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Feedback about E-book

Discussion in 'Enjoying DIYTA? Share it here' started by m_padmakumar, Jun 27, 2012.

  1. m_padmakumar

    m_padmakumar Member

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    Hi Shabbir,

    I have gone through the book. It was interesting. Since I had never invested using charts, I am doing some mock trading before starting real investment. As a beginner I have few doubts.

    1) You have explained in the beginning EMA (50), EMA(20) is better to understand the trend than SMA (50) and SMA (200). But later, you were using BBands with SMA(50) and SMA(20) to monitor Buy, Sell and Stop loss signals. Why don't we use BBbands(20,2) with EMA (50) and EMA (20)?

    2) Which chart period shall we use for short term, medium term and long term investments?

    Thanks

    Padmakumar
     
    m_padmakumar, Jun 27, 2012
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  2. shabbir

    shabbir Administrator Staff Member

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    EMA 50 is a very long term because 50 days ago what happened should not have large impact with weight on current price and similarly SMA 200 is again very long term because 200 day ago price of stock should not be factor of current pricing.

    EMA's should be made smaller compared to SMA.

    SMA 20 and 50 is used in BB and you can also use EMA but not of 20,50 but should be say 8,20.

    The point of using MA's in BB is to make it more comfortable when trading. You have 2 calculations going in your favor and not only one of BB.

    2. Best chart pattern is break out and formation of W in long and Break down and formation of M in shorting.
     
    shabbir, Jun 27, 2012
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  3. masihpatel

    masihpatel Active Member

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    Shabbir Bhai well explained.
     
    masihpatel, Jun 27, 2012
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  4. shabbir

    shabbir Administrator Staff Member

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    The pleasure is all mine. :D
     
    shabbir, Jun 27, 2012
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  5. m_padmakumar

    m_padmakumar Member

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    Thanks Shabbir.

    SREI Infra, on my analysis, has formed breakout pattern. Correct me if I am wrong.

    Thanks
     
    m_padmakumar, Jun 28, 2012
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  6. shabbir

    shabbir Administrator Staff Member

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    No you are seeing it completely wrong. SREI infra is in big down trend for 2 years chart and so it is breaking down and not breaking out.
     
    shabbir, Jun 28, 2012
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  7. m_padmakumar

    m_padmakumar Member

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    Hi Shabbir.

    Thanks for your reply.
    I think I have to learn more. Let me understand where I did the mistake. I found that the trend is close to upper band and EMA(8) has crossed above EMA(20).

    Thanks

    Padmakumar
     
    m_padmakumar, Jun 28, 2012
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  8. shabbir

    shabbir Administrator Staff Member

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    When you are looking for bands, you should not be looking for break out.
     
    shabbir, Jun 28, 2012
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  9. anaand01

    anaand01 New Member

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    where can I find charts with all parameters for comparison
     
    anaand01, Jul 1, 2012
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  10. shabbir

    shabbir Administrator Staff Member

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    Try chartink.com
     
    shabbir, Jul 2, 2012
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  11. m_padmakumar

    m_padmakumar Member

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    zignals.com also seems to be good (less ads)

    Thanks
     
    m_padmakumar, Jul 3, 2012
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