Hello Umesh Goel, As a Technical Analyst you are on the right path. It is prudent to know if the Markets are trending or in a trading range. Always relate the stocks you want to trade in to the actual markets sentiments. If the markets are trending there is a good chance that the stocks you want to trade in will also be in a trending mode.But If the Markets are in a trading zone...the possibilities of a stock trending are minimal. I am not saying that a given stock will not be in a trending mode. But from experience of using indicators and oscillators this is what happens in most of the trades we execute. If you are well versed with Gann Analysis and Elliott Wave analysis then it becomes easier to take this trending Stock trade in a trading range environment. The study of Technical Analysis is forever evolving. So a technical analyst is always learning. Knowledge of Technical Analysis is so vast that it is impossible to know all. While applying your knowledge of Technical Analysis in the field, make sure you keep it simple. This will benefit you in the long run. Umesh as a trader one must not depend only on a trending market. One must take what ever trade the market has to offer. Only one has to know what the trade has to offer and if it worth taking that trade. In order to do this one has to tune himself to the Market environment and listen to what the market is trying to communicate to you. The value of the Stock to be traded is not important. It is where you put your stop-loss that is important. For example if you have a stop loss of 5 points and are going to make 5 points, the trade is not worth it. In any given scenario the minimum ratio of stop loss : profits, by rule of thumb should be 1:1.618 and there after in the ascending range of the golden ratios. Umesh concentrate on the cycle studies as this will help you in taking the right decision. By doing this you will filter out so many false signals that are generated by the indicators and Oscillators. For example if you get a buy or a sell signal near a cycle beginning or a cycle end, the potency to be right in taking a trade increases many fold. But remember that the degree of the cycle is important before you make this decision. I hope what I write to you helps you to take informed decisions while making a trade. I wish you all the best with your trading progress. With regards, Ranjit
--- On Sun, 15/11/09, umesh goel <umeshgoel2004@yahoo.co.in> wrote:
From: umesh goel <umeshgoel2004@yahoo.co.in>
Subject: Re: [Technical-Investor] Time Frame
To: Technical-Investor@yahoogroups.com
Date: Sunday, 15 November, 2009, 11:19 PM
DEAR Ranjit I totally agree with you. there are different indicators for trending and trading markets. I see the chart and decide emperically wheather it is trading or trending market and use different indicators for them. Normally i prefer trending shares e.g, birla corporation has gone into trading zone, i have slowly exited from it and entered indian hotel which is in a trending zone
From: RANJIT VICHARE <vtijnar@yahoo. co.in>
To: Technical-Investor@ yahoogroups. com
Sent: Sun, 15 November, 2009 3:25:25 PM
Subject: Re: [Technical-Investor ] Time Frame
| Hello Floyd, I know it is difficult to determine the trend on basis of indicators alone. This becomes easier if you can determine if the stock is in a trading mode or a trending mode. Once the mode is decided, Use the Indicators or the Moving averages in all its manifestations. In a Market which is in a trading Range the Indicators will perform well...but if the Market is trending you will get the whipsaws. If the Market were to be trending use the moving averages and not the indicators. Secondly if you are doing Intraday.... increase the time periods on your Indicators. Do not be a compulsive trader. Even if you get two or three trades a day...it is good enough. Thirdly confirm every buy or sell with an alternative that you have learnt in technical analysis. Never base your trade only on one parameter. All the best. Regards, Ranjit --- On Sun, 15/11/09, FLOYD JOHNY LEWIS <fjl24@yahoo. com> wrote:
From: FLOYD JOHNY LEWIS <fjl24@yahoo. com>
Subject: Re: [Technical-Investor ] Time Frame
To: Technical-Investor@ yahoogroups. com
Date: Sunday, 15 November, 2009, 3:00 PM
| Hi Abhijit & Jay Thanks for your valuable inputs. Agreed - experience counts for sure. Regards Floyd
--- On Sun, 11/15/09, Abhijit <ap19632000@yahoo. com> wrote:
From: Abhijit <ap19632000@yahoo. com>
Subject: Re: [Technical-Investor ] Time Frame
To: Technical-Investor@ yahoogroups. com
Date: Sunday, November 15, 2009, 3:41 AM
If you are seeing that you atre likely to get a 'buy' signal, and crossoverr is about to happen, it is safe to place a Buy stop above the high of the previous bar with some filter and wait. If that high is crossed, you will surely get a buy signal. This comes from experience and you have to keep a constant eye till it happens or whipsaws. Cheers, AP ----- Original Message ----- Sent: Sunday, November 15, 2009 1:58 PM Subject: Re: [Technical-Investor ] Time Frame
