Technical Analysis for Beginners
- Thread starter veluri1967
- Start date
Mr. Bunny,
I am not able to understand your intentions.
You have asked these same questions in another thread and AW10 has replied, which you have acknowledged.
Now, what purpose is served by puting the same questions here again?
does it not show some ulterior motive.?
If you are interested in the stupid analysis of the unknown smart money, go and do it. its your funeral. despite being shown the fallacy of your analysis by others and being snubbed by s.......e here, why do you poke your nose here and there with your ...... analysis and sarcastic questions?
Instead of tracking and following some stupid money / planets /chaina and US,
try tracking the price of the instrument you are trading.
Another sincere suggestion.Be a humble student of the market. because if you try to be arrogant the market will humble you and that too in a nasty way, which may result in your exit from market.
edit: stumbled on this post also.
I am not able to understand your intentions.
You have asked these same questions in another thread and AW10 has replied, which you have acknowledged.
Now, what purpose is served by puting the same questions here again?
does it not show some ulterior motive.?
If you are interested in the stupid analysis of the unknown smart money, go and do it. its your funeral. despite being shown the fallacy of your analysis by others and being snubbed by s.......e here, why do you poke your nose here and there with your ...... analysis and sarcastic questions?
Instead of tracking and following some stupid money / planets /chaina and US,
try tracking the price of the instrument you are trading.
Another sincere suggestion.Be a humble student of the market. because if you try to be arrogant the market will humble you and that too in a nasty way, which may result in your exit from market.
edit: stumbled on this post also.
Last edited:
Mr. Bunny,
I am not able to understand your intentions.
You have asked these same questions in another thread and AW10 has replied, which you have acknowledged.
Now, what purpose is served by puting the same questions here again?
does it not show some ulterior motive.?
I am not able to understand your intentions.
You have asked these same questions in another thread and AW10 has replied, which you have acknowledged.
Now, what purpose is served by puting the same questions here again?
does it not show some ulterior motive.?
AW10, Vishalalluri, Prasadam and a few others have answered it. But there are differences of opinions in many about the same thing.
Regarding the other things that you have said, its OK and does not bother me.
As reagrds humility, it no reason to not ask for answers.
Last edited:
Bunny, market is a grey world. You will always have difference of opinion.. and everybody is right in their own perspective. There is nothing RIGHT and nothing WRONG. We don't trade right or wrong here.. We trade what we belive in. If I feel market is going to reverse, then I buy and put stop. Someone else might think it is going down, and will sell and put stops.
Finally, one of us is going to win and someone else is going to loose on that particular trade.. it doesn't matter at all.
What matters is where we both end up in long run. Quite possible, we both are winner in long run.. or both are looser.
You might believe that smart money moves the market and there are real smart trader sitting there.. but I might believe that there are bigger fools sitting and managing smart money.. who don't know the concepts of trading like position size, psychology, risk mgmt etc. There only goal is beat next fund in their category and beat the benchmark.
We both might have our reason to justify our position... and we can keep arguing it for life and reach nowhere...
Beauty of market is that , it needs people with different view to flourish. And they will always be there cause as a human being, no two of us are same. We all are wired differently.. So our reaction will be differ, always.
Hope this helps.
Finally, one of us is going to win and someone else is going to loose on that particular trade.. it doesn't matter at all.
What matters is where we both end up in long run. Quite possible, we both are winner in long run.. or both are looser.
You might believe that smart money moves the market and there are real smart trader sitting there.. but I might believe that there are bigger fools sitting and managing smart money.. who don't know the concepts of trading like position size, psychology, risk mgmt etc. There only goal is beat next fund in their category and beat the benchmark.
We both might have our reason to justify our position... and we can keep arguing it for life and reach nowhere...
Beauty of market is that , it needs people with different view to flourish. And they will always be there cause as a human being, no two of us are same. We all are wired differently.. So our reaction will be differ, always.
Hope this helps.
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As a matter of fact, trading should be profitable and fun (rather than serious, if feel so).
Day Trading demands a full time participation. Its for full time professionals. It is their main duty. Its not suitable for working men because they cannot have time to glue to the monitors entire day leaving their work aside. Though I like a lot to day trade, my work does not allow me to do so.
For people like us, who are active but unable to spare time for day trading, then I think swing trading is best. we are active enough to watch markets by following EOD charts. We can arrive at decisions for next day trade. We can trade by making a phone call to the broker in the absence of live broker terminal at work place. The best about swing trading is that we need not watch our positions during the day.
In view of this, my future posts will be for swing trades. I apolozise those who get offended with this shift of mine from day trading to swing trading. I cannot justify even now if i donot change my focus.
