Technical Indicators(sharemarket)

5/23/2018 Technical Indicators(sharemarket)

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SMA:

You have the option to chart up to 3 Simple Moving Averages (SMAs) at the same time. The 3 input

boxes above represent the periods of the Simple Moving Averages you wish to chart. If you are charting

on minute, daily or weekly periods, the SMA periods you indicate above will be for minutes, days and

weeks, respectively. An SMA is calculated by adding the security's prices for the most recent N timeperiods and then dividing by N. It smooths out a data series, making it easier to spot trends.

EMA:Exponential Moving ave

You have the option to chart up to 3 Exponential Moving Averages (EMAs) at the same time. The 3 input

boxes above represent the periods of the Exponential Moving Averages you wish to chart. If you are

charting on minute, daily or weekly periods, the EMA periods you indicate above will be for minutes,

days and weeks, respectively. An EMA differs slightly from a Simple Moving Average (SMA) in that it

gives extra weight to more recent price data. This allows investors to track and respond quickly to recent

price trends that might take more time to appear in an SMA. The formula for an EMA is: EMA = price

today * K + EMA yest * (1-K) where K = 2 / (N+1). Like an SMA, it smooths out a data series, making it

easier to spot trends.

BOLINGER BANDS:

Bollinger Bands are curves drawn in and around the price structure that define high and low on a

relative basis. The base of the bands is a simple moving average. A measure of volatility, standard

deviation, is used to set the width of the bands making them fully adaptive to changing market

conditions. The defaults are bands spread above and below a 20-day simple moving average by two

standard deviations. Bollinger Bands are used in numerous ways. They can be used to aid chart pattern

recognition. They can be combined with other indicators to identify entry and exit points. They can beused to identify areas of compression and to spot the ends of extended moves. John Bollinger, CFA, CMT

www.BollingerBands.com

MONEY FLOW(MFI)

You have the option to change the slow, fast and signal periods used to calculate the MACD above. The

default slow, fast and signal periods are set to 26, 12 and 9, respectively. Moving Average Convergence

Divergence (MACD) is a trend-following momentum indicator that shows the relationship between two

moving averages of prices. The default MACD is represented as the difference between a 26-day and 12-day EMA of the price. A 9-day EMA of the MACD, referred to as the signal (or trigger) line, is plotted on

top of the MACD to indicate buy/sell opportunities. Divergence, the difference between the MACD and

the signal, is also plotted as a histogram.The MACD is most effective in wide-swinging trading markets.

There are three standard ways to interprete the MACD: 1. Crossovers: The basic MACD trading rule is to

sell when the MACD falls below its signal line. Similarly, a buy signal occurs when the MACD rises above

its signal line. It is also popular to buy/sell when the MACD goes above/below zero. 2.
http://www.bollingerbands.com/http://www.bollingerbands.com/http://www.bollingerbands.com/


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Overbought/Oversold Conditions: The MACD is also useful as an overbought/oversold indicator. When

the shorter moving average pulls away dramatically from the longer moving average (i.e. the MACD

rises), it is likely that the security price is overextending and will soon return to more realistic levels.

MACD overbought and oversold conditions exist vary from security to security. 3. Divergences: Anindication that an end to the current trend may be near occurs when the MACD diverges from the

security. A bearish divergence occurs when the MACD is making new lows while prices fail to reach new

lows. A bullish divergence occurs when the MACD is making new highs while prices fail to reach new

highs. Both of these divergences are most significant when they occur at relatively overbought/oversold

levels. - "Technical Analysis from A to Z" by Stephen Aechlis

MACD:

You have the option to change the slow, fast and signal periods used to calculate the MACD above. The

default slow, fast and signal periods are set to 26, 12 and 9, respectively. Moving Average Convergence

Divergence (MACD) is a trend-following momentum indicator that shows the relationship between two

moving averages of prices. The default MACD is represented as the difference between a 26-day and 12-

day EMA of the price. A 9-day EMA of the MACD, referred to as the signal (or trigger) line, is plotted on

top of the MACD to indicate buy/sell opportunities. Divergence, the difference between the MACD and

the signal, is also plotted as a histogram.The MACD is most effective in wide-swinging trading markets.

There are three standard ways to interprete the MACD: 1. Crossovers: The basic MACD trading rule is to

sell when the MACD falls below its signal line. Similarly, a buy signal occurs when the MACD rises aboveits signal line. It is also popular to buy/sell when the MACD goes above/below zero. 2.

