breakout
- Thread starter cmlee
- Start date
Dear Vicky
I use Metastock for my Analysis. About Free software there are many posts in this forum under the software section. I know of the following
1. Wallstreet Analyzer - www.lathuy.com
2. FC charts www.spacejock.com
You can also try Refined Elliot Trader (http://www.elliottician.com/showpage.asp?p=21). This is also free. However the normal Indicators like MACD, Moving average etc are limited.
Personally I was comfortable with Wallstreet Analyzer. I used it before getting Metastock. Some members in this forum did mention that Fcharts is also good.
All these software get data from Yahoo. As far I know that yahoo has resumed providing Historical Data for Indian stocks which they had stopped in June. But looks like they have Historical data for limited number of shares only. But they seem to have atleast 3 months data. Hence this may be a problem. If you have a problem with data do let me know I can try to convert my metstock data into ASCII format suitable for wallstreet or Fcharts.
regards
karthik
I use Metastock for my Analysis. About Free software there are many posts in this forum under the software section. I know of the following
1. Wallstreet Analyzer - www.lathuy.com
2. FC charts www.spacejock.com
You can also try Refined Elliot Trader (http://www.elliottician.com/showpage.asp?p=21). This is also free. However the normal Indicators like MACD, Moving average etc are limited.
Personally I was comfortable with Wallstreet Analyzer. I used it before getting Metastock. Some members in this forum did mention that Fcharts is also good.
All these software get data from Yahoo. As far I know that yahoo has resumed providing Historical Data for Indian stocks which they had stopped in June. But looks like they have Historical data for limited number of shares only. But they seem to have atleast 3 months data. Hence this may be a problem. If you have a problem with data do let me know I can try to convert my metstock data into ASCII format suitable for wallstreet or Fcharts.
regards
karthik
). It may be of some use to the members. Maybe I will post a separate thread and not encroach on cmlees thread
The price dropping and remaining below the support line itself is considered a false breakout. There is no "how much below". It may even go down to the next support line. Also volume is not a consideration, the drop may be on small volumes.( I have noticed that normally volume decreases)
I am enclosing the chart of Alok Textile showing a false breakout in September 2004. Please note that it is not an ideal example. But this is the only one I could get hold of now. It does present some idea of a false breakout.
Normally in a break out after the penetration of the resistance line, the traders are reluctant to accept the new higher price level and there will be selling pressure. The price will then return to earlier resistance / present support level. This is called the TRADERS REMORSE. The action of the price after the Traders Remorse is very crucial. The price may rise to higher level from the support line signaling the breakout. If the general feeling is still that the new price is not warranted then selling persists and price goes down further. This results in a Bull trap (refer Saint's post) or False breakouts.
Iam enclosing the Chart of Alok Textile showing the recent breakout. The Traders Remorse is quite visible in this.
Thus it may be a better idea to enter the stock after the upturn from the pullback (trader remorse ). see chart.
Hope I was able to clarify your doubt.
reagrds
karthik
I am enclosing the chart of Alok Textile showing a false breakout in September 2004. Please note that it is not an ideal example. But this is the only one I could get hold of now. It does present some idea of a false breakout.
Normally in a break out after the penetration of the resistance line, the traders are reluctant to accept the new higher price level and there will be selling pressure. The price will then return to earlier resistance / present support level. This is called the TRADERS REMORSE. The action of the price after the Traders Remorse is very crucial. The price may rise to higher level from the support line signaling the breakout. If the general feeling is still that the new price is not warranted then selling persists and price goes down further. This results in a Bull trap (refer Saint's post) or False breakouts.
Iam enclosing the Chart of Alok Textile showing the recent breakout. The Traders Remorse is quite visible in this.
Thus it may be a better idea to enter the stock after the upturn from the pullback (trader remorse ). see chart.
Hope I was able to clarify your doubt.
reagrds
karthik
Last edited:
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