Technical Analysis for Beginners

[kpg23in]

any1 have technical analysis of futures markets by J Murphy plzzzz

 

[suri112000]

Hanging Man is Bearish reversal pattern. It needs to be observed wrt. The typical bar should look like Higher tail on top, and small body (preferably RED body).

If this pattern comes in consolidation zone, then it looses the significance. It shd come after a bullish wave to indicate bearish reversal to the downside.

Psychology behind this is - bullish enthu took the prices to higher level, and made higher high.. but then selling pressure came in.. and pushed the prices .i.e. bulls back.. and so much back that majority of gain is exhausted today. It tells us the shifting of mkt control from bulls to bears.

The 2nd bar from right, and another bar at x axix = S (almost in the middle of the chart) are real hanging man. It is like somthing is hanging from top.. and big upper tail show the rope.

The confirmation comes on next day, when bears dominate the day and give us another Red candle.

Hammer is exact opposite of Hanging man which is bullish reversal pattern. The bar that u have marked may qualifies for this theoratically. but for me it doesn't cause it is appearing after upmove.. I would like to see a hammer after some falling RED bars. Like 6th bar after the bar that u marked.

Generally both these pattern have small body. but important to observe the ratio of the the bottom/upper tail to the days whole range.

In learning candle patterns, try to focus on the psychological aspect of analysis.. It will improve ur understanding to a large extent. It is not mugging up the rules of a CS Pattern.. real trading goes far beyond that.. and at the end of the day.. mkt in short term is nothing but the display of the psychological action take by various participants.

Happy Learning and profitable trading

....................

 

[priti2417]

Hi..

Information you are providing is really helpful.I am new to this stock market,its been 3-4 months since I have started.Recently got to know about uses of RSI,MACD,charts etc.However still not sure how to use them,even though I am trying to understand still confusing for me.How do we use it while trading,do we have to buy some software?

But is it reliable most of the time?

 

[smartshahezad]

Hi..

Information you are providing is really helpful.I am new to this stock market,its been 3-4 months since I have started.Recently got to know about uses of RSI,MACD,charts etc.However still not sure how to use them,even though I am trying to understand still confusing for me.How do we use it while trading,do we have to buy some software?

But is it reliable most of the time?

I have some beginner's book with me.. am ready to share.. turn your pm on or email me at s mar t sha hez ad at th e r a te gm ai l do t c om
without spaces of course..

and yes you need programs to implement and loads of practice learning and experience..

 

[priti2417]

Hi

I am not able to see any chart here in the post,is there any problem with my browser or whts the issue?

hi new friends,

Some of you are pressing me hard to post some charts explaining the concepts of Pivot Points, RSI, MACD, Moving Average Crossover.
I have here the charts of Cipla of intraday depicting all the four ie pivot points, RSI, MACD and Moving Average Crossover. Hope u all are ready with basic theoritical knowledge otherwise refresh by going back to the basics in this same thread.

The Charts are 1 minute and 3 minutes. We need to take decisions by comparing both charts.

As you can see, the price opened below Pivot Point hence its time to short.
Wait...for the action of price.
Can you notice that...the price climbed up to Pivot point to test penetration and failed and closed below pivot point. Hence, the first trading signal is given. SHORT.

Now the price started rolling down to Support1. We can notice that the price took support at Support1 and bounced back. (See 1 minute Chart).
Wait... donot we need to verify with other indicators to confirm the reversal.
RSI is making a new low at Circle 1 giving a signal for BUY. Bollinger Bands are also giving a BUy signal. Whereas the MACD is not confirming it except that it is looking up. Can we risk just taking cue from RSI, Support 1 reversal, Bollinger Bands. Yes...for hardcore traders. But for beginners, I suggest that just ignore this signal, since RSI and MACD are not favouring.
Wait....again at Circle 3 on MACD line, a bearish crossover is confirming our stand on SELL. Now... the time is to test Resistance 1. We can see.... there is no resistance forming at Support 1 (both in 3min and 1 min charts). Hence the downtrend continues sticking with our SELL.

Now the price approached Resistance 2 (which itself indicates OVERSOLD condition). Expect strong Support at Support 2 from slipping further.

Yes. It did find strong support at Resistance 2. Square off your position.

Now... Wait for price reversal.

Refer 3min chart. Can you see a bottoming out in RSI at Circle 1. Surely a buying opportunity. It is confirmed by Moving Average Crossover at Circle 3.
But what about MACD. Refer 1 min chart. Isnot MACD giving a BUY signal at Circle4. Go.....Go.....Go.....BUY. Yes....MACD is also now confirming BUY in 3min chart at Circle 2.

Here on....there is no looking back....the price penetrated Support1 with ease heading towards Pivot Point.

That's all folks.

Enjoyed it.

veluri1967.

 

[priti2417]

Ok thnx so much for your help...can you please mail me to [email protected] what kind of programming we require??

I have some beginner's book with me.. am ready to share.. turn your pm on or email me at s mar t sha hez ad at th e r a te gm ai l do t c om
without spaces of course..

and yes you need programs to implement and loads of practice learning and experience..