MCX POSTIONAL CALL..... SHORT COPPER ON EVERY RISE.. YOUR SL AT 433 AND TGT 416/415... NOW TRADING AROUND 423.70
Thursday, March 31, 2011
Wednesday, March 30, 2011
POSTIONAL CALLS FOR APRIL 2011
BUY BOMBAYDYING WITH SL 362 FOR TGT 390/399 CMP 371
BUY EDELWEISS WITH SL 37.30 TGT 44/45/50 CMP 40.25
BUY GIPCL WITH SL 85 TGT 101/103 CMP 93
BUY HCC WITH SL 35.60 TGT 42/46/49 CMP 37.70
BUY HEROHONDA WITH SL 1508 TGT 1650/1690/1720 CMP 1567
BUY MRPL WITH SL 61 TGT 68/72 CMP 64.35
BUY NEYVELILIG WITH SL 101 FOR TGT 115/117 CMP 106.85
BUY TATASTEEL WITH SL 605 FOR TGT 636/640
BUY SESAGOA WITH SL 271 FOR TGT 300/317 ++
BUY SHANTIGEAR WITH SL 34.40 TGT 40/42/45 CMP 36.95
BUY TATAELXSI SL 244 TGT 275/280 ++ CMP 256
BUY VIJAYABANK WITH SL 73.30 TGT 89/96 ++ CMP 80.60
BEFORE ENTERING INTO TRADES... TAKE RISK INTO CONSIDERATION......
ALL THE BEST...
Saturday, March 26, 2011
30 BASIC CHART PATTERNS USED IN TRADING.........
It is important to note that the technical analysis overview provided does not attempt to be a comprehensive treatment of charting or technical analysis methods. There are numerous, well-written books on chart interpretation and technical analysis. A brief and simplistic review of some basic charting concepts are provided for reference or to stimulate further study.
Technical Analysis makes the assumption that history repeats itself. Any trading method or system that works well on a broad sample of historical data, may have validity when applied to future trading environments. One should keep in mind that the markets are dynamic. The forces that motivate price movement are dynamic, and the participants are dynamic. Therefore any system which has performed well on past historic data may decline in value as the evolving dynamics of the markets change over time.
The assumption is made that trading results can be improved when trading skills are improved. This requires practice! Surely any time spent learning to trade on past historical data, will not be wasted when it comes to preparing to trade for the future.
A straight line usually drawn to define an uptrend against or through price bar lows.
Declining Trendline
A straight line usually drawn to define a downtrend against or through price bar highs.
Support
A horizontal floor where interest in buying a commodity is strong enough to overcome the pressure to sell. Therefore a decrease in price is reversed and prices rise once again. Typically, support can be identified on a chart by a previous set of lows.
Resistance
A horizontal ceiling where the pressure to sell is greater than the pressure to buy. Therefore, an increase in price is reversed and prices revert downward. Typically resistance can be located on a chart by a previous set of highs.
The inclining channel is a formation with parallel price barriers along both the price ceiling and floor. Unlike the sideways channel the inclining channel has an increase in both the price ceiling and price floor.
Declining
The declining channel is a formation with parallel price barriers along both the price ceiling and floor. Unlike the sideways channel the declining channel has a decrease in both the price ceiling and price floor.
Horizontal or Sideways
A horizontal or sideways is a formation that features both resistance and support. Support forms the low price bar, while resistance provides the price ceiling.
A formation in which the slope of price highs and lows are converging to a point so as to outline the pattern in a symmetrical triangle. To trade this formation place a buy order on a break up an out of the triangle or a sell order on a break down and out of the triangle.
Non-Symmetrical
A formation in which the slope of price highs and lows are converging to a point so as to outline the pattern in a non-symmetrical triangle. To trade this formation, place a buy order on a break up an out of the triangle or a sell order on a break down and out of the triangle.
Ascending Triangle
A formation in which the slope of price highs and lows come together at a point outlining the pattern of a Right Triangle. The hypotenuse in an Ascending Triangle should be sloping from lower to higher and from left to right. To trade this formation, place a buy order on a break up and out of the triangle or a sell order on a break down and out of the triangle. Ascending triangles, with a prior downtrend, are anticipated to break down and out, rather than up and out.
