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Data:
My simple and plain reason is, if we are maintaining a chart we must capture all the market action in that Chart to make it complete. The reasons you may find to leave the data might well be applied to a normal day also in extreme cases. I go for the price bars rather than time span.
My Charts:
I must admit that my brain is designed in such a way that it refuses to accept complexity in any form and shy away from advanced level of thinking :- ). It can understand things, only when they are explained in a simple way. In spite of this handicap, I want to excel in technical analysis. To my rescue came two chart types which I immediately grabbed. I also concentrate only on NIFTY, like you.
1. For market watch I use Range Bar charts. What I posted was a 21 point range bar using Quote Tracker sw. It gives me great relief to watch the market without anxiety, tension and all those deadly emotions a trader is not supposed to have. Every single bar is of 21 points size and if the market trades within 21 points even for two hours, only a single bar appears on your intraday chart. The next bar appears only when the price moves above/below the range of 21 points.
Secondly, I plotted Guppy's Multiple Moving Average on the chart. The very concept of looking at a set of EMAs as traders and another set as investors helps one feel the real pulse of the market. It gives life to the EMAs as human beings and makes "chart watching" more interesting. Now, I find it easy to gauge the direction like, if both traders and investors travel in the same direction well separated the market is trending; when investors (the pillars of the market) are well spread and traders hit them it is nothing but retracement and they bounce back from the investors to continue the previous direction; when investors compress traders can penetrate through them and change the course of direction. These are all very simple visual understanding of the ongoing trend in the Market at any given point of time and my sparrow brain instantly accepted this. It gives a clear picture of the real action of the market when we hide the price bars and look only at the flow of the two pairs -traders and investors. Trend lines drawn on joining peaks and joining troughs of traders with price bars hidden give a satisfactory way to exit and sometimes give Stop And Reverse entry points.
I settled down with the settings of MACD to 8,21,8 and Stoch as 13, 3 after trying so many other settings. I also find MACD histogram divergence which is supposed to work well on a weekly chart gives future indications here also. I have painted the bars to green and red according to MACD, signal line cross overs.
2. In the book "Beyond Candlesticks" Steve Niison has extensively talked about "Three-Line Break Chart" and it is available in Metastock sw. Like Range bars, time is eliminated here also and again it pin points "Trend reversal" level and "Trend continuation" level reasonably well.
As of now, these two chart types keep me informed about the trend, its strength fairly reasonably without causing much strain and confusion to my well preserved and undisturbed brain. Well, Mr. Chokalingam, I hope the foregoing explained to some extent why I stick to these strange charts : - )))))))))))
Jk.
--- On Sat, 2/6/10, chockkalingam n <chockkalingamn@ yahoo.co. in> wrote:
From: chockkalingam n <chockkalingamn@ yahoo.co. in>
Subject: Re: [Technical-Investor ] Today's data
To: Technical-Investor@ yahoogroups. com
Date: Saturday, February 6, 2010, 8:17 PM
Thanks JK and AP
AP, my point is it is a truncated day with even lower than normal half hour volumes.So, whether today's candle has the same weight as a full day's candle as far as interpretations are concerned was my doubt.
JK must definitely have some very good reasons to confirm in the affirmative. He has posted a nice chart. Only thing is that I have got a long way to go before I fully understand the kind of charts he posts.
Thanks again to both of you.
--- On Sat, 6/2/10, Jayakrishnan <jayakrish2001@ yahoo.com> wrote:
From: Jayakrishnan <jayakrish2001@ yahoo.com>
Subject: Re: [Technical-Investor ] Today's data
To: Technical-Investor@ yahoogroups. com
Date: Saturday, 6 February, 2010, 5:22 PM
"Yes" is my answer.
And it assumes an importance, in short term trading point of view, that Fridays close is a place to exit short calls. And today's up confirms that. I expect the market to go up on Monday also, a small retracement up to a minimum of 4800 levels and from there it might continue its downward journey again.
All said and done, opinions are subject to change, you know -without prior notice :-)))
Jk.
Attached chart is not updated with todays data, but at Fridays close MACD cross over changed the bar into green which was short trade exit point.
--- On Sat, 2/6/10, chockkalingamn <chockkalingamn@ yahoo.co. in> wrote:
From: chockkalingamn <chockkalingamn@ yahoo.co. in>
Subject: [Technical-Investor ] Today's data
To: Technical-Investor@ yahoogroups. com
Date: Saturday, February 6, 2010, 4:47 PM
Dear All
Would like to know whether today's data should be considered for various TA calculations
Chockalingam
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