Overbought/Oversold Conditions: The MACD is also useful as an overbought/oversold indicator. When

the shorter moving average pulls away dramatically from the longer moving average (i.e. the MACD

rises), it is likely that the security price is overextending and will soon return to more realistic levels.

MACD overbought and oversold conditions exist vary from security to security. 3. Divergences: An

indication that an end to the current trend may be near occurs when the MACD diverges from the

security. A bearish divergence occurs when the MACD is making new lows while prices fail to reach new

lows. A bullish divergence occurs when the MACD is making new highs while prices fail to reach new

highs. Both of these divergences are most significant when they occur at relatively overbought/oversold

levels. - "Technical Analysis from A to Z" by Stephen Aechlis

PSAR:

You have the option to change the step period and max step period used to calculate the Parabolic SAR

above. The default step and max periods are set to 0.02 and 0.20, respectively. Also known as the

"Parabolic Time/Price System" this indicator is used to set trailing price stops and is usually referred to

as the "SAR" (stop-and-reversal). The Parabolic SAR provides excellent exit points. You should close long


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positions when the price falls below the SAR and close short positions when the price rises above the

SAR. If you are long (i.e. the price is above the SAR), the SAR will move up every day, regardless of the

direction the price is moving. The amount the SAR moves up depends on the amount that prices move. -

"Technical Analysis from A to Z" by Stephen Aechlis

ROC:

You have the option to change the period of the Rate of Change (ROC) above. The default period is set

to 12. The Rate of Change (ROC) indicator displays the difference between the current price and the

price x-time periods ago. The difference can be displayed in either points or as a percentage. "The 12-

day ROC is an excellent short to intermediate term overbought/oversold indicator. The higher the ROC,

the more overbought the security; the lower the ROC, the more likely a rally. However, as with all

overbought/over-sold indicators, it is prudent to wait for the market to begin to correct (i.e. turn up or

down) before placing your trade. A market that appears overbought may remain overbought for some

time. In fact, extremely overbought/oversold readings usually imply a continuation of the current trend.

The 12-day ROC tends to be very cyclical, oscillating back and forth in a fairly regular cycle. Often, price

changes can be anticipated by studying the previous cycles of the ROC and relating the previous cycles

to the current market." - "Technical Analysis from A to Z" by Stephen Aechlis

RSI:

You have the option to change the period of the Relative Strength Index (RSI) above. The default period

is set to 14. The Relative Strength Index (RSI) measures the price of a security against its past

performance in order to determine its internal strength (in an attempt to quantify the securitys

price momentum). "A popular method of analyzing the RSI is to look for a divergence in which thesecurity is making a new high, but the RSI is failing to surpass its previous high. This divergence is an

indication of an impending reversal. When the RSI then turns down and falls below its most recent

trough, it is said to have completed a failure swing. The failure swing is considered a

confirmation of the impending reversal." - "Technical Analysis from A to Z" by Stephen Aechlis

SLOW STOCHASTIC:

You have the option to change the %K and %D periods of the Slow Stochastic above. The default %K and

%D periods are set to 15 and 5, respectively. The MACD is most effective in wide-swinging trading

markets. There are three popular ways to interpret the Slow Stochastic: 1. Buy when the Oscillator

(either %K or %D) falls below a specific level (e.g. 20) and then rises above that level. Sell when the

Oscillator rises above a specific level (e.g. 80) and then falls below that level. 2. Buy when the %K line

rises above the %D line and sell when the %K line falls below the %D line. 3. Look for divergences. For

example, where prices are making a series of new highs and the Slow Stochastic Oscillator is failing to

surpass its previous highs. - "Technical Analysis from A to Z" by Stephen Aechlis


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FAST STOCHASTIC:

You have the option to change the %K and %D periods of the Fast Stochastic above. The default %K and

%D periods are set to 5 and 3, respectively. The Fast Stochastic compares where a securitys

price closed relative to its price range over a given time period, and is displayed as two lines. One line is

called %K. A second line, called %D, is a moving average of %K. Buy when the Oscillator (either %K or%D) falls below a specific level (e.g. 20) and then rises above that level. Sell when the Oscillator rises

above a specific level (e.g. 80) and then falls below that level.Buy when the %K line rises above the %D

line and sell when the %K line falls below the %D line. Look for divergences. For example, where prices

are making a series of new highs and the Slow Stochastic Oscillator

WILLLIAMS %R:

You have the option to change the period of the Williams %R above. The default period is set to 14. The