Descending Triangle
A formation in which the slope of price highs and lows come together at a point outlining the pattern of a Right Triangle. The hypotenuse in an Descending Triangle should be sloping from higher to lower and left to right. To trade this formation, place a buy order on a break up and out of the triangle or a sell order on a break down and out of the triangle. Descending triangles, with a prior uptrend, are anticipated to break up and out, rather than down and out.
Pennants
Similar to a Symmetrical Triangle but generally stubbier or not as elongated. A formation in which the slope of price bar highs and lows are converging to a point so as to outline the pattern in a symmetrical triangle. To trade this formation, you can place orders at both the break up and out of the pennant and break down and out of the pennant.
This formation occurs when the slope of price bar highs and lows join at a point forming an inclining wedge. The slope of both lines is up with the lower line being steeper than the higher one. To trade this formation, place an order on a break up and out of the wedge or a sell order on a break down and out the wedge. Rising wedges, with a prior downtrend are anticipated to break down and out, rather than up and out.
Falling or Declining
This formation occurs when the slope of price bar highs and lows join at a point forming an declining wedge. The slope of both lines is down with the upper line being steeper than the lower one. To trade this formation, place an order on a break up and out of the wedge or a sell order on a break down and out the wedge. Falling wedges, with a prior uptrend, are anticipated to break up and out, rather than down and out.
A formation consisting of a small number of price bars where the slope of price bar highs and lows are parallel and declining. Bull Flags are identified by their characteristic pattern and by the context of the prior trend. In the case of a Bull Flag the trend leading to the formation of the Bull Flag is up. To trade this formation, place orders on the break up and break down points, leaving your unfilled order as your stop loss.
Bear Flag
A formation consisting of a small number of price bars in which the slope of price bar highs and lows are parallel and inclining. Bear Flags are identified by their characteristic pattern and by the context of the prior trend. In the case of a Bear Flag the trend leading to the formation of the Bear Flag is down. To trade this formation, place buy and sell orders on the break up and down of the flag, leaving the unfilled order as your stop loss.
Top and Bottom Formations
1-2-3 (A-B-C) Top
Anticipates a change in trend from up to down on a break below the number 2 point.
1-2-3 (A-B-C) Bottom
Anticipates a change in trend from down to up on a break above the number 2 point.
Head and Shoulders Top
Anticipates a decline on a break below the Neckline.
Head and Shoulders Bottom
Anticipates a rise in prices on a break above the Neckline.
Double Top
Anticipates a change in trend from up to down.
Double Bottom
Anticipates a change in trend for down to up.
Triple Top
Anticipates a change in trend from up to down.
Triple Bottom
Anticipates a change in trend from down to up.
Rounded Top
Anticipates a change in trend from up to down.
Rounded Bottom
Anticipates a change in trend from down to up.
Congestions
Generally refers to any type of chart pattern in which prices are temporarily trapped in a trading range. The range can be converging, expanding or defined by parallel lines on the horizontal. Congestions of shorter duration are usually found to be a variation of a Flag, or some variation of a converging or expanding triangle. Periods of longer congestion are usually defined by a variation of a converging or expanding triangle, or may be an elongated parallel channel on the horizontal. Such patterns are frequently referred to being Continuation patterns if price break out in the direction of the trend leading to the formation of the congestion pattern.
Continuation Patterns
Periods of longer congestion are usually defined by a variation of a converging or expanding triangle, or may be an elongated parallel channel on the horizontal. Such patterns are frequently referred to being continuation patterns if price break out in the direction of the trend leading to the formation of the congestion pattern.
Occur when prices gap higher or lower out of a congestion pattern in the direction of the prevailing trend.
Measuring or Running Gaps
Difficult to identify, but usually occur at the midpoint in a price rally or decline.
Exhaustion Gaps
Occur at the end of a market trend, usually after steep accelerated uptrend or downtrend. The gap can leave one price bar or a small number of congestive price bars behind.
Fibonacci Retracement levels correspond percentage retracements that occur in the ebb and flow of a market trend. According to the Elliot Wave Theory, market trends tend to occur in five distinct waves: three waves that move in the direction of the trend with the middle or third wave being the strongest usually, alternating against two counter-trend waves. Elliot asserted that these counter-trend waves will usually retrace against the trending waves by 38.2, 50 and 61.8 percent (also, less frequently by 24 and 76 percent). These Retracement Percentages correspond to natural ratios discovered by the Greeks called the Golden Ratio and rediscovered by Fibonacci, a medieval, Italian Mathematician.
