Technical Analysis for Beginners

[vishalalluri]

after many days veluri is back :clappingn fire

with some new things to share

hope to see some good action

 

[vishalalluri]

hi veluri

can u send me the eod datbase for amibroker till date

puleeezzzzzzzzzzzzzzz

 

[damoo]

Re : Thankyou for your valuable advice.

 

[nshop1]

Thanks for the useful post, from my point of view one should emphasize on Technical Analysis and Money Management more. Expertise will come over the period of time.

 

[veluri1967]

hi veluri

can u send me the eod datbase for amibroker till date

puleeezzzzzzzzzzzzzzz

wait a while i will send u the actual software itself. with that u can download eod data from nse directly into amibroker. My system is down. I am browing through internet centre. Thats why i am off. As soon as my system is on, i will do it.

 

[veluri1967]

I have started this thread with Pivot Points. For Amibroker users, i am giving below AFL indicating Pivot Points. Thanks to Sunny for giving me this useful info.

_SECTION_BEGIN("Robert's Pivot Points");

//---------------------------------------------------------------------------
// Pivot Pointer
//---------------------------------------------------------------------------
// Now a days each and every trader wants pivot levels for thier day
// trading.But the main feature in this afl is you can get all types of
// pivot point in a single afl, Some of the traders use Woodie pivot,
// caramilla pivot, Fibonacci pivot and most of them used Classical
// pivot, i think this afl will solve all your needs.
//---------------------------------------------------------------------------

//---------------------------------------------------------------------------
// Please write your comments to [email protected]
//---------------------------------------------------------------------------

//---------------------------------------------------------------------------
// This section gets whether they want pivot level for intraday or thier eod
//---------------------------------------------------------------------------

_N(ioreod =ParamList("Pivot Levels for ", "Intraday|EOD"));

if (ioreod=="Intraday")
{
yh = TimeFrameGetPrice( "H", inDaily, -1 );
yl = TimeFrameGetPrice( "L", inDaily, -1 );
yc = TimeFrameGetPrice( "C", inDaily, -1 );
}
else
{
yh = TimeFrameGetPrice( "H", inDaily, 0 );
yl = TimeFrameGetPrice( "L", inDaily, 0 );
yc = TimeFrameGetPrice( "C", inDaily, 0 );
}

//---------------------------------------------------------------------------
// To calculate the Pivot Levels
//---------------------------------------------------------------------------

to = TimeFrameGetPrice( "O", inDaily, 0 );
pivot = (yh + yl + yc) / 3;
range = yh - yl;
_N(pist =ParamList("Select Pivot Type ", "Classical Pivot|Woodie
Pivot|Caramilla Pivot|Fibonacci Pivot"));

if (pist =="Classical Pivot" )
{
r1 = (2 * pivot) - yl ;
s1 = (2 * pivot) - yh ;
r2 = pivot - s1 + r1;
s2 = pivot - (r1 - s1) ;
r3 = 2 * (pivot - yl) + yh ;
s3 = yl - (2 * (yh - pivot));
}

else if(pist =="Woodie Pivot" )
{
pivot = (yh + yl + yc + to) / 4;
r1 = (2 * pivot) - yl;
r2 = pivot + range;
r3 = yh + 2 * (pivot - yl);
r4 = r3 + range;
s1 = (2 * pivot) - yh;
s2 = pivot - range;
s3 = yl - 2 * (yh - pivot);
s4 = S3 - range;
}

else if(pist =="Caramilla Pivot" )
{
r4 = yc + range * 1.1/2;
r3 = yc + range * 1.1/4;
r2 = yc + range * 1.1/6;
r1 = yc + range * 1.1/12;
s1 = yc - range * 1.1/12;
s2 = yc - range * 1.1/6;
s3 = yc - range * 1.1/4;
s4 = yc - range * 1.1/2;
}

else
{
r3 = pivot + 1.000 * (yh - yl);
r2 = pivot + 0.618 * (yh - yl);
r1 = pivot + 0.382 * (yh - yl);
s1 = pivot - 0.382 * (yh - yl);
s2 = pivot - 0.618 * (yh - yl);
s3 = pivot - 1.000 * (yh - yl);
}

//---------------------------------------------------------------------------
// To Plot Pivot Levels in the screen
//---------------------------------------------------------------------------

