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elecon Engineering

Discussion in 'Technical Analysis' started by hrvelichety, Dec 22, 2012.

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  1. hrvelichety

    hrvelichety New Member

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    Hi Friends

    I found this interesting pattern while looking at the charts of Elecon Engg. The two bolinger bands croosed over and continued. What is interpretation? Can any one help me? thanks VHRAO
     
    hrvelichety, Dec 22, 2012
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  2. shabbir

    shabbir Administrator Staff Member

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    No because it is very near to its support of 45 which when taken out should not be good in this stock. So I would wait for this stock to get far from 45 for me to look interesting.
     
    shabbir, Dec 22, 2012
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  3. hrvelichety

    hrvelichety New Member

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    thanks Shabir for the reply. But my querry was not really related to elecon. I wanted to know in general what is the interpretation/siginficance of bllinger bands crossing over? appreciate your reply.
    Thanks
    VHRAO
     
    hrvelichety, Dec 22, 2012
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  4. shabbir

    shabbir Administrator Staff Member

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    I have explained the same in the ebook. Let me know if you have doubt understanding that
     
    shabbir, Dec 22, 2012
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  5. hrvelichety

    hrvelichety New Member

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    I am sorry Shabir I did not find any Bolinger bands crossing over pattern in your book. Please let me know the page/chart number where it is explained. thanks.
     
    hrvelichety, Dec 22, 2012
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  6. shabbir

    shabbir Administrator Staff Member

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    Bollinger banks never cross over and it is the Simple moving average that crosses over. Please attach the chart you are referring to.
     
    shabbir, Dec 22, 2012
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  7. hrvelichety

    hrvelichety New Member

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    Here is the chart
    [​IMG]

    you can get this chart if you go to money control.com and use the advanced interactive chart for Elecon and ask for overlay of Bollinger bands for the last 1month/3months.
    Thanks
     
    hrvelichety, Dec 23, 2012
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  8. hrvelichety

    hrvelichety New Member

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    crossing bollinger bands

    I could not attach the figure to my earlier post but now i am. Thanks for bearing with me.
     

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    hrvelichety, Dec 23, 2012
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  9. hrvelichety

    hrvelichety New Member

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    Crossing Bollinger bands

    here is another magnified (by reducing the time frame to (1month) shot of crossing Bollinger bands. thanks. VHRAO
     

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    hrvelichety, Dec 23, 2012
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  10. shabbir

    shabbir Administrator Staff Member

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    Hi,

    That is actually not cross over but converging and then divergence and if you see BSE in MC, you will actually feel there is cross over but if you switch to NSE, you will see that it is actually not cross over but convergence of band and then divergence of bands.

    See how the BSE bands looks in MC

    [​IMG]
    And then see how NSE Charts look in MC

    [​IMG]

    And if you see chartink, it looks much cleaner like this

    [​IMG]

    Now coming back to what converging signifies.

    It means if there is convergence then it will be followed by a divergence and then wait for the indicator and it would show you where the stock is heading.
     

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    shabbir, Dec 23, 2012
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  11. hrvelichety

    hrvelichety New Member

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    Thanks for the clarification. But what is the significance of this convergence and subsequent divergence in terms of buy/sell signals?
     
    hrvelichety, Dec 23, 2012
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  12. shabbir

    shabbir Administrator Staff Member

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    Convergence is followed by big divergence and then stock price sticks to any band and that is more important. Convergence signifies we can be watchful.
     
    shabbir, Dec 23, 2012
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  13. hrvelichety

    hrvelichety New Member

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    thanks. I appreciate your lucid explanation
     
    hrvelichety, Dec 24, 2012
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  14. shabbir

    shabbir Administrator Staff Member

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    The pleasure is all mine.
     
    shabbir, Dec 24, 2012
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  15. hrvelichety

    hrvelichety New Member

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    After building a base around Rs.20, now Elecon engg. seems have broken out. is it the right time to enter Elecon for long term?
     
    hrvelichety, Sep 13, 2013
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  16. shabbir

    shabbir Administrator Staff Member

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    Yes but need to have a very tight stop loss of 22
     
    shabbir, Sep 13, 2013
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  17. hrvelichety

    hrvelichety New Member

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    thanks Sabbir!
     
    hrvelichety, Sep 13, 2013
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  18. masihpatel

    masihpatel Active Member

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    Dividend yield is 7.23%. Nice pick
     
    masihpatel, Sep 13, 2013
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