Technical Analysis makes the assumption that history repeats itself. Any trading method or system that works well on a broad sample of historical data, may have validity when applied to future trading environments. One should keep in mind that the markets are dynamic. The forces that motivate price movement are dynamic, and the participants are dynamic. Therefore any system which has performed well on past historic data may decline in value as the evolving dynamics of the markets change over time.
The assumption is made that trading results can be improved when trading skills are improved. This requires practice! Surely any time spent learning to trade on past historical data, will not be wasted when it comes to preparing to trade for the future.
Trendlines
Inclining TrendlineA straight line usually drawn to define an uptrend against or through price bar lows.
A straight line usually drawn to define a downtrend against or through price bar highs.
A horizontal floor where interest in buying a commodity is strong enough to overcome the pressure to sell. Therefore a decrease in price is reversed and prices rise once again. Typically, support can be identified on a chart by a previous set of lows.
A horizontal ceiling where the pressure to sell is greater than the pressure to buy. Therefore, an increase in price is reversed and prices revert downward. Typically resistance can be located on a chart by a previous set of highs.
Channels
IncliningThe inclining channel is a formation with parallel price barriers along both the price ceiling and floor. Unlike the sideways channel the inclining channel has an increase in both the price ceiling and price floor.
The declining channel is a formation with parallel price barriers along both the price ceiling and floor. Unlike the sideways channel the declining channel has a decrease in both the price ceiling and price floor.
A horizontal or sideways is a formation that features both resistance and support. Support forms the low price bar, while resistance provides the price ceiling.
Triangles
SymmetricalA formation in which the slope of price highs and lows are converging to a point so as to outline the pattern in a symmetrical triangle. To trade this formation place a buy order on a break up an out of the triangle or a sell order on a break down and out of the triangle.
A formation in which the slope of price highs and lows are converging to a point so as to outline the pattern in a non-symmetrical triangle. To trade this formation, place a buy order on a break up an out of the triangle or a sell order on a break down and out of the triangle.
A formation in which the slope of price highs and lows come together at a point outlining the pattern of a Right Triangle. The hypotenuse in an Ascending Triangle should be sloping from lower to higher and from left to right. To trade this formation, place a buy order on a break up and out of the triangle or a sell order on a break down and out of the triangle. Ascending triangles, with a prior downtrend, are anticipated to break down and out, rather than up and out.
A formation in which the slope of price highs and lows come together at a point outlining the pattern of a Right Triangle. The hypotenuse in an Descending Triangle should be sloping from higher to lower and left to right. To trade this formation, place a buy order on a break up and out of the triangle or a sell order on a break down and out of the triangle. Descending triangles, with a prior uptrend, are anticipated to break up and out, rather than down and out.
Similar to a Symmetrical Triangle but generally stubbier or not as elongated. A formation in which the slope of price bar highs and lows are converging to a point so as to outline the pattern in a symmetrical triangle. To trade this formation, you can place orders at both the break up and out of the pennant and break down and out of the pennant.
Wedges
Rising or IncliningThis formation occurs when the slope of price bar highs and lows join at a point forming an inclining wedge. The slope of both lines is up with the lower line being steeper than the higher one. To trade this formation, place an order on a break up and out of the wedge or a sell order on a break down and out the wedge. Rising wedges, with a prior downtrend are anticipated to break down and out, rather than up and out.
This formation occurs when the slope of price bar highs and lows join at a point forming an declining wedge. The slope of both lines is down with the upper line being steeper than the lower one. To trade this formation, place an order on a break up and out of the wedge or a sell order on a break down and out the wedge. Falling wedges, with a prior uptrend, are anticipated to break up and out, rather than down and out.
Flags
Bull FlagA formation consisting of a small number of price bars where the slope of price bar highs and lows are parallel and declining. Bull Flags are identified by their characteristic pattern and by the context of the prior trend. In the case of a Bull Flag the trend leading to the formation of the Bull Flag is up. To trade this formation, place orders on the break up and break down points, leaving your unfilled order as your stop loss.
