Whats the meaning of these?

[midas touch]

I guess all went for 31st preparation..

 

[Reggie]

MidasTouch,

For positional trading :

Any stock that makes higher high is only a buy.
Any stock that makes lower low is only a sell.

Ofcourse, its not that easy, as the important question is about the entry. If buying a high in an uptrend, one can get stop lossed in retracement. So the ideal entry for a buy is a green candle after a touch of 20 EMA, closing above the average.

See attached images.

http://img11.imageshack.us/img11/5926/01auro.jpg

http://img811.imageshack.us/img811/1193/01zee.jpg

Also take note of increased voulme.

Reverse of the above is true for shorting. Sell a stock making lower low, but again entry will be when the stock touches pullback to the 20 EMA.

Trust this is of help.

Good luck and happy trading.

Thanks for the reply friend..but I still didnt understand it...
Buy pullback/decline in an uptrend..or short the rallies in downtrend...

Hope somebody will explain with the picture.

 

[Reggie]

Midas Touch,

Besides the HH/LL rule which is combined with 20 period EMA, entry can be decided on basis of indicators.

ADX cross/touch or Stochastics Oversold levels (only for a buying an uptrend) can be used. (In an uptrending stock, shorting an overbought level is not recommended) Stochastics an indicator which is used when stocks are in a trading range. However it can be used to gauge an entry at oversold level combined with other rules.

See below :

http://imageshack.us/photo/my-images/829/02zee.jpg/

Good luck and safe trading.

MidasTouch,

For positional trading :

Any stock that makes higher high is only a buy.
Any stock that makes lower low is only a sell.

Ofcourse, its not that easy, as the important question is about the entry. If buying a high in an uptrend, one can get stop lossed in retracement. So the ideal entry for a buy is a green candle after a touch of 20 EMA, closing above the average.

See attached images.

http://img11.imageshack.us/img11/5926/01auro.jpg

http://img811.imageshack.us/img811/1193/01zee.jpg

Also take note of increased voulme.

Reverse of the above is true for shorting. Sell a stock making lower low, but again entry will be when the stock touches pullback to the 20 EMA.

Trust this is of help.

Good luck and happy trading.

 

[midas touch]

Thanks Reggie,my friend..
Happy New Year in Advanced

 

[raviDsai]

hi friends,
Whats the meaning of-

market opening in previous day range?
range of yesterday?
gap is outside the range?
Be careful in the range of first bar?
what is range exactly in trading world


So if today market closes at one point, then it open tomorrow at that exact point. This is called as range. Keeping in this mind, I think you will able to answer all your questions.

Hope this helps??