........................ Chartschool - Tutorial on Sharemarket .........................

This summary of stop loss techniques are my adaptations of industry standard recommendations. They work well for me, try them along with your own paper trading strategies then adapt and expand them to fit your own style. –The PitMaster

To understand the where’s and why’s of stop loss placement, we must first understand market movement. A brief explanation of this is called Swing Movement. It’s been better popularized as the Fibonacci Retracements.
	A Swing is a movement from low to high, or high to low.For example, a 123 bottom consists of 4 swings. The move which ends at the #1 point low is a down swing. The rally up to the #2 point is an upward swing, while the swing down to the #3 point is a swing, and the rally which penetrates the #2 point is the 4th and final swing. In other words each rally or break in a pattern is a swing.
Basically the definition of a Bull Market is a market which makes “higher highs” and “higher lows.” A Bear Market is a market which makes “lower highs” and “lower lows.”What is a 123 Bottom, but a market which makes higher lows (#3 point is higher than the #1 point)? When the #2 point is penetrated, the market is making higher highs. This pattern is the very definition of a Bear Market turning to a Bull Market, while the 123 Top is the very definition of a Bull Market turning to a Bear Market. Each extreme of a swing, should act as support or resistance. When I examine charts, I look at the swings and look for markets which are making higher highs and higher lows to buy, while I look for markets which are making lower highs and lower lows to sell. After the trend has been defined, one must figure out where the trend would change. For a Bull Market it would be the last swing low (point #1 on the above chart). For a Bear Market it would be the last swing high. In other words, the basic rule is to trade in the direction of the trend and risk the trade to where the trend is no longer valid, as a maximum stop loss.

When the #2 point is penetrated, the market is making lower lows. This pattern is the very definition of a Bull Market turning to a Bear Market. Therefore, we place our stop order to enter the market on a break out or any penetration of the #2 point. If the market then turns around and breaks back past the #3 point, it would have just broke the Bear Market rule. (The market would no longer be making lower highs.) Therefore, often times I recommend placing your stop loss order more conservatively, just behind the #3 point as opposed to waiting for the market to break the #1 point. Each extreme of a swing, should act as support or resistance. What’s good for a 123 Top formation, is also good for a 123 Bottom formation.
Narrow sideways channels are one of the easiest formations to identify and to profit from. When the market breaks out of the channel one way or the other, we simply place our stop loss behind the channel’s resistance. Sometimes, when the channel is very wide, we may not want to risk that much money, therefore consider placing your stop loss at about the 50% level. Again, each extreme of a swing, should act as support or resistance.
This is one of my favorite formations. When the market starts forming a Triangle, I get all excited. Basically, the same rules apply for this formation as for a narrow sideways channel. Watch for triangles, the break out is usually very dramatic.
Notice on this formation how close behind the entry point I trail my stop. Watch for Wedges, the break-outs are also usually very dramatic.
The PitMaster’s Stop Loss Rule-Of-Thumb.Where the chart formation is taking place within relationship to the short and long term trend is a very important consideration in how aggressive you might want to be when placing your stop loss orders. Also, is the formation taking place within a Bear move, or a Bull move? It’s important to know this, because as you well know, “The Trend Is Your Friend.” Even though each indicator above may be an indication in reversal of direction, you also want to remember the old adage, “A body (market) in motion tends to stay in motion.” The same rules apply when the markets are in reverse. Place stop loss at the entry point if the market breaks DOWN, and consider taking profits quickly.	Figure #1: If the market breaks DOWN, place your stop loss at the industry standard point or consider a more conservative 50% placement (Depending on the width of the channel or triangle.)Place stop loss at the entry point if the market breaks UP, and consider taking profits quickly. Figure #2: Place stop loss at the industry standard or more conservative 50% retracement on break down OR up. (Depending on the width of the channel or triangle.) Figure #3: If the market breaks UP, place your stop loss at the industry standard point or consider a more conservative 50% placement (Depending on the width of the channel or triangle.)

Hypothetical results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program.

One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program, in spite of trading losses, are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.

Fibonacci Pinball

chartschool — Wed, 03 Nov 2010 14:15:58 +0000

The picture shows a type of pinball machine that you can build yourself. You will need 10 finishing nails, 5 small cups, a wooden board and a pinball (marble). Nail the nails part way into the board in the triangular pattern shown, with one nail in the top row, two in the second, three in the third and so on, and with enough space for the pinball to fit between the nails.

To operate the machine, tilt the board at a slight angle and release the pinball so that it hits the top nail dead center. If the machine is not tilted the pinball will be deflected either left or right with equal probability by the first nail. It will then continue falling and hit one of the nails in the second row and be deflected either left or right around that nail with equal probability.

The result is that the pinball follows a random path, deflecting off one pin in each of the four rows of pins, and ending up in one of the cups at the bottom. The various possible paths are shown by the gray lines and one particular path is shown by the red line.

How many random paths are there through your pinball machine, and what are they?

The answer is 16. The brief explanation is:

The first row has one pin. The number of possible paths through the first row = 2.

