bh

List of Split Share

http://dsefn.99k.org/split.html

Hieken AShi

http://www.patternexplorer.com/index.php?option=com_frontpage&Itemid=1

http://www.marketcalls.in/2010/01/heikin-ashi-technique-and-nma-aka-nrtr-trading-system.html

http://www.inditraders.com/amibroker/2961-market-profile-amibroker-new-2.html

http://blog.traderslibrary.com/traders-library/2009/09/learning-video-heikin-ashi-candles.html


http://www.traderji.com/amibroker/25415-hiken-ashi-indecator.html

http://kidspips.com/index.php

BD STOCK WEB

http://dsebd.org/



http://biasl.net/

http://www.dsemonitor.com/


http://www.stockbangladesh.com/users/index

FS LINKS

http://systems4trading.com/formulas.php?software=AmiBroker

nbody@walla.com/simsim123

http://www.wisestocktrader.net/

classy/simsim

http://www.traders.com/documentation/FEEDbk_docs/Backissues.html

http://www.blog.stockmaniacs.net/

http://www.traders.com/Traders.html

http://www.inditraders.com/indicators-systems/

My Dictionary

http://www.thefreedictionary.com/descending

http://dictionary.cambridge.org/

VPA V.1.2

VPA
VPA V.1.2 PDF Print E-mail
Written by karthik Marar
Thursday, 24 December 2009 18:53

Now an updated version of the the VPA AFL is now being released. The current release is VPA V.1.2



What is new in this version?

The new version has an exploration to scan for the various conditions at any point of time. You can also to automatic scan at fixed periods as per your trading Time Frame. So that it will be easy to identify stocks which bullish and stocks which are turning bearish. The scan works on any Time frame.

Here is a Snapshot of the exploration window.

Here is a Snapshot of the exploration window.

Note:

Please note the scan does not work on individual stocks. Works on on the whole market or watch list

Note:

Please note the scan does not work on individual stocks. Works on on the whole market or watch list
Last Updated on Thursday, 24 December 2009 19:12

VPA V.1.2

VPA
VPA V.1.2 PDF Print E-mail
Written by karthik Marar
Thursday, 24 December 2009 18:53

Now an updated version of the the VPA AFL is now being released. The current release is VPA V.1.2



What is new in this version?

The new version has an exploration to scan for the various conditions at any point of time. You can also to automatic scan at fixed periods as per your trading Time Frame. So that it will be easy to identify stocks which bullish and stocks which are turning bearish. The scan works on any Time frame.

Here is a Snapshot of the exploration window.

Note:

Please note the scan does not work on individual stocks. Works on on the whole market or watch list

Note:

Please note the scan does not work on individual stocks. Works on on the whole market or watch list
Last Updated on Thursday, 24 December 2009 19:12

Voulme Spread Analysis

Volume Analysis along with price and price spreads is becoming popular due to its simplicity and logic. This is more popularly called Volume Spread Analysis. This involves study of price action and volumes without any derivatives like Indicators. This study is a combination of candlestick analysis and volume analysis.

The basic premise behind the volume spread analysis is that the market is basically moved by the “Smart Money”. The smart money accumulates the stocks at low prices. Then begins a process of marking up the price. Then the “Dumb Money” starts entering the smart slowly. The smart money starts passing the ownership of the stocks to the dumb money. This process is called Distribution. Soon more and more dumb money starts rushing into the market not wanting to be left out of the big rally. Unfortunately the retail traders are the last to get in.

Once the process of distribution is complete the smart money starts rapidly marking down the prices and the dumb money are left holding the stock which was bought at high prices. At the end the smart money is much richer and they can again start accumulating the stock at lower prices. The cycle continues.

involves smart money and dumb money. The smart money will include market movers, Trader syndicates, brokers and institutions. The dumb money would include retail traders and newbie traders. The smart money also called strong hands accumulates stocks from weak hands. This process is called accumulation.

Here we are providing Volume Price Analysis based on our own Volume Price Analysis algorithm.

http://www.tatechnics.in/vpa/vpa-afl

The VPA afl

We are providing an Volume Spread Analysis AFL for the Amibroker platform. Following is a brief description of the functions in the VPA afl.

