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Showing posts from February, 2011

Hang Seng Technical chart | 22 Feb 2011

In a continuation of my earlier post on technical chart of Hang Seng Dt. 10 Feb 2011, here is talk on its latest technical chart.



After the price closes below kumo on 10 Feb 2011 @22708, it was expected a beginning of downtrend. But price started to move upward from the very next day. Not only the price but the chikou span line is also inside kumo. So, this is a no-trade market now. Just avoid this till it closes on either side of kumo to confirm the trend.
The resistance areas of price and chikou span (CS) has been mentioned on above chart and is self explanatory.

Ichimoku Kinko Hyo Indicator for Meatrader

I'm a big fan of Ichimoku Kinko Hyo indicator. I took some time to understand this indicator but I must say this is the complete indicator in itself. Hat's off to genius to developed it. Although this indicator is in-built in MetaTrader software, but I use another one, which offers not only source code but also some options on screen. I'm not the original coder of this indicator. So, all copyrights and credit goes to original coder.
Download Ichimoku Kinko Hyo indicator from here.
This is the screen shot of this indicator in action.


At first instance, the screen sounds may complex. But trust me, this will look like normal after you fully understand.
I'll soon post series of tutorials on ichimoku indicator.

Research In Motion Limited (USA) (NASDAQ:RIMM) Technical Chart

One of the interesting chart I found today, where one can learn some new rules of trading. This is the technical chart of Research in Motion Limited (RIMM) listed on NASDAQ (USA). I'm using Doda-Donchian 3, Doda-Bollinger Bands and BBSqueeze indicators.






Around 25th Sept., 2010, price of RIMM stock closes above Doda-Donchian blue line; thus giving buy signal (around $48-$49). Although, this signal was weak as it was below kumo, but one could easily spot the flat upper red line on kumo, which means the price can move upward.
Another significant point there was, the price closed above Doda-Bollinger Bands, again conforming buy signal.
As expected, the price faced some resistance inside kumo and once it crossed kumo, it started its main bull run to around $67 (and counting).
The main thing to highlight is that from the day of buy signal till date, price went  3 times below Doda-Donchian line. One can expect a short-selling at that point; but price always got support on Doda-Bollinge…

eBay Inc. Technical chart | 14 Feb 2011

This is the technical chart of eBay Inc. listed on Nasdaq.







I've placed 3 main indicators here. The first one is Doda-Donchian and Doda-Bollinger Bands. Both of them gave buy signal on 12-Jan-2011. This was further confirmed by BBSqueeze Dark indicator, placed on bottom of the chart. I'll post more on this indicator in my next post.
All the 3 indicators pointing in single direction gives strength to the signal and soon after that the price of this stock moves northward. Faces little resistance in kumo as always expected.
Now, the main point is, the price is moving up, but the Doda-Donchian line is flat. That means, the price can come down to this level. The blue line of this indicator either start moving up now or it will attractt price downward. Watch the levels of $32.20 - $32.80 carefully.

Silver Technical Chart | 14 Feb 2011

Today, We'll discuss one interesting chart - Silver using our favourite indicators Doda-Donchian and Doda-Bollinger Bands.





You can download these 2 indicators from "Indicators" section of this website. Ofcourse, they both are free.
 On 28th Jan 2011, Doda-Donchian gave buy signal to purchase Silver. This was further confirmed by Doda-Bollinger band indicator. The price faced some resistance and took some time to cross kumo in next couple of trading sessions.
If you notice, apart from Doda-Donchian Blue line, you'll see one Yellowish-Green line also. This is Keltner line. I've added this line, and you'll get it in next version of Doda-Donchian. To sum up, the buy signal was also confirmed by Keltner line. So, it was a strong Buy signal.
 The price managed to stay above Doda-Donchian line as well as Kumo; giving a strong uptrend.
At the time of writing this article, Silver is finding support around $29.80, which is reflected by both Doda-Donchian and Doda-Boll…

Hang Seng Technical Chart | 10 Feb 2011

Hang Seng technical chart shows beginning of correction. This is the chart with Ichimoku indicator.





On 7th Feb 2011, the price closes below kijun sen line with cross of tenken sen and kijun sen. That was the first sign of weakness and opportunity to exit long position. It's closing level was 23553 on that day.

After 3 trading sessions, on 10 Feb 2011, index closes below kumo and Chikou Span (CS) line also closes below kumo. That was the confirmation of beginning of downtrend. At the time of writing this article, Hang seng index last closing was 22708.

Seems, one can take short position now with a stop-loss of kumo.

Reliance Power Technical Chart | 10 Feb 2011

Another good example to show the power of Ichimoku.


Reliance Power, listed in Indian stock market, closed below kijun-sen line @Rs.155.30 on 07-Jan-2011. As expected, that was the sign of beginning of downtrend. From there, it started moving downward and at the time of writing article, its previous close was Rs.112.20. The future kumo is also bearish and weak chart shows that it will correct further also.

Sensex technical chart | 10 Feb 2011

Blood bath in Dalal street. We've witnessed a deep correction in Sensex in last 1 month. Does the technical chart of Sensex justifies that? Let's check that using Ichimoku indicator.







On 7th Jan 2011, Sensex closes below Kijun-sen line. That was the first signal of its weakness. Not only that, the price closes below Kumo also; thus giving a clear bearish breakout. Sensex was at 19691 levels at that time and at the time of writing this article, Sensex is trading around 17,550 levels; down almost 2100 points from 07-Jan-2011 levels.

Now, the next question is when will it stop its downtrend. The most accurate answer is "I don't know". Yes, there are many ways to calculate support levels like Fibonacci levels, Gann square, Pivot levels etc., but it doesn't mean it can not break that levels. 16,500 - 16,700 seems to be common figure for next support level.

If you've taken short position, you should cover that once Sensex closes above kijun-sen line. That wil…

Dow Jones technical chart | 10 Feb 2011

This time I'm analyzing the technical chart of Dow Jones using Ichimoku indicator.


Dow Jones started its bull run in Sept. 2010. The reason is clear as per its technical chart. Around this time, the price &  Chikou span (CS) closes above kumo, thus giving bullish breakout. It broke kijun-sen line in Nov 2010 but managed to get support on kumo by the end of the month.

Generally, in bull run, price does not break all levels at one go and kumo also acts as strong support.

In the beginning of Dec 2010, the price again closes above kijun-sen line and resumes its uptrend. Still today, we're witnessing its bull run.

As long as price is above kijun-sen, one can continue its long-position. If it closes below kijun-sen, one should exit long position and if it breaks kumo support, one can take short-position in the market.

ADX Candles Indicator for MetaTrader

This is one of my favorite indicator for MetaTrader - ADX candles. Those who knows about ADX with DMI indicator, knows how powerful this indicator is. Generally, all technical analysis softwares and online charting services shows this indicator. Now, I'm sharing the power of same indicator with you. First of all, let me admit here, I'm not the original coder for this indicator. The credit goes to that genius. Also, I don't have the source code file, so I'm posting the compiled version.
This is the simple chart WITHOUT ADX candles indicator.



and this is the same chart WITH ADX candles indicator.


As you can see, this indicator changes the candles with different colors based on the strength of ADX and DMI.
No need of any further explanation. The chart itself says everything.
You may download this indicator from here.
The above link will give you file in compiled format, supported by MetaTrader4. In case of any problem, you may download the same in zip file also from her…