The second row has two pins. Since what happens in the second row is completely independent of what happened in the first row, the number of possible paths the pinball could travel from the top through the second row = 4 (2 x 2).

The third row has three pins. Since what happens in the third row is completely independent of what happened in the second row, the number of possible paths completed from the top through the third row = 8 (2 x 2 x 2).

The fourth row has four pins so the number of possible paths from the top through the fourth row = 16 (2 x 2 x 2 x 2).

If you drop 16 pinballs into the top of your machine and repeat that event one million times, what is the average number of pinballs per event that will fall into each cup at the bottom? The answer, from left to right, shown in our pinball machine image below is 1-4-6-4-1. The image to the right is known as Pascal’s Triangle. Pascal’s Triangle is very useful for analysing the pinball machine. Pascal’s Triangle also pops up in a variety of other seemingly unrelated areas. First we mention that the triangle continues on forever and we have only shown the first five rows. Can you see the pattern and guess what the next row of numbers is?

If we superimpose Pascal’s Triangle on top of the pinball machine then we see the connection between the two: Each number of Pascal’s Triangle represents the number of distinct paths that a pinball can take to arrive at that point in the pinball machine. Without knowing any more at this point it is still fair to say that Pascal’s Triangle is a logically ordered description of the outcome of a series of completely random events.

Although Pascal did not discover the sequence of numbers that bears his name, the origin is believed to be hundreds of years earlier in China, he did popularize the sequence in the 17th century from his research, of all things, on improving his betting odds at the gaming tables. If Blaise Pascal were around today he would probably be running some hundred billion dollar derivative heddge fund that kept the Fed Chairman up at nights.

Pascal’s Triangle is an oddity. The construction of the triangle is simple. The numbers on each new row are derived by adding the numbers immediately above and to the right and left. We use letters to make words, words to make sentences, and sentences to tell stories that inform us. Numbers are really no different. Clusters of numbers are scale. Sequences of numbers are a process. For us numbers are abstract symbols but to the Pythagoreans numbers had an actual form and a shape. The dots on the right side of the page are the number 34 – a triangle and a square. Sometimes it is useful to think of numbers, including stock and commodity prices, as shapes and forms. Shapes occupy space. They have scale. And they reside in time.

Here’s an image of Pascal’s Triangle filled out to ten rows.

It looks interesting. But so what? That would be the normal and expected reaction from a generation with hundreds of years of learning that numbers are only abstract symbols used as a convenience to measure something else that is tangible and real. But wait. Didn’t we say that Pascal’s Triangle is a logically ordered description of the outcome of a series of completely random events? Could there not also be a hidden order within the description itself?

It gets curiouser and curiouser but finally we arrive. Maybe even back to the beginning. When you add the diagonal rows of Pascal’s Triangle. Left to right and right to left. You derive the sequence of Fibonacci ratios.

The deeper you get into the heart of Pascal’s Triangle the closer you get to the Divine Proportion. What does it all mean? Who knows for sure. Perhaps it is enough to leave with the thought that the detritus of large numbers of simple binary decisions, like the left or right of the pinball, or the buy or sell in the pits, leave footprints in space and time that may be impossible to recognize while happening but become clear enough down the road if you know where to look.
_________________________

The pinball machine discussion and illustrations are from the math department at the British Columbia Institute of Technology.

