Short term buy/sell date: 17 dec 2008
power finance limited
sell at 128-130 sl 132 tgt 120
(dark cloud cover)
100 dma 121(beware...good support zone)
m n m
sell at305-310 sl 318 tgt 280
30 dma 311 (bearish engulfing )
very strong res. at current levels
bUY::
Buy India bank at 121.5 sl 117.5 tgt 125-130(perfect bullish engulfing)
15 dma= 121.45, 30 dma 125.80 so remain alert
50 dma 126
alternate if it opens at arnd 126 or above then sell sl 130 tgt 121
bhel has made bullish eng. but if it goes to 1500-1550 level short it with sl 1600 tgt 1100 , can buy it tomorrow at 1375-1360 sl 1335
infosys buy at arnd 1100 sl 1080 tgt 1175(made bullish engulfing)
Hemen:
Buy Cumins at 190 (cmp 197) sl 180 tgt 214
Short Term Calls
To Buy
HPCL buy at 226-228 sl 216 tgt 250 LSP=236, 30 dma 220 and bullish engulfing
BPCL buy at 325-330 sl 312 tgt 355 360 bullish engulfing 326 is 30 DMA
IOC buy at 276-378 sl 370 tgt 390 bullish engulfing 30 dma 375
UNION bank of india(as in BSE) : buy at 143-144 sl 138 tgt 150 (more safe should not go below 140 in short term, has tested 141 several times) 30 dma 145
oriental bank of commerce: buy at 140-141 sl 136 tgt 144-146 30 dma 141.5
trent buy at 255-258 sl 249 tgt 278 (volatile)
glenmark (very volatile and risky) buy arnd 255-260 sl 241 tgt 280+
buy IOB at 66.5 to 67 sl 64(very good support) tgt 70 ( good resistance) close 68.6
ITC can give big movement (upside or downside) chances are of upside more.can go to 200 or 150 this week
vijya bank(as per BSE) buy arnd 30.4 sl 29(very good support) tgt 32 low risk bullish engulfing
To Sell
MTNL(as per BSE) sell at 76.5 sl 79 close 74.85 tgt 70 , bearish engulfing
mukta arts sell arnd 52 sl 54 tgt 45 (as per BSE) bearish engulfing
HPCL buy at 226-228 sl 216 tgt 250 LSP=236, 30 dma 220 and bullish engulfing
BPCL buy at 325-330 sl 312 tgt 355 360 bullish engulfing 326 is 30 DMA
IOC buy at 276-378 sl 370 tgt 390 bullish engulfing 30 dma 375
UNION bank of india(as in BSE) : buy at 143-144 sl 138 tgt 150 (more safe should not go below 140 in short term, has tested 141 several times) 30 dma 145
oriental bank of commerce: buy at 140-141 sl 136 tgt 144-146 30 dma 141.5
trent buy at 255-258 sl 249 tgt 278 (volatile)
glenmark (very volatile and risky) buy arnd 255-260 sl 241 tgt 280+
buy IOB at 66.5 to 67 sl 64(very good support) tgt 70 ( good resistance) close 68.6
ITC can give big movement (upside or downside) chances are of upside more.can go to 200 or 150 this week
vijya bank(as per BSE) buy arnd 30.4 sl 29(very good support) tgt 32 low risk bullish engulfing
To Sell
MTNL(as per BSE) sell at 76.5 sl 79 close 74.85 tgt 70 , bearish engulfing
mukta arts sell arnd 52 sl 54 tgt 45 (as per BSE) bearish engulfing
Effective Candlestick Pattern
Which Candle stick Pattern should I use to buy/sell
1. Bullish Engulfing: buy at mid candle range, buy with stoploss of previous day low
2. Bearish Engulfing: Sell at mid candle range, sell with stoploss of previous day high
3. Dark Cloud Cover/
4. Two Rabbits Pattern :
a. The two rabbits candlestick pattern is a bullish reversal signal. The first candlestick in the formation is a long black (red) candlestick that closes near its low. The second candle gaps away from the previous days close, but finishes near its high, which is still below the low of the first candle. The last candle opens inside the body of the second candle, but rallies to fill the gap between the first and second candle. Stoploss should be low of first candle.
5. Two Crows Pattern: The two crows candlestick pattern is a bearish reversal signal. The first candlestick in the formation is a long white (green) candlestick that closes near its high. The second candle gaps away from the previous days close, but finishes near its low, which is still above the high of the first candle. The last candle opens inside the body of the second candle, but sells off to fill the gap between the first and second candle. On quick glance the two crows pattern will resemble the dark cloud cover. Stop loss same as two rabbits.
6.
a. The three outside up pattern is a bullish reversal signal. The first candlestick in the formation is a small black (red) candlestick that closes near its low. The second candlestick completely engulfs the first candlestick and closes near its high. Most often the second candlestick will display an increase in volume, from the running of stops. The third candlestick then breaks the high of the second candlestick and closes strongly.
b. The size of the third candlestick will often provide some indication to the strength of the reversal pattern. Also, if the third candlestick is able to stay above the low of the second candlestick, it provides more support to the bullish case. Traders should wait for the high of the third candlestick in the three outside up pattern to be broken prior to initiating long positions.
c.