The greed and fear create highs and lows of prices. Swing Trader comes here to take the advantage of these price changes. Swing Trade is suitable for both Trending and Range bound markets. You need to hold positions anywhere between 2 or 3 days to 2 or 3 weeks.
We are going to use Technical Analysis for learning Swing Trade. May be not in one go but step by step. Also as time goes we will also identify some stocks for Swing Trade.
For now, we use simple Technical Indicators. Simple Moving Averages. 10 days, 20 days, 50 days. Moving Average Crossover I have already discussed in this thread at the initial postings.
Profit target should be anywhere between 6 to 9%. Stop loss should be half of your profit target. Suppose if you choose 6% profit target, stop loss should be 3%.
Needless to emphase the importance of trailing stops to protect our capital and earned profits.
Meanwhile, let us learn/refresh the following by googling :-
The indicator Force Index is good for short term trading as such we are seriously considering it to add to our arsenal for Swing Trade. Here is a link I think useful in learning something about Force Index.
http://short-termtrading.blogspot.com/2006/10/indicator-force-index.html
ADX is another gem which is going to help us in learning Swing Trade. I felt the need to refresh my basics by clicking on this links.
http://transcripts.fxstreet.com/2005/10/date_october_4_.html
http://www2.barchart.com/support/learning.asp?code=BSTK&what=adxdir
http://www.swing-trade-stocks.com/ADX-indicator.html
A bit of Candlestick patterns will be handy to assess the trading initiation. I feel its no waste of time, if we go through this.
http://www.candlestickgenius.com/Top-10-candlestick-patterns.html
http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:candlestick_pattern_
http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:candlestick_pattern_
http://www.investopedia.com/articles/trading/06/AdvCandlesticks.asp
Simple or Exponential Moving Averages 10 days, 20 days, 30 days, 172 days.
Hope without much effort we can recollect things.
Almost we are ready for Swing Trade....Friends.
Here are some important points which i have collected from somewhere...i donot remember the source.
In swing trades, the position size should be smaller than day trading. Your stop loss orders should be wider than day trading. Profit targets are higher than day trading.
Stocks often gap, so here are some guidelines for swing trading:
If a stock gaps 1-2%, enter 1/2 of the intended position size and monitor the stock’s behavior before adding to the position.
If a stock gaps 2-3%, only enter 1/4 of the intended position size.
If a stock gaps over 3%, it may be best to pass on the trade entirely, as the risk/reward profile of the trade is no longer the same.
Here are a few rules to help determine exits when swing trading:
If the prior day’s low is taken out on the breakout day (or high for shorts), exit the trade.
Once a trade is held overnight, place a stop-loss order no further away than below the recent consolidation area, as a move beneath it would signal a failure.
Once a trade is profitable by at least 10%, never give back more than half of the open profit. This helps to avoid the frustration of letting winning trades turn into losing trades.
Once a trade is profitable by at least 5%, move the stop-loss order to breakeven on a closing basis.
Partial buys and sells can be very helpful. If a stock breaks out in a sluggish fashion, consider entering only a partial position. If a trade is exhibiting little follow-through after the breakout, decrease the position size.
Always monitor the health of the overall market, and the health of your positions. When things aren’t acting right, either lighten up or go to cash entirely to preserve capital. It’s easy to get back in!
Lastly, no one can define a standardised set of rules for trading. One should find a trading strategy that suits one's needs such of timeframe, profit targets, risk taking capacity etc.
Day Trading demands a full time participation. Its for full time professionals. It is their main duty. Its not suitable for working men because they cannot have time to glue to the monitors entire day leaving their work aside. Though I like a lot to day trade, my work does not allow me to do so.
For people like us, who are active but unable to spare time for day trading, then I think swing trading is best. we are active enough to watch markets by following EOD charts. We can arrive at decisions for next day trade. We can trade by making a phone call to the broker in the absence of live broker terminal at work place. The best about swing trading is that we need not watch our positions during the day.
In view of this, my future posts will be for swing trades. I apolozise those who get offended with this shift of mine from day trading to swing trading. I cannot justify even now if i donot change my focus.
The greed and fear create highs and lows of prices. Swing Trader comes here to take the advantage of these price changes. Swing Trade is suitable for both Trending and Range bound markets. You need to hold positions anywhere between 2 or 3 days to 2 or 3 weeks.
We are going to use Technical Analysis for learning Swing Trade. May be not in one go but step by step. Also as time goes we will also identify some stocks for Swing Trade.
For now, we use simple Technical Indicators. Simple Moving Averages. 10 days, 20 days, 50 days. Moving Average Crossover I have already discussed in this thread at the initial postings.