Nifty Levels for Weekly, Monthly, Quarterly and Yearly

chartschool — Fri, 29 Oct 2010 14:17:25 +0000

The Figures shown are sample, click on the image for Original Figures

Intraday Trading Levels for the Day

chartschool — Thu, 14 Oct 2010 02:19:50 +0000

Intraday Trading Levels for the day

Camarilla Levels for Nifty and Index Futures

Fibonacci Levels for Nifty and Index Futures

Pivot Levels for Nifty and Index Futures

Tags: Intraday Trading Levels for the day, Camarilla Levels for Nifty and Index Futures, Fibonacci Levels for Nifty and Index Futures, Pivot Levels for Nifty and Index Futures, Nifty Review, Nifty Today, BANKNIFTY, CNXIT, MINIFTY, NFTYMCAP50, NIFTY, ABAN, ABB, ABGSHIP, ABIRLANUVO, ACC, ADANIENT, ADANIPOWER, ALBK, AMBUJACEM, ANDHRABANK, APIL, APOLLOTYRE, AREVAT&D, ASHOKLEY, ASIANPAINT, AUROPHARMA, AXISBANK, BAJAJ-AUTO, BAJAJHIND, BALRAMCHIN, BANKBARODA, BANKINDIA, BEL, BEML, BGRENERGY, BHARATFORG BHARTIARTL, BHEL, BHUSANSTL, BIOCON, BOSCHLTD, BPCL, BRFL, CAIRN, CANBK, CENTURYTEX, CESC, CHAMBLFERT, CHENNPETRO, CIPLA, COLPAL, CONCOR, COREPROTEC, CROMPGREAV, CUMMINSIND, DABUR, DCHL, DENABANK, DISHTV, DIVISLAB, DLF, DRREDDY, EDUCOMP, EKC, ESSAROIL, EXIDEIND, FEDERALBNK, FINANTECH, FORTIS, FSL, GAIL, GESHIP, GLAXO, GMDCLTD, GMRINFRA, GODREJIND, GRASIM, GSPL, GTL, GTLINFRA, GTOFFSHORE, GVKPIL, HCC, HCLTECH, HDFC, HDFCBANK, HDIL, HEROHONDA, HEXAWARE, HINDALCO, HINDPETRO, HINDUNILVR, HINDZINC, HOTELEELA, IBREALEST, ICICIBANK, ICSA, IDBI, IDEA, IDFC, IFCI, INDHOTEL, INDIACEM, INDIAINFO, INDIANB, INFOSYSTCH, IOB, IOC, ISPATIND, ITC, IVRCLINFRA, JINDALSAW, JINDALSTEL, JINDALSWHL, JISLJALEQS, JPASSOCIAT, JPPOWER, JSWSTEEL, KFA, KOTAKBANK, KSOILS, LICHSGFIN, LITL, LT, LUPIN, M&M, MARUTI, MCDOWELL-N, MCLEODRUSS, MLL, MOSERBAER, MPHASIS, MRPL, MTNL, MUNDRAPORT, NAGARCONST, NAGARFERT, NATIONALUM, NEYVELILIG, NHPC, NMDC, NTPC, OFSS, ONGC, ONMOBILE, OPTOCIRCUI, ORBITCORP, ORCHIDCHEM, ORIENTBANK, PANTALOONR, PATELENG, PATNI, PETRONET, PFC, PIRHEALTH, PNB, POLARIS, POWERGRID, PRAJIND, PTC, PUNJLLOYD, RANBAXY, RCOM, RECLTD, RELCAPITAL, RELIANCE, RELINFRA, RELMEDIA, RENUKA, RNRL, ROLTA, RPOWER, RUCHISOYA, SAIL, SBIN, SCI, SESAGOA, SIEMENS, SINTEX, SOBHA, SRTRANSFIN, STER, STERLINBIO, SUNPHARMA, SUNTV, SUZLON, SYNDIBANK, TATACHEM, TATACOMM, TATAGLOBAL, TATAMOTORS, TATAPOWER, TATASTEEL, TCS, TECHM, TITAN, TRIVENI, TTML, TULIP, TV-18, UCOBANK, ULTRACEMCO, UNIONBANK, UNIPHOS, UNITECH, VIDEOIND, VIJAYABANK, VOLTAS, WELCORP, WIPRO, YESBANK, ZEEL.