Williams %R indicator seeks to measure overbought/oversold levels. "Readings in the range of 80 to100% indicate that the security is oversold while readings in the 0 to 20% range suggest that it is

overbought." - "Technical Analysis from A to Z" by Stephen Aechlis

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TYPE OF STUDIES AVAILABLE ON ET NOW TECH CHARTS:

ADX

BOLLINGER BANDS

COMMODITY CHANNEL INDEX

MACD

MOMEMTUM OSCILLATOR

MOVING AVERAGE

PARABOLIC SAR

RSI

STOCHASTICS

VOL UNDERLAY

VOLUME

ACCUMULATIVE SWING

AROON

AROON OSCILLATOR

AVERAGE TURE RANGE

CENTRE OF GRAVITY

CHAIKIN MONEY FLOW

CHAIKIN VOLATILITY

CHANDE FORECAST

CHANDE MOMENTUM

COMMODITY CHANNEL CURVE

COPPOCK CURVE


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DETRENDED PRICE OSCILLATOR

DIRECTIONAL MOVEMENT

EASE OF MOVEMENT

EHELER FISHER TRASNFORMER

ELDER FORCE INDEX

HIGH MINUS LOW

HIGHEST HIGH VALUE

HISTORICAL VOLATILITY

INTRADAY MOEMNTRUM O

KELTER CHANNEL

KLINGER VOLUME OSCI

LINEAR REG FORECAST

LINEAR REG INTERCEPT

LINEAR REG R2

LINEAR REG SLOPE

MACD

MASS INDEX

MEDIAN PRICE

ON BALANCE VOLUME

PARABOLIC SAR

PERFORMANCE INDEX

POSITIVE VOLUME INDICATOR

PREEETY GOOD OSCILLATOR

PRICE OSCILLATOR

PRICE RATE CHANGE


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PRICE VOLUME TREND

PRIME VOLUME BAND

PRIME NUMBER OSCILLATOR

RAVI

RSI

SCHAFF TREND CYCLE

STANDARD DEVIATION

SWING INDEX

TIME SERIES FORECAST

TRADE VOLUME INDEX

TRIX

TURE RANGE

TWIGGS MONEY FLOW

TYPICAL PRICE

ULTIMATE OSCILLATOR

VERTICAL HORIZONTAL

VOL UNDERLAY

VOLUME OSCILLATOR

VOLUME RATE OF CHANGE

WEIGHTED CLOSE

WILLIAMS %R

WILLIAMS ACCUMULATION

PER

Training


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Information regarding seminars or technical analysis classes will be shown here.

System Trading Seminar on Saturday & Sunday, March 8-9, 2014.

Topic : System Trading for Short Term Traders

The purpose of the program is to incorporate systematic and disciplined trading methods in your

trading. System trading benefits short term traders as well as position traders and active investors.

In this seminar we will discuss on the following topics :

What is systematic trading, mechanical systems and trading discipline ?

How to join mechanical systems with discretionary judgement ?

How to develop a trading system based on EOD chart ?

Introduction to back testing software - Multicharts and Amibroker

Qualities of a robust system

Tools of the trade (Performance Report, Equity Curve, Drawdown, Asymmetrical performance of

systems)

Money Management, Stop Loss

Position sizing, Equity Curve, Martingale and Anti Martingale methods

Trading Types - Volatility, Breakouts, Trend, Mean Reversion

Life span of systems

After attending this seminar you will be able to:

Understand the logic behind systematic trading

Select systems that match your trading personality


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Add value to your trading by actually trading such systems.

The seminar is designed for traders who already have a working knowledge of technical analysis and

technical trading. They should be aware of moving averages, osillators such as RSI and support and

resistance levels on charts. Examples of systems will be given with each topic.

Cannot attend the Seminar : Contact us to place an order for the DVD set.

Speaker : Sudarshan Sukhani

Timing : 11 AM5 PM (2 days)

Price : Rs 20,000 (incl all taxes) for Seminar / Rs 13,000 (incl all taxes) for DVD

Location : ISBF Campus, 15A, Ring Road, Lajpat Nagar IV, New Delhi - 110024

Contact : T : 011-41034899, 26816619, 07428418715. E : [email protected]

Day Trading Seminar on Saturday & Sunday, July 6-7, 2013.

Topic : Day Trading the Index - Nifty and Bank Nifty

The purpose of the program is to introduce the concept of Day Trading. Day Trading is very different

from swing and mechanical trading. You are not concerned with the long term trend of the market. Allyou need is to forecast todays movement of price and trade it.