| Hi Jay & Seniors Not wanting to be sceptical - just sharing an observation on live markets and am not talking about whipsaws either. In live markets - as we watch the MA & Stockastic or MACD or RSI for that matter on a candle to candle or bar to bar basis, minute by minute - personally observed that the indicators keep changing directions like a snake moving in a zigzag fashion. A couple of seconds back you feel that the crossover will now take place and then next second it changes direction leaving each other by a whisker. The above observations does not impact when the indicators are at overbought or oversold ranges as per respective indicators/oscillat ors. At EOD everything seems to be pretty clean as the trends are already established - the real challenge is online - tick by tick basis. Any clues on how to tackle this sort of live situation and dilema. Thanks in advance Regards Floyd
--- On Sat, 11/14/09, Meerut Money Managers <meerutmoneymanagers @yahoo.in> wrote:
From: Meerut Money Managers <meerutmoneymanagers @yahoo.in>
Subject: Re: [Technical-Investor ] Time Frame
To: Technical-Investor@ yahoogroups. com
Date: Saturday, November 14, 2009, 11:53 PM
dear Jayakrishna, This is a good system and it is called MAMA, although the strike rate for MAMA cross over is good on daily charts that to for too if you wish to hold the stock for longer period of time. Also as i noticed there is a lag in entry and exit. THANKS & REGARDS MEERUT MONEY MANAGERS (MMM)
www.meerutmoneymana gers.com Disclaimer :This e-mail is confidential & for information only. It cannot be legally privileged. If you are not the addressee you may not copy, forward, disclose or use any part of it. You are also hereby notified that any use, any form of reproduction, dissemination, disclosure, modification, distribution and/or publication of this e-mail message,contents or its attachment(s) other than by its intended recipient(s) is strictly prohibited. If you have received this message in error,please delete it and all copies from your system and notify the sender immediately by return e-mail. Internet communications cannot be guaranteed to be timely,secure, error or virus-free. The sender does not accept liability for any errors or omissions. The contents of this message may not necessarily represent the views or policies of the sender/MMM. The contents of this message & attachment (if any) is not a legal binding on the sender and cannot be produced or challenged in any legal department/court.
From: Jayakrishnan <jayakrish2001@ yahoo.com>
To: Technical-Investor@ yahoogroups. com
Sent: Sat, 14 November, 2009 10:46:45 PM
Subject: Re: [Technical-Investor ] Time Frame
| Dear Sir, I came across a day trading strategy in the net. The set up was with MA cross overs and stochastics. The author suggests to enter in 5 minute chart ema cross over signal and stochastic confirmation in both 5 minute and 30 minute charts. If stoch doesn't give bullish signal in 30 minutes chart he asks to wait. So multi time frame seems to do a fairly good job. For entry he uses lesser time frame (5 min). And for exit the longer time frame (30 min). By exiting in the long time frame chart, one can eliminate whipsaws to great extent and avoid early exit, I believe. Regards, Jayakrishnan.
--- On Sat, 11/14/09, Meerut Money Managers <meerutmoneymanagers @yahoo.in> wrote:
From: Meerut Money Managers <meerutmoneymanagers @yahoo.in>
Subject: [Technical-Investor ] Time Frame
To: "TECHNICAL ANALYSIS GROUP" <Technical-Investor@ yahoogroups. com>
Date: Saturday, November 14, 2009, 10:28 PM
dear all, I request from my fellow analyst and traders for their inputs on the following For Intraday trading which time frame is best suited 3/5/7/10/12/ 15 Min Charts For BTST 30/60 Mins Charts
THANKS & REGARDS MEERUT MONEY MANAGERS (MMM)
www.meerutmoneymana gers.com Disclaimer :This e-mail is confidential & for information only. It cannot be legally privileged. If you are not the addressee you may not copy, forward, disclose or use any part of it. You are also hereby notified that any use, any form of reproduction, dissemination, disclosure, modification, distribution and/or publication of this e-mail message,contents or its attachment(s) other than by its intended recipient(s) is strictly prohibited. If you have received this message in error,please delete it and all copies from your system and notify the sender immediately by return e-mail. Internet communications cannot be guaranteed to be timely,secure, error or virus-free. The sender does not accept liability for any errors or omissions. The contents of this message may not necessarily represent the views or policies of the sender/MMM. The contents of this message & attachment (if any) is not a legal binding on the sender and cannot be produced or challenged in any legal department/court.
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