Camarilla Levels for the day 12-10-2010

chartschool — Tue, 12 Oct 2010 02:04:42 +0000

CAMARILLA LEVELS FOR THE DAY 12-10-2010 (Values based on the FUTURES CONTRACT)
Stock Name	R5	R4	R3	R2	R1	S1	S2	S3	S4	S5
BANKNIFTY	12745.09	12723.26	12659.27	12648.28	12637.74	12616.26	12605.72	12594.73	12562.47	12508.91
CNXIT	6860.96	6824.24	6802.12	6794.59	6787.36	6772.64	6765.41	6757.88	6735.76	6699.04
MINIFTY	6243.97	6219.49	6204.74	6199.72	6194.91	6185.09	6180.28	6175.26	6160.51	6136.03
NFTYMCAP50	3084.85	3084.85	3084.85	3084.85	3084.85	3084.85	3084.85	3084.85	3084.85	3084.85
NIFTY	6248.86	6223.30	6207.90	6202.65	6197.62	6187.38	6182.35	6177.10	6161.70	6136.14
ABAN	909.68	901.84	897.12	895.51	893.97	890.83	889.29	887.68	882.96	875.12
ABB	952.31	944.46	939.73	938.12	936.57	933.43	931.88	930.27	925.54	917.69
ABGSHIP	321.20	316.07	312.99	311.94	310.93	308.87	307.86	306.81	303.73	298.60
ABIRLANUVO	912.65	904.51	899.61	897.93	896.33	893.07	891.47	889.79	884.89	876.75
ACC	1037.17	1031.20	1027.60	1026.37	1025.20	1022.80	1021.63	1020.40	1016.80	1010.83
ADANIENT	735.67	725.61	719.56	717.49	715.52	711.48	709.51	707.44	701.39	691.33
ADANIPOWER	144.47	143.03	142.17	141.87	141.59	141.01	140.73	140.43	139.57	138.13
ALBK	249.13	247.14	245.95	245.54	245.15	244.35	243.96	243.55	242.36	240.37
AMBUJACEM	145.47	143.99	143.09	142.79	142.50	141.90	141.61	141.31	140.41	138.93
ANDHRABANK	170.74	169.61	168.93	168.70	168.48	168.02	167.80	167.57	166.89	165.76
APIL	875.21	870.67	867.94	867.00	866.11	864.29	863.40	862.46	859.73	855.19
APOLLOTYRE	84.32	83.72	83.36	83.24	83.12	82.88	82.76	82.64	82.28	81.68
AREVAT&D	341.45	337.28	334.76	333.91	333.09	331.41	330.59	329.74	327.22	323.05
ASHOKLEY	80.69	79.45	78.70	78.44	78.20	77.70	77.46	77.20	76.45	75.21
ASIANPAINT	2756.03	2738.67	2728.21	2724.65	2721.23	2714.27	2710.85	2707.29	2696.83	2679.47
AUROPHARMA	1171.33	1158.03	1150.01	1147.29	1144.67	1139.33	1136.71	1133.99	1125.97	1112.67
AXISBANK	1672.40	1644.26	1627.30	1621.53	1615.99	1604.71	1599.17	1593.40	1576.44	1548.30
BAJAJ-AUTO	1608.19	1595.41	1587.70	1585.08	1582.56	1577.44	1574.92	1572.30	1564.59	1551.81
BAJAJHIND	138.74	137.66	137.00	136.78	136.57	136.13	135.92	135.70	135.04	133.96
BALRAMCHIN	97.90	96.86	96.23	96.02	95.81	95.39	95.18	94.97	94.34	93.30
BANKBARODA	991.39	977.56	969.23	966.39	963.67	958.13	955.41	952.57	944.24	930.41
BANKINDIA	581.19	576.43	573.57	572.59	571.65	569.75	568.81	567.83	564.97	560.21
BEL	1944.34	1931.03	1923.02	1920.29	1917.67	1912.33	1909.71	1906.98	1898.97	1885.66
BEML	1176.99	1172.43	1169.69	1168.76	1167.86	1166.04	1165.14	1164.21	1161.47	1156.91
BGRENERGY	818.71	811.45	807.08	805.59	804.16	801.24	799.81	798.32	793.95	786.69
BHARATFORG	406.45	399.65	395.55	394.15	392.81	390.09	388.75	387.35	383.25	376.45
BHARTIARTL	373.84	366.84	362.62	361.18	359.80	357.00	355.62	354.18	349.96	342.96
BHEL	2676.82	2655.58	2642.79	2638.44	2634.26	2625.74	2621.56	2617.21	2604.42	2583.18
BHUSANSTL	538.42	530.84	526.27	524.71	523.22	520.18	518.69	517.13	512.56	504.98
BIOCON	431.87	425.76	422.08	420.83	419.62	417.18	415.97	414.72	411.04	404.93
BOSCHLTD	6319.81	6271.36	6242.18	6232.24	6222.71	6203.29	6193.76	6183.82	6154.64	6106.19
BPCL	772.64	766.45	762.73	761.46	760.24	757.76	756.54	755.27	751.55	745.36
BRFL	265.23	263.13	261.87	261.43	261.02	260.18	259.77	259.33	258.07	255.97
CAIRN	369.15	362.67	358.76	357.43	356.15	353.55	352.27	350.94	347.03	340.55
CANBK	696.63	666.87	648.93	642.83	636.97	625.03	619.17	613.07	595.13	565.37
CENTURYTEX	544.68	540.20	537.50	536.58	535.70	533.90	533.02	532.10	529.40	524.92
CESC	407.44	405.54	404.40	404.01	403.63	402.87	402.49	402.10	400.96	399.06
CHAMBLFERT	92.02	87.84	85.32	84.46	83.64	81.96	81.14	80.28	77.76	73.58
CHENNPETRO	264.65	262.97	261.96	261.62	261.29	260.61	260.28	259.94	258.93	257.25
CIPLA	350.74	347.55	345.62	344.97	344.34	343.06	342.43	341.78	339.85	336.66
COLPAL	911.85	899.22	891.61	889.02	886.53	881.47	878.98	876.39	868.78	856.15
CONCOR	1386.57	1372.25	1363.63	1360.69	1357.87	1352.13	1349.31	1346.37	1337.75	1323.43
COREPROTEC	310.89	305.59	302.39	301.31	300.26	298.14	297.09	296.01	292.81	287.51
