Trading With Chart Pattern

[mahesh2007]

All sr. members plz confirm the formation of hammer in the chart enclosed.

regards
mahesh

 

[nick721156]

volume on the left shoulder should be the highest than the head and right shoulder. however in dena bank, the vol. on LS is lower than head and RS. How is this head and shoulder pattern then? Pls. confirm.

dear friend,

idealy volume should be higher on the LS than that is on the Head; but not always - according to Stockscharts.com
going by that, it can be considerd as H&S pattern.

regards,

nick

 

[nick721156]

All sr. members plz confirm the formation of hammer in the chart enclosed.

regards
mahesh

dear mahesh,

it is a hammer. it is formed at a sustained downtrend with high volume. lower shadow is twice the length of the real body.

regards,

nick

 

[mahesh2007]

dear friend,

idealy volume should be higher on the LS than that is on the Head; but not always - according to Stockscharts.com
going by that, it can be considerd as H&S pattern.

regards,

nick

First of all thanks Nick for confirming the candle.

Regarding H&S pattern, according to Edwards & Magee,
one third of all H&S formations have more volume on left shoulder than head,another one third have equal volume on both head and shoulder, and remaining one third have greater volume on the head than the left shoulder.
So all options have equal probability ie 1/3.

what is more imp is volume at right shoulder that should be lesser than LS and H so that probability of breaking down of neck line shall be higher.

regards

 

[sriramvr]

thanks Nick.

 

[raghunathan]

but as for the charts it shows the trend will be down for some more time so wait for two three sessions raghunathan

 

[nick721156]

First of all thanks Nick for confirming the candle.

Regarding H&S pattern, according to Edwards & Magee,
one third of all H&S formations have more volume on left shoulder than head,another one third have equal volume on both head and shoulder, and remaining one third have greater volume on the head than the left shoulder.
So all options have equal probability ie 1/3.

what is more imp is volume at right shoulder that should be lesser than LS and H so that probability of breaking down of neck line shall be higher.

regards

dear friend,

thanks for giving valuable knowledge.

regards,

nick

 

[Ank!t007]

RSI,
Crystal clear now sir . Thanks for the explanation again.
The downward started around 200rs had given breakout around 93 on quarterly chart but failed to move up. Now the question is has it bottom out or will further go down So need to look at its further movement and then will take appropriate position.
Indeed thanks again and i will read your posts and try to learn in fact searching now.

Thanks,
Ankit

 

[sriramvr]

First of all thanks Nick for confirming the candle.

Regarding H&S pattern, according to Edwards & Magee,
one third of all H&S formations have more volume on left shoulder than head,another one third have equal volume on both head and shoulder, and remaining one third have greater volume on the head than the left shoulder.
So all options have equal probability ie 1/3.

what is more imp is volume at right shoulder that should be lesser than LS and H so that probability of breaking down of neck line shall be higher.

regards

thanks sir

 

[mahesh2007]

descending triangle formation in ICICI bank.
breakdown expected.
decreasing RSI and volume are threat for fizzling out of the trend.