The VPA provides a price chart with VSA signals for the various bar. A top Title sections has an Information area. A commentary for each VSA signal is also provided. The commentary appears as and when the signal appears.

Information Area

The top Title Area provides the basic information about the Stock. It also provides information about the Volume, Spread and the close position of the current Bar. In addition it provides the information about the short term trend status, intermediate Trend Status and the Long term term trend status.

Price Chart with VSA Signals

The price chart provides the indication of the VSA signals for the various Bars. The signals include the standard signals like the upthrust bar, Pseudo upthrust bar, Stopping volume Test etc. i also includes derived signals like strength returning and confirmed weakness which are derived from the previous bars and background. When a signal appears the information area provides the description of the signal and the the at the same time the commentary section provides more details of the signals.

Commentary section

The commentary section provides a detailed commentary about the VSA signal

Note :

The latest released version also includes plotting of resistance / Support lines which are very essential to trade with VSA.

Deshi web/Forums

http://ayeshaco.150m.com/



http://masum0009.brinkster.net/dsedata/webroot/index.php/sectors

http://masum0009.brinkster.net/dsedata/webroot/index.php/sectors

Southwind afl

http://www.4shared.com/file/cpU1rgNF/Foundation-Int.html

http://gurusarchive.blogspot.com/2008/11/highlight-phasemrtq13.html

http://gurusarchive.blogspot.com/2008/11/break-out-1mrtq13.html

http://gurusarchive.blogspot.com/2008/11/four-trading-styles-tutorialmrtq13.html

http://gurusarchive.blogspot.com/2008/11/reversal-trading-reversal-phase-1mrtq13.html

Topic 14: Highlight phase:mrtq13

Pls,see
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjjg93EU0KQf7vp28e3gr3MfV3funH8XzjOYifmMd5YUhW-o7nGdJy1yJ3Avhp3c69NH5N2C4P5JLdX87crjfNPyK7uCwVhb6QA5AMEU85uBGBQyTWOSHljtVqZ5x8-5K3bPsVjn-A3nsw/s1600/highlightphase.png

the image below. I hope the image describes itself................I like to have some discussion on phase of a stock. Stocks go through phase. And we must understand in which phase the stock is in to enter in disciplined way.

You might see a strange thing in the image below.That is the stock below is moving in a calculative manner. If we research,we will see that there are several strategy that can be applied to this stock for entry.............

One could enter at first phase,which is recovery phase. Recovery phase is the most profitable phase of a stock. In this phase,the stock stops its fall and just move sideways.There will be flat base type pattern in this phase. The volume may not be heavy.Just some spike of volume can be seen here..............But the problem is we really don't feel like entering a stock at that phase. It is difficult to enter a stock when it is not moving up.But interestingly,big investors start to enter in this phase.This is their accumulation phase. Only big investors have strength to do that,as they have news in advance.They know that the stock is going to go up soon...........

Then,the stock starts to move up,which is the starting of second phase.Some small traders(especially the experienced,risk takers,informed ones) enter into beginning of the second phase when the stock has just started to move up.These are reversal traders.........Some enters into the middle of the move and just get out soon............These are momentum traders. Both of these groups are skilled traders. These are profit takers,and low in quantity in the market.

But problem occurs with the top,where new traders,inexperienced ones,uninformed ones start to enter. They are late. And they enter just at the top. Because already the stock is in fire,everybody talks about it.There is rumor in the market spread by other traders.So,all want to jump in it. The sentiment rises,and with that the price and volume rise heavily. Now getting a chance to have some lucrative profit,those investors and small traders that entered before everyone start to offload their holdings pushing the price down. This is euphoria or blow out phase. This is a bad entry.We should always try to avoid this phase...............

Then comes the pullback................Big traders already sold much of their holding to small traders at the euphoria phase.Now there is no manipulation by big traders.They are not holding the stock.The supply is high.Small traders hold on to their stock in lose.Some panic,and start to sell. Now if the selling is hard at this level,then the stock will go to reversal. But if the selling is not hard enough,or the stock is still in demand,the stock will go to pullback only..........This is another entry point............

Now there will be another entry point in the stock after the pullback.And technically that would be the last entry in this stock!!!!!! However,sometimes the stock may have several breakout and pullback. See Bracbank's one year trading..............

