1-2-3 PATTERN

Friends,

 

we have seen top of 21206 in january 2008, we have seen bottom of 7697 in oct 2008.we have seen both greed and fear at their extreme.some exited from market smartly near top but got trapped again at very higher levels again.same way some smart players got entry at near bottom of 7697 exited early and still waiting for big correction.what is the solution for entry and exit at any time by simple method without going for analysis of no of fundamental or technical studies.

 

one thing i have found which is a very much important factor and that is PRICE  of the asset. by focussing only on price and observing it in simple manner as shown in attached chart thats 1-2-3 pattern,actually it is nothing but use of higher highs and higher lows with some discipline.

 

it can be used for any asset in the world without knowing any thing about it at any time irrespective of PE level.

 

it can be used in bearish period to sell first and buy later to minimise your losses.

 

only limitation of this pattern is sideways market for longer duartion like we have seen between oct 2008 and march 2009.

 

do some paper trading and than use it. u will become self sufficient.

reliance power on verge of a break out

look at chart attached

TRADING SYSTEM

FEW DAYS BACK I HAD DISCUSSED ABOUT 1-2-3 PATTERN TO BE USED AS A TRADING PATTERN.
I HAVE FOUND A SIMILAR PATTERN . LINK IS GIVEN BELOW.READ IT AND TRY TO IMPLEMENT.
http://techtraderreport.com/Articles/CountBack/GuppyCountBack.html

BUY RELIANCE INDUSTRIES CMP 1115

BUYING LIST

ON CROSSING DOWNWARD CHANNEL MARKET MOVED UP IN VERY STRONG MANNER.
I LIST HERE FEW STOCKS WHICH R LOOKING STRONG TECHNICALLY.VERIFY AT YOUR END BEFORE BUYING.

CHENNAI PETRO ABOVE 222
TATA CHEM 294
CASTROL 540
IOC 301

KEEP STOP LOSS AS PER YOUR COMFORT

VIEWS OF SPANDAN JOSHI Mirage 1.3

---------- Forwarded message ----------
From: Spandan Joshi <joshispandan@yahoo.co.uk>
Date: 30 Nov 2009 04:36
Subject: Mirage 1.3

Dear all,   Mirage Version 1.3 ==================== 29/11/2009 ================   Where are we? =============== I firmly believe that we have completed B-C-4 (Downfall)   This lasted for 2 weeks and taken us to 15330, a fall of 2163 points from 17493.   The fifth wave has two targets   123% and 162%   They come to 17990 and 18834   Previously, under very first presentation of Mirage, I gave rough target of 17493 to 18115. However precise targets can only be given when wave gets completed.   Indeed this is my main scenario.   As per our main scenario, we may have completed B-C-5-2   5th wave is an up move as we have moved up from 15330 to 17200, already 1870 points.   This was probably the first wave called 5-1. The second wave has retraced 980 points to 16219. That is a 52% downfall to the 1st wave. With that I feel 2nd wave may be over by now, unless we break 16219 again. We may see 5-3 firing in upward direction. If that is a right direction and a count (Primary count) then we shall see 17806 as a 162% up move to the fall of 980 points.   The target comes to 17806 as per B-C-5-3 ================================== =============================================== However there are still small chances of Rally terminating below 17200. That will be our secondary scenario. For that to happen two conditions must be fulfilled.   1 We mustn't close above 17200 decisively. 2 We must break 16219 first followed by 15330 next.   Unless that happens, primary wave count should be followed by our model. If the above happens, one may consider as a 5th wave failure.   Strategy? =========== Not to trade/Buy can be a good idea. Watch it out for above findings. Of course over 17200 and 17493, one may prefer to buy only for ST trade. Sporadic buying opportunities can be picked up as and when in the mean time.   Wish you all a good luck.   Regards   Spandan Joshi

SENSEX

LOOK AT CHART
************************************************************************
UPDATE AS ON 30.11.09

WE GOT RESISTED EXACTLY AT UPPER TRENDLINE OF DOWNWARD CHANNEL.

***************************************************************************
UPDATE AS ON 1.12.09

WE HAVE COME OUT FROM DOWNWARD CHANNEL , A BULLISH SIGN

SENSEX OPTIONS AS ON 27.11.09

10000 hits !

Dear Friends,

blog has crossed 10,000 hits.i recall when i had given title of 5000 hits in 3 months time KPR misunderstood and thought it was call for nifty and see nifty has also crossed 5k mark during this 3 months time.

if u have observed i am having some problem with my system in saving and pasting charts for blog. size gets reduced. so i am not putting charts since few days.very soon i will sort the problem.

market has broken trendline running from 15331 after consuming 1.618% time in recovering 1960 points after a fall of 2162 points.first imp low was arnd 17k and that is gone today.next immediate imp low is at 16636.

fibo lvls r 16542/16311 and 16080 for 38.2/50 and 61.8% of rise of 1960 points.
so better to keep strict stop losses on long positions. new long positions shd be avoided at present for few days.let mkt settle.

one more change i have planned and following also since few days after reading few mails at isg from Spandan and other friends. i had observed that by tracking sensex regularly readers as well as me were getting carried away by observations on sensex and that always affects yr decisions for buying n selling stocks. patterns for stock and sensex may be different.so i have minimised analysis of sensex and i am increasing analysis of stocks.i have started giving stop loss only while analysing stock. for target u have to observe yrself and go on raising yr stop loss as well as target.

for simple analysis better to follow 1-2-3 system. i will discuss this pattern with help of chart in detail in few days .


i thank u all for yr kind support and encouragement!

BILT

BUT BILT ABOVE 24.25 WITH STOP LOSS AT 21.5