FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.
FINANCIAL CHRONICLE™

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka

Click Link to get instant AI answers to all business queries.
Click Link to find latest Economic Outlook of Sri Lanka
Click Link to view latest Research and Analysis of the key Sectors and Industries of Sri Lanka
Worried about Paying Taxes? Click Link to find answers to all your Tax related matters
Do you have a legal issues? Find instant answers to all Sri Lanka Legal queries. Click Link
Latest images

Latest topics

» CSE to turn bullish after November 14 poll
by Rare Today at 10:13 am

» ලාභ විජ්ජාව!!
by D.G.Dayaratne Yesterday at 8:11 pm

» Banking Sector (3Q 2024)
by God Father Yesterday at 7:05 am

» Prepare to be blown away..
by cpriya Yesterday at 1:05 am

» Hotel Sigiriya (HSIG) most undervalued & huge profit making Hotel
by LAMDA Sat Nov 16, 2024 11:38 pm

» ‘Buy the Rumour, Sell the News’
by God Father Sat Nov 16, 2024 12:00 pm

» Asian stocks drift higher amid rate cut speculation; Japan lags
by Rare Sat Nov 16, 2024 9:56 am

» Oil prices fall further
by Rare Sat Nov 16, 2024 9:40 am

» Post-election winners.
by Rare Sat Nov 16, 2024 9:36 am

» Bullish about a sustainable turnaround - CSE Chairman
by Rare Sat Nov 16, 2024 9:25 am

» Plantation Companies
by Rare Sat Nov 16, 2024 9:19 am

» COMMERCIAL BANK OF CEYLON PLC (COMB.N0000)
by EPS Thu Nov 14, 2024 10:31 pm

» People's leasing VS Singer Finance IPO Analysis
by ddrperera Wed Nov 13, 2024 8:18 pm

» Insights into LOLC Advanced Technologies
by samaritan Wed Nov 13, 2024 10:41 am

» LOLC Tech's ambitious plans for global expansion
by samaritan Tue Nov 12, 2024 2:06 pm

» PLANTATION SECTOR
by God Father Sun Nov 10, 2024 8:19 pm

» People's leasing company, a hidden gem? (an analysis)
by Nandana Withanage Sun Nov 10, 2024 6:56 pm

» PEOPLE'S LEASING BUYING SIGNAL Target Price 19 ..PLEASE KEEP EYE ON THIS..
by nilantha suranga Sun Nov 10, 2024 9:16 am

» Peoples leasing technically positive Target Price Rs 20
by Shiranli Sun Nov 10, 2024 7:43 am

» Quarterly Research Updates (Sep 2024)
by God Father Sun Nov 10, 2024 7:42 am

» Peoples Leasing....!!! whts the target?
by rajithasahan Sun Nov 10, 2024 7:35 am

» PEOPLE'S LEASING & FINANCE PLC
by mafasmunaseer Sun Nov 10, 2024 12:45 am

» Will garment exports to U.S. be taxed under Trump administration?
by Quibit Sat Nov 09, 2024 4:34 pm

LISTED COMPANIES

Submit Post
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


CONATCT US


Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer



EXPERT CHRONICLE™

ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)



CHRONICLE™ YouTube


You are not connected. Please login or register

Technical Analytics & Charts (1)

+59
monash
laksharemk
wappula
yaka
ole
m2_yapa
Leon
rainmaker
balapas
prabath
klpfernando
The Alchemist
bakapandithaya
sandanuwan
suja
mark
Arena
VertexCSE
Expert
sahan8896
Fresher
pathfinder
takefawaz
nimantha80
UAEBOY
hairai
godswen
nkuda
Dr_CSE
dinusha.kiwulegedara
raybenz1984
Jiggysaurus
fairbullrun
LateTackle
kav4
Whitebull
kas
D.G.Dayaratne
Stefan
Slstock
Backstage
opfdo
market bull
Antonym
Green79
val2004
malanp
manula
Redbulls
Kumar
CSE.SAS
lemuria
smallville
K.Haputantri
sriranga
chamith
Rajaraam
stumpy
traderathome
63 posters

Go to page : 1, 2, 3 ... 20 ... 40  Next

Go down  Message [Page 1 of 40]

1Technical Analytics & Charts (1) Empty Technical Analytics & Charts (1) Wed Mar 14, 2012 8:42 am

traderathome

traderathome
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

In this lesson, we'll be looking at harmonic price patterns. These bad boys may be a little harder to grasp but once you spot these setups, it can lead to some very nice profits!