If you go through the data/charts of all stocks,you may find stocks usually go through such phases. And whether a stock will go to pullback or reversal situation,none can say unless there is indication of it.............

Now think why huge volume at the top is bad indication.................Because a lot of transaction is occuring. And usually,big traders are selling to the small traders there.............And usually,after tht euphoria phase,stocks lose momentum.............

Now why should we know where the stock is in at the moment! Because we need to be disciplined......................

Now how do we enter the stocks. We develop some criteria to enter the stock at each phase. We will work on each phase and find the best possible entry...............

Now if we have some pre defined entry strategy or patterns,we will have some advantage over the market. And one of them is discipline..............Because then,we will know what we will do under certain situations..................

Topic 13: BAD INDEX: mrtq13 (31-10-2008)

DSE/SEC ppl have started a very nasty down trend,and that down trend is still in existence...............It was a very bad step by them when they stepped in just to put market down couple of months ago............Such an immature step............God help the poor souls!

Now,see that they are begging traders/investors to buy back banks,as if we will buy whatever/whenever they want us to do that...........What a miserable situation. I have hardly ever heard that such responsible ppl like SEC/DSE authorities instruct traders/investors what to buy and when to buy............Clearly,the course of market trend has been changed by SEC/DSE itself. Now if the traders/investors don't buy bank,though they are at their lowest fundamentally,it is because traders/investors are in panic regarding index of 3000. This was created by those SEC/DSE monkeys!!!

So,they directly/indirectly are manipulating market and us-the traders/investors!!! We,the freak traders/investors,are always dancing with whatever they are wanting...................The freak show is set in a way as if they are in the "Mr. Know-it-all-headmaster" group,and we trader/investors are in the "dumb-fucking-assholes" group..............See the newpapers,media. Everyday everybody is shouting there that investors/traders are doing wrong(at whatever we are doing). Total chaos and confusion.................All of these are created by them............

Topic 12: HEIKIN ASHI: mrtq13

Heikin Ashi is an averaged candlestick chart. The high,low,open,close of normal candlestick is averaged in Heikin Ashi chart. But why! There is a problem with candlestick-the problem with feeling smoothed. Look at the chart of normal candlestick and Heikin Ashi charts. You will see whereas Trend,support,resistance are clear in Heikin Ashi,you will have hard time to understand those in normal candle charts..........
Besides Heikin Ashi has a trend showing feature,which normal candle doesn't.......I have one modified Heikin Ashi chart which changes its color when trend change.All you have to do is to enter when the color is green,and exit when the color is red. Easy.......Normal candle has small sentiment or trend showing capability.Not long.........Look at a candle chart,you will see a lot of red candles,which will tell you to get out of a trade early.But you will find that it was not an exit,as that stock later went up.So,you fell into whipsaws........
To get rid of this kind of whipsaws,Heikin ashi was created,and also has been created the Trailing Stop method......When combined,these two can keep you into a trade very very long time without getting you shaken out...........Remember to stay alive in the market,and to really get profit,you will have to hold on to a stock as long as it is in uptrend.............
I keep all type of charts in my soft. But I have different strategy for different situation in DSE. For example,I know that when there is compression pattern in Heikin Ashi chart,trend is going to change. This compression pattern was used to trade both Goldenson and 1stNRB and were profitable.........
However,you can't interpret the candles of Heikin Ashi as normal candles.There is hardly any evening star candlestick formation in Heikin Ashi candle.But we actually don't need that too......The more experienced you get on Candlestick technique,the more skill you will be to quickly understand what is going on........Anyway,for that you need to practise.And using Bar Replay,you can practise and learn...........

