Point & Figure Charting

[onlycastel]

@samir_brd

Dear Tony

This is probably a very stupid question which has a have been mystified by it, so here goes is CCI and how do you track it in the chartink charts? I can see RSI, but I cannot see CCI. On Google, it says “Commodity Channel Index”, but there is no reference to such an indicator in Chartink? _

Samir,

There is no question as stupid question. When you ask a question, it means you have not understood something or seek clarification. That is exactly I am here for.

CCI means the Commodity Channel Index. This I have explained in this thread in detail before. If you go through this thread, a lot of your questions will get answered. Any way here I go once again:

http://www.onlinetradingconcepts.com/TechnicalAnalysis/CommodityChannelIndex.html Link: http://www.onlinetradingconcepts.com/TechnicalAnalysis/CommodityChannelIndex.html

http://www.onlinetradingconcepts.com/TechnicalAnalysis.html Link: http://www.onlinetradingconcepts.com/TechnicalAnalysis.html

Please read the links above and you will get all Technical Indicators and their explanations too.

As for CCI plotting on the chart, you will notice that there are two types of charts which chartink display. One is the Point and Figure and the other Candle sticks.

By default it will open in candle sticks.

Go to the TOP LEFT corner of the chart. You will see below the name of the stock 3 Indicators:

LOWER INDICATOR, UPPER OVERLAYS AND MOVING AVERAGES

Click on the Lower Indicator. You will see a small box, then the name of the indicator and parameters.RSI is ticked in the box on the left hand side. Scroll on the button on the extreme right of Lower Indicator. You will see Commodity Channel Index. Click in the box on left next to the indicator. Next go to the BLUE BOX alongside the Moving Averages where PERIOD, RANGE AND TYPE is given. Below this is a box titled UPDATE. Click on the box and the chart will get updated.

http://chartink.com/stocks/ajantpharm.html Link: http://chartink.com/stocks/ajantpharm.html

Please click on above link. I have already clicked the CCI box for you. When checking for a short period, your PERIOD should read 6 months and when doing for the long term it should be 1 year or more.

Hope I am clear and able to solve your query.

Tony

_ verysimple answer, buti

_ anyway.What _

Regards

Samir

_

[onlycastel]

@raviteja02

Hi Tony

I’m looking at Jubilant foodworks chart.

[http://chartink.com/stocks/jublfood.htmlBoth RSI and CCI are showing over the last 2 months with lower bottom formation while there is continuous decrease in price.

Both RSI and CCI have and looking up (40 and -45) respectively.

There is a good yesterday on a 5 day chart (150,000 yesterday vs. 50,000) coupled with Support at 1000 this time too and it started to move up and closed above 1050.

has at least it consolidated around 1020 last week and started its up move with increased volumes.

Based on this, the stock can be bought for targets of 1080 and 1160 with a stop loss of 1020.

I thought this can be bought around 1020 after it hit 1005 and started moving up but wanted to make sure the up move with better volumes which happened yesterday.

Am I on the right path in analysing the stock and concluding that this can be bought? Thank you for your time.

Ravi,

You are really serious about your learning. Yes! you are on the right track. A good and thorough analysis. However, i must add, that the trend has not changed for the stock as yet, so this could again turn into a false alarm. It has crawled above the 5 day EMA but can halt at the 25 day EMA. True that the RSI and CCI are moving up, but the CCI gives best results for strong stocks. This stock is weak and has been falling continuously. The markets are not yet clear as to what they want to do. So its best to wait, unless you want to BUY at the bottom and are ready to wait for a long time.

Another thing you should do, is check the stock also on the Point and Figure chart. It is still on a SELL signal after making a Double Bottom.

All in all a good analysis. Keep it up.

Tony

Link: Jubilant Foodworks Share Price, EOD Chart for NSE & BSE 1.

bullish divergence

2). turned around

3). increase in volume

3% rise in price.4.

withstood

5). The selling abated,

[onlycastel]

@niranjan13

Hi Tony,

Can you please provide TA on JSW Holdings? Recently theres very high volumes on this stock and in the past its known to make very quick upmoves in a short span of time.

Thank you!

Regards,

Niranjan,

Do not remember seeing you earlier. Welcome!

JSW HOLDINGS (585)

On the point and figure charts, the stock made a double top at 560 and broke out to touch 600 where it made an extended Triple Top. Here met with selling pressure and pulled back. So 600 is acting as a strong resistance now. Support is at 560-520-440.

On the candle stick the 5 day EMA crossed the 25 day EMA from below and the stock gave a break out. This happened on 19th February. The stock touched a high of 569 and closed at 538 on that day.

The RSI at 75 and CCI at 250 are both in the overbought zone. Yes, the trend is changing for the stock. As I said earlier, it can meet resistance at 600. If it manages to break this, then it can be in new territory.

