Whats up with EDUCOMP?

[superprogrammer]

Thank you very much bunny
I looked at the charts above but still i dont understand how you arrive at the numbers?
Are you saying that patters are going to be formed again?
Is there any method we are using to calculate these numbers?
I know how to read candlestick charts but would appreciate you tell me the meaning of backtest

PS: I am counting on educomp for Monday too so doing this study is important for me for this stock and other stocks...thanks

 

[bunny]

@sibumajumdar,
There is nothing much technical about it. All one has to do is find pockets of supply(resistance). As soon the price nears the supply zone, selling starts and this prevents the price from going up and may even push it down. You can identify these by observing volumes on price reductions(price markdown).

If volume decreases as price falls, it means that there is low or no supply at that price. So in future, when the price wants to move up through those levels, it will be very easy.

On the other hand, if volume increases as the price falls, it means that there is supply at that level. When the price is again moving up through that area, it is likely that the supply will start again and prevent prices from moving up.

Both of them can be well observed in the below chart

@superprogrammer,
See my above writeup and then read the chart accordingly. You will notice that on many occasions, the supply starts in levels of 4080+

 

[bunny]

Some addition:
If you see the volume spike on Aug 10, you know that a lot of professional activity was going on in this day. So you would rather wait to see what happens on the next day. If the price moves up or remains at that level, you know that some big pocket is absorbing the selling at that level. Then you you can conveniently go long.


PS: Backtest means testing with historical data.

 

[superprogrammer]

Thanks bunny
what are you using to get these charts?

 

[bunny]

Thanks bunny
what are you using to get these charts?

Chart director(http://www.advsofteng.com/) to draw the charts. Fantastic code!

The interface and other tasks like auto-import of bhavcopy, candlestick scanning, spread scanning, etc., etc is written by me(PHP MySQL)

 

[superprogrammer]

fine and where to feed the data from?
Which site works best for real time data?
I saw that yahoo has one although paid but looks good to me
Which one works best for indian stock market? (preferably web based)

 

[bunny]

Thought it has real time charting capacity, I don't use it. I use only EOD bhavcopy.

 

[dhimanhalder]

Hi Bunny

Is the converse also true i.e when price goes up and the volume goes down?

Thanks
Dhiman

 

[bunny]

Hi Bunny

Is the converse also true i.e when price goes up and the volume goes down?

Thanks
Dhiman

When the price goes up and the volume goes down, it often means that there is lack of demand from the professional buyers with deep pockets. So in such situations, you can expect the price to fall down very soon due to lack of demand.

 

[dhimanhalder]

Thanks - that was easy :thumb: