tryin2trade: NF Intraday Chart...Inverse H&S in the making!!!

Thursday, January 14, 2010

NF Intraday Chart...Inverse H&S in the making!!!

7 comments:

Uma Shankar Ladha said...: Hi,

What software do you use for getting the charts.. And also this angle, how do you get it..

can you please share.

thanks; January 14, 2010 at 2:50 PM
Tarique Anwar said...: Inverse H&S should be looked for at the end of a downtrend, which also point at a reversal. I wonder if we reach 5360 it would be due to this pattern that you found!; January 14, 2010 at 3:01 PM
Tryin2Trade said...: Dear Uma Shankar Ladha!

Hi this is an intraday chart courtesy
http://www.icharts.in/home/
This angle is nothing but the work of any photo editor proggy!

Cheers; January 14, 2010 at 3:37 PM
Tryin2Trade said...: Tarique Anwar...

No you dont have to wonder if we reach 5360 due to this so called pattern that you say "I found"!!!

This pattern was in the making as per the 5 minutes intraday chart(or atleast looks like an inv H&S to the eye) so decided to treat it as one...yes the efficacy of such bullish patterns becomes a suspect when found at tops rather than bottoms, but then patterns they are and ought to be treated like one albeit with some caution...and like all patterns...they have a breakout and a breakdown point, which either makes or breaks the pattern!And then ofcourse there is the target!

Its all about probabilities and most important its about the absolute weapon that you have "THE STOP", therefore I like to play what I see as long as I have my Stops in place!

Cheers!; January 14, 2010 at 4:05 PM
P said...: This comment has been removed by the author.; January 14, 2010 at 8:22 PM
P said...: Its surely about probablities, but I believe that, it would be a high risk trade (uncomfortable would be my word) if based purely and entirely on this pattern. The probability of The Stop getting trigerred seems far more than the tgt being achieved.; January 14, 2010 at 8:23 PM
Tryin2Trade said...: PAyal Hi

Yes you are right that probability of trade, hitting the stop, but then I am again repeating its a 5 min pattern so its ought to be traded on that TF.

Secondly no one is suggesting a jump to buy here,its prudent to wait till you get a breakout...and that breakout comes with break of the trendline or neckline as some would prefer. Like wise there is the breakdown level mentioned which renders this pattern useless and negates it!

Third you have the STOP defined.

LAst but not least, patterns do fail, they aint lines cast in stone...trading patterns like these are at your discretion...if not comfortable...pass up the trade!I don't advocate that you have to trade for the sake of trading!

Cheers!; January 14, 2010 at 8:59 PM

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