CROMPGREAV	340.05	335.90	333.40	332.55	331.73	330.07	329.25	328.40	325.90	321.75
CUMMINSIND	759.50	754.65	751.72	750.73	749.77	747.83	746.87	745.88	742.95	738.10
DABUR	111.08	110.21	109.68	109.50	109.33	108.97	108.80	108.62	108.09	107.22
DCHL	144.56	141.77	140.08	139.51	138.96	137.84	137.29	136.72	135.03	132.24
DENABANK	120.13	119.26	118.73	118.55	118.38	118.02	117.85	117.67	117.14	116.27
DISHTV	57.88	57.26	56.88	56.75	56.63	56.37	56.25	56.12	55.74	55.12
DIVISLAB	749.25	743.72	740.38	739.25	738.16	735.94	734.85	733.72	730.38	724.85
DLF	402.12	397.87	395.31	394.44	393.60	391.90	391.06	390.19	387.63	383.38
DRREDDY	1610.95	1598.73	1591.36	1588.86	1586.45	1581.55	1579.14	1576.64	1569.27	1557.05
EDUCOMP	648.29	642.04	638.27	636.99	635.75	633.25	632.01	630.73	626.96	620.71
EKC	129.96	128.66	127.88	127.62	127.36	126.84	126.58	126.32	125.54	124.24
ESSAROIL	147.57	146.09	145.19	144.89	144.60	144.00	143.71	143.41	142.51	141.03
EXIDEIND	190.46	185.99	183.29	182.38	181.50	179.70	178.82	177.91	175.21	170.74
FEDERALBNK	447.34	440.61	436.56	435.17	433.85	431.15	429.83	428.44	424.39	417.66
FINANTECH	1205.79	1199.90	1196.35	1195.14	1193.98	1191.62	1190.46	1189.25	1185.70	1179.81
FORTIS	181.13	179.39	178.35	177.99	177.65	176.95	176.61	176.25	175.21	173.47
FSL	31.24	30.72	30.41	30.31	30.20	30.00	29.89	29.79	29.48	28.96
GAIL	511.79	507.31	504.60	503.68	502.80	501.00	500.12	499.20	496.49	492.01
GESHIP	335.65	333.72	332.56	332.17	331.79	331.01	330.63	330.24	329.08	327.15
GLAXO	2400.04	2377.35	2363.67	2359.02	2354.55	2345.45	2340.98	2336.33	2322.65	2299.96
GMDCLTD	146.09	144.46	143.48	143.15	142.83	142.17	141.85	141.52	140.54	138.91
GMRINFRA	60.56	60.22	60.01	59.94	59.87	59.73	59.66	59.59	59.38	59.04
GODREJIND	245.99	241.01	238.00	236.98	236.00	234.00	233.02	232.00	228.99	224.01
GRASIM	2452.46	2431.64	2419.09	2414.82	2410.72	2402.38	2398.28	2394.01	2381.46	2360.64
GSPL	120.43	119.56	119.03	118.85	118.68	118.32	118.15	117.97	117.44	116.57
GTL	428.78	427.22	426.29	425.97	425.66	425.04	424.73	424.41	423.48	421.92
GTLINFRA	45.70	45.52	45.41	45.37	45.34	45.26	45.23	45.19	45.08	44.90
GTOFFSHORE	425.47	417.27	412.34	410.66	409.04	405.76	404.14	402.46	397.53	389.33
GVKPIL	48.18	47.64	47.32	47.21	47.11	46.89	46.79	46.68	46.36	45.82
HCC	70.00	69.18	68.69	68.52	68.36	68.04	67.88	67.71	67.22	66.40
HCLTECH	447.67	443.21	440.53	439.62	438.74	436.96	436.08	435.17	432.49	428.03
HDFC	747.14	739.93	735.59	734.11	732.69	729.81	728.39	726.91	722.57	715.36
HDFCBANK	2513.25	2484.02	2466.41	2460.41	2454.66	2442.94	2437.19	2431.19	2413.58	2384.35
HDIL	289.49	285.36	282.88	282.04	281.23	279.57	278.76	277.92	275.44	271.31
HEROHONDA	1862.51	1849.94	1842.37	1839.79	1837.32	1832.28	1829.81	1827.23	1819.66	1807.09
HEXAWARE	88.26	87.19	86.55	86.33	86.11	85.69	85.47	85.25	84.61	83.54
HINDALCO	224.79	222.73	221.49	221.07	220.66	219.84	219.43	219.01	217.77	215.71
HINDPETRO	530.65	526.63	524.22	523.39	522.60	521.00	520.21	519.38	516.97	512.95
HINDUNILVR	306.79	304.35	302.87	302.37	301.89	300.91	300.43	299.93	298.45	296.01
HINDZINC	1290.64	1268.53	1255.22	1250.68	1246.33	1237.47	1233.12	1228.58	1215.27	1193.16
HOTELEELA	60.95	60.16	59.68	59.52	59.36	59.04	58.88	58.72	58.24	57.45
IBREALEST	200.34	197.55	195.88	195.31	194.76	193.64	193.09	192.52	190.85	188.06
ICICIBANK	1174.35	1164.47	1158.51	1156.48	1154.53	1150.57	1148.62	1146.59	1140.63	1130.75
ICSA	137.08	135.57	134.66	134.35	134.05	133.45	133.15	132.84	131.93	130.42
IDBI	164.09	162.35	161.30	160.94	160.60	159.90	159.56	159.20	158.15	156.41
IDEA	73.93	73.28	72.89	72.76	72.63	72.37	72.24	72.11	71.72	71.07
IDFC	215.80	213.69	212.42	211.99	211.57	210.73	210.31	209.88	208.61	206.50
IFCI	76.93	76.24	75.82	75.68	75.54	75.26	75.12	74.98	74.56	73.87
INDHOTEL	106.28	105.47	104.99	104.82	104.66	104.34	104.18	104.01	103.53	102.72
INDIACEM	125.19	123.70	122.80	122.49	122.20	121.60	121.31	121.00	120.10	118.61
INDIAINFO	127.57	126.24	125.45	125.18	124.92	124.38	124.12	123.85	123.06	121.73
INDIANB	317.68	312.68	309.66	308.64	307.65	305.65	304.66	303.64	300.62	295.62
INFOSYSTCH	3143.47	3126.02	3115.51	3111.93	3108.50	3101.50	3098.07	3094.49	3083.98	3066.53
IOB	154.68	153.78	153.24	153.06	152.88	152.52	152.34	152.16	151.62	150.72
IOC	439.09	433.97	430.88	429.83	428.83	426.77	425.77	424.72	421.63	416.51
ISPATIND	23.81	23.56	23.40	23.35	23.30	23.20	23.15	23.10	22.94	22.69
ITC	178.90	177.50	176.65	176.36	176.08	175.52	175.24	174.95	174.10	172.70
IVRCLINFRA	169.07	167.52	166.58	166.27	165.96	165.34	165.03	164.72	163.78	162.23
JINDALSAW	222.28	220.34	219.17	218.77	218.39	217.61	217.23	216.83	215.66	213.72
JINDALSTEL	750.69	746.09	743.32	742.38	741.47	739.63	738.72	737.78	735.01	730.41
JINDALSWHL	2259.97	2215.94	2189.42	2180.39	2171.72	2154.08	2145.41	2136.38	2109.86	2065.83
JISLJALEQS	1208.28	1199.99	1194.99	1193.29	1191.66	1188.34	1186.71	1185.01	1180.01	1171.72
JPASSOCIAT	138.17	136.78	135.94	135.65	135.38	134.82	134.55	134.26	133.42	132.03
JPPOWER	69.23	68.58	68.19	68.06	67.93	67.67	67.54	67.41	67.02	66.37
JSWSTEEL	1449.78	1426.75	1412.87	1408.15	1403.62	1394.38	1389.85	1385.13	1371.25	1348.22
KFA	86.34	85.05	84.28	84.01	83.76	83.24	82.99	82.72	81.95	80.66
KOTAKBANK	543.02	535.03	530.21	528.58	527.00	523.80	522.22	520.59	515.77	507.78
KSOILS	59.76	58.37	57.54	57.25	56.98	56.42	56.15	55.86	55.03	53.64
LICHSGFIN	1469.08	1459.07	1453.03	1450.98	1449.01	1444.99	1443.02	1440.97	1434.93	1424.92
LITL	73.75	72.91	72.40	72.23	72.07	71.73	71.57	71.40	70.89	70.05
LT	2118.13	2100.25	2089.47	2085.81	2082.28	2075.12	2071.59	2067.93	2057.15	2039.27
LUPIN	423.15	421.09	419.84	419.42	419.01	418.19	417.78	417.36	416.11	414.05
M&M	733.21	724.47	719.21	717.42	715.70	712.20	710.48	708.69	703.43	694.69
MARUTI	1566.80	1552.90	1544.52	1541.67	1538.94	1533.36	1530.63	1527.78	1519.40	1505.50
MCDOWELL-N	1635.02	1623.13	1615.96	1613.52	1611.18	1606.42	1604.08	1601.64	1594.47	1582.58
MCLEODRUSS	259.15	256.29	254.57	253.99	253.42	252.28	251.71	251.13	249.41	246.55
MLL	71.25	70.39	69.87	69.69	69.52	69.18	69.01	68.83	68.31	67.45
MOSERBAER	78.43	76.49	75.32	74.92	74.54	73.76	73.38	72.98	71.81	69.87
MPHASIS	695.81	684.10	677.05	674.65	672.35	667.65	665.35	662.95	655.90	644.19
MRPL	84.26	83.78	83.49	83.39	83.30	83.10	83.01	82.91	82.62	82.14
MTNL	68.64	67.92	67.48	67.34	67.19	66.91	66.76	66.62	66.18	65.46
MUNDRAPORT	186.23	185.08	184.39	184.16	183.93	183.47	183.24	183.01	182.32	181.17
NAGARCONST	158.13	156.51	155.53	155.20	154.88	154.22	153.90	153.57	152.59	150.97
NAGARFERT	37.78	36.31	35.43	35.13	34.84	34.26	33.97	33.67	32.79	31.32
NATIONALUM	424.57	422.05	420.52	420.00	419.51	418.49	418.00	417.48	415.95	413.43
NEYVELILIG	176.66	175.14	174.22	173.91	173.61	172.99	172.69	172.38	171.46	169.94
NHPC	34.46	34.14	33.95	33.88	33.81	33.69	33.62	33.55	33.36	33.04
NMDC	298.67	296.64	295.42	295.00	294.61	293.79	293.40	292.98	291.76	289.73
NTPC	222.46	220.25	218.93	218.47	218.04	217.16	216.73	216.27	214.95	212.74
OFSS	2412.11	2379.38	2359.67	2352.95	2346.51	2333.39	2326.95	2320.23	2300.52	2267.79
ONGC	1425.71	1411.33	1402.66	1399.71	1396.88	1391.12	1388.29	1385.34	1376.67	1362.29
ONMOBILE	387.18	383.38	381.09	380.31	379.56	378.04	377.29	376.51	374.22	370.42
OPTOCIRCUI	325.42	321.56	319.23	318.44	317.67	316.13	315.36	314.57	312.24	308.38
ORBITCORP	133.74	132.68	132.04	131.82	131.61	131.19	130.98	130.76	130.12	129.06
ORCHIDCHEM	299.76	295.74	293.32	292.50	291.71	290.09	289.30	288.48	286.06	282.04
ORIENTBANK	507.21	502.58	499.79	498.84	497.93	496.07	495.16	494.21	491.42	486.79
PANTALOONR	525.25	520.62	517.84	516.89	515.98	514.12	513.21	512.26	509.48	504.85
PATELENG	415.84	411.29	408.54	407.61	406.71	404.89	403.99	403.06	400.31	395.76
PATNI	477.04	469.13	464.36	462.74	461.19	458.01	456.46	454.84	450.07	442.16
PETRONET	117.13	116.30	115.80	115.63	115.47	115.13	114.97	114.80	114.30	113.47
PFC	405.20	396.56	391.35	389.58	387.88	384.42	382.72	380.95	375.74	367.10
PIRHEALTH	533.84	529.88	527.49	526.68	525.89	524.31	523.52	522.71	520.32	516.36
PNB	1353.04	1344.81	1339.86	1338.17	1336.55	1333.25	1331.63	1329.94	1324.99	1316.76
POLARIS	182.00	180.09	178.95	178.56	178.18	177.42	177.04	176.65	175.51	173.60
POWERGRID	114.29	113.36	112.81	112.62	112.44	112.06	111.88	111.69	111.14	110.21
PRAJIND	88.52	85.75	84.07	83.50	82.96	81.84	81.30	80.73	79.05	76.28