Topic 11: EXIT: mrtq13

WHEN TO EXIT ?................TA side for exit...........
But before that,let me say this........ Stock market,as you already know,is a matter of uncertainity. What we all try to do in the market is to keep the odds in our favor. And to do that,we implement different techniques-rumors,fa,ta,news,speculations etc.......
TA is one of the techniques that Traders use. It has good side,bad side. Like any other aspects of trading methods,TA is sometimes deceptive and unsuccessful in some aspects.Still TA has over everything else,as you can understand yourself now.Think how you used to trade in past,and how you see trades at present.........
There are several stages that you are going to go through,after you start your journey in TA world.......One of them is you would sometimes think,you have known all aspects of TA and now you are ready to profit. But later you will realise,your ideas are not enough. Again,you will see,you don't believe TA from the bottom of your heart.So,you don't trade depending on your trade decisions. Again,you will see oneday that you can't just trade without TA. You will lose everything without your chart.You will get addicted to it.You will realise traders around you are simply fools,because they are trading the wrong thing at wrong time.....
At a certain level,you will realise that you have to do things on your own.You will then develop your own strategy,though you may test and try to understand other traders's strategy.
Then,oneday you would realise,it is your mind that is disturbing you,that should be controlled,and disciplined............Well,you then become a real TA.........
Why I have written all those has a reason...........
-------------------------------------------------------
A good entry will surely give you a lot of comfort. But a good exit will give you a sure fire kind of profit. A planned,disciplined,and tested exit will save you from going to hell........And exit is as important as entry..........And actually,trading can be divided into three catagory from TA's point of view : 1. Entry. 2. Holding. 3. Exit.
------------------------------------------------------------------
Exit itecan be divided into several things. For example, 1. Stop loss. 2. Trailing Stop.
Now Stop loss is your initial exit level,if the trade doesn't work or fail.........Usually,experts recommend 7% to 8% of your invested money in a bought stock to be your stop loss. It means if you have bought a stock with 10,000 taka,you have to sell it at 9300 taka with 7% loss. I have found that 10% loss is a good percent for stop loss in bangladesh.....
I personally bet 10% on each trade. So,10,000 taka is my tolerant level for each 1,00,000 taka.
Now the question is why such a technique. The reason is simple. As you are a chartist,you know when to enter. So,let's say you entered five times into a stock. You lose 10% in three,but gain 30% in two. So,you are having 30% profit in total. This is an interesting trick.
-----------------------------------------------------------------
Now the trailing stop/exit part. Well,like I have always said,I use two trailing stops for taking profit. Surely,if you follow trailing stops,you sometimes will have to lose some profit. It is because,you have to give some chance to the stock to go up. So,you have to lose your trailing stops. Please,go back to a stock's chart. And see that if you use tight stops,you will get out of a stock very quickly.
You have to aim at big profit. Yeah,"YOU MUST TRAIN YOURSELF TO GAIN BIG PROFIT".
The trickiest part of trading is to hold and to take big profit. Sometimes there will be so sever pullback that you will panic.But selling in that panic will deprive you of big profit.......
---------------------------------------------------------------------
Now let's see a real example. I trade this in real. And I am going to write how I traded here........
Entry :
There was candlestick buy signal at first. See the yellow box on the candles. Then,there was a buy signal by the software. I entered the later day at 1483 taka. I went on buying on later days.
My stop loss was 10%.
And later days,I saw I didn't need that stop anymore. Because I was out of risk............
Exit:
Now I got concerned around 2306 taka,though I was "trying" to follow the long term trailing stop. Because market went gloomy at that time. And ABBANK was at resitance point. So,I sold more than half of my holdings following the short term trailing stop,which is blue here.............
Then,I rentered in ABBANK at 2370 taka,following another buy signal,volume and breakout. And again,I was following the sea green color,which is a long term traling stop line. However,AB again lost its strength around 3000 taka and started to create red candles.........So,I exited at around 2900 taka. This exit was based on not only trailing stop,but also on Candles,volume! I circled my exit in white box..............
But see next buy signal. I entered into it,but realised that it was a wrong entry.I tried to exit,but had a lose of 8%. I took the lose. And see AB's chart of later part.It feel nearly 30% more............
-----------------------------------------------------------------------------------
Now when do you take profit? The simple rule is going with the Trailing stops,trading with your own nature,and staying with the trend.........Trend is a very important factor. As long as trend is up,you should be very aggressive. But when the trend is downward,you must be watchful,cautious........
There is a very important thing that you have to discover. And that is nature. You would notice there are some traders that don't have difficulty holding a stock for long.But there are some that have real difficulty to hold a stock for long.They are comfortable holding stocks for short time...........
Find out your nature of holding...............
In short,let's summerise :
1. Don't base your profit taking completely based on candlestick.But be on alert when candlestick sell signal appears.2. Always be prepared to take some profit at resistance level. But don't think resistance level is the end of everything.3. Always be watchful at fibonacci levels.Because prices do change direction at fibo levels.4. Always stick to your trading plans,whatever happens..5. Always believe in Trailing stops,even if they look ridiculous,absurd and confusing.6. Always develop your own style of trading,and believe in it from the bottom of your heart.7. Always try to buy a stock at the bottom,not at the top(whatever happens),unless there is clear breakout with high volume.8. Give a stock time to give you profit.9. Be on alert when a stock gets oversold by indicators like Stochastic,RSI,MACD. But don't sell at oversold situation,unless you are too confirmed of reversal.Use Oscillators for enterting a stock most of the time.10.In the end,again,believe in trailing stops.They do work.11. Practise,practise and practise in past of stocks. Give yourself time to understand what is going on. Oneday you would realise you are becoming like a robot,machine in trading. And that is a good sign.

