Monday, September 27, 2010
BSE Indices Constituents - BSE30 (as on 28.9.10)
BSE Indices Constituents - BANKNIFTY (as on 28.9.10)
BSE Indices Constituents - BANKEX (as on 28.9.10)
BSE INDICES CONSTITUENTS -AUTO (as on 28.9.10)
Tips for the day
| Date | Symbol | Action | Rate | Stop loss | Tgt.1 | Tgt.2 | Remarks |
| 28.9.10 | Glenmark | Buy | 297.8 | 301.5 | 306.8 | ||
| GICHSGFIN | Buy | 142.5 | 147.7 | 146.8 | |||
THREE LINE BREAK CHART TECHNIQUIES
Three Line Break charts originate from Japan and were introduced to the western world by Steve Nison (a well-known authority on the Candlestick charting method). The Three Line Break charting method gets its name from the default number of line blocks typically used.
Using the closing price, a new white block is added in a new column if the previous high price is exceeded. A new black block is drawn if the close makes a new low. If there is neither a new high or low, nothing is drawn.
With a default Three Line Break, if a rally is powerful enough to form three consecutive white blocks, then the low of the last three white blocks must be exceeded before a black block is drawn. If a sell-off is powerful enough to form three consecutive black blocks, then the high of the last three black blocks must be exceeded before a white block is drawn.
To draw line break blocks, today's close is compared to the high and low of the previous block. A block is drawn only when today's close exceeds the high or low of the previous block. If today's close is higher than the top of the previous block, a new white block is drawn in the next column from the prior high to the new high price. If today's close is lower than the bottom of the previous block, a new black block is drawn in the next column from the prior low to the new low price. If the close fails to move outside the range of the previous blocks high or low, then nothing is drawn.
With the default Three Line Break chart, a downside reversal (i.e., white blocks change to black blocks) occurs when the price moves under the lowest price of the last three consecutive white blocks. A black reversal block is drawn from the bottom of the highest white block to the new price. An upside reversal (i.e., black blocks change to white blocks) occurs when the price moves above the highest price of the last three consecutive black blocks. A white reversal block is drawn from the top of the lowest black block to the new high price.
Using the closing price, a new white block is added in a new column if the previous high price is exceeded. A new black block is drawn if the close makes a new low. If there is neither a new high or low, nothing is drawn.
With a default Three Line Break, if a rally is powerful enough to form three consecutive white blocks, then the low of the last three white blocks must be exceeded before a black block is drawn. If a sell-off is powerful enough to form three consecutive black blocks, then the high of the last three black blocks must be exceeded before a white block is drawn.
To draw line break blocks, today's close is compared to the high and low of the previous block. A block is drawn only when today's close exceeds the high or low of the previous block. If today's close is higher than the top of the previous block, a new white block is drawn in the next column from the prior high to the new high price. If today's close is lower than the bottom of the previous block, a new black block is drawn in the next column from the prior low to the new low price. If the close fails to move outside the range of the previous blocks high or low, then nothing is drawn.
With the default Three Line Break chart, a downside reversal (i.e., white blocks change to black blocks) occurs when the price moves under the lowest price of the last three consecutive white blocks. A black reversal block is drawn from the bottom of the highest white block to the new price. An upside reversal (i.e., black blocks change to white blocks) occurs when the price moves above the highest price of the last three consecutive black blocks. A white reversal block is drawn from the top of the lowest black block to the new high price.
Renko Charting Technique
The Renko charting method is thought to have acquired its name from "renga" which is the Japanese word for bricks. Renko charts were introduced by Steve Nison (a well-known authority on the Candlestick charting method).
To draw Renko bricks, today's close is compared with the high and low of the previous brick (white or black). When the closing price rises above the top of the previous brick by the box size or more, one or more equal height, white bricks are drawn in the next column. If the closing price falls below the bottom of the previous brick by the box size or more, one or more equal height, black bricks are drawn in the next column. If the market moves up more than the amount required to draw one brick, but less than the amount required to draw two bricks, only one brick is drawn. For example, in a two unit Renko chart, if the base price is 100 and the market moves to 103, then one white brick is drawn from the base price of 100 to 102. The rest of the move--from 102 to 103--is not shown on the Renko chart. The same rule applies anytime the price does not fall on a box size divisor.
Basic trend reversals are signaled with the emergence of a white or black brick. A new white brick indicates the beginning of a new uptrend. A new black brick indicates the beginning of a new downtrend. Since the Renko chart is a trend following technique, there will be times when the market induces whipsaws. However, a trend following technique is intended to allow traders to ride on the major portion of the trend.
Since a Renko chart isolates the underlying trends by filtering out the minor ups and downs, Renko charts are excellent for helping determine support and resistance levels.