In this seminar we will discuss on the following topics :


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Important aspect of Day Trading

Type of Days Movement

Trading Set up

Context and View

Stops and Targets

After attending this seminar you will be able to:

Forecast the next day type (choppy, range or trend day)

Be aware of different setups to trade whether it is choppy day or a trending day

There will be live simulation covering a number of trading days with focus on trading the Nifty and Bank

Nifty. The seminar is designed for traders who have basic knowledge of technical analysis and trading.

Cannot attend the Seminar

Watch the seminar live online and get the Seminar DVD for FREE.

Presenter : Sudarshan Sukhani


Price : Rs 18000 (incl all taxes) for those who will attend / Rs 12000 (incl all taxes) for DVD


Contact : T : 011-41034899, 07428418715. E : [email protected]


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Swing Trading Workshop on Saturday & Sunday, May 4-5, 2013.

Topic : Short Term Trading in Equity and F&O

Swing Trading offers opportunities to profit from short term price movements. The workshop provides a

plan to take advantage of changing market environments. The process of developing swing trading

systems is discussed in detail.

Specific rules for entries and Exits are explained.

How to build setups based on the current behaviour of the market.

How swing trading is differ from mechanical trading.

Position Sizing, Money Management, use of stops and profit targets to control risk and maximize reward

are examined.

Five Trading Systems will be offered to participants.

In this workshop, identification of best stocks and indices for swing trading will also be discussed.

At the end of the workshop, the participant should be able to trade in a disciplined, controlled manner,

be more relaxed in his trading.

Topics overview of the workshop :

Introduction

Trading

Different types of trading

Detailed definition of Swing Trading with examples

Trend, Counter Trend and Volatility

Entries and Exits (Examples of some common methods)

Going with the trend

Trend set ups


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Counter Trend Setups

Volatility Set ups

The importance of context in set ups

Swing Trading Discretionary vs Mechanical Trading

Position Sizing

Risk Management

Selection of Stocks and Futures for swing trading

Finding your own Trading Style





Price : Rs 15000 (incl all taxes) for those who will attend / Rs 10,000 (incl all taxes) for DVD


Contact : T : 011-41034899, 07428418715. E : [email protected]

Seminar on Saturday, Feb 23, 2013.

Topic : Mechanical Trading for Short Term Traders


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The purpose of the program is to introduce the concept of mechanical trading to short term traders. At

the end of the session, traders should be able to develop/trade a sample system.

What are Mechanical Systems?

Difference between Mechanical and Discretionary Trading and concept of Back Testing.

Tools of the trade (Back testing software, Performance Report, Equity Curve, Drawdown, Asymmetrical

performance of systems).

Money Management, Stop Loss Type and Position Sizing.

Trading TypesVolatility, Breakouts, Trend, Mean reversion.

Additional Tools (Multiple Time frames, Filters).

Life Span of Systems.

Mechanical Trading Plan.

Multiple Systems/System Portfolios.

The course is designed for traders who already have a working knowledge of technical analysis and

technical trading. They should be aware of Moving Averages, Oscillators such as RSI, and Support and

Resistance levels on Charts. Examples of Systems will be given with each topic.




Timing : 11 AM7 PM

Price : Rs 9000 (incl all taxes) for those who will attend / Rs 6000 (incl all taxes) for DVD


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Contact : T : 011-26464544, 46527157, 26466690/91. E : [email protected]

Seminar on Saturday, May 19, 2012.

Topic : How to use Pivot Points (SR Lines) in Day Trading

In this seminar we will discuss the use of pivot points (support & resistance lines) in day trading. This

presentation would cover the following points :

What are Pivot Points ?

How to Calculate Pivot Points ?

Advantages of Pivot Points Trading

How to Trade Range Bound Markets With Pivot Points

How to Trade Breakouts With Pivot Points

Trend Trading Using Pivot Points.

High Probability Setup using Candlestick Patterns and Pivot Points

Presenter : Vivek Rattan

Timing : 3:30 PM5 PM

Price : Rs 1000/- for Trend Analyser subscribers, Rs 1800/- for non members.

Location : E-364, GK-2, New Delhi.


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Registration : Click here to Register


Seminar on Saturday, April 21, 2012.

Topic : Application of Fibonacci Tools using Trend Analyser

This seminar will cover how Fibonacci tools are utilized by traders to interpret and forecast price action.

The details are :

Introduction : Fibonacci Sequence and the Golden Ratio

Fibonacci Sequence in the Market

Fibonacci Price Retracements

Fibonacci Price Extensions

Fibonacci Price Projections


Timing : 3 PM5 PM

Price : Free for Trend Analyser subscribers, Rs 750/- for non members.