topic 10: PREMATURE SELL? SOLUTION IS HERE: mrtq13

This type of problem happens when :
1. you don't have defined rules which you have to follow in trading.2. you don't use "initial stop" to trade and stick to that initial stop.3. you get concerned about your position.4. you look at "normal candlesticks" too much and give them too much value.
Now here is the problem..................
1. One has to have all rules defined in a note..........What I personally do is that I record all my rules of certain situations/patterns in a video tutorial. I mean,say for example,I have come discovered a pattern to trade. What I do is to video in which I try to define the exit,entry,market condition,failure,initial stop,trailing stop,profit taking stops,and so on.........I run and watch the video in my leisure times,or whenever such patterns appear. That way,I feel confident to trade the pattern,as I know what may happen next.......I make the patterns a part of me like that so that I become natural to trade them...........etc...................Give this idea a thought. It does improve trade substantially..........You can easily memorize complex things with this idea...........I apply this idea of tutorial not only in trading,but also in other aspects of learning.............
2. we have serious confusion of stops.............The trailing stops you have shown in the chart are for "trailing" purposes only. They are not to be used for your initial stops. When you launch a trade,you need to have your own stop loss zone,which if violated,should tell you to exit the trade. And this should be defined by your total investment/equity. Or,your risk tolerant percent..............I can tolerate risk of 10% on each trade. So,I don't care if a trade goes down 10% from my buy price. But it violates 10% and reaches to 11%,I surely exit..........By 10%,I mean I can tolerate 10,000 loss on each 1 lach taka bet on a trade in one month. That won't hamper my total investment,my lifestyle,and above won't hurt my emotion.............
How one should determine one's initial exit depends on his own personality and livings,and also the stocks one is trading..................We need to have an elaborate discussion on this stop loss. Note that trailing stops are generally for profit locking! After a trade goes on your way,you should use trailing stops............
Also,you need to consider "position sizing",which is a very good and important idea to know...................
3. Did you ever find that you become emotional after you launch a trade................! And sometimes a lot of negative thoughts clutter your mind. Sometimes you feel you just don't know what to do..........You need to control your emotion.Pls,read ebooks on this matter..............You can do some kind of visualisation to give your mind positive suggestion.............But from my experience,I will say again,if you have defined rules and patterns,you will be able to trade with confidence and avoid negative thoughts of mind...............
4. You must use Heikin Ashi............I surely don't,again "don't",support to trade only by candlesticks. They are very very deceiptive. Use normal candlestick only for interpret the days movement or for the movement of a particular patterns. Pls,go through what I have written about ICBislamic's trade in this forum( viewtopic.php?f=6&t=13 ). I surely used normal candlestick to interpret the movement of that stock.But above all,I knew that there is a pattern(upmove and consolidation) in which all the buying candles are appearing. I actually emphasised the pattern more than the candles. Surely,candles are good. But they show short term move. For a longer term move,you need to see the pattern,where the stock is now...........The critical problem with candlestick is they will bluff you unless you haven't practise them hour after hour. You see a red candle,and you become concerned. Though that candle has not much meaning..........But the problem arises because you become concerned and you start to get emotional. Negative thoughts come into your mind............Pls,note the difference of stocks and trading between bangladesh and other countries...............
I can easily trade by normal candlesticks in U.S market. But they become very much confusing in our market. Because our market is very much volatile............U.S market follows logic and calculation heavily. By the way,forget Warren Buffet. It is very much silly,imprudent,and childish to follow a huge investor like him. He alone can crash/shake part of U.S market(not whole). Small traders like you and me can't and should not follow him. This is unrealistic and unmatched thing! He is institutional investor...................
BD market is all about trend and smoothing out trend. Note that there is a critical difference between other market and ours. And that is timing. We have to wait two days after our buying to sell. But in other countries,you can buy sell anytime. So,one should have different style to trade our market. I have learned this truth the hard way...............I must add one last note : give value to support and resistance in our market. Because they work.......

