Well, it didn’t take too long for that to resolve. NIFTY broke out of the two week trading range on satisfactory volume (equal to about average 21-day volume). This could be the start of another leg up, let us see.
My trading scan turned up only GLENMARK today. This was expected, my scan doesn’t turn up picks when the market rallies strong because most of the stocks rise with the market so there is very little chance that there would be too many stocks that become oversold on such a day. I don’t like GLENMARK chart, the stock is just flag with no clear uptrend.
Let us see what happens tomorrow. There are few more things about my trading style that I would like to clarify so I will probably post something about it later today or tomorrow.
Hiren said
This implies that if there is an individual stock(instead of nifty) breakout on one month’s average volume(21 days), is it good enough for the being long. I am asking for clarification of fundas for myself and others who may join.
Hiren said
Price seems to be closing above the flag. If it crosses the nearby resistance 323.19(19/12-20/12)mes, would it be in a clear up trend or on forming three higher highs and lows or a slanting rise of the 20EMA.
SwingTrader said
>>I am asking for clarification of fundas for myself and others who may join.
Stock breakout should be on significantly more volume than its 21day avg volume. The breakout on NIFTY was on about satisfactory volume but not too good. I would have been happier if there was more volume support.
>>would it be in a clear up trