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How to Identify Bottom and Top for any stock

Discussion in 'Technical Analysis' started by sujan4bw, Jul 16, 2012.

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  1. sujan4bw

    sujan4bw Member

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    Hi All,

    Could you please explain on what parameters we can Identify bottom and tops for any stocks.

    Bottom - From this position it should reverse to uptrend.
    Top - from this position it should reverse to down trend.

    What if Nifty is trading in opposite direction when bottom or tops are formed for any stock.

    Please provide inputs here.

    Regards
    Sujan
     
    sujan4bw, Jul 16, 2012
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  2. shabbir

    shabbir Administrator Staff Member

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    You will never need to identify the bottom or the tops because if bottom (or top) is not formed, then you will assume bottom (or top) and so it is better not to assume the formation of bottom or top.

    That being said you can use some mathematical indicators to identify the bottoms or tops. Apart from that there is a method called formation of Pinbar which signals reversal of pattern but I try to avoid that as well because my style of trading lies in the concept that buy high and sell higher instead of trying to assume into formation of tops and bottoms
     
    shabbir, Jul 16, 2012
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  3. sujan4bw

    sujan4bw Member

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    Thanks Shabbir
     
    sujan4bw, Jul 17, 2012
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  4. shabbir

    shabbir Administrator Staff Member

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    The pleasure is all mine.
     
    shabbir, Jul 17, 2012
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