topic 10: PREMATURE SELL? SOLUTION IS HERE: mrtq13

This type of problem happens when :
1. you don't have defined rules which you have to follow in trading.2. you don't use "initial stop" to trade and stick to that initial stop.3. you get concerned about your position.4. you look at "normal candlesticks" too much and give them too much value.
Now here is the problem..................
1. One has to have all rules defined in a note..........What I personally do is that I record all my rules of certain situations/patterns in a video tutorial. I mean,say for example,I have come discovered a pattern to trade. What I do is to video in which I try to define the exit,entry,market condition,failure,initial stop,trailing stop,profit taking stops,and so on.........I run and watch the video in my leisure times,or whenever such patterns appear. That way,I feel confident to trade the pattern,as I know what may happen next.......I make the patterns a part of me like that so that I become natural to trade them...........etc...................Give this idea a thought. It does improve trade substantially..........You can easily memorize complex things with this idea...........I apply this idea of tutorial not only in trading,but also in other aspects of learning.............
2. we have serious confusion of stops.............The trailing stops you have shown in the chart are for "trailing" purposes only. They are not to be used for your initial stops. When you launch a trade,you need to have your own stop loss zone,which if violated,should tell you to exit the trade. And this should be defined by your total investment/equity. Or,your risk tolerant percent..............I can tolerate risk of 10% on each trade. So,I don't care if a trade goes down 10% from my buy price. But it violates 10% and reaches to 11%,I surely exit..........By 10%,I mean I can tolerate 10,000 loss on each 1 lach taka bet on a trade in one month. That won't hamper my total investment,my lifestyle,and above won't hurt my emotion.............
How one should determine one's initial exit depends on his own personality and livings,and also the stocks one is trading..................We need to have an elaborate discussion on this stop loss. Note that trailing stops are generally for profit locking! After a trade goes on your way,you should use trailing stops............
Also,you need to consider "position sizing",which is a very good and important idea to know...................
3. Did you ever find that you become emotional after you launch a trade................! And sometimes a lot of negative thoughts clutter your mind. Sometimes you feel you just don't know what to do..........You need to control your emotion.Pls,read ebooks on this matter..............You can do some kind of visualisation to give your mind positive suggestion.............But from my experience,I will say again,if you have defined rules and patterns,you will be able to trade with confidence and avoid negative thoughts of mind...............
4. You must use Heikin Ashi............I surely don't,again "don't",support to trade only by candlesticks. They are very very deceiptive. Use normal candlestick only for interpret the days movement or for the movement of a particular patterns. Pls,go through what I have written about ICBislamic's trade in this forum( viewtopic.php?f=6&t=13 ). I surely used normal candlestick to interpret the movement of that stock.But above all,I knew that there is a pattern(upmove and consolidation) in which all the buying candles are appearing. I actually emphasised the pattern more than the candles. Surely,candles are good. But they show short term move. For a longer term move,you need to see the pattern,where the stock is now...........The critical problem with candlestick is they will bluff you unless you haven't practise them hour after hour. You see a red candle,and you become concerned. Though that candle has not much meaning..........But the problem arises because you become concerned and you start to get emotional. Negative thoughts come into your mind............Pls,note the difference of stocks and trading between bangladesh and other countries...............
I can easily trade by normal candlesticks in U.S market. But they become very much confusing in our market. Because our market is very much volatile............U.S market follows logic and calculation heavily. By the way,forget Warren Buffet. It is very much silly,imprudent,and childish to follow a huge investor like him. He alone can crash/shake part of U.S market(not whole). Small traders like you and me can't and should not follow him. This is unrealistic and unmatched thing! He is institutional investor...................
BD market is all about trend and smoothing out trend. Note that there is a critical difference between other market and ours. And that is timing. We have to wait two days after our buying to sell. But in other countries,you can buy sell anytime. So,one should have different style to trade our market. I have learned this truth the hard way...............I must add one last note : give value to support and resistance in our market. Because they work.......

