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Discussion in 'Technical Analysis' started by siva934127, Dec 26, 2014.

  1. siva934127

    siva934127 Member

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    Hi Shabbir,

    For short term Today I bought reliance capital at 502 because yesterday it took support then come back to the positive trend, but today it gap up almost 2.5% above and fell down ... and today it was news based stock also.

    You suggested earlier shouldn't buy stocks after the news even if it good one, but I didn't follow.

    I observed many stocks happened(gap up and fell down) like this and later few days it didn't recover also for some time.

    Please advise because I took it for short term and market also not in a good shape as of now.

    Please find the attachment.

    Thanks and Regards,
    Siva.
     

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    siva934127, Dec 26, 2014
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  2. shabbir

    shabbir Administrator Staff Member

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    News is a double edged sword and you should avoid to the extent possible but that does not mean you can trade in completely alien market.

    I also mention Spike and breakout pattern in Chapter 6 with intraday example where a news is good before market opens and so the spike and also explain where you should be buying.

    Similar reverse pattern is explained in Chapter 7 where we have Morning Panic and Afternoon fade.

    So it is completely ok to not follow one thing as long as you know what you are doing and is not based on what others tell you.
     
    shabbir, Dec 27, 2014
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  3. siva934127

    siva934127 Member

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    Thank you for alerting me.

    But in this stock it did not give any break down, please find the attachment.

    Thanks,
    Siva.
     

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    siva934127, Dec 27, 2014
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  4. shabbir

    shabbir Administrator Staff Member

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    I was not referring to this stock but in general there are patterns that can help us predict the news (good or bad)
     
    shabbir, Dec 28, 2014
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