The whole idea of these patterns is that they help people spot possible retracements of recent trends. In fact, we'll make use of other tools we've already covered - the Fibonacci retracement and extensions!

Combining these wonderful tools to spot these harmonic patterns, we'll be able to distinguish possible areas for a continuation of the overall trend.

In this lesson, we're going to discuss the following Harmonic Price Patterns:
ABCD Pattern
Three-Drive Pattern
Gartley Pattern
Crab Pattern
Bat Pattern
Butterfly Pattern
Phew! That's quite a lot to cover!

But don't you worry... Once you get the hang of things, it'll be as easy as 1-2-3! We'll start off with the more basic ABCD and three-drive patterns before moving on to Gartley and the animals.

After learning about them, we'll take a look at the tools you need in order to trade these patterns successfully.

For all these harmonic patterns, the point is to wait for the entire pattern to complete before taking any short or long trades. You'll see what we're talking about later on so let's get started!



source:baby pips  Very Happy

2Technical Analytics & Charts (1) Empty Re: Technical Analytics & Charts (1) Wed Mar 14, 2012 8:45 am

traderathome

traderathome
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

The ABCD and the Three-Drive

The ABCD

Let's start this lesson with the simplest harmonic pattern, and what could be more basic than your good ole ABC's? We'll just pop in another letter right there (because we're cool like that) and we've got the ABCD chart pattern!

To spot this chart pattern, all you need are ultra-sharp hawk eyes and the handy-dandy Fibonacci tool.

For both the bullish and bearish versions of the ABCD chart pattern, the lines AB and CD are known as the legs while BC is called the correction or retracement. If you use the Fibonacci retracement tool on leg AB, the retracement BC should reach until the 0.618 level. Then, the line CD should be the 1.272 Fibonacci extension of BC.

Simple, right? All you have to do is wait for the entire pattern to complete (reach point D) before taking any short or long positions.

Oh, but if you want to be extra strict about it, here are a couple more rules for a valid ABCD pattern:

The length of line AB should be equal to the length of line CD.
The time it takes for the price to go from A to B should be equal to the time it takes for the price to move from C to D.



[You must be registered and logged in to see this image.]



Last edited by traderathome on Wed Mar 14, 2012 8:58 am; edited 2 times in total

3Technical Analytics & Charts (1) Empty Re: Technical Analytics & Charts (1) Wed Mar 14, 2012 8:47 am

traderathome

traderathome
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

Three-Drive

The three-drive pattern is a lot like the ABCD pattern except that it has three legs (now known as drives) and two corrections or retracements. Easy as pie! In fact, this three-drive pattern is the ancestor of the Elliott Wave pattern.

As usual, you'll need your hawk eyes, the Fibonacci tool, and a smidge of patience on this one.

As you can see from the charts above, point A should be the 61.8% retracement of drive 1. Similarly, point B should be the 0.618 retracement of drive 2. Then, drive 2 should be the 1.272 extension of correction A and drive 3 should be the 1.272 extension of correction B.

By the time the whole three-drive pattern is complete, that's when you can pull the trigger on your long or short trade. Typically, when the price reaches point B, you can already set your short or long orders at the 1.272 extension so that you won't miss out!

But first, it'd be better to check if these rules also hold true:

The time it takes the price to complete drive 2 should be equal to the time it takes to complete drive 3.
Also, the time to complete retracements A and B should be equal.




[You must be registered and logged in to see this image.]