Profit target should be anywhere between 6 to 9%. Stop loss should be half of your profit target. Suppose if you choose 6% profit target, stop loss should be 3%.
Needless to emphase the importance of trailing stops to protect our capital and earned profits.
Meanwhile, let us learn/refresh the following by googling :-
The indicator Force Index is good for short term trading as such we are seriously considering it to add to our arsenal for Swing Trade. Here is a link I think useful in learning something about Force Index.
http://short-termtrading.blogspot.com/2006/10/indicator-force-index.html
ADX is another gem which is going to help us in learning Swing Trade. I felt the need to refresh my basics by clicking on this links.
http://transcripts.fxstreet.com/2005/10/date_october_4_.html
http://www2.barchart.com/support/learning.asp?code=BSTK&what=adxdir
http://www.swing-trade-stocks.com/ADX-indicator.html
A bit of Candlestick patterns will be handy to assess the trading initiation. I feel its no waste of time, if we go through this.
http://www.candlestickgenius.com/Top-10-candlestick-patterns.html
http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:candlestick_pattern_
http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:candlestick_pattern_
http://www.investopedia.com/articles/trading/06/AdvCandlesticks.asp
Simple or Exponential Moving Averages 10 days, 20 days, 30 days, 172 days.
Hope without much effort we can recollect things.
Almost we are ready for Swing Trade....Friends.
Here are some important points which i have collected from somewhere...i donot remember the source.
In swing trades, the position size should be smaller than day trading. Your stop loss orders should be wider than day trading. Profit targets are higher than day trading.
Stocks often gap, so here are some guidelines for swing trading:
If a stock gaps 1-2%, enter 1/2 of the intended position size and monitor the stock’s behavior before adding to the position.
If a stock gaps 2-3%, only enter 1/4 of the intended position size.
If a stock gaps over 3%, it may be best to pass on the trade entirely, as the risk/reward profile of the trade is no longer the same.
Here are a few rules to help determine exits when swing trading:
If the prior day’s low is taken out on the breakout day (or high for shorts), exit the trade.
Once a trade is held overnight, place a stop-loss order no further away than below the recent consolidation area, as a move beneath it would signal a failure.
Once a trade is profitable by at least 10%, never give back more than half of the open profit. This helps to avoid the frustration of letting winning trades turn into losing trades.
Once a trade is profitable by at least 5%, move the stop-loss order to breakeven on a closing basis.
Partial buys and sells can be very helpful. If a stock breaks out in a sluggish fashion, consider entering only a partial position. If a trade is exhibiting little follow-through after the breakout, decrease the position size.
Always monitor the health of the overall market, and the health of your positions. When things aren’t acting right, either lighten up or go to cash entirely to preserve capital. It’s easy to get back in!
Lastly, no one can define a standardised set of rules for trading. One should find a trading strategy that suits one's needs such of timeframe, profit targets, risk taking capacity etc.
Last edited:
I think we have here a chart for Swing Trade.
Adani Enterprises Limited.
Close on 16/10/2009 is 690.75. Stop loss 649.40. Target is 737.
Trailing Stop loss revised to 678.90
New Trailing Stop loss revised to 690.75 (ie cost price).
My analysis are as follows :-
Expecting ADX to look up from present level of 18.02. Needless to say that ADX below 20 reading indicates weak trend. However, + DI crossed above - DI indicating an upward move.
Force index is positive. Expecting to move to higher levels.
Bollinger Bands - price pierced upper band. Expecting the uptrend to continue.
10 day Moving Average is looking up to cross 20 days Moving Average indicating upward move of the Price.
MACD is crossing upward indicating a possible upward Move.
I will adjust my trailing stop loss as price moves up.
Adani Enterprises Limited.
Close on 16/10/2009 is 690.75. Stop loss 649.40. Target is 737.
Trailing Stop loss revised to 678.90
New Trailing Stop loss revised to 690.75 (ie cost price).
My analysis are as follows :-
Expecting ADX to look up from present level of 18.02. Needless to say that ADX below 20 reading indicates weak trend. However, + DI crossed above - DI indicating an upward move.
Force index is positive. Expecting to move to higher levels.
Bollinger Bands - price pierced upper band. Expecting the uptrend to continue.
10 day Moving Average is looking up to cross 20 days Moving Average indicating upward move of the Price.
MACD is crossing upward indicating a possible upward Move.
I will adjust my trailing stop loss as price moves up.
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My view is that paper trading does not give you the actual experience of combating the forces of fear and greed. Gaining of experience just by paper trading....no way. What about slippage in order execution especially if you are online trading. Initial drawdown for a newbie is a strong stepping stone for strong will to bounce back with a good strategic investment.
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