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Applying Chart Patterns

Discussion in 'Technical Analysis' started by khanvict90, Mar 1, 2013.

  1. khanvict90

    khanvict90 New Member

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    Hi,

    I am not able to apply the technical analysis on the charts. My concerns:

    1. What is the difference between correction and down side on the stock? When I feel that a stock is correcting, then it actually starts falling more.

    2. What should be the entry point on the stock? Same stock shows different types of entry points for different time frames (5day, 1m, 3m, 6m so on)

    3. WHAT PATTERN/s ARE YOU ALL GENERALLY FOLLOWING FOR THE CHARTS? AND FOR WHAT TIME FRAME? I mean is there any particular chart pattern that you follow for the maximum gains ?

    I will be grateful if I can learn something.
     
    khanvict90, Mar 1, 2013
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  2. shabbir

    shabbir Administrator Staff Member

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    Let me answer those questions for you.

    1. In uptrend, correction is consolidation above the support and once it breaks the major support, it is down trend or trend reversal.

    2. If your time frame for trade is anyway between 5 days to 1 month, your ideal pattern should be 6 months with 1 day to 4 hour candle stick.

    3. Breakout / W pattern only along with similar patterns like Head and shoulder.
     
    shabbir, Mar 1, 2013
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  3. khanvict90

    khanvict90 New Member

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    Thank you Shabbir. This response is of great value to me.

    Thanks,
    Shafaat.
     
    khanvict90, Mar 1, 2013
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  4. shabbir

    shabbir Administrator Staff Member

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    The pleasure is all mine.
     
    shabbir, Mar 2, 2013
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  5. vishuhd1

    vishuhd1 Member

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    Shabbir,
    Regarding Q1 above, you explined about the uptrend scenario.. How abt downtrend?..
    Can we understand that if the stock doesn't break the resistance level then we can consider the consolidation on down side and if the stock breaks the resistance, then the more down trend to follow?...
     
    vishuhd1, Mar 4, 2013
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  6. shabbir

    shabbir Administrator Staff Member

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    Yes and it termed as M pattern.
     
    shabbir, Mar 4, 2013
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  7. khanvict90

    khanvict90 New Member

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    regarding the downtrend... what do u have 2 say abt DrReddy now? is it consolidating or down trend ? i see a great support around 1730 and it went up from this level today (4th Mar). So, is it a good time to enter or wait to break the levels of around 1830 (may be i see a resistance at this level)??
     
    khanvict90, Mar 4, 2013
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  8. shabbir

    shabbir Administrator Staff Member

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    I would like to see more trading sessions above 1700+ to confirm it has started consolidation.
     
    shabbir, Mar 4, 2013
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