_N(dsr =ParamList("Draw Intraday Pivot Levels ",
"None|Both|Support|Resistance"));

if (dsr =="Support" OR dsr == "Both")
{
Plot(pivot, "\n Pivot - ",colorGreen,1);
Plot(r1, "Resistance 1 - ",colorDarkRed,1);
Plot(r2, "Resistance 2 - ",colorDarkRed,1);
Plot(r3, "Resistance 3 - ",colorDarkRed,1);
Plot((pivot+r1)/2, "Mid Value of R1 & Pivot ",colorLightBlue,1);
Plot((r3+r2)/2, "Mid Value of R2 & R3 - ",colorLightBlue,1);
Plot((r1+r2)/2, "Mid Value of R1 & R2 - ",colorLightBlue,1);
}

if( dsr == "Resistance" OR dsr == "Both")
{
Plot(pivot, "\n Pivot - ",colorGreen,1);
Plot(s3, "Support 2 - ",colorDarkGreen,1);
Plot(s2, "Support 2 - ",colorDarkGreen,1);
Plot(s1, "Support 1 - ",colorDarkGreen,1);
Plot((s3+s2)/2, "Mid Value of S2 & S3 ",colorWhite,1);
Plot((s1+s2)/2, "Mid Value of S1 & S2 - ",colorWhite,1);
Plot((pivot+s1)/2, "Mid Value of S1 & Pivot ",colorWhite,1);
}

//---------------------------------------------------------------------------
// Printing the pivot level in interpretation window
//---------------------------------------------------------------------------


printf(Name()+ "\n\nResistance - 3 | %g\nResistance - 2 | %g\nResistance -
1 | %g\n" +
"Pivot | %g\nSupport - 1 | %g\nSupport - 2 |
%g\nSupport - 3 | %g",
r3,r2,r1,pivot,s1,s2,s3);


//---------------------------------------------------------------------------
// This section is for Exploration
//---------------------------------------------------------------------------

Filter = 1;
AddColumn(r3,"Resistance 3");
AddColumn(r2,"Resistance 2");
AddColumn(r1,"Resistance 1");
AddColumn(Pivot,"Pivot");
AddColumn(s1,"Support 1");
AddColumn(s2,"Support 2");
AddColumn(s3,"Support 3");

//---------------------------------------------------------------------------
// Add Pivot levels along with the title
//---------------------------------------------------------------------------

_N(Title = EncodeColor(colorBrown)+ StrFormat("{{NAME}} - {{INTERVAL}} {{DATE}}
Open %g, Hi %g, Lo %g, Close %g(%.1f%%)\n"+
EncodeColor(4)+"Resistance 3 -=- %g ::::: Resistance 2 -=- %g ::::: Resistance
1 -=- %g :::::"+
EncodeColor(colorGreen)+" Pivot -=- %g"+
EncodeColor(29)+"\nSupport 1 -=- %g ::::: Support 2 -=- %g ::::: Support 3 -=-
%g\n ",
O, H, L, C,SelectedValue( ROC( C, 1 ) ),r3,r2,r1,pivot,s1,s2,s3));

//---------------------------------------------------------------------------
// End of Pivot Point
//---------------------------------------------------------------------------

_SECTION_END();

-------------------------------------------------------------------------------

Or try this :-

SetChartOptions(0,chartShowArrows|chartShowDates);
_N(Title = StrFormat("{{NAME}} - {{INTERVAL}} {{DATE}} Open %g, Hi %g, Lo %g,
Close %g (%.1f%%) Vol " +WriteVal( V, 1.0 ) +"
{{VALUES}}", O, H, L, C, SelectedValue( ROC( C, 1 )) ));

Plot( C, "Close", ParamColor("Color", colorBlack ), styleNoTitle |
ParamStyle("Style") | GetPriceStyle() );

H1=SelectedValue( TimeFrameGetPrice( "H", inDaily, -1 ));
L1=SelectedValue(TimeFrameGetPrice( "L", inDaily, -1 ));
C1=SelectedValue(TimeFrameGetPrice( "C", inDaily, -1 ));

/*PIVOT Calculation*/
p = ( H1+ L1 + C1 )/3;
s1 = (2*p)-H1;
r1 = (2*p)-L1;
s2 = p -(H1 - L1);
s3 = S1 - (H1-L1);
r2 = p +(H1 - L1);
r3 = R1 +(H1-L1);

Plot (p,"Pivot",25,1);
Plot (r1,"R1",12,1);
Plot (r2,"R2",12,1);
Plot (r3,"R3",12,1);
Plot (s1,"S1",3,1);
Plot (s2,"S2",3,1);
Plot (s3,"S3",3,1);

 

[veluri1967]

Can retail traders win?

Yes they can win.

First of all do not fall for the tricks of marketing wizards. In order to be able to do that you must understand the market very well.

Secondly you need to have a strategy that is, or has aspects of it, used by professionals.