Topic 9: candlesticks, system trading: mrtq13

1. You will always need Candlestick..........But the question is to what extent you will use Candlestick in your trading decision...........That you will have to decide on your own...........
Personally,I don't give too much emphasis on Candlestick now a days.As a beginner,I used to give emphasis on Candles,because I thought and read they work like a charm.They do,but not as charmfully as we think in DSE. As I got more and more involved in TA,I found there are several different things that are superior to chandlestick.......... I only look at candlestick just to know how the day was-bearish,bullish,neutral or what........That is it..........! My trading decision is not dependent on candles mostly...........
2. Besides knowing about normal candlestick,you need to know about Heikin Ashi. It is the most important one for DSE,as DSE is a volatile stock exchange. Traders sentiment is inconsistent here..........So,normal candlestick would confuse you,you need something that smooths out the whipsaws here.............
3. Use only one oscillator. Using more than one oscillator for the same purpose is technically wrong..........Macd is a bit slow. Besides,you can see the crossover of Macd(to an extent)in your candlestick chart with Moving Average............I prefer Stochastic. And STochRSI is better than Stochastic..........The choice is urs.........
4. You need to learn about Volume and how volume influence price action...........It is very important...........
5. Moving Average is important. They represent past price action and future price too! So,one should give emphasis on them..........
6. You should work on Buy,Hold,and Sell together..........We emphasis on Buy too much,whereas Hold and Sell are also important.............Especially,exit is more important than entry..............
7. You need to know about Pullback, Breakout,Reversal,and Rangebound trading style. And you need to find out which one is suitable for you to trade!
8. You need to find out a guide who will show you the way to TA. That way,your life will get easier in TA's world.It is a huge area,you will surely get lost in this world.........However,there is no guide around. So,you will have to do things on your own. So,keep going.........
--------------------- ** ---------------------
Now System Trading...........!
Let's make it simple..................! However,I don't know how to define it in simple term........
Well,let's see some rules..........
Rule 1 : Experienced traders here might have seen that when a price moves up,say for example 6%,from previous day,probability is it will rise further............
Rule 2: Again,some experienced traders here might also have noticed that when a stock has high volume with rising price movement,probability is it will rise further.
Rule 3: TAs here might have noticed that when MACD crosses the zero line,probability is the stock will rise further.
Rule 4: TAs here might have noticed that when short term moving averages crosses mid term moving averages,probability is the stock will rise further.................
Now,we have got four trading rules. We know when these rule appear in a stock,the stock usually rises...........We memorise those rules. See them in charts. We are happy...........Because we promise ourselves that whenever they will appear,we will enter into the stock........
Unfortunately,many times we can't...........Because we are driven by Brain. And Brain has limitation in processing data...........That is why,computer can defeat us in chess game..............
So,as computer can process data well and can give us the most perfect output,so let's use computer to process the data for us to trade...........
Now let's feed our trading software with the above four rules. And let's program it in such a way that whenever those four rules appear computer will tell us to buy...........
Now all we have to do is to buy after the computer tells us to buy..........
That is it..............
By system trader I mean,I program the software and give it the rules of my trading style. It then start to give me Buy/Sell/Hold signal. And I go by those signals............
This way,I don't have to think and get confused.............
Brain is a weak machine when it comes to data processing,computer isn't............
Below is an example of a trading system I am recently with...........I hope it will give you an idea of Trading System...........
-------------------**------------------ _________________1. Cut your losses short........... 2. Take your decisions on your own.... 3. Future can't be predicted.So,don't fight the market! 4. When in doubt,don't trade......... 5. Be aggressive with Bulls,be defensive with bears...