Trading Strategies Using Technical Analysis

If Nifty closes around these levels or it closes below current levels (5350) but not higher than 5380, then we could be potentially forming a tweezer top or harami pattern on the candlestick chart. The fact that this will form around good resistance level will make it more meaningful. Let's see how Nifty spans out.

Turtle Soup Plus One

Turtle Soup Plus One


Tools Candlestick/Bar Chart

Trade Setup This pattern was popularized by Larry Connors and Linda Bradford. Now everyone knows the original turtle trading system where shorts were initiated when new 20 day lows were made and longs were initiated when new 20 day high was made. The problem with turtle trading system was that it had many false signals. This pattern tends to capitalize on these false moves.

Buy Setup - The typical buy conditions are as follows. The market makes a new 20 day low with the previous 20 day low being atleast 3 sessions ago. The current close should be near or below the previous 20 day low. Following this, the next day market rebounds and trades above the previous low (ideally should close above the previous low). Enter the stock by placing a stop at the previous low. This offers an excellent risk to reward ratio.

Time Validity - This pattern has to be looked for on daily charts. But the trading time frame should be of 3-5 days. Book profit after 3-5 days.

How to trade it - As most of my previous examples, I have again picked a stock which has recently formed this pattern. I recommended Balrampur Chini as a buy in my swing trading thread. And this was precisely why. Look at the chart below. Balrampur forms a 20 day low (Rs 90.3) on 25/03/2010. After this the stock rallies a bit and then again makes a new 20 day low on 1st april 2010 (Rs 87.7). Now, on the next session the stock closes at 90.8 which is above the previous low of Rs 90.3. We enter here placing a stop at 87.7 and trade on the long side. Currently the stock is trading at Rs 99 which is about 10% gain in 6 trading sessions.

Target - Target is specified in time. Book profits in 5-6 trading sessions.

STOPLOSS - Previous Low made.

We need to book profit today or tomorrow on Balrampurchini, am I right.

That's right.

Do u have afl for this to shortlist stocks?

Re: Turtle Soup Plus One

Great find Raunak:clap:...Is this similar to Donchian Channel?

Re: Turtle Soup Plus One

This "feasts" on the failure of Donchian channel false breakouts.

turtle soup+ 1 day does not seem to have anything common with donchian channel. donchian is a trend following system. turel soulp+ 1 day is a contra-trend trade.

regards
vin

Thankx for the clarification bro :thanx:

That's what I have written dear. The Turtle system was essentially built (conceptualized) on the Donchian channel system. So when this fails, turtle soup plus one and turtle soup comes into the foray.

Tc