4Technical Analytics & Charts (1) Empty Re: Technical Analytics & Charts (1) Wed Mar 14, 2012 9:01 am

traderathome

traderathome
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

The Gartley and the Animals

Once upon a time, there was this insanely smart trader dude named Harold McKinley Gartley.

He had a stock market advisory service in the mid-1930s with a huge following. This service was one of the first to apply scientific and statistical methods to analyze the stock market behavior.

According to Gartley, he was finally able to solve two of the biggest problems of traders: what and when to buy.

Soon enough, traders realized that these patterns could also be applied to other markets. Since then, various books, trading software, and other patterns (discussed below) have been made based on the Gartleys.

Gartley a.k.a. "222" Pattern

The Gartley "222" pattern is named for the page number it is found on in H.M. Gartleys book, Profits in the Stock Market. Gartleys are patterns that include the basic ABCD pattern we've already talked about, but are preceded by a significant high or low.

Now, these patterns normally form when a correction of the overall trend is taking place and look like 'M' (or 'W' for bearish patterns). These patterns are used to help traders find good entry points to jump in on the overall trend.



A Gartley forms when the price action has been going on a recent uptrend (or downtrend) but has started to show signs of a correction.

What makes the Gartley such a nice setup when it forms is the reversal points are a Fibonacci retracement and Fibonacci extension level. This gives a stronger indication that the pair may actually reverse.

This pattern can be hard to spot and once you do, it can get confusing when you pop up all those Fibonacci tools. The key to avoiding all the confusion is to take things one step at a time.

In any case, the pattern contains a bullish or bearish ABCD pattern, but is preceded by a point (X) that is beyond point D. The "perfect" Gartley pattern has the following characteristics:

Move AB should be the .618 retracement of move XA.
Move BC should be either .382 or .886 retracement of move AB.
If the retracement of move BC is .382 of move AB, then CD should be 1.272 of move BC. Consquently, if move BC is .886 of move AB, then CD should extend 1.618 of move BC.
Move CD should be .786 retracement of move XA


[You must be registered and logged in to see this image.]

5Technical Analytics & Charts (1) Empty Re: Technical Analytics & Charts (1) Wed Mar 14, 2012 9:04 am

traderathome

traderathome
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

The Animals

As time went by, the popularity of the Gartley pattern grew and people eventually came up with their own variations.

For some odd reason, the discoverers of these variations decided to name them after animals (Maybe they were part of PETA?).Without further ado, here comes the animal pack...

The Crab

In 2000, Scott Carney, a firm believer in harmonic price patterns, discovered the "Crab".

According to him, this is the most accurate among all the harmonic patterns because of how extreme the Potential Reversal Zone (sometimes called "price better reverse or imma gonna lose my shirt" point) from move XA.



This pattern has a high reward-to-risk ratio because you can put a very tight stop loss. The "perfect" crab pattern must have the following aspects:

Move AB should be the .382 or .618 retracement of move XA.
Move BC can be either .382 or .886 retracement of move AB.
If the retracement of move BC is .382 of move AB, then CD should be 2.24 of move BC. Consquently, if move BC is .886 of move AB, then CD should be 3.618 extension of move BC.
CD should be 1.618 extension of move XA.



[You must be registered and logged in to see this image.]

6Technical Analytics & Charts (1) Empty Re: Technical Analytics & Charts (1) Wed Mar 14, 2012 9:07 am

traderathome

traderathome
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

Here is a chart pattern on swarnamahal. Very Happy [You must be registered and logged in to see this image.]

7Technical Analytics & Charts (1) Empty Re: Technical Analytics & Charts (1) Wed Mar 14, 2012 11:42 am

traderathome

traderathome
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

a POTENTIAL chart for dialog Please note CD leg is yet to form.share prices less than 4rs will invalidate.

[You must be registered and logged in to see this image.]

