Remember that Chartink is a free resource. To expect alerts for free is asking for too much.
Speaking from my personal experience, when I depended on others, my performance was pathetic. The day I pulled up my socks and started putting in a minimum of 2 hours a day of focused application, my performance improved phenomenally. My honest suggestion is to put a little effort from your own side than expect free lunches.You will not only enjoy the fruits but savour the taste as well. The choice is yours.
Sure, I take your advice. After learning the P&F Charts and importance of CCI and RSI from your writings here, I am using those on regular basis and hence thought may be better to go for some tool support if available.
Thanks and Regards
Sudheendra
Hi Tony
I think the chartlink.com does not support any alerts as of now. Do you know if there is any site which provides the alert capability for example to send an alert when the RSI is less than 40 and CCI has crossed over -100 from below?
As promised I have sent you the book. Now for Ajanta.
AJANTA (950)
You have rightly said that it made a Triple Top at 980. Currently the stock has pulled back from 1000 but is on a BUY signal. Strong stocks are good to BUY on pull backs. Now the stock has resistance at 980 and 1020.
For a clearer understanding, I will narrate the analysis of Ajanta from December 2013:
The stock made a new High of 1020 in December, 2013 and then pulled back. It made a Double Bottom at 920 in January 2014 and gave a SELL signal at 900. However, this was a weak SELL signal as the stock reversed back. It made a DOUBLE TOP at 980 and reversed and made a DOUBLE BOTTOM at 900 and gave a SELL signal in February to touch a low of 780. With BUYERS emerging at new lows, it reversed and made a TRIPLE TOP at 980 and gave a BUY signal at 1000.
Currently it is on a BUY signal. It will meet strong resistance at 980 and again at 1020 the previous new high. Strong support for this stock is at 780 where it had earlier made a TRIPLE TOP and will make a DOUBLE BOTTOM at 780 if the stock touches this level again.
Hope my explanation is clear to you and all readers.
TONY
TRIPLE TOP
As the name suggests, this is a chart pattern where the stock has reached the same price level thrice and was unable to surpass it. This means that whenever a stock reaches a particular price level it is unable to exceed that particular price as more sellers than buyers come and sell at this price which eventually leads to price fall. The only way we will know that selling pressure has exhausted is when the price breaks out of this level and exceeds this particular price resistance.
To make it easy for you to understand I have attached the chart of Ajanta Pharma where the stock first made a triple top at 170 then at 440 and now recently at 620.
Further note that the stock has been making Higher Tops and Higher Bottoms which is a bullish sign. This is evident from the price of Ajanta Pharma which has moved from 145 in August 2011 to 667 in March 2013. This is one of my favourite stocks which has given me huge returns
HELLO TONY
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regards,
rakesh
Hello tony,
thank you for d book & detailed explanation on ajanta.
i think i will initiate small position in ajanta at current level, then will add slowly.
From the chart you will note that the CCI cut the -100 line from below on 30th August 2013. Closing price was 150. Today the price is 289.60. This was a good time to BUY.
Also the 5 day moving average cut the 25 day moving average from below on 6th September, 2013. The closing price was 170. This was another buying opportunity.
From the above chart one can see that the 50 day moving average cut the 200 day moving average from below on 7th October, 2013, the price was 199. Today you stand to gain 100. A phenomenal gain.
If you notice all these events, one can clearly make BUYING decisions by simply following the above indicators and reap good benefits. Remember that one should always concentrate on Strong Stocks which are backed by good fundamentals.
Currently the CCI and RSI are trending upwards. Chances for the price to go up. If markets are strong then one should see some more gains.
I have made a table like you suggested and has started updating them on a daily basis.I found that in both Eicher Motors and Bayer Crop Sciences, CCI was making a move towards -100 and could possibly cut it from below in a couple of days. I donāt know if I should have waited till it actually did, but I have bought both these stocks. Keeping my fingers crossed to see if I should have waited!!