PTC	129.83	128.41	127.55	127.26	126.98	126.42	126.14	125.85	124.99	123.57
PUNJLLOYD	141.40	139.68	138.64	138.29	137.95	137.25	136.91	136.56	135.52	133.80
RANBAXY	623.45	615.85	611.28	609.72	608.22	605.18	603.68	602.12	597.55	589.95
RCOM	194.20	190.75	188.68	187.97	187.29	185.91	185.23	184.52	182.45	179.00
RECLTD	430.98	421.19	415.30	413.29	411.36	407.44	405.51	403.50	397.61	387.82
RELCAPITAL	877.88	872.95	869.97	868.96	867.99	866.01	865.04	864.03	861.05	856.12
RELIANCE	1089.88	1083.52	1079.68	1078.38	1077.13	1074.57	1073.32	1072.02	1068.18	1061.82
RELINFRA	1140.70	1127.45	1119.48	1116.76	1114.15	1108.85	1106.24	1103.52	1095.55	1082.30
RELMEDIA	327.96	314.82	306.91	304.22	301.63	296.37	293.78	291.09	283.18	270.04
RENUKA	89.06	88.03	87.42	87.21	87.01	86.59	86.39	86.18	85.57	84.54
RNRL	42.16	41.84	41.64	41.58	41.51	41.39	41.32	41.26	41.06	40.74
ROLTA	176.25	174.87	174.03	173.75	173.48	172.92	172.65	172.37	171.53	170.15
RPOWER	171.41	169.98	169.11	168.82	168.54	167.96	167.68	167.39	166.52	165.09
RUCHISOYA	144.36	142.20	140.90	140.46	140.03	139.17	138.74	138.30	137.00	134.84
SAIL	237.52	234.22	232.24	231.56	230.91	229.59	228.94	228.26	226.28	222.98
SBIN	3291.72	3279.60	3272.30	3269.81	3267.43	3262.57	3260.19	3257.70	3250.40	3238.28
SCI	193.40	191.40	190.20	189.79	189.40	188.60	188.21	187.80	186.60	184.60
SESAGOA	368.35	364.99	362.97	362.28	361.62	360.28	359.62	358.93	356.91	353.55
SIEMENS	842.31	838.02	835.43	834.55	833.71	831.99	831.15	830.27	827.68	823.39
SINTEX	451.03	445.48	442.14	441.00	439.91	437.69	436.60	435.46	432.12	426.57
SOBHA	393.59	388.74	385.82	384.83	383.87	381.93	380.97	379.98	377.06	372.21
SRTRANSFIN	821.65	813.94	809.30	807.71	806.20	803.10	801.59	800.00	795.36	787.65
STER	187.30	184.55	182.90	182.34	181.80	180.70	180.16	179.60	177.95	175.20
STERLINBIO	121.22	120.51	120.08	119.93	119.79	119.51	119.37	119.22	118.79	118.08
SUNPHARMA	2149.46	2132.42	2122.16	2118.67	2115.31	2108.49	2105.13	2101.64	2091.38	2074.34
SUNTV	547.01	542.79	540.24	539.38	538.55	536.85	536.02	535.16	532.61	528.39
SUZLON	60.98	60.33	59.94	59.81	59.68	59.42	59.29	59.16	58.77	58.12
SYNDIBANK	133.82	133.00	132.50	132.33	132.17	131.83	131.67	131.50	131.00	130.18
TATACHEM	440.11	434.03	430.36	429.12	427.92	425.48	424.28	423.04	419.37	413.29
TATACOMM	347.01	343.65	341.62	340.93	340.27	338.93	338.27	337.58	335.55	332.19
TATAGLOBAL	139.15	137.95	137.22	136.98	136.74	136.26	136.02	135.78	135.05	133.85
TATAMOTORS	1197.01	1177.73	1166.11	1162.16	1158.36	1150.64	1146.84	1142.89	1131.27	1111.99
TATAPOWER	1470.15	1457.84	1450.42	1447.89	1445.47	1440.53	1438.11	1435.58	1428.16	1415.85
TATASTEEL	659.92	654.47	651.18	650.07	648.99	646.81	645.73	644.62	641.33	635.88
TCS	983.10	972.10	965.48	963.22	961.05	956.65	954.48	952.22	945.60	934.60
TECHM	788.21	783.97	781.41	780.54	779.70	778.00	777.16	776.29	773.73	769.49
TITAN	3463.57	3443.36	3431.18	3427.03	3423.05	3414.95	3410.97	3406.82	3394.64	3374.43
TRIVENI	129.89	128.31	127.35	127.03	126.72	126.08	125.77	125.45	124.49	122.91
TTML	24.52	24.24	24.07	24.01	23.96	23.84	23.79	23.73	23.56	23.28
TULIP	193.60	190.13	188.04	187.33	186.65	185.25	184.57	183.86	181.77	178.30
TV-18	94.47	93.85	93.47	93.35	93.22	92.98	92.85	92.73	92.35	91.73
UCOBANK	127.28	126.43	125.91	125.74	125.57	125.23	125.06	124.89	124.37	123.52
ULTRACEMCO	1131.37	1122.13	1116.56	1114.67	1112.85	1109.15	1107.33	1105.44	1099.87	1090.63
UNIONBANK	404.37	400.62	398.36	397.59	396.85	395.35	394.61	393.84	391.58	387.83
UNIPHOS	191.80	189.83	188.64	188.23	187.85	187.05	186.67	186.26	185.07	183.10
UNITECH	98.64	97.76	97.23	97.05	96.88	96.52	96.35	96.17	95.64	94.76
VIDEOIND	293.35	289.88	287.79	287.08	286.40	285.00	284.32	283.61	281.52	278.05
VIJAYABANK	99.05	97.28	96.22	95.85	95.50	94.80	94.45	94.08	93.02	91.25
VOLTAS	250.57	248.61	247.43	247.03	246.64	245.86	245.47	245.07	243.89	241.93
WELCORP	279.77	276.61	274.71	274.06	273.43	272.17	271.54	270.89	268.99	265.83
WIPRO	477.02	473.65	471.63	470.94	470.27	468.93	468.26	467.57	465.55	462.18
YESBANK	367.46	364.03	361.96	361.26	360.59	359.21	358.54	357.84	355.77	352.34
ZEEL	304.58	301.77	300.09	299.51	298.96	297.84	297.29	296.71	295.03	292.22