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Seminar on Saturday, March 3, 2012.

Topic : Candlestick Essentials & Beyond

This seminar will unleash the methods and practical application of the Japanese charting technique

which is now in widespread use. It will benefit all investors, traders and market professionals, regardless

of their level of experience, or the markets they invest in or trade. In this seminar, we will walk you

through :

What candlesticks are - real bodies and shadows

What candles reveal about the markets state of mind

Major reversal and continuation patterns and, importantly, the psychology behind each one

How to use candlesticks in conjunction with support and resistance

Merging candlesticks with classic Western indicators :

Candlesticks with Moving Averages

Candlesticks with Trend Lines

Candlesticks with Parabolic SAR

Candlesticks with MACD

Candlesticks with RSI

Candlesticks with Stochastic


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How to scan candlesticks Continuation, Bullish & Bearish reversal patterns using Trend Analyser ?


Timing : 3 PM6 PM

Price : Rs. 2,500/-




Trend Analyser Q&A: Meeting on Saturday, Jan 21, 2012

Discussion on how to use Trend Analyser effectively. Get answers to any questions you may have

regarding TA.

Price : FREE

Venue : E-364 G.K.II (lower ground floor), New Delhi

Phone : 011-26464544 / 26466091

Time : 11 AM - 1 PM (followed by snacks)


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Basics of Technical Analysis - Capsule Course on Saturday, Jan 14, 2012

Price : INR 2000/- per person

Venue : E-364 G.K.II (lower ground floor), New Delhi

Phone : 011-26464544 / 26466091

Time : 3 PM - 7 PM

Click here to register

Contents -

The Philosophy of Technical Analysis

The Basic Principles

Technical Analysis Defined

Constructing Charts

Types of Charts

Arithmetic versus Logarithmic Scale

Volume

Open Interest


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Profitable Chart Patterns

Key Reversals

Head and Shoulders Tops and Bottom

Rounding Tops and Bottoms (Saucers)

Ascending and Descending Triangles

Rectangles

Double and Triple Tops and Bottoms

Rising and Falling Wedges

Flags

Symmetrical Triangle

How to Trade Major Chart Patterns Like a Pro

Double Top Pattern

Head & Shoulders Pattern

Triangle Patterns

Gaps

Types of Gaps

The Island Reversal

Trendlines and Channels

How Trendlines Are Drawn

Significance of a Trendline

Validity of a Trendline

Validity of Trendline Penetration


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Trendline Role Reversal

Trend Channels

Support and Resistance

Support and Resistance Defined

Role Reversal

Trend Reversal

Percentage Retracements

The Failed Signals

Bull Trap

Bear Trap

Failed Trendline Signals

Moving Averages

Simple Moving Average

Weighted Moving Average

Exponential Moving Average

Multiple Moving Average

Envelopes (Trading Bands)

How to Trade Moving Averages

Volume and Open Interest

Basic Rules of Volume

Blowoffs and Selling Climaxes


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On-Balance Volume

Open Interest

Indicators

Introduction

Indicator Characteristics

Popular Indicators :

1. Relative Strength Index (RSI)

2. Stochastic

3. Rate of Change (ROC)

4. Moving Average Convergence-Divergence (MACD)

5. Bollinger Bands

6. Average True Range (ATR)

7. Average Directional Index (ADX)

8. On Balance Volume (OBV)

Japanese Candlestick Charting

Introduction to Candlesticks

Key Bullish Reversal Patterns

Key Bearish Reversal Patterns

Key Continuation Patterns

Money Management & Trading Tactics

The Three Elements of Successful Trading

Money Management


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Using Protective Stops

Reward to Risk Ratios

Trading Tactics

Summary of Money Management and Trading Guidelines

Seminar on Saturday, December 24, 2011

Topic: Anatomy of Bollinger Bands

In this presentation we will discuss everything about the Bollinger Bandsfrom the essentials to

advanced topics. This techniques-oriented presentation throws valuable insights, including :

How traders / investors can use Bollinger Bands for pattern recognition

How to trade a very powerful Bollinger Band patternThe Squeezeincluding how to handle 'Head

Fakes'.

Three trading methods using Bollinger Bands

How to develop a simple trading system based on Bollinger Bands in Trend Analyzer using Basic

Language Trade Editor.