7. Three OutSide Down: The size of the third candlestick will often provide some indication to the strength of the reversal pattern. Also, if the third candlestick is able to stay below the high of the second candlestick, it provides more support to the bearish case. Traders should wait for the low of the third candlestick in the three outside down pattern to be broken prior to initiating short positions. Conditions same as previous one.
8. Three Inside Up: The three inside up pattern is a bullish reversal signal. The first candlestick in the formation is a long black (red) candlestick that closes near its low. The second candle gaps away from the previous days close, and closes inside the body of the first candle, creating a harmai. The third candle then exceeds the high of the first and second candle, thus creating a three inside up pattern. This pattern is quite frequent in the morning as traders react to news driven events. This setup can be extremely profitable for skilled day traders who go counter to the primary trend.
9. Three Inside Down: The three inside down pattern is a bearish reversal signal. The first candlestick in the formation is a long white (green) candlestick that closes near its high. The second candle gaps away from the previous days close, and closes inside the body of the first candle, creating a harami. The third candle then exceeds the low of the first and second candle, thus creating a three inside down pattern. This pattern is quite frequent in the morning as traders react to news driven events. This setup can be extremely profitable for skilled day traders who go counter to the primary trend.
10. Hammer and Hanging Man( Don’t see these much)
11. Shooting Star:
a. discuss is the shooting star which occurs after a strong uptrend (or the "inverted hammer" that occurs after a strong move down). The shooting star has a long upper shadow with a small real body at the lower end of the candle. This pattern usually presents itself as a sign of a short term correction rather than a more potent reversal signal. The shooting star is basically telling us that the markets rally could not be sustained. The market opened at or near its lows, shot up much higher and then reversed to close near the open.
b. Ideally, the real body of the shooting star should gap away from the previous candles' real body. While it is not necessary, it adds confirmation to the validity of the impending reversal
Find Out more from page 55 in reverse order
1. Bullish Engulfing: buy at mid candle range, buy with stoploss of previous day low
2. Bearish Engulfing: Sell at mid candle range, sell with stoploss of previous day high
3. Dark Cloud Cover/
4. Two Rabbits Pattern :
a. The two rabbits candlestick pattern is a bullish reversal signal. The first candlestick in the formation is a long black (red) candlestick that closes near its low. The second candle gaps away from the previous days close, but finishes near its high, which is still below the low of the first candle. The last candle opens inside the body of the second candle, but rallies to fill the gap between the first and second candle. Stoploss should be low of first candle.
5. Two Crows Pattern: The two crows candlestick pattern is a bearish reversal signal. The first candlestick in the formation is a long white (green) candlestick that closes near its high. The second candle gaps away from the previous days close, but finishes near its low, which is still above the high of the first candle. The last candle opens inside the body of the second candle, but sells off to fill the gap between the first and second candle. On quick glance the two crows pattern will resemble the dark cloud cover. Stop loss same as two rabbits.
6.
a. The three outside up pattern is a bullish reversal signal. The first candlestick in the formation is a small black (red) candlestick that closes near its low. The second candlestick completely engulfs the first candlestick and closes near its high. Most often the second candlestick will display an increase in volume, from the running of stops. The third candlestick then breaks the high of the second candlestick and closes strongly.
b. The size of the third candlestick will often provide some indication to the strength of the reversal pattern. Also, if the third candlestick is able to stay above the low of the second candlestick, it provides more support to the bullish case. Traders should wait for the high of the third candlestick in the three outside up pattern to be broken prior to initiating long positions.
c.
7. Three OutSide Down: The size of the third candlestick will often provide some indication to the strength of the reversal pattern. Also, if the third candlestick is able to stay below the high of the second candlestick, it provides more support to the bearish case. Traders should wait for the low of the third candlestick in the three outside down pattern to be broken prior to initiating short positions. Conditions same as previous one.
8. Three Inside Up: The three inside up pattern is a bullish reversal signal. The first candlestick in the formation is a long black (red) candlestick that closes near its low. The second candle gaps away from the previous days close, and closes inside the body of the first candle, creating a harmai. The third candle then exceeds the high of the first and second candle, thus creating a three inside up pattern. This pattern is quite frequent in the morning as traders react to news driven events. This setup can be extremely profitable for skilled day traders who go counter to the primary trend.
9. Three Inside Down: The three inside down pattern is a bearish reversal signal. The first candlestick in the formation is a long white (green) candlestick that closes near its high. The second candle gaps away from the previous days close, and closes inside the body of the first candle, creating a harami. The third candle then exceeds the low of the first and second candle, thus creating a three inside down pattern. This pattern is quite frequent in the morning as traders react to news driven events. This setup can be extremely profitable for skilled day traders who go counter to the primary trend.
10. Hammer and Hanging Man( Don’t see these much)
11. Shooting Star:
a. discuss is the shooting star which occurs after a strong uptrend (or the "inverted hammer" that occurs after a strong move down). The shooting star has a long upper shadow with a small real body at the lower end of the candle. This pattern usually presents itself as a sign of a short term correction rather than a more potent reversal signal. The shooting star is basically telling us that the markets rally could not be sustained. The market opened at or near its lows, shot up much higher and then reversed to close near the open.
b. Ideally, the real body of the shooting star should gap away from the previous candles' real body. While it is not necessary, it adds confirmation to the validity of the impending reversal
Find Out more from page 55 in reverse order
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