Million $ question

[uasish]

omkarmango,
See SRF is there a 5 wave completion ? Where is your H & S,HCL Tech look where is the 5 wave completion . Where is H & S ? Like wise in some cases
there may be H & S in 5 waves but can this be generalised that all 5 waves
have H & S formation.

Asish

 

[uasish]

AGILENT,
This statement "I think we need to debate this carefully" signifies you have some very imp point to prove.We are all here to share & suggest our actual working knowledge,vis a vis knowledge acquired from book.H & S pattern is one of the 1st pattern recognised by traders & interestingly still holds true for its implication in price.Many traders still now is unable to locate a H & S
though it being the oldest.I vaugely remember a very old post of "Saint" mentioning that.Forget H & S ,do we not short when a stable trendline is broken ? later on if in the chart if it turns up to be a full blown H & S & moreover a neckline break then WOW,but here is a cache, as we are shorting an upward sloping trendline our trailing SL is also having a upward gradient everyday.However you have a point that unless the LS is formed can we term it as a H & S formation ?

Asish

 

[makarand.mone]

I believe discipline is the only answer to this question

You use any tool in the stock market without proper knowledge and you will fail.

But with proper studies, any system, whether dynamic or mechanical, can be traded for profit.

I believe that Human judgement while trying to outperform the market-movement gives false indications of any trend or pullback and Making Exit is the toughest part when it comes to Emotional Human Being.

So follow any tool my friend, but follow it with discipline, you will make more money than Anyone else on the Dalal Street.

Please Note : If following somethign with DISCIPLINE would have been that much easy, I wouldn't have been putting my time on a community forum. I would have been on Hawai Beach right now, relaxing on the beach with all my crores of Rupees.

It takes time you see.. An more time than you can imagine.

IMPOSSIBLE IS NOTHING!

Regards

Max

 

[RSI]

H & S pattern is one of the 1st pattern recognised by traders & interestingly still holds true for its implication in price.Many traders still now is unable to locate a H & S though it being the oldest.I vaugely remember a very old post of "Saint" mentioning that.Forget H & S ,do we not short when a stable trendline is broken ? later on if in the chart if it turns up to be a full blown H & S & moreover a neckline break then WOW,but here is a cache, as we are shorting an upward sloping trendline our trailing SL is also having a upward gradient everyday.However you have a point that unless the LS is formed can we term it as a H & S formation ?

Asish

Is it necessary to take such a high risk? Obviously, it is trading against predominent trend. Shorting against upward trend before getting confirmation of reversal (in the form of left shoulder) may be too dangerous. Don't you think so? Once the left shoulder is formed (or at least when the price starts to decline from the top of the left shoulder to the neckline), one can get several additional confirmations of reversal of trend, such as change in volume, divergence in indicators and most importantly a target on the downside for shorting.

 

[omkarmango]

omkarmango,
See SRF is there a 5 wave completion ? Where is your H & S,HCL Tech look where is the 5 wave completion . Where is H & S ? Like wise in some cases
there may be H & S in 5 waves but can this be generalised that all 5 waves
have H & S formation.

Asish

Asish,

It do not mean everytime there is H&S, when the formation ends. OR
Or every time when formation ends there is H&S.

But many times everybody can see the H&S at the end of the Elliott's five waves, weather u & me agree or not. You will even see it in HCL Tech when it will recover & head for bear phase.

There are millions of analysts studing H&S & millions of, Elliott if everytime it was happening it would be a rule.

My only aim was to increase the predictability of H&S OR Elliott by combination. e.g. to check if success rate of H&S increase when it comes with Elliott or not ?

Every analyst always keeps trying to find such combinations to increase the accuracy & nothing new in it.

If anybody do not know much about Elliott, please go through the picture drawn by Robert & Pretcher (well known writers of Elliott.) of classic Elliott wave formation.

 

[uasish]

omkarmango,
Thk you for your illustrative information on Elliot Wave.

Asish

 

[Agilent]

I could be wrong ... but is there even a mention of Elliot waves in the acclaimed classic on TA by Edwards and Magee ?

If not , why not ?

AGILENT

 

[aca_trader]

Dear Ashish,

Don't you think, H&S pattern is nothing but the formation occurs at the end of five waves formed according to Elliott. i.e.

Top of the Third wave wave, = Shoulder 1
Top of the Fifth wave = Head
Recovery before the bear phase (OR wave B either) = Shoulder 2

U can find this most of the times, even in images posted by you

Regards
Omkar

Hi Omkar!

I am unable to comment on EW theory as I have never studied it. Hope one day I will be able to understand the query and answer it. Till that time, another ashish has answered you.

Best Regards,
--Ashish

 

[aca_trader]

Obviously, it is trading against predominent trend.

Once the long-term trendline is broken, the intermediate trend is over. When price make the Right Shoulder it'll cause a re-test of trend-line which can very well be a confirmation as well. So it won't be trading against the prevalent trend.

Best Regards,
--Ashish

 

[aca_trader]

Ashish .

Assuming for a moment that yr theory is sound (I mean u say yrself there is no theoretical corroboration) ,

I was looking for a copyright for this theory and lo! Ashish is saying that Saint has already posted about it.

and going by yr own example of Aurobindo Pharma H&S, u will note that the first trendine breach occurs even before formation of the Head !
A short entry on that day would have been disastrous, as u can see

There are a couple of things I would like to state:-
1. If we are talking about TL break on 11th jan, that is not a correct bar. It made such a low due to some freak trade or skewed data as no such low was made on BSE or in Futures Data.

2. Now, even if we assume that such a bar was correct, a person who will short after prices have moved below a trendline will resume the trade from long side after price has moved above the TL once again. Afterall, a trader should reverse his trade when the premise itself is reversed. Though, it's very unlikely that a person using EOD charts would trade without prices closing below the trendline.

3. For a person who can manage his money, there can not be disasters.

I think we need to debate this carefully

AGILENT

Debating carefully is not needed, only trading carefully is required.