Presentation Details :

Part 1 : The Essentials

-Concept

-The Basics of Bollinger Bands

-Bollinger Band Indicators


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-Statistical Concept and Bollinger Bands

Part 2 : Advance Topics

-Diagnosing Tops & Bottoms

-Dynamics of Walking the Bands

-Ideas on How to Trade The Squeeze

-Bollinger Bands & Analytical Mix

-Three trading methods Using Bollinger Bands

-Trend & Fade Trading Using Bollinger Bands

-Trading Options with Bollinger Bands

-Developing a Simple Trading System based on Bollinger Bands in Trend Analyser using Basic Language

Trade Editor

-Analyzing the Performance report of the Trading System

Presentation will be given by Mr. Vivek Rattan

Timing: 3 PM - 6 PM

Fees: Rs 1500/- for members/non members.

FREE for Trend Analyser Real Time (1 Year & 6 Months subscription) clients.

Location: E-364 G.K. II, New Delhi


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Seminar on Saturday, Feb 23, 2013.

Basics of Technical Analysis Course Details

INTRODUCTION

The Philosophy of Technical AnalysisThe Basic PrinciplesTechnical Analysis DefinedTechnical Versus Fundamental

Adaptability to Different Markets and Investment Time Horizons

Dow TheoryIntroductionBasic tenetsThe Use of Closing Lines and the Presence of LinesSome Criticisms of Dow TheoryConclusion

CONSTRUCTING CHARTSBasic Chart Construction

IntroductionTypes of ChartsArithmetic versus Logarithmic Scale

KEY ANALYTICAL TOOLSTrend, Trendlines and ChannelsDefinition of TrendTrend DirectionsHow Trendlines are DrawnHow to Use the TrendlineThe Fan Principle

Support and ResistanceSupport & Resistance DefinedRole ReversalTrend ReversalsPercentage RetracementsSpeed Resistance Lines


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Trading RangeBreakoutVolume ConfirmationTrading Strategies

The True Value of Failed SignalsBull TrapBear TrapFailed Trendline Signals

Using Moving AveragesMoving AveragesHow to Use Averages to Generate Trading Signals

Relative Strength AnalysisIndustry Group versus a Market IndexIndividual Stock versus an Industry Group

Volume and open interestBasic Rules of VolumeBlow offs and Selling ClimaxesOn-Balance VolumeVolume ReversalOpen Interest

PROFITABLE CHART PATTERNSMajor Reversal Chart Patterns

Key ReversalsHead and Shoulders Tops and BottomsRounding Tops and Bottoms (Saucers)

Ascending and Descending TrianglesRectanglesDouble & Triple Tops and BottomsDiamondRising and Falling WedgesV Formations (Spikes)

Continuation PatternsTrianglesSymmetrical Triangle

Ascending TriangleDescending TriangleBroadening FormationFlags and PennantsWedge FormationRectangle FormationThe Continuation Head and Shoulder Pattern


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GapsFrequency of AppearanceInsignificant GapsSignificant GapsThe Island Reversal

The Total PictureMyth - Gaps Must be Closed

STOCK MARKET INDICATORSPopular IndicatorsIndicator Overview & CharacteristicsTypes of IndicatorsIndicator Signals - Divergence, Crossover, Level (Overbought / Oversold)Popular Indicators :

ADXATR

Bollinger BandsMACDRSIROCStochastic

gies

we will discuss some strategies which are present in our software Trend Analyser. The strategies discussed are :

d Energy

os Alligator

lligator

port Resistance Lines

la

eversal

orecast

es & Related Informationrgy


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de using Trend Energy strategy ?

u have a bullish view on a stock ?

en bar after a 'blue' bars is a buy signal. It is an indication that a short-term weakness is over. Buying may be done above the high of the last bar. A stop shou

w of the preceding down move. The appearance of a 'blue' bar is a signal to close all long positions.

own' bar is also a buy signal. This suggests that the security is gaining momentum. Stop placement is a bit difficult here. I f you can find a chart based stop, fine

AR, the Alligator Red line or the 34 period Linear Regression line as a stop. When the 'brown' bars stop coming, it may be time to tighten stops or even close t

u have a bearish view on a stock ?

ue' bar is a sell signal. This suggests that the security is losing momentum. Stop placement is a bit difficult here. If you can find a chart based stop, fine. If not,

r Red line or the 34 period Linear Regression line as a stop. When the 'blue' bars stop coming, it may be time to tighten stops or even close the position.

k is in downtrend, then the first red bar after 'brown' bars is also a sell signal. I t is an indication that a short-term strength is over. Selling may be done below thebe placed slightly above the high of the preceding up move. The appearance of a 'brown' bar is a signal to close all short positions.

u do not have a view on a stock ?

