indiTraders - Forum for the Active Indian Trader  

Go Back   indiTraders - Forum for the Active Indian Trader > Welcome > Introductions

Introductions Announce your presence here!

DPonline
View Poll Results: What will be next movent of Nifty from here?
Will go up 0 0%
Will reverse the direction 0 0%
Will go up and then reverse 0 0%
Will fall straightway 0 0%
Voters: 0. You may not vote on this poll

Reply
 
Bookmark and Share LinkBack Thread Tools Display Modes
  #1 (permalink)  
Old 02-08-2015, 03:10 PM
Tradersbuddy Tradersbuddy is offline
Regular
 
Join Date: Aug 2015
Location: Ghaziabad
Posts: 17
Thanks: 14
Thanked 32 Times in 16 Posts
Tradersbuddy is on a distinguished road
chatty How to Master the Art of Candlestick Trader?

I am posting an image of Nifty chart. Can any of the follow members can suggest to identify the false Doji signal.


Hi,

I am a trader/investor of moderate experience. It's a total journey of slightly more than 6-7 years. My love with stocks started around 2006-07. I started investing small amounts. Initially, I thought myself smarter than I was actually.

I lost something in the process. Gained something. Subscribed to tips. Enrolled in CFA USA. Inclined towards fundamental analysis.

But..success was a distant dream..

I bought sometimes falling shares thinking that they have fallen enough.

As a result, I lost.

I bought sometimes without any reason and it gained.

Then considered myself smart only to be proven wrong later.

Mr. Markrt thrashed and trampled my ego many times.

Without any mercy...

Good thing was that I started realizing the importance of technical analysis.But, still candlestick, doji, fractals, Fibbonacci were aliens for me.

I learnt moving average. I was mesmerized.

I am an avid learner now. Gone a long way in learning and experiencing.

Market is like an yoga place for me. I hope to learn and share my knowledge and experience with you.

My interest area is trend reversal and candlesticks. I am also a great admirer of fundamental analysis which everybody should study.

In most of the cases Doji has correctly marked the change of trend change.

But sometimes, it also gives false signals as you can see in the attached picture.

Is there any system that can refine the system to identify accurate signals in 90% of times.

Also, I have noticed that it does not give accurate signal in the case of less liqvid stocks.

Can anybody predict the next movement as shown in the picture?

Thanks


Attached Images
File Type: png Nifty Daily Chart_31 July_2015.png (87.1 KB, 27 views)
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
The Following 3 Users Say Thank You to Tradersbuddy For This Useful Post:
  #2 (permalink)  
Old 02-08-2015, 08:48 PM
devdas's Avatar
devdas devdas is offline
edevaay.com
 
Join Date: Mar 2009
Location: Tactical Hell....
Posts: 5,472
Thanks: 15,941
Thanked 18,572 Times in 5,164 Posts
devdas has a reputation beyond reputedevdas has a reputation beyond reputedevdas has a reputation beyond reputedevdas has a reputation beyond repute
devdas has a reputation beyond reputedevdas has a reputation beyond reputedevdas has a reputation beyond reputedevdas has a reputation beyond reputedevdas has a reputation beyond reputedevdas has a reputation beyond reputedevdas has a reputation beyond reputedevdas has a reputation beyond reputedevdas has a reputation beyond reputedevdas has a reputation beyond reputedevdas has a reputation beyond repute
Default

Originally Posted by Tradersbuddy View Post

Mr. Markrt thrashed and trampled my ego many times.


EGO - It is the only and biggest obstacle in between success and any one.

In broad sense this makes difference between "Success" and a "Success like Angry Bird". And this works same in almost every aspect of our life.

When trader overcome this, he will start making money with MA - Price crossover.
__________________
Harvest The Moon !!
Nest The Market !!
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
The Following 3 Users Say Thank You to devdas For This Useful Post:
  #3 (permalink)  
Old 02-08-2015, 10:49 PM
Sunshine's Avatar
Sunshine Sunshine is offline
indiTraders VIP
 
Join Date: Oct 2009
Posts: 2,660
Thanks: 6,470
Thanked 4,730 Times in 2,110 Posts
Sunshine has a reputation beyond repute
Sunshine has a reputation beyond reputeSunshine has a reputation beyond reputeSunshine has a reputation beyond reputeSunshine has a reputation beyond reputeSunshine has a reputation beyond reputeSunshine has a reputation beyond reputeSunshine has a reputation beyond reputeSunshine has a reputation beyond reputeSunshine has a reputation beyond reputeSunshine has a reputation beyond repute
Default

As far as I understand a Doji is not a reversal signal . It shows indecision . Neither buyers nor sellers win .
So when it occurs either at a bottom or top most of the time it signifies reversal . Sometimes even after a doji market goes up for a few more days before reversal .
At those times Doji is a forewarning signal instead of a pure reversal signal .
But when it happens in the middle of a trend it is just a pause , or a small rest in the journey and often market continues in the general direction of the trend .
So by saying this two other questions arise . How can you define that there is a trend and how do you know that we are in the middle of the trend ?
Well for these questions one way is using oscillators which define OS/OB .
But generally to know the direction and strength of a trend you have to use two to three combination of indicators . It will be very hard to know purely by the candles alone .
Still there are people who trade only with candles - Price action traders.
They use a cluster of candles to analyse the situation instead of a single candle .
Happy Trading
__________________
A man who moves a mountain begins by carrying away small stones - Confucius

Last edited by Sunshine; 02-08-2015 at 10:56 PM.
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
The Following 5 Users Say Thank You to Sunshine For This Useful Post:
  #4 (permalink)  
Old 03-08-2015, 07:38 PM
Tradersbuddy Tradersbuddy is offline
Regular
 
Join Date: Aug 2015
Location: Ghaziabad
Posts: 17
Thanks: 14
Thanked 32 Times in 16 Posts
Tradersbuddy is on a distinguished road
Default

Hi,

It's ok.

