Simple PA system

[ksesha]

LIC Housing Finance on weekly chart looks like having a Pinbar, BRN etc.

Is it a good candidate for short below 1215. Please comment.

Regards
Sesha

 

[bandlab2]

LIC Housing Finance on weekly chart looks like having a Pinbar, BRN etc.

Is it a good candidate for short below 1215. Please comment.

Regards
Sesha

seshaji, pl post the chart. then everyone can see what we are talking

 

[bandlab2]

Dear bandlab,

we would like to see some more charts from you shows trend identification and fibonacci levels alongwith candle formations.

trend identification is simple, find higher highs and higher lows then we are in uptrend. pull up the chart as much as you can see (atleast 6 months data for daily) then you can easily identify the trend

for fib retracements, there are tools. but you can use a calculator and draw horizontal lines. key is identify swing high and swing low. calculate the range and then calculte the retracement levels.

pl do post some charts for practice. its simple system. train your eyes, practice and patience. thats all

 

[ksesha]

The long bar from 1230 to 1311 and then pulling back to 1218 finally closing at 1227. Price seems to respect BRN 1300.

http://img842.imageshack.us/img842/16/testlic.png

seshaji, pl post the chart. then everyone can see what we are talking

 

[bandlab2]

this is nifty daily chart for last 3 months

i marked the PA signals. all of them hit targets. the first pin which is a bearish pin would have resulted in loss --- but this is against the trend. thats why we should take trades that are in line with trend. i havent considered other factors like fibs, ema. this is based on simple swing hi/lo and candle stick reversal patterns

you need to practice this a lot, spend lots of chart time. read, read and read.

 

[bandlab2]

The long bar from 1230 to 1311 and then pulling back to 1218 finally closing at 1227. Price seems to respect BRN 1300.

http://img842.imageshack.us/img842/16/testlic.png

the pin looks very good. but its against trend, so we can take it but with caution. which means smaller lot and manage the trade tightly. try to get to BE (break even) quickly and move the sl. also i like the space. no traffic immediatly

1300 is a round number. not a BRN. I would consider 1000,1500, 2000 as BRN for this

also plot other things like ema, fibs

 

[bandlab2]

axis bank daily chart for 3 months

notice the first BUOB, its a very very big bar. so be cautious when you take such bars. normally i enter them on retrace. i use 50% retracement or the prev bar hi/lo. most of the times it retraces upto prev bar hi/lo.

 

[Nava]

bandlab2,

Thanks for sharing wonderfull strategy. Pl. have a look at Whirlpool daily Chart.

1. It has formed long tail/ short head PIN.
2. PIN range is greater than previous bar range.
3. PIN has closed within previous bar body.
4. It has pierced the support level and psyche levels of BRN 300 and closed above BRN 300.
5. No Traffic and resistance immediatly.
6. Over-all trend is UP
7. Fibonacci level of Wave-2 and Wave-1 are 37.9 % and 60.9 % respctively.

Please review and give your views whether we can buy this..?
If yes then what would be the entry price..?

Regards,
Nava,

 

[rahuld2976]

bandlab2,

Thanks for sharing wonderfull strategy. Pl. have a look at Whirlpool daily Chart.

1. It has formed long tail/ short head PIN.
2. PIN range is greater than previous bar range.
3. PIN has closed within previous bar body.
4. It has pierced the support level and psyche levels of BRN 300 and closed above BRN 300.
5. No Traffic and resistance immediatly.
6. Over-all trend is UP
7. Fibonacci level of Wave-1 and Wave-2 are 37.9 % and 60.9 % respctively.

Please review and give your views whether we can buy this..?
If yes then what would be the entry price..?

Regards,
Nava,

Nice chart,Thanks.
BTW,if you dont mind,can you tell how did you draw those fibonacci levels?
Thanks again,
Happy Trading.

 

[Nava]

Nice chart,Thanks.
BTW,if you dont mind,can you tell how did you draw those fibonacci levels?
Thanks again,
Happy Trading.

Rahul,

Wave one strat from the recent low @ 266.05 to the peak high 329.8 and then to the retracement low (low of PIN) 290.95.

Wave 1 retracement in % = (peak hi - Pin low) / (peak high - recent low)

= (329.8 - 290.95 ) / (329.8 - 266.05)

= 60.9 %