A formation consisting of a small number of price bars in which the slope of price bar highs and lows are parallel and inclining. Bear Flags are identified by their characteristic pattern and by the context of the prior trend. In the case of a Bear Flag the trend leading to the formation of the Bear Flag is down. To trade this formation, place buy and sell orders on the break up and down of the flag, leaving the unfilled order as your stop loss.
1-2-3 (A-B-C) Top
Anticipates a change in trend from up to down on a break below the number 2 point.
Anticipates a change in trend from down to up on a break above the number 2 point.
Anticipates a decline on a break below the Neckline.
Anticipates a rise in prices on a break above the Neckline.
Anticipates a change in trend from up to down.
Anticipates a change in trend for down to up.
Anticipates a change in trend from up to down.
Anticipates a change in trend from down to up.
Anticipates a change in trend from up to down.
Anticipates a change in trend from down to up.
Generally refers to any type of chart pattern in which prices are temporarily trapped in a trading range. The range can be converging, expanding or defined by parallel lines on the horizontal. Congestions of shorter duration are usually found to be a variation of a Flag, or some variation of a converging or expanding triangle. Periods of longer congestion are usually defined by a variation of a converging or expanding triangle, or may be an elongated parallel channel on the horizontal. Such patterns are frequently referred to being Continuation patterns if price break out in the direction of the trend leading to the formation of the congestion pattern.
Continuation Patterns
Periods of longer congestion are usually defined by a variation of a converging or expanding triangle, or may be an elongated parallel channel on the horizontal. Such patterns are frequently referred to being continuation patterns if price break out in the direction of the trend leading to the formation of the congestion pattern.
Gaps
Breakaway GapsOccur when prices gap higher or lower out of a congestion pattern in the direction of the prevailing trend.
Difficult to identify, but usually occur at the midpoint in a price rally or decline.
Occur at the end of a market trend, usually after steep accelerated uptrend or downtrend. The gap can leave one price bar or a small number of congestive price bars behind.
OR
Retracements
Fibonacci RetracementsFibonacci Retracement levels correspond percentage retracements that occur in the ebb and flow of a market trend. According to the Elliot Wave Theory, market trends tend to occur in five distinct waves: three waves that move in the direction of the trend with the middle or third wave being the strongest usually, alternating against two counter-trend waves. Elliot asserted that these counter-trend waves will usually retrace against the trending waves by 38.2, 50 and 61.8 percent (also, less frequently by 24 and 76 percent). These Retracement Percentages correspond to natural ratios discovered by the Greeks called the Golden Ratio and rediscovered by Fibonacci, a medieval, Italian Mathematician.
Thursday, March 24, 2011
Wednesday, March 23, 2011
What's the Difference between 1 Gold Karat, 1 Diamond Carat and 1 Troy Ounce?
What's the Difference between 1 Gold Karat, 1 Diamond Carat and 1 Troy Ounce?
You have no doubt read countless articles on the price of gold costing “x dollars per ounce”, own a gold ring or some other piece of gold jewellery and/or wear or have bought/plan to buy a diamond ring but do you really understand what exactly what you are buying? What’s the difference between 1 troy ounce of gold and 1 (regular) ounce? What’s the difference between 18 and 10 karat gold? What’s the difference between a .75 and a 1.0 carat diamond? Let me explain.
Definition of “Karat”
The term used to describe the unit of measurement for the proportion of gold (i.e. % purity of the gold content) in a piece of jewellery, coin, ingot or bar as per the above table.
Gold will often be mixed with “filler metals” such as silver, palladium, platinum, nickel and even copper to combat the softness of pure 24 karat. Gold which contains a degree of silver, platinum or palladium is referred to as ”white gold” and will classify with a higher amount of karats while the presence of nickel leads to a slightly lower designation of karats. Copper is used to give gold durability and give it a golden rosy tone. Below is a table outlining the karat designations at various gold purity levels plus the extent of ”fineness” as is used in some countries such as Italy.
| Karat/Fineness | Gold Content [Purity] |
| 24 karat | 99+% |
| 22 karat/917 | 91.6% |
| 21 karat | 87.5% |
| 20 karat | 83.3% |
| 18 karat/750 | 75.0% |
| 15 karat | 62.5% |
| 14 karat/583 | 58.5% |
| 10 karat/417 | 41.7% |
| 9 karat | 37.5% |
| 8 karat | 33.3% |
| 1 karat | 4.2% |
(In some countries “karat” and “carat” are used almost interchangeably although, strictly speaking, the words’ correct meanings are as defined in this article where “carat” refers to the weight of a gemstone (see below). The correct word to use when referring to the weight of an object of gold, silver or other precious metals is to speak in terms of troy ounces as below, kilos or metric tonnes.)