As you know that Chartink gets updated at the end of the day. So one cannot get the exact reading of CCI when it will cut -100 from below. The only way one can ensure to get the best price is to initiate small positions as the CCI approaches -100 and keep buying in small lots. This way you will get a good average price.
I must commend you on your good work. You have properly identified both the stocks. Hope they are backed by good fundamentals too. Also donāt over stress on CCI. Try to incorporate the reading of 50 and 200 day EMA for long term as well as 5 and 25 day EMA for short term movements. This will help you in the long run. Back your analysis with Point and Figure too.
You will have noticed from both charts, the CCI is the first indicator giving advance warnings. The RSI has still not reacted. It gives a signal with a gap.
Also look at the markets overall. If the markets do not support, then the charts do fail sometimes. However, you do not have to worry as both Eicher and Bayer are good strong stocks.
It is a strong stock trading above the Bullish Support Line since April 2013. Currently in the X column although on a SELL signal. It gave a SELL signal at 215 and reversed. Now in the X column indicating more buyers. It has resistance at 245 its previous high. Support is at 215 and then 195.
On the candle sticks the RSI at 55 and CCI at 116 are showing strength and moving upwards. It has support at 229-224-217 and 175. If there is a strong momentum supported by volumes, the stock should be able to break the resistance at 245.
The stock is on a BUY signal and in the X column. Currently taking support at 580 and waiting to break the earlier top at 590. Should be able to do that. It has strong support at 570 and then at 540.
On the candle stick both the RSI at 71 and CCI at 201 are in overbought territory. Both indicate chances of making a new high.
Support is at 565-544-537-510. Lets see what is in store for you.
I am so pleased that a lot of readers are taking Technical Analysis seriously. You are on the right track. The stock did exactly what I said. Good luck to you.If you need any help, feel free to ask. Are you reading Point and Figure charts too??
The next stock which I am tracking is Repco Home Finance as CCI has just cut the -100 from below. RSI is 20 .But I am not able to analyse the the 50 DMA and the 200 DMA graph. There is a violet wave which I think is the 200 DMA and a green one must be 50 DMA. It seems the 50 DMA is below the 200 DMA right now and when the green line cuts the violet from below, I suppose it would be good time to buy. Is that it? Hopefully CCI will still be around -100 and RSI less than 40 then. Am I right?
Please see the above chart. Go to the top left hand corner. Below the name of the stock are indicators mentioned Lower Indicators, Upper Overlays and Moving Averages. When you wish to change or add a moving average, you first go to moving average and click the box next to the one you wish to add or change. I have done it in the chart above. Next go to PERIOD in the blue box and make it one year. RANGE should be daily, and chart type is candle stick. Once you finish all changes or additions, deletions, press update chart.
From the chart above you will see that the price has fallen below the 50 day EMA in blue colour and has support at 200 day EMA in red colour.
The CCI is -95 which is rightly mentioned by you and RSI is 23.61. As CCI has just passed -100, it is the right time to BUY. But look at overall trend of the market and sector too.
Hope you have understood how to do the settings now.
Your reading of Point and Figure is correct. As CCI and RSI are both in overbought territory, the chances of making more gains are reduced. Nothing has changed yet as the CCI and RSI are still heading north. The stock can see more gains.
One should be patient and wait for corrections, rather than get caught in the frenzy where the amateur investor gets trapped. The smart guys will be selling while the amateurs will be purchasing.
There are plenty of indicators in Technical Analysis. I do not know anything about PSAR. I follow my basic indicators which i find are simple and easy to understand. They have brought me success so its best to stick to once competence.
Certainly and that too on a bad day. Thanks for your inspiration. I had sold Eicher earlier at Rs 2200 or so and would not have had the courage to buy it when it was going down without your inputs. I only wish we had teachers like you when we were studying.In a lighter vein, how do you get your daughters to do all this work?
A few stocks I wanted to buy are Pidilite, Kaveri and PI Industries. But they look a bit weak to me looking at just CCI. What would be good levels to pick up any of these stocks. Another stock I had not looked at before was Manjushre Techno. But it looks like a buy though volumes are low.Do you have insights?
