Charts for the Day

EUR/USD daily : Does it look like a cup and handle forming ??

Dear Timepass,

Of all the price patterns, i am poor in reading cup-handle donno why...:confused:
To my lazy eyes it is looking inverted head and shoulder pattern.A right shoulder under formation.

Other chart readers can educate more on this.
 
Dear Timepass,

Of all the price patterns, i am poor in reading cup-handle donno why...:confused:
To my lazy eyes it is looking inverted head and shoulder pattern.A right shoulder under formation.

Other chart readers can educate more on this.
Yes, it could be inverted H&S, with a head much bigger than the shoulders. Either way, it appears bullish, doesn't it ? A target of above 1.3450 ?? (the depth of the head/cup is about 0.300).
 
Dear esse,

As i replied back in october end, that stock got correcting huge run up, and intermediate down may test sub 98 levels. Also a likely exit warning near to 116-118 also shown, stock touched 116.6 and started correcting from there.

The point is stock now getting overstretched in fall, and a likely bounce towards 92-95 pending, it may be before touching 78-80 zone or afterwards.
In short for good longs one should wait for 78-80 levels.

Stock had good long term support near to 58-60 zone. and it should hold for continuing its bulls run. Lets see, right now dont jump into.
I too feel the stock will go down before reversing. Especially look at the volume it is very high while falling.

Anil, Can you please help me interpret the ADX and MACD. Attaching chart.




 

prabhsingh

Well-Known Member
Anil,

What were the key points you took into consideration in Oct end that Hexaware is going to consolidate and can test 98 levels.Was it overbought at that time from MACD levels.Kindly can you elaborate or point to relevant thread number.
 
Dear sreeram,

ADX is a trend following as well trend strength indicator. Thats why many traders use it.
+DMI and - DMI are nothing but positive directional movement and negative ones.

MACD is a momentum indicator, which is nothing but moving average crossovers plotted with neutral referencing average.
So there are many ways to look into it. Many traders wait for the period, when ADX lie idle below both DMI's, indicating lack of trend and both DMI's are closer to each other, implying lack of volatility. So cycles tells us, that low volatility will be sooner followed by high volatility. So if they are bullish or wanna make long trade, look for MACD bottoming(may be with +div) and then +DMI above -DMI with rise in ADX. This is golden trade.
A fall in ADX and MACD rising implies rally loosing strength, similarly a ADX going sideways and MACD rising means trend lacking/consolidation.

A rise in ADX and falling macd is a bearish sign and a rise in ADX and rising MACD is a bullish sign.
As a trader one should avoid DMI crossovers on low volatility and and when MACD is closer to zero line, it increases risk of whipsaw.
There is no perfect tool, it will also have lag in it. So study price action, pivotal points and then see what indicator trying to telling us.
May be a detailed post later by me, will throw some more light, but as of now just this much will do...
 
Anil,

What were the key points you took into consideration in Oct end that Hexaware is going to consolidate and can test 98 levels.Was it overbought at that time from MACD levels.Kindly can you elaborate or point to relevant thread number.
Dear prabhsingh,
Here i replied to Esse on probable movement.
http://www.traderji.com/technical-analysis/69380-charts-day-27.html#post736554

Point is there is huge RSI div on weekly, and price action on second peak is weak, ans also watch bearish bars .
Always remember price not necessary test previous peak/troughs, it always test the previous point of imbalance between demand-supply..so the ideal zone is sub 100 levels.

The thing is you may be write or wrong, you may be using trend following indicators like MA crossovers or others. You must have some pathway in mind, where price will be likely tested..it will give you rough roadmap.
 

Esse

Active Member
precisely the reason that I wanted to take your opinion on the stock. At that time I was extremely bullish and luckily heeded you advice else would have had to incur huge loss





Dear esse,

As i replied back in october end, that stock got correcting huge run up, and intermediate down may test sub 98 levels. Also a likely exit warning near to 116-118 also shown, stock touched 116.6 and started correcting from there.

The point is stock now getting overstretched in fall, and a likely bounce towards 92-95 pending, it may be before touching 78-80 zone or afterwards.
In short for good longs one should wait for 78-80 levels.

Stock had good long term support near to 58-60 zone. and it should hold for continuing its bulls run. Lets see, right now dont jump into.