New Intermed Uptrend!!

[avinash]

GAPS

--Gaps are nothing but areas in a chart where no trading has taken place.
--When the price opens much above the previous day's high or much below the previous day's low,we have a gap open(either up or down).
--They are more visible and potent if they are not immediately filled that day.

--There are 3 types of gaps:

1.Breakaway Gap
2.Runaway Gap
3.Exhaustion Gap

1.BREAKAWAY GAP:

--usually signals the beginning of a new move,be it up or down.
--also usually accompanied by heavy volume.
--basically a gap up or down opening that does not get filled that day or the next few days.
--more potent if after long basing pattern.
--If the gap gets filled,then this comes under false breakout or breakdown.

2.RUNAWAY GAP:

--This type of gap happens in the middle of a move.
--A gap up in the middle of an uptrend is a sign of market strength.
--A gap down in the middle of a downtrend is a sign of market weakness.
--Like the breakaway gap, a runaway gap getting filled and prices trading below the gap is a negative sign.
--sometimes called as measuring gap.
--usually happens in the middle of an uptrend,so traders use that to measure target points.

3.EXHAUSTION GAP:

--This gap ends the move.
--If a particular stock pattern presents many gaps,and the latest gap has prices gapping up and then filling the gap,and trading lower than the gap area,.........that's an exhaustion gap.

Shall discuss on trading strategies using gaps later.

All the best!!
Happy Trading!!
Saint

Hi Saint,

Thanks again..and looking forward to the trading strategies using gaps part.

Regds,
Avinash

 

[psrikant1978]

Hi Saint,

I have entered Phoenix Lamps at 92. What is your view on it? I came down to 89.7.

Your inputs are appreciated.

Thanks
Prashanth

 

[lawrieking]

Saint & Amit & the other Guru's on Traderji
U guys are doing a fabulous job. I am a newbie. Never wanted to risk my money into equity.I used MF's as a starting point and now making a slow entry into equity.All the trading terms were like reading GREEK to me. Thanks your analysis and advise, i was able to make a few buys on the dip and now waiting by the side to add some blue chip to my portfolio.
You people make investing fun as well..
I am keen on Bharati Tele, RIL , Wipro
Would this be a good time or do i still hang on and watch.
cheers & keep up the good work.

 

[ragh_ash]

hi saint,
i am collating all the wisdom in one place, and trying to make sense out of it and apply it.
but tell u what freind it one thing to read and understand
another to actually put it into trading that's when confusion starts.
regards
ragh_ash

 

[Saint]

Hi Saint,

I have entered Phoenix Lamps at 92. What is your view on it? I came down to 89.7.

Your inputs are appreciated.

Thanks
Prashanth

Hi Prashanth,

Had recently discussed regarding Phoenix Lamps........keep the SL at 81.For now a wait and watch.

Hi Karthik,

Sorry abt that,my friend........keep getting quite a bit of PM's,tends to max out the inbox if not cleared fast!Shall look into it right away...As for Phoenix Lamps,it was a clear buy once 89 was taken out.Still not too far off for an entry here.

Yep,as far as indicators are concerned,all showing buy.Daily charts showing a higher pivot low.Volume coming inlast few days.Keep your stop at 81(prev pivot low is 82.3,give it some room) and go long..........Looking good!

All the best!
Saint

 

[Saint]

Saint & Amit & the other Guru's on Traderji
U guys are doing a fabulous job. I am a newbie. Never wanted to risk my money into equity.I used MF's as a starting point and now making a slow entry into equity.All the trading terms were like reading GREEK to me. Thanks your analysis and advise, i was able to make a few buys on the dip and now waiting by the side to add some blue chip to my portfolio.
You people make investing fun as well..
I am keen on Bharati Tele, RIL , Wipro
Would this be a good time or do i still hang on and watch.
cheers & keep up the good work.

Hi Lawrieking,

Great going.........one must proceed at one's pace and not rush into things.Make sure you educate yourself first,do some paper trading,then trade using small amounts before really going gung-ho into the market.Also great to hear that while you educate yourself,you had taken part in this bull rally through MF's.

As for the few stocks that you had asked about,from an intermediate to long term viewpoint,the market is still all over the place.Not yet clear if we are going to make new highs or continue the downtrend.......stay in cash for now,till we get a clear cut decisive move.

All the very best!
Happy Trading!!
Saint

ps:Thanks for your kind words........sincerely appreciated.

 

[lawrieking]

Hi Lawrieking,

Great going.........one must proceed at one's pace and not rush into things.Make sure you educate yourself first,do some paper trading,then trade using small amounts before really going gung-ho into the market.Also great to hear that while you educate yourself,you had taken part in this bull rally through MF's.

As for the few stocks that you had asked about,from an intermediate to long term viewpoint,the market is still all over the place.Not yet clear if we are going to make new highs or continue the downtrend.......stay in cash for now,till we get a clear cut decisive move.
All the very best!
Happy Trading!!
Saint
ps:Thanks for your kind words........sincerely appreciated.

Saint, I am lost of words. In today's market most brokers,financial experts & the media comes with only optimism and advise you to go for a kill, while your views are completely different. Thanks for the caution on the market.regards Lawrie

 

[Saint]

hi saint,
i am collating all the wisdom in one place, and trying to make sense out of it and apply it.
but tell u what freind it one thing to read and understand
another to actually put it into trading that's when confusion starts.
regards
ragh_ash

Hi ragh_ash,

And right you are,my friend.......and as in any other field,will take time.Can be very frustrating in the beginning........but as you see more and more charts,patterns come out and fly at you.Each pattern has a definite strategy.Every strategy has an entry point,a stop,etc.........over time,over a lot of education,over a lot of discipline,......theory and practice become one.

But in the beginning,as in any other field,is the time for education.

Good Luck!
All the best!
Saint

 

[ragh_ash]

Hi ragh_ash,

And right you are,my friend.......and as in any other field,will take time.Can be very frustrating in the beginning........but as you see more and more charts,patterns come out and fly at you.Each pattern has a definite strategy.Every strategy has an entry point,a stop,etc.........over time,over a lot of education,over a lot of discipline,......theory and practice become one.

But in the beginning,as in any other field,is the time for education.

Good Luck!
All the best!
Saint

hi saint,
as usual u r right and to the point. maybe they teach doctors to be such.
to be frank, intially i was clear that i will do paper trades, learn etc, but the bull run (not so recent) some where in june, the sheer momentum took over and i got greedy. and i am sitting on pretty big(by my standards) duds.
but then i have put it aside as Tution fees.
as with everything else in life , this TA business also gives no free lunches and one pays for being greedy and indisciplined.
That is OK with me
regards
ragh_ash

 

[psrikant1978]

Hi Prashanth,

Had recently discussed regarding Phoenix Lamps........keep the SL at 81.For now a wait and watch.

Thanks for your advice. Appreciated.
Will hold on to it for now. I know you might not want to predict the targets, but do you have any approximate targets for this?.

Also, what is the support and resistance for this scrip?

Thanks
Prashanth