gy is very effective when you have a sense of direction for the stock. Yet, sometimes the stock may not be on your radar screen, thus you do not have a view

sell rules discussed here remain useful. If the stock has seen a big up move with many 'brown' bars, then the first bar which is a 'normal' bar is a signal to init

een a big down move with many 'blue' bars, then the first bar which is a 'normal' bar is a signal to initiate long positions. All such positions should be protected

ns should be protected with proper stops. If the stock has seen a big down move with many blue bars, the first bar which is a normal bar is a signal to initiate


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gator

Alligator is a trading strategy based on the Alligator and Fractals concept explained by Bill Williams in his bookThe New Trading Dimensions. The basic the

rading that should withstand the pressures of different types of market conditions. The Chaos Alligator strategy hopefully meets these requirements.

s

hree lines are aligned a trend exists. The three Alligator lines together determine the trend.

: When the three lines are intertwined or mixed with each other, traders should avoid trading in this situation.

: An uptrend is signified when Green line is on the top, then Red line below it, and Blue line at the bottom.

end : A downtrend is signified when Blue line is on the top, then Red line below it, and finally Green line at the bottom.

f Fractals

n Fractals determine the point at which buying or selling should be done.

-Trending market, we take both buy and sell signals.

trend, we take only Buy Signals. The latest up fractal acts as a buy level.

ntrend, we take only Sell Signals. The latest down fractal acts as a sell level.ctal is a series of at least five successive bars, with the highest high in the middle, and two lower highs on both sides. Given below is an example of Up fractal


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Fractal is a series of at least five successive bars, with the lowest low in the middle, and two higher lows on both sides. Given below is an example of Down fra

can be identified two bars after the highest bar or the lowest bar was formed. This should be obvious. This information is available only after the current bar ha

bar was formed which is higher/lower than the current & the previous bar.

ding The Dot Colorssignify buy signals in an 'Up Trend'. When we are in an uptrend, there are no sell signals. There is one exception. When a V shaped reversal is detected, you

ch gives a selling level. This sell signal comes even though the Alligator is showing an uptrend.

signify sell signals in a 'Down Trend'. When we are in a downtrend, there are no buy signals. There is one exception. When a V shaped reversal is detected,

ch gives a buying level. This buy signal comes even though the Alligator is showing a downtrend.

ignify a 'Non-Trending / Sideways' market. When the market is sideways & the Alligator lines are intertwined (mixed up), we can take both buy & sell signals. T

sleeping. We buy above the last up fractal if the fractal is above the red line. We sell below the last down fractal if the fractal is below the red line. Thus, you wi

r buying & one for selling. Sometimes, only one dot is visible, since there may be no valid fractal for the other trade.

r

h appear above price highs are buy levels.

h appear below price lows are sell levels.

arket experiences V shaped reversals. In such cases, the direction of prices is opposite of the direction in which the Alligator is moving. The Chaos Alligator s

als. This is a significant improvement over the traditional Bill Williams strategy.

r


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r is a set of three smoothed moving average lines, created by Bill Williams) and described in his book The New Trading Dimensions.

s describes the Alligator as being like a compass which keeps your trading in the right direction. The Alligator helps you spot a real trend and stay out of range

ult in losses. The Alligator is the combination of three balance lines viz., the blue line (alligator's jaw), the red line (alligator's teeth) and the green line (alligators

Alligator Indicator

tor identifies trending & non-trending markets.

ecifies the direction of the trend.

s

e lines are intertwined, the Alligator is asleep and the market is range-bound. The longer it sleeps, the hungrier it gets. When it wakes up from a long sleep it c

refore price movements are much stronger.

lligator is asleep, stay away.

igator is not asleep, the market is either uptrending or down trending. If the prices are above the Alligator's mouth then its an uptrend and if the prices are below

owntrend.

lligator wakes up, it opens its mouth (the three lines diverge) and starts hunting. Having eaten enough, it goes to sleep again (the three Lines converge), so it's

Ideas

arThe First Wise Man

trend will often see prices moving up steeply. The Alligator lines are slow to catch up, and they will be far below prices. Such conditions result in divergence be

momentum in the Alligator. Price rise is steep while the Alligator movement is less steep or sometimes flat. When this happens, look for a reversal bar to signa

reversal bar is a price bar which makes a new high but closes in the lower 50% of the day's range). Once a reversal bar is identified one can Sell below the low

above the high of the same bar.