Tony

Niranja.n

[niranjan13]

Thanks Tony. I am one of the silent readers and a huge admirer of VP.

Lets hope JSW crosses 600

Regards,

Niranjan

[vidurchhabra]

Hi Tony,

Could you just have a look at Yes Bank Charts, is it in oversold territory? A quality Private sector bank trading at PSB valuations, probably all the negatives are factored into the stock price. Thanks!

[HG_6470]

@raviteja02

Hi Tony

I’m looking at Jubilant foodworks chart.

Ravi,

Great to see someone trying to put into practice what Tonybhai is teaching. He has been trying patiently to teach us how to fish…but many of us just want to directly eat

[ashwin_patel]

Dear Tony

What do you make of Unichem Lab charts. The CCI has been moving at a frantic pace in the positive direction for some time now? But the stock price is staying put. What do you think is in store?

Regards

[krishari]

Hi Tony,

Attempting Vidur’s query.

Yes Bank’s CCI and RSI both have cut the oversold lines (-100 and 30) from below around Feb 17th. Is this a good time to enter? Since the EMA lines are not crossing from below am not sure - how do we take the CCI and RSI indicators when EMA does not indicate. I note that you have mentioned that CCI is good for strong stocks - so would Yes bank be considered a weak one due to its volatilily and hence CCI not to be taken as seriously?

Look fwd to see how you answer his query from your side:-)

Best

Hari

[onlycastel]

Dear Fellow Valuepickrs,

It brings great joy when I see each one of you trying to put your best forward. This tells me how serious you are in learning. I can only teach, practice is the most difficult thing. You may stumble, fall but be not afraid. I will lend you a helping hand to reach your destination.

Surely will reply to each of your queries. Will be overjoyed to see more coming in the fray.

Tony

[raviteja02]

@HG_6470

Ravi,

Great to see someone trying to put into practice what Tonybhai is teaching. He has been trying patiently to teach us how to fish…but many of us just want to directly eat

Hi Tony

I’m looking at Jubilant foodworks chart.

[raviteja02]

Thanks HG. If I can open up a bit, with due respect to others - I observed that many are directly asking for Tony’s view on stocks and Tony being a nice man answers and teaches with all the patience. I thought, the better way to learn would be to do the homework and present the outcome for Tony’s review and if it’s wrong, learn from his answer and move on to another and apply again. This way, after let’s say, 10 attempts, I would have learned some fishing too instead of waiting for the fish from Tony :-). Also, there is thrill-cum-learning in technical analysis which I recently found with due credit to Tony. I have read point and figure and technical analysis books to enrich my learning. Long way to go! Thanks to this invaluable forum!

[onlycastel]

YES BANK (304)

The stock is on a SELL signal. It made a double bottom at 330 and fell further down. It has support at 285-275. Below 275 it will be weak as it will trade below the Bullish Support Line. Resistance now will be at 330 and 410.

On the candle sticks, the stock is trading below all the EMA and hugging the 5 day EMA at 305. RSI at 51 is trending lower and CCI at -42 is showing some signs of rising. Will have to wait and see if the CCI starts moving upwards. With markets not yet giving clear directions and settlement due in a couple of days, it is best to watch for some more time. True, the downside is not much from here unless there is a big crash in the market.

As for oversold territory, the RSI should be below 30 and CCI below -100.

Tony

[onlycastel]

Ashwin,

You are spot on in your observations. This stock has been trading in a very narrow trading band for quite some time now. But things look to be changing. Break out looks imminent.

UNICHEM: (211)

On the candle sticks, the stock is trading above all EMA’s. It has support at 208-206-203. Last support at 185 is a strong support. RSI at 77 and CCI at 270 are in overbought territory. Looks like consolidation is over and a break out is likely. Volumes too are increasing. Hope the break out works this time.

On the Point and Figure, the stock is in X column on a BUY signal. It has resistance at 215 and then 225. A new high? may be, may be not. Support at 210-195-190-180. Lets hope it breaks the previous high of 225 and makes a new high.

Tony

[onlycastel]

@krishari

Hi Tony,

Attempting Vidur’s query.

Yes Bank’s CCI and RSI both have cut the oversold lines (-100 and 30) from below around Feb 17th. Is this a good time to enter? Since the EMA lines are not crossing from below am not sure - how do we take the CCI and RSI indicators when EMA does not indicate. I note that you have mentioned that CCI is good for strong stocks - so would Yes bank be considered a weak one due to its volatilily and hence CCI not to be taken as seriously?

Look fwd to see how you answer his query from your

Hari,

Good to see you put your best foot forward. I have given my analysis on Yes Bank. Check where you are not sure. Read my analysis with charts of Yes Bank and you will understand things better and clearer. Giving below simple charts for you to understand.

