Trading Strategies Using Technical Analysis

One would definitely be ABB... will post rest tomorrow...

Tc.

Sure I will ..

Tc

OK watcher ... will give a tentative target ...

Although u r making me divert from my own belief of targets

Tc.

Raunak ji, please give your opinion about the chart that i posted in the link "analysis of charts" about the company Amar raja batteries. I have been waiting since yesterday night for your response.

Take care and have a good time.

Am replying to that only Sai ... Check in 10 minutes

Tc.

Raunak,

ABB has already moved with two huge positive candle, do you still beleive we can enter at this stage. Your views please.....

Just becoz it has moved up recently now ... does it mean it won't move any further ..

No dear .. it will and it should ... See technically it is looking good now after a long period of time ... and historically in interest rate hiking scenario ... capital goods and engineering stocks do well ... This is not a swing trade ... it is a proper 'Investment' trade ... do probe test on it ...

RSI and Bollinger Band Setup

RSI and Bollinger Band Setup

Tools Candlestick on Hourly Time Frame and RSI (14)

Trade Setup I just can't recollect where I read this setup. But, it is a very useful one of you apply it correctly. If you identify the stocks on which this setup works, then it is going to be very profitable. Usually, you should pick weak stocks for this setup. Stocks which are under performing the broader market or which are in intermediate down trend. Else you can get many false signals.

How to trade it - Look at the chart below. Bharti has been under performing the market for quite sometime now. If you look closely. The prices have crossed and closed above Bollinger band (upper) two times. On both occasions the RSI(14) was not above 70. Now, RSI is an indicator of strength and despite the price closing above the band, the RSI remains below 70 (does not exhibit strength). Hence, we then look for some sort of bearish confirmation on candlesticks (Doji, Hanging Man, Bearish Engulfing). The moment you get this confirmation, short the stock with stop loss being the highest price (of the previous two candles). In case of Bharti, in the first case we got a Doji whereas on the second case it was a variation of bearish engulfing pattern.

STOPLOSS - Stop loss is the highest price (high) of the previous two candles.

Usage - Can be used on 60 Minute time frame chart. You can use 15- Minute chart for entry.

This is the way most of us think, including me. Whenever a stock moves up steadily we are reluctant to enter the counter. It is actually the phyche, but then it helps the operator to take it even higher since weaker hands, traders and retail does not enter the counter. Thats my take.

Watcher, this applies to Stocks with Low market Cap ... These are easily operator driven ... hence ur comment is true for such stocks ...

However, the stocks we discuss here cannot be operator driven .. Very very difficult to do this ...

Tc.