Thirdly, and this is very important - you must not catch the unwanted attention of a market maker. Do not violate the trust relationship that is supposed to exist by trying to exploit weaknesses in the system and create a scenario where your market maker can only lose. He holds the aces because he can change the rules of the game. If you have a strategy that offers a winning edge, you will be able to negotiate this market and make money without resorting to any fundamentally flawed concepts and tactics which attract the sort of attention from your counter party that will end up costing you money.

There is more than one way to make money trading any market and there are a myriad of factors playing a role in being successful, including having a scientific edge, being a master of relevant analysis and working through the constant changes in the markets.

Success as a trader does not come cheaply, it does not come overnight and it does not come from running after every fad touted by marketing wizards. Success is hard earned, requiring application of, and dedication to, sound trading and business principles.

Take a bird's view of the market first, then narrow down to your trading style ie intraday, daytrading, swingtrade, long term investing. It helps.:thumb:

Courtesy : http://www.indiadaytrading.com/bwilc3.html

 

[bunny]

First of all do not fall for the tricks of marketing wizards. In order to be able to do that you must understand the market very well.

Please illustrate some tricks of marketing wizards on charts, without referring to any record of good news. If given a chart of a random stock from a non-Indian market, can you tell me on which days there was "good news"?

Secondly you need to have a strategy that is, or has aspects of it, used by professionals.

Which are the strategies used by professionals? Which moving average system is more significant to them: EMA, SMA, Weighed MA, Bollinger Bands, MACD, Stoch, RSI, etc? Or do they use fundamental approach? Or some insider information?

By simply looking at a trading range, can you identify if its accumulation or distribution or continuation?

Thirdly, and this is very important - you must not catch the unwanted attention of a market maker.

Who is a market-maker? What is the role of the market-maker in the whole system?

Are their actions reliable? To what extent if reliable? How do check if their actions are deceptive or not?

What is the specific mechanism by which market maker increases/decreases the market price? How does the market maker arrive at a correct price for that instance?

------------
I am sorry if I am asking too many question but I cannot hold my self.

Few more interesting questions related to technical patterns are in waiting, will post after dinner, mother yelling because food is under ready and I am still on PC.

bye :-h

 

[veluri1967]

Please illustrate some tricks of marketing wizards on charts, without referring to any record of good news. If given a chart of a random stock from a non-Indian market, can you tell me on which days there was "good news"?

Hi...bunny,

First of all, i am happy to see you again.

Coming to tricks of marketing wizards, if known to us they are no more tricks. They are not that easy to pin point on the charts until unless we have a wholesome look. Its when we get the beat, we understand it. If they are not for tricks why the stocks are moving randomely inspite of corroborative support of valid technicals.

Which are the strategies used by professionals? Which moving average system is more significant to them: EMA, SMA, Weighed MA, Bollinger Bands, MACD, Stoch, RSI, etc? Or do they use fundamental approach? Or some insider information?

Strategies are adopted by everyone to succeed in stock market. Without a strategy its impossible to survive. So..do the professionals. Adoption of strategy is to suit according to their personalities. We cannot pin point this is their strategy. Here in this traderji, we can see a number of strategies.

By simply looking at a trading range, can you identify if its accumulation or distribution or continuation?

I think in this respect, volume analysis should help us.

Who is a market-maker? What is the role of the market-maker in the whole system?

As is in any place where money is involved, there will find a market maker for sole benefit of making money usually by manipulating the prices.

Are their actions reliable? To what extent if reliable? How do check if their actions are deceptive or not?

Basically there is a difference between a speculator n market maker. The laters intentions are always questionable and doubtful.

What is the specific mechanism by which market maker increases/decreases the market price? How does the market maker arrive at a correct price for that instance?

I am sorry to say that....I am just a beginner learning the aspects of technical trading step by step.... I have a long way to go... And another thing... I donot aim to be a market maker..... just at the most a speculator.
It is suffice for us to understand a fact that there exists a market maker whose intentions are doubtful. So,,, the mechanism adopted by market makers is out of scope of this thread.... i think so.

------------

I am sorry if I am asking too many question but I cannot hold my self..

Never mind. It would be good if we are able to pick what is opt for us. The subject is so vast we can possibly not digest the entire thing in one go.. Lets go step by step.

Finally I am happy to see that my post is able to generate so many doubts and questions on the subject.

Few more interesting questions related to technical patterns are in waiting, will post after dinner, mother yelling because food is under ready and I am still on PC.

I am just a beginner. Let me see if i can answer your querries.

 

[bunny]

Ok, here are those additional questions:
http://www.rohanshenoy.net/stocks/itaq.html