12. OVB

(May be I missed some indicators. Sorry all these are I know. May be there are more that others know. :) )

Now we use different Moving averages(MA)

  1. Simple Moving Average (SMA)
  2. Exponential Moving Average (EMA)


Now on next post we will start discussion on them in details.
 
#9
@columbus
"What you see on the screen is Real ,what you think is virtual.Stick to Real"
Once Virtual goes in hand in hand with real we make money. :D