100% pure gold is defined as having a purity of 24 karats so if something is 24 karat gold then it’s made of gold and nothing else – regardless of size… Gold is a relatively soft metal and high-karat gold tends to be easily damaged and, as such, a 24 karat item is usually reserved for display or ceremonial use as the picture of me with “my” 100kg. Canadian Maple Leaf 99.99999% pure gold coin which is now worth in excess of $4,500,000 USD! (100kg. x 32.1507466 troy oz. x $1,400/ozt. USD)
All jewellery is required by law to be stamped so consumers will know the quality of gold used. Jewellery made in North America is typically marked with the karat grade (10K, 14K, etc.), and jewelry made in Italy is typically marked with the “fineness” such as (417, 583, etc.). Most retail gold items have a karat rating in the range 9 to 18. In the U.S. the minimum karat value for an item to be sold as gold jewelry is 10. In the UK 9 karat is more common.
The number 24 may have originally been chosen to represent pure gold because it divides evenly by 2,3,4,6 8 and 12. Thus it’s easy to talk about a gold item being half pure (12 kt), two thirds pure (16kt) etc. Nine karat would thus be three eighths gold, 18 karat would be six eighths (three quarters).
Definition of a “Troy” Ounce
The troy ounce (ozt) is a unit of imperial measure most commonly used to gauge the weight and therefore the price of precious metals. One troy ounce is equivalent to 1.09714 avoirdupois (our conventional every day measurement) ounces i.e. 9.714% greater in weight and 1 kg. consists of 32.1507466 troy oz. Please keep the distinction between ounces and troy ounces in mind when buying small quantities of gold and/or silver.
Definition of “Carat”
The term used to describe the unit of weight of a gemstone, including diamonds, where 1 carat = 200 milligrams or one-fifth of a gram. Smaller diamonds are often expressed as points, not carats where 100 points = 1 carat (i.e. each point equals 0.01, or one-hundredth, of a carat).
Origin of the Word “Carat”
The word “carat” is derived from the Greek “keration,” meaning fruit of the “carob” tree. Because the seeds of the carob were uniform in size, they became a unit of measure of fine gemstones. Since an average carob seed weighs 200 milligrams, the weight of 1 carat was set at 200 milligrams.
“Carat” Abbreviations
The abbreviation ct is a shortened way to write carat, and refers to the weight of a single diamond. The abbreviation ct TW means carat total weight, and is used to express the total weight of multiple diamonds used in a piece of jewelry.
“Carat” Weight vs. Size
Carat weight is used as a measure for other gemstones as well but different gems of the same weight aren’t necessarily the same size, because some gemstones are more dense than others–meaning that they pack more weight into a smaller space.
Two diamonds of equal carat weight can have very different costs based on other factors (such as cut, color, and clarity). In understanding the importance of carat weight it is important to know who you are dealing with.
As the carat size of a diamond increases, the diamond’s price increases at an increasing rate. Why? Because the larger the diamond, the more increasingly rare it is. Fewer than one in one million mined rough stones are large enough to produce a finished 1 carat diamond so, as carat weight increases, you will typically pay more not only in total, but on a price-per-carat basis as well.
Conclusion
You now have a better understanding of the meanings of the words “karat” and “carat” (I can only assume that you already knew the meaning of the more familiar word “carrot”!) and the difference between a “troy ounce’ and just an “ounce” which should ensure that you are never misled when reading about or considering the purchase of any item in which such terms are (often loosely) used.
Sunday, March 20, 2011
MCX TRADING ADVICE...
BUY ALUMINIUM OR ALUMINI WITH SL AROUND 112.9.. NOW TRADING AROUND 114.80 LVLS... PICK IN EVERY DIP WITH SL 112.90 FOR TGT 117.30/119.30/121
Subscribe to:
Posts (Atom)