8Technical Analytics & Charts (1) Empty Re: Technical Analytics & Charts (1) Wed Mar 14, 2012 12:26 pm

traderathome

traderathome
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

The Bat
Come 2001, Scott Carney founded another Harmonic Price Pattern called the "Bat." The Bat is defined by the .886 retracement of move XA as Potential Reversal Zone. The Bat pattern has the following qualities:

Move AB should be the .382 or .500 retracement of move XA.
Move BC can be either .382 or .886 retracement of move AB.
If the retracement of move BC is .382 of move AB, then CD should be 1.618 extension of move BC. Consquently, if move BC is .886 of move AB, then CD should be 2.618 extension of move BC.
CD should be .886 retracement of move XA.


[You must be registered and logged in to see this image.]

9Technical Analytics & Charts (1) Empty Re: Technical Analytics & Charts (1) Wed Mar 14, 2012 12:27 pm

traderathome

traderathome
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

The Butterfly
Then, there is the Butterfly pattern. Like Muhammad Ali, if you spot this setup, you'll surely be swinging for some knockout-sized pips!

Created by Bryce Gilmore, the perfect Butterfly pattern is defined by the .786 retracement of move AB with respect to move XA. The Butterfly contains these specific characteristics:

Move AB should be the .786 retracement of move XA.
Move BC can be either .382 or .886 retracement of move AB.
If the retracement of move BC is .382 of move AB, then CD should be 1.618 extension of move BC. Consquently, if move BC is .886 of move AB, then CD should extend 2.618 of move BC.
CD should be 1.27 or 1.618 extension of move XA.


[You must be registered and logged in to see this image.]

10Technical Analytics & Charts (1) Empty Re: Technical Analytics & Charts (1) Wed Mar 14, 2012 12:43 pm

stumpy

stumpy
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Very Happy
Thanks buddy! Just learned a New lesson!

11Technical Analytics & Charts (1) Empty Re: Technical Analytics & Charts (1) Wed Mar 14, 2012 12:54 pm

traderathome

traderathome
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

stumpy wrote:Very Happy
Thanks buddy! Just learned a New lesson!
have any idea how to load cse market data for stocks in to mt4 platform ? Rolling Eyes i got mt4 indicators with pattern recognition. wanna test this one on cse market feed. Very Happy

12Technical Analytics & Charts (1) Empty Re: Technical Analytics & Charts (1) Wed Mar 14, 2012 1:08 pm

stumpy

stumpy
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Check ur Email boss!
I guess Boston Technologies aren't supporting CSE data feed for MT4!
May be MT5 coz it's based on C++!

Aththama kivvoth! I don't know bro! Very Happy
But u'm using CSE data feed @ Amibroker & Metastock!

BTW pls email me that pattern recognition thing!
Wanna do some experiments! ha ha!


13Technical Analytics & Charts (1) Empty Re: Technical Analytics & Charts (1) Wed Mar 14, 2012 1:38 pm

Rajaraam


Vice President - Equity Analytics
Vice President - Equity Analytics

Thank you tradeathome, How nice it? I like to learn more on swing trading. Hope your teaching is very useful.

14Technical Analytics & Charts (1) Empty Re: Technical Analytics & Charts (1) Wed Mar 14, 2012 1:59 pm

chamith

chamith
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

traderathome wrote:
stumpy wrote:Very Happy
Thanks buddy! Just learned a New lesson!
have any idea how to load cse market data for stocks in to mt4 platform ? Rolling Eyes i got mt4 indicators with pattern recognition. wanna test this one on cse market feed. Very Happy

Are you talking about Ami broker's AFL ?
I also download some codes tested. work well it seems
You can even write ur own codes, its simple

15Technical Analytics & Charts (1) Empty Re: Technical Analytics & Charts (1) Wed Mar 14, 2012 2:13 pm

sriranga

sriranga
Co-Admin

Thanks traderathome.
Very good one and hope a lot from you in future.

http://sharemarket-srilanka.blogspot.co.uk/

16Technical Analytics & Charts (1) Empty Re: Technical Analytics & Charts (1) Wed Mar 14, 2012 2:27 pm

K.Haputantri

K.Haputantri
Co-Admin

Thank you trader@home. Continue the yomen service.

