Hi guys,
Regular TA as a subject can be learnt anywhere on the net or through books.
The problem is one needs to identify what kind of TA he needs to learn.
If you are a trader dealing only in cash delivery, the techniques are different. If you are a FNO trader, techniques are different. Similarly patterns and rules are different for intra day traders.
However, there are certain street smart techniques I have picked up over the years, and I will make an attempt to present them here as and when possible.
I have already posted the OOPS pattern, which is a street smart method (not text book TA).
Another pattern that amazes me every time I spot it.......... ....
Plot 200 MA and 200 SMA on a chart.
Assuming that the price is below both the 200 MAs, following is the pattern that plays out:
If the distance between the 2 MA lines is large, as soon as price crosses one decisively, it races to the other line very fast.
i.e. if price is below both the 200 DMA and 200 SMA, and 200 DMA is below the 200 SMA.
As soon as the price decisvely crosses the 200 DMA, the immediate logical target is the 200 SMA.
The beauty of this pattern is that it works on ABSOLUTELY ANY TIME FRAME, even on hourly or 15 minute charts, and one can use it in intra day or positional trading too.
I invite those interested in seeing this pattern in more details to post the daily chart of SATYAM on this group, with both 200 DMA and 200 SMA plotted on it.
You will see why Satyam fell since it did not cross 128-129, and why the next logical target for Satyam is 78-79!!
COME ON.....DO SOME HOME WORK AND PLEASE FIND MORE SUCH STOCKS...you will find hundreds of such cases.
Please do not ask for AFLs.....put in some hard work yourself..
Cheers,
AP
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