Metals ALERTS BY "santhosh2010"

[santhosh2010]

Gold Master candle setup Target : 33488 [vimalraj]

Gold Master candle setup Target : 33488 ???

High risky traders buy gold around : 32740 -32500 level

Safe traders buy only above : 32840 ( need to candle close )

Stoploss : 32240

Target : 33488 may be possible ....But book at you wish...

Note :- This is my personal view only,Take positions with your own analysis...

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Master Candle

What is a Master Candle?

A master candle forms when a large candle makes a recent high and low that engulfs the following four or more candles. Take a look at the example below:

The minimum number of candles the master candle needs to engulf is four, but the more the better. When a master candle forms it is an area of support and resistance being set.

Why Are They Useful and What Do They Mean?

I find it is easiest to think of master candles as mini scalp lines. The high and low of the master candle represent recent areas of support and resistance. As candles form within the boundaries of the master candle the areas of support and resistance grow stronger. So trading master candles is like trading scalp lines or range breaks. The market falls into a range that is dictated by the high and low of the master candle. Once that high or low is broken the market
should rally. The more time before the break the stronger those boundaries become. Think about a master candle as a cross between support + resistance lines and candle patterns.

How Accurate are They?

Like any form of technical analysis, if you trade it alone and you blindly jump in without thinking you will lose. These patterns only work if the trader using them has a brain and is willing to use some discretion. A trading method only works if a real trader is trading it. So master candles can be as accurate as giving you 8 wins in every 10 trades using them. However, this will only be true if you use them in conjunction with other forms of analysis, common sense, and your brain.

What Makes a Strong Master Candle?

As with any form of analysis, some signals can be stronger than others. For example, when trading scalp lines a scalp line that has had three very strong, recent bounces is stronger than a scalp line with one weak bounce.

Let’s look at some of the things that make a master candle stronger:

1. Line Bounces

We know that the more bounces a scalp or support + resistance line has the stronger the line becomes. This is simply because every time the price
bounces away from that level it shows us that the level is a strong barrier. The more it bounces the stronger that barrier becomes. So when the price manages to eventually break that barrier it makes for a much better trade.
If the candles within the master candle bounce off of the high or low of the master candle it makes that high or low stronger. Therefore, a break of that high or low should make for a better trade, as the price should have a stronger than normal rally. Take a look at this example below:

Looking at the picture above you can see what I mean. The candles trapped within the boundaries of the master candle keep on testing the resistance lines. The more times the price rejects that line the stronger the line becomes.

2. Scalp or Support + Resistance Lines

If the master candles high or low happens to form on a pre existing scalp or support resistance line then that line becomes stronger. It becomes stronger because more than one form of analysis points to the same line being an area of support or resistance.

3. Psychological Levels

Same as above, if the master candles high or low happens to form on a strong psychological level Iwould consider the line stronger.

4. Time

The longer the master candle holds out the stronger it becomes. However, if it holds for too long I might consider it invalid. I give it about 24 hours to break. If it cannot break in 24 hours I scrap the master candle.

5. New highs or lows

If the high or low of a master candle doubles as a new daily, weekly, monthly, yearly or all time high or low it obviously makes the master candle stronger. Here is an example:

As you can see the master candle that formed on the 5th of December formed a new yearly low. I
would consider that line stronger than the line up top. This is just common sense.
So depending on how and where they form some master candles can be stronger than others.

This is so straight forward I do not know if it can be explained any more. The master candle forms a high and a low. When that high or low is broken the entry is triggered. However, as usual this breakout trading is a little different than most types of breakout trading. I like to use my brain when entering a breakout trade. I do not robotically enter the moment the line is broken. There are several factors that dictate whether or not I get into a trade, and if I get into the trade, when I get in.

Targets and Stops

Master candles are very subjective. Targets depend on where/when they form, market conditions, and line strength. Obviously if the master candles low forms on top of a strong support + resistance line the target on the break will be larger.

 

[santhosh2010]

Silver now facing strong resistance at Symmetrical Triangle
lower trend line : 55600 -55700

if trade and hold above 55700 then we may see upside target : 58500

if did not cross this levels means we may see downside target : 49000

Note :- This is my personal view only,take positions with your own analysis...

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Symmetrical Triangle Bottom

The symmetrical triangle bottom is a bearish continuation pattern. The pattern is formed by two trend lines which are symmetrical to the horizontal and convergent. The first one is a bearish slant that will give support and the other is a bullish slant that will make resistance. To confirm a symmetrical triangle bottom, there must have oscillation between the two lines. Each line must be touched at least twice for validation.

To called a symmetrical triangle "bottom", it is necessary that the movement that preceded the formation of the triangle being bearish.

Here is a graphical representation of a symmetrical triangle bottom:

symmetrical triangle bottom

The target price of this pattern is determined by its height from the base of the triangle that we carry over the breakpoint. Another technique is to draw a parallel line to the resistance of the symmetrical triangle from the first contact point with the support to obtain a bearish target price.

Forex Statistiques

Here are some statistics about the symmetrical triangle bottom:

- In 57% of cases, there is an downward exit
- In 91% of cases, the bullish movement continues after the breakout
- In 57% of cases, the target price is reached in case of a bearish breakout
- In 60% of cases, a pullback occur
- In 16% of cases, there are false breakouts

Forex Notes

- The exit usually occurs towards 80% of the distance of the pattern.

- Sharping and strong breakouts give better performance

- The performance is better when the triangle is formed at the beginning of a trend

- Avoid taking a position if the breakout occurs before the 3 / 4 of the pattern

- Pullbacks are harmful for the performance of the pattern.

Forex Trading Strategies

The classic strategy :
Entry: Take a long position at the breakout of the support
Stop: The stop is placed above the last highest
Target: Theoretical target of the pattern
Advantage: False breakouts are rare (only 16%)
Disadvantage: Pullbacks are usual (60%) so it could be judicious to wait a pullback to take position

The agressive strategy :
Entry: Take position at the contact with the resistance/support
Stop: The stop is placed below/above the last lowest/highest
Target: Return on the opposite band
Advantage: The ratio profit/risk is high because the stop is close
Disadvantage: The exit of the triangle could occur at the beginning of the triangle.

Thanks to : FXTRIBE
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[santhosh2010]

Nickel now good break-out ,This is the time to go positional long in nickel..

yes now nickel positional chart showing falling wedge pattern...

As per this pattern buy nickel at 880 -870 levels with stop loss 863.00...

Target we expects : 920.00 -943.00

Time frame : may be 5-8 trading days...

Trade with stop loss...

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Falling Wedge

Definition:
A Falling Wedge is a chart pattern within the context of a downtrend composed of two downward sloping and converging trendlines connecting a series of lower swing/pivot highs and lower swing/pivot lows.

Background:
The power of a Falling Wedge can be greater after a moderate downside move due to the possible decrease of overhead resistance as the pattern is formed.
Falling Wedges can be stronger when the series of lower swing/pivot highs and lower swing/pivot lows that formed the pattern narrow down into a point/apex as bears become less interested in selling.

Practical Use:
Technical analysts will use Falling Wedge patterns as the beginning of buying opportunities, especially when in context with other tradable buy setups. In addition, traders will often simply avoid further shorting opportunities when they occur in the context of a Falling Wedge.

 

[santhosh2010]

Mcx Gold ~ positional analysis

Buy Gold Only above : 30100

Stoploss : 29300

Target : 32,000

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Tutorial on Descending Channel Chart Pattern

What is Descending Channel Chart Pattern?

It is also known as Bearish Channel. It consist of two trendline parallel to each other having points forming lower highs and lower lows, thus forming a downside or bearish channel. The price is confined between the two trendlines. It consist of the following:

a. Descending Upper Trendline: Also known as the main trendline or primary trendline. It is called so because it is the one which determines the trend. It should have atleast two consecutive points forming lower highs. More point is the indication of more strength in the pattern. The main trendline acts as a resistance in descending Channel pattern

b. Descending Lower Trendline: Also known as the channel line or secondary trendline. This is drawn in parallel to the main trendline. It serves as an support in this pattern. It should also have a minimum of 2 consecutive lower lows point. More points indicates more strength in the pattern.

Breakout: It can occur in any direction upside or downside. If the breakout is in upside direction, it indicates that the downtrend is over and bulls have taken over bears and indicates a buy signal. However if the breakout is in downside direction it indicates further selling pressure and indicates a sell signal.

Volume: Like other chart pattern volume do play a vital role in reaffirming the pattern here. For a descending channel pattern the volume should decrease with the formation of the pattern and there is increase in volume activity after the breakout.

Price Target: One can roughly put a price target after a breakout, and it should be the height of the channel, however other indicators have to considered as well like volume,MACD, RSI, etc.

Duration: Channel pattern Formation takes from a few weeks to many months. Longer the duration is considered to be more reliable than the short duration one. If it is shorter than 3 weeks then it is considered to be flag rather than channel.

 

[santhosh2010]

Alumini ~ positional target : Rs.88.00 [vimalraj]

Alumini ~ now forming head and shoulder pattern

As per this pattern downside target : 88.00

Usdinr also forming the same pattern so this is a good support for Alumini down trend..

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Head and Shoulders Pattern

“Head and Shoulders” patterns are reversal formations that usually form at the market tops.”Head and Shoulders” patterns are very reliable, but failures do occur. When Head andShoulders patterns fail, they reverse the pattern and trade in an explosive manner. Most “Headand Shoulders” patterns can be detected using volume patterns. During the left shoulder andthe beginning of the “Head formations, the volume will be heavy. While forming, volumedissipates on the right shoulder, and the volume increases during the breakdown.

A trend line or neckline is drawn connecting the “Head and Shoulders” pattern to determinethe potential trade opportunities and targets. The neckline can be also formed in an angle(slanted).

Trade:Connect “Head and Shoulders” bottoms in a trend line or neckline. When the price closesbelow the neckline, a potential short trade is signaled. Short one tick below the breakdown bar low.

Target: Compute the vertical distance between the “apex” of the “Head and Shoulders”pattern and the neckline. The target is set below this distance from the neckline.

Stop:After a trade entry, if the price closes above the neckline, a potential failure of the pattern issignaled. Place a “stop” order above the neckline.

Note :- This is my personal view only,take positions with your own analysis…

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[santhosh2010]

 

[santhosh2010]

 

[coolnits]

what about silver?

 

[real gold]

thank you for the tutorials , very good

 

[seetharamank]

santoshji i just came across the thread only today but fully immersed in to this thread what a great guidance i salute for ur knowledge and style of writting