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Resistance Lines

(DP), support and resistance are based on the prior day's high, low, and close. These values suggest where the stock will pivot up or down and hit levels of s

best be understood using the analogy of jumping up and down in a high-rise building. The floor beneath your feet is your "support" and the ceiling above is the

resistance as you hit the ceiling and support as you landed back on the f loor. If the floor gave way, the next lower floor would be the next support level. If you c

ve you, which used to be the old floor (prior support), would now be resistance.

e, suppose a market trades between 90 and 100 for some t ime. At 90 buyers would be expected to come into the market as prices are perceived to be cheap.

would be expected to come into the market as prices are perceived to be expensive. Once the support (90) is broken decisively, the target for the stock then b

o, the former support level becomes resistance (and vice versa). This is only natural because those who bought the stock at the original support level (90) ma

d resistance levels are normally found through chart analysis. If a market trades at a certain level for some time (i.e. bases) and then begins to rally, that level w

market come back in. On a smaller scale, pivots, support and resistance levels attempt to project where intraday support and resistance will likely occur based

er scale, pivots, support and resistance levels attempt to project where intraday support and resistance will likely occur based on the prior days range and clos

et out at breakeven.

tegy depicts the market direction. It is a trend follower and, because all the well-known rules of support/resistance, trend-lines, time frames, double or triple to

descending triangles and retracements apply, the trader will quickly and easily grasp the messages the market conveys.


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oth a charting style, an Indicator and a trading system in itself. It embodied the thinking found in the modern-days trend following systems.

oncept is to buy on the completion of a green line and to sell on the completion of a red one. Buying or selling a fter the market turned is the preferred choice o

to pick market tops and bottoms, while going with the market flow once a new trend is visible.

nal comes in one of the following ways :

hen there is a signal in the reverse direction, i.e. when a trader is long with green lines and a red line appears. This is the real exit signal.

hen a profit target is being arrived at or,

n a trend-line violation, making it unnecessary to wait for a real exit signal to be flagged or,

when the market fails to move according to expectations.

igned seperately for IntraDay

y trading, the Escala chart is setup to calculate the trend from today's open. This prevents the previous day from influencing today's analysis. Intra-day rule: on

outnumber the red ones by 10:00 a.m. the day will have a (strong) bullish bias implying that only long positions must be entered into throughout the day when

, if red lines outnumber the white ones by 10:00 a.m. the day will have a bearish sentiment, implying that only short positions must be entered into throughout

al

y is designed specifically to predict potential price exhaustion and likely price reversals.


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on an indicator called 'Sequential' developed and trade marked by Tom DeMark. The C9 Reversals strategy differs in many ways from Mr. DeMark's Sequentia

y provide signals not only on a daily, weekly, and monthly basis but also intraday and has an impressive record of identifying and anticipating turning points in

mpleted C9 is the best way to identify buyer or seller exhaustion zone.

ks ?

icator consists of a set of numbers from 1 to 9 and the letter 'C'. The numbers and the letter 'C' are displayed on the price chart at specific locations. When ser

low prices then selling may be getting exhausted and when they are appears above prices then buying may be getting tired.

, the letter 'C' comes in the next bar after the number 9. The letter 'C' tells us that the exhaustion process continues. 'C' stands for 'Continued'. It is important to

arket it is possible for the trend to move a lot further before finally getting exhausted. That means many bars can appear continuously with letter 'C'.

de using C9 Strategy ?

umber 9 appears (or the letter 'C' ) it means that prices are ready for reversal. Whenever the subsequent bar appears without the number 9 or the letter 'C' theon existing positions.

h trader, the 'bulls are exhausted' signal comes when 9 numbers appears above the bars and for a bearish trader, the 'bears are exhausted' signal comes whe

ars. When this happens, traders should either close their positions or tighten their stops.

ation

nal becomes more powerful when there is additional technical evidence, such as :

'bulls exhausted' is made where there is earlier resistance

om 'bears exhausted' is made where there is earlier support

exhausted' signal comes with an indicator breakdown like Stochastics sell.

st


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t examines previous price movements to make a forecast of the future price. The TA Forecast has two components : Pr ice and Time. Since, this is a forecast,

arket behavior which is unknown.

:

er Price or Time to be correctly forecast. It is difficult to forecast both the elements.

ceed the forecasted box, then a trend of some kind has started. In that case just follow the trend and ignore the forecast.

ion:

t paints the candle with two colors : Blue and Dark Violet.

e : Blue candle indicates the end of the downward movement in prices and gives the upside target which is marked by blue rectangle.

Candle : Dark Violet candle indicates the end of the upward movement in prices and gives the downside target which is marked by Dark Violet rectangle.

Technical Indicators(sharemarket)

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