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Bollinger Bands

chartschool — Fri, 16 Jul 2010 09:42:06 +0000

Bollinger Bands

Bollinger Bands is a versatile tool combining moving averages and standard deviations and is one of the most popular technical analysis tools available for traders. There are three components to the Bollinger Band indicator:

Moving Average: By default, a 20-period simple moving average is used.
Upper Band: The upper band is usually 2 standard deviations (calculated from 20-periods of closing data) above the moving average.
Lower Band: The lower band is usually 2 standard deviations below the moving average.

Bollinger Bands (in blue) are shown below in the chart of the E-mini S&P 500 Futures contract:

There are three main methodologies for using Bollinger Bands, discussed in the following sections:

Playing the Bollinger Bands

Playing the bands is based on the premise that the vast majority of all closing prices should be between the Bollinger Bands. That stated, then a stock’s price going outside the Bollinger Bands, which occurs very rarely, should not last and should “revert back to the mean”, which generally means the 20-period simple moving average. A version of this strategy is discussed in the book Trade Like a Hedge Fund by James Altucher.

Buy Signal

In the example shown in the chart below of the E-mini S&P 500 Future, a trader buys or buys to cover when the price has fallen below the lower Bollinger Band.

Sell Signal

The sell or buy to cover exit is initiated when the stock, future, or currency price pierces outside the upper Bollinger Band.

These buy and sell signals are graphically represented in the chart of the E-mini S&P 500 Futures contract shown below:

More Conservative Playing the Bands

Rather than buying or selling exactly when the price hits the Bollinger Band, the more aggressive approach, a trader could wait and see if the price moves above or below the Bollinger Band and when the price closes back inside the Bollinger Band, then the trigger to buy or sell short occurs. This helps to reduce losses when prices breakout of the Bollinger Bands for a while. However, many profitable opportunities would be lost. To illustrate, the chart of the E-mini S&P 500 Future above shows many missed opportunities. However, in the chart on the next page, the more conservative approach would have prevented many painful losses.

Also, some traders exit their long or short entries when price touches the 20-day moving average. This was the methodology used for going long in the book Trade Like a Hedge Fund.

A different, and quite polar opposite way to use Bollinger Bands is described on the next page, Playing Bollinger Band Breakouts.

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Bollinger Bands

Playing the Bollinger Bands

Buy Signal

Sell Signal

More Conservative Playing the Bands

Stop Loss Tips & Tricks.
By The PitMaster