17Technical Analytics & Charts (1) Empty Re: Technical Analytics & Charts (1) Wed Mar 14, 2012 3:11 pm

traderathome

traderathome
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

chamith wrote:
traderathome wrote:
stumpy wrote:Very Happy
Thanks buddy! Just learned a New lesson!
have any idea how to load cse market data for stocks in to mt4 platform ? Rolling Eyes i got mt4 indicators with pattern recognition. wanna test this one on cse market feed. Very Happy

Are you talking about Ami broker's AFL ?
I also download some codes tested. work well it seems
You can even write ur own codes, its simple
what i need is price history of all stocks to be DL to MT4.Then i can run the pattern recognition tool so that it will easily show me impending pattern. Very Happy

18Technical Analytics & Charts (1) Empty Re: Technical Analytics & Charts (1) Wed Mar 14, 2012 4:38 pm

traderathome

traderathome
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

here is a BULLISH Gartley chart on PARQ. See how lagging our conventional indicators compared to this method.The method is with an accuracy of 90% GUYS Basketball Lets see how good the current PRZ would stand. A price below 12 rs will invalidate the chart pattern, then we look for the other bullish PRZ hopefully to load some mo Shocked
[You must be registered and logged in to see this image.]

19Technical Analytics & Charts (1) Empty Re: Technical Analytics & Charts (1) Wed Mar 14, 2012 5:02 pm

traderathome

traderathome
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

here is a trade on AUDUSD spot fx with this trading system..... see how accurate,,,

method is not fool proof 100% but highly accurate with good risk reward.

[You must be registered and logged in to see this image.]

20Technical Analytics & Charts (1) Empty Re: Technical Analytics & Charts (1) Wed Mar 14, 2012 6:21 pm

traderathome

traderathome
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

Here is the Bearish 5-0 pattern for ASPI.

The 5-0 pattern was not discussed earlier in this thread. But i thought i will put this post since i studied on ASPI Sad This pattern is onle leg extension from C of Shark Pattern. which will discuss later. No need to discuss all at one time rite...will take one at a time Very Happy

So will see what happens next couple of weeks....

happy trading

[You must be registered and logged in to see this image.]

21Technical Analytics & Charts (1) Empty Re: Technical Analytics & Charts (1) Wed Mar 14, 2012 6:32 pm

traderathome

traderathome
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

My only worry is how reliable the data feed on Direct FN TWS Smile I would appreciate some one could lemme explain where to DL the market feed in compatible mode to MT4 platform. Very Happy

22Technical Analytics & Charts (1) Empty Re: Technical Analytics & Charts (1) Wed Mar 14, 2012 7:24 pm

smallville

smallville
Associate Director - Equity Analytics
Associate Director - Equity Analytics

Very valuable thread on TA..

SFS & PARQ had nice patterns; See the Three Fibonacci retracements drawn..
[You must be registered and logged in to see this image.]

But why DIAL has to come to Rs. 4/- unless ASI dips below 4700??

[You must be registered and logged in to see this image.]

23Technical Analytics & Charts (1) Empty Re: Technical Analytics & Charts (1) Wed Mar 14, 2012 7:32 pm

lemuria


Manager - Equity Analytics
Manager - Equity Analytics

gud post ma friend. Keep gd work.

24Technical Analytics & Charts (1) Empty Re: Technical Analytics & Charts (1) Wed Mar 14, 2012 8:22 pm

traderathome

traderathome
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

A Chart of Lankem...anyone holding we are in a potential Price reversal zone. Very Happy hope i helped you ....in some way

[You must be registered and logged in to see this image.]

25Technical Analytics & Charts (1) Empty Re: Technical Analytics & Charts (1) Wed Mar 14, 2012 8:32 pm

traderathome

traderathome
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

This HAT method is very good/effective,to decide when to sell off and when and where to place BUY orders Very Happy TA Rulllllls

Sponsored content



Back to top  Message [Page 1 of 40]

Go to page : 1, 2, 3 ... 20 ... 40  Next

Permissions in this forum:
You cannot reply to topics in this forum