Teach A Man To Fish And.........

[Saint]

TRENDS(CONT.)

We had discussed yesterday that trend has three directions,that is : Uptrend, Downtrend,Sideways Trend.

An example I had given many times just has to be repeated here........Look at your right hand with the palm facing you.First we have the little finger.The Ring Finger takes out the high of the little finger and therefore makes a higher high and low as compared to the little finger.The middle finger makes a higher high and higher low as compared to the ring finger.We have therefore an uptrend.The index finger makes a lower high and a lower low as compared to the middle finger.The thumb makes a lower high and low as compared to the index finger.We have therefore a downtrend.

Just as trend can be classified according to the direction,so too can we categorise trends into 3 categories

MAJOR ,INTERMEDIATE and NEAR TERM TRENDS.

Simply put,major trends last for greater than 6 months.Intermediate trends last between 3 weeks to 6 months.Near term trends last from a few days to 3weeks.

From a charts perspective,the major trend is seen by looking at the monthly charts.The intermediate trend from the weekly charts,and the near term trend from the daily charts.

What is seen as a downtrend on the daily charts may be nothing but a pullback on the weekly charts,and is not even evident on the monthly charts.What is seen as a downtrend on the weekly charts and a catatrophic crash on the daily may be nothing but a monthly pullback.

It is important as traders to know these different time frames and trade accordingly.The practical aspects of profitting from this knowledge,we can come to later.

For now,we don't know much......but a step at a time for now.We have our charts.All we know is that in any chart of any time frame,we can have only 3 possibilities in direction,and only 3 possibilities in categorisation.The eye can only see what the brain knows........these early days are to be spent in teaching the brain so that the eye sees the pattern from a mile.Pour over your charts and train yourself in detecting which trend the stock is in currently.It is a first step but an important first step.

We can discuss Support and Resistance tomorrow.

For now,that's it.........all the best!

Saint

 

[pkjha30]

For now,that's it.........all the best!

Saint

Hi Saint
I could not help gut give a five star rating to it. This is a must visit thread for those who claim to know and those who don't.
I have added this and another thread by you along with Amit's thread in my programme so that they can directly go to this when that want it whiout going through home page and "active tpoics" dialog.
I hope this inspires other members to start threads on different areas of Stockmarket analysis.

With warm regards
pankaj

 

[Anupama Singh]

Hi Saint
I could not help gut give a five star rating to it. This is a must visit thread for those who claim to know and those who don't.
I have added this and another thread ........

With warm regards
pankaj

I second that.....

Anu

 

[jaideep]

You had it coming Saint; you caught me on my limerick nite....or was it the solar eclipse doing it's thing today?????...

Uh! Oh! my dear friend,
With trading my world does'nt end;
I know you mean well,
But my name'll not sell,
With Amit et al, so I won't pretend.

And to lengthen this post,
I think I'll just raise a toast;
'coz this generous thread of your's,
Seduces and sometimes even lures,
TAs 'n Traders who've something to boast.

 

[rvgandhi]

I have added this and another thread by you along with Amit's thread in my programme so that they can directly go to this when that want it whiout going through home page and "active tpoics" dialog.

Dear Pankaj,

Can you please explain how your programme works ? I mean how can you access a particular thread and its current posts without going thru home page and active posts..... thanks in advance....

 

[pkjha30]

Dear Pankaj,

Can you please explain how your programme works ? I mean how can you access a particular thread and its current posts without going thru home page and active posts..... thanks in advance....

Hi rvgandhi

here is the thread link for latest post in this thread
http://www.traderji.com/trading-technicals/6072-teach-man-fish-last-post.html
"http://www.traderji.com/trading-technicals/6072-teach-man-fish-last-post.html"
If you right click on the little arrow button by the side of the name of the person, who posted latest message, you will get a choice to "copy the link address" and you can directly access latest post in that thread.

format is URL/forumname/threadID-threadtitle-last-post.html.
Pankaj

 

[mfire]

Thank you very much Mr.Saint. This is the sort of things which I noticed at this forum only and for the same I joined the forum. Looking forward the important posts from you and other knowledgelable members. I think we have liberty to ask our difficulties.
Thanks once again for starting such a great thing.
Mfire.

 

[murthymsr]

quote:
An example I had given many times just has to be repeated here........Look at your right hand with the palm facing you. ..........
:unquote

Hi saint,
You are a born teacher. Hats off to you.
murthymsr

 

[track88]

As the famous Chinese Proverb goes,"Give a man a fish,you feed him for a day.Teach a man to fish,and you feed him for a lifetime.

I thought the saying was:"Give a man a fish,you feed him for a day.Teach a man to fish,and he'll sit in the boat and drink beer all day."

 

[Saint]

You had it coming Saint; you caught me on my limerick nite....or was it the solar eclipse doing it's thing today?????...

Uh! Oh! my dear friend,
With trading my world does'nt end;
I know you mean well,
But my name'll not sell,
With Amit et al, so I won't pretend.

And to lengthen this post,
I think I'll just raise a toast;
'coz this generous thread of your's,
Seduces and sometimes even lures,
TAs 'n Traders who've something to boast.

........ah,the wise trader-poet of our forum,good to see your posts again,my friend.Do drop in a line of wisdom or two,every now and then.Sincerely appreciated as always.

Regards,
Saint