POINT AND FIGURE CHART:

http://chartink.com/pointfigure/yesbank.html Link: http://chartink.com/pointfigure/yesbank.html

CANDLE STICK CHARTS:

5 DAY AND 25 DAY MOVING AVERAGES.

http://chartink.com/stocks/yesbank.html Link: http://chartink.com/stocks/yesbank.html

Point to remember: The smaller average should trade above the bigger average. That shows positive bias and bullishness.

50 DAY AND 200 DAY MOVING AVERAGES

http://chartink.com/stocks/yesbank.html Link: http://chartink.com/stocks/yesbank.html

In both cases the smaller average is below the bigger average. This shows signs of weakness and bearishness of a stock.

Tony

side

Best

Hari

Hi Tony,

Could you just have a look at Yes Bank Charts, is it in oversold territory? A quality Private sector bank trading at PSB valuations, probably all the negatives are factored into the stock price. Thanks!

[onlycastel]

@raviteja02

Thanks HG. If I can open up a bit, with due respect to others - I observed that many are directly asking for Tony’s view on stocks and Tony being a nice man answers and teaches with all the patience. I thought, the better way to learn would be to do the homework and present the outcome for Tony’s review and if it’s wrong, learn from his answer and move on to another and apply again. This way, after let’s say, 10 attempts, I would have learned some fishing too instead of waiting for the fish from Tony Also, there is thrill-cum-learning in technical analysis which I recently found with due credit to Tony. I have read point and figure and technical analysis books to enrich my learning. Long way to go! Thanks to this invaluable forum!

Ravi,

The best way to learn is to teach. Why do you find your teachers grasp so good over the subject they teach during your school and college days? Simple! They repeat the same thing over and over again in different classes for years and years. Everything becomes like a playback of recorded memory. In the same way if you repeat and repeat your learning, you are bound to succeed.

It is rightly said that if you spend 10000 hours over any subject, you can master it.

I am must thank each one of you for helping me in my learning. Without students there is no place for a teacher. I thank god I have so many asking me queries all the time

Tony

.

[drrakesh]

Dear Tony

Confused on Alembic pharma.

it has broken its resistance at 245 & now onP&F, it has give buy signal at 250.

but CCI at 237 & RSI at 78.

How to solve this confusion?

regards,

Rakesh

[raviteja02]

Hi Tony

I have got same doubt as Rakesh. For example, I’m looking at Indian Hotels chart.

The RSI and CCI indicate high levels and are over bought which suggests not to go long but at the same time, it has broken out with huge volumes for straight 2 days after a long consolidation which suggests to go long.

So, what factors do we need to consider to go long or short on this particular trade?

Thanks again.

[onlycastel]

Dear Folks,

I am pleased to let you know that Lokesh Verma, a silent follower of Valuepickr has sent this link to me.He was asking me if i knew of any software which could give live trades for free. I could not help him, so he set off on his own journey and has now sent me this amazing link. It is called Time to Trade, a software which gives everything you need in Technical Analysis. You can set your alerts, get live quotes as well as messages on your mobile of your alerts. Presently, Lokesh is in Zurich and works for ABB as Project Manager. A big Thank You Lokesh on behalf of everyone here at Valuepickr.

https://www.timetotrade.eu/user/signin/?activate=rqiyz329h&code=

The software is free and requires registration. From help file you can learn how to do the various settings too.

Tony

[prasadmaddali20]

Tony…

Ajanta has broken out … Can this one reach 1250-1300 levels by Q4 … Fundamentally also at 1300 it will trade at 22 times FY14

[onlycastel]

@drrakesh

Dear Tony

Confused on Alembic pharma.

it has broken its resistance at 245 & now it has give buy signal at 250.

but CCI at 237 & RSI at 78.

How to solve this confusion?

regards,

Rakesh

Dear Dr. Sonawane,

There is absolutely no confusion. First you have to understand yourself. Are you a Trader or Investor. Your analysis of a BUY signal is absolutely correct. However, it is always good to BUY a share on a PULL Back rather than on a BREAK OUT. The lower the price you pay, the higher your profits.

If you are an Investor, wait patiently. Don’t BUY when the markets are in frenzy. Sometimes you may miss the train. No worries, the next will come by soon.

The right time to have bought the stock should have been at say 220-225. This stock was available at 220 on 2nd February at this price and at that point in time, the CCI had just touched -100. The 50 day EMA was also at 225.You can see the same on candle sticks as well as Point and Figure charts. Now CCI and RSI are both in overbought territory. It does not mean that the stock can’t rise further, but the chances of you making profits get reduced.

Hope all the confusion has evaporated.

Tony

onP&F,