It is indeed an indecision reflector but a majority of times it truely reflects the reversal.

Thanks
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
  #5 (permalink)  
Old 04-08-2015, 01:05 AM
Tradersbuddy Tradersbuddy is offline
Regular
 
Join Date: Aug 2015
Location: Ghaziabad
Posts: 17
Thanks: 14
Thanked 32 Times in 16 Posts
Tradersbuddy is on a distinguished road
Default

Hi,

Doji reflects indecision of traders. But, if it is formed at the top of a sustained rally or downtrend it can give a powerful signal of trend reversal. One way to avoid the false Doji signal:

Tip: Avoid Doji signal at middle of the Bollinger band. Trade if the long shadow of Doji cuts the upper or the lower of the Bollinger band overlays.

It can give powerful Buy or Selll signal.

See the attachment: In the Aurobindo Pharma stock, a Doji appears and it cuts the lower Bollinger band clearly. Though, the next candle is positive. Which confirms that the sustained downtrend is about to end. But the next day, bears took complete control. However after that the stock only goes up according to our expectations.

I often use this strategy for positional trades in cash market. Even if I am wrong few times it hardly gives me a shock. But, most of the times I end in profit.

Kindly add some valuable input to fine-tune the strategy.


Thanks
Attached Images
File Type: png Aurobindo Pharma.png (65.3 KB, 17 views)
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
The Following 2 Users Say Thank You to Tradersbuddy For This Useful Post:
  #6 (permalink)  
Old 05-08-2015, 06:27 PM
Tradersbuddy Tradersbuddy is offline
Regular
 
Join Date: Aug 2015
Location: Ghaziabad
Posts: 17
Thanks: 14
Thanked 32 Times in 16 Posts
Tradersbuddy is on a distinguished road
Default

Hi guys,

Suddenly there seems to have a buying interest in Pidilite. It has given a breakout on 04-08-2015. Can anybody take a pain to explain it.

Remember when we participate we all learn in the process.

Thanks
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
The Following User Says Thank You to Tradersbuddy For This Useful Post:
  #7 (permalink)  
Old 08-08-2015, 01:18 AM
Tradersbuddy Tradersbuddy is offline
Regular
 
Join Date: Aug 2015
Location: Ghaziabad
Posts: 17
Thanks: 14
Thanked 32 Times in 16 Posts
Tradersbuddy is on a distinguished road
Default

Hi,

Fridays are always exciting and interesting. Two days week off after that..

So, best time to research and post something for you guys. So I am posting or want to see the practical outcome of all my learning.

Supertrend indicator gives much better BUY/SELL signals as compared to other existing indicators.

I have set up following conditions:

Bollinger Band: Upper Band

Price below: 20 Days moving cross-over

Supertrend Indicator: Broken the support line.

According to this set up the system gives a strong SELL signal for Mahindra and Mahindra.

So, I would like to short from at this level.

Below is the picture attached. What's your point of view? I would love your feedback and suggestions.

Thanks
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
The Following 2 Users Say Thank You to Tradersbuddy For This Useful Post:
  #8 (permalink)  
Old 02-09-2015, 11:36 AM
Tradersbuddy Tradersbuddy is offline
Regular
 
Join Date: Aug 2015
Location: Ghaziabad
Posts: 17
Thanks: 14
Thanked 32 Times in 16 Posts
Tradersbuddy is on a distinguished road
Default

Hi,

Can anybody tell me whether Tradetiger platform in Sharekhan has Supertrend Indicator.

Thanks
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
The Following User Says Thank You to Tradersbuddy For This Useful Post:
  #9 (permalink)  
Old 03-09-2015, 05:37 PM
Gangster Gangster is offline
Regular
 
Join Date: Sep 2015
Posts: 18
Thanks: 8
Thanked 18 Times in 12 Posts
Gangster is on a distinguished road
Default

technical analysis fail, fundamental fail some time, mathematics never fail.. that means money management.
for candlestick , you should calculator average of last 30 minute candles, how many candles were bear and how many were bullish and see your current timeframe and make decision according to it.

-your truly
Gangster
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
The Following 2 Users Say Thank You to Gangster For This Useful Post:
  #10 (permalink)  
Old 03-09-2015, 05:42 PM
Tradersbuddy Tradersbuddy is offline
Regular
 
Join Date: Aug 2015
Location: Ghaziabad
Posts: 17
Thanks: 14
Thanked 32 Times in 16 Posts
Tradersbuddy is on a distinguished road
Default

Great. Can you post a performance to back your argument?

Thanks
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
The Following 2 Users Say Thank You to Tradersbuddy For This Useful Post:
Reply

indiTraders - Forum for the Active Indian Trader > Welcome > Introductions


Tags
dojis, nifty chart

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are On
Refbacks are On


DPonline

All times are GMT +5.5. The time now is 11:21 AM.


vBulletin Copyright by vBulletin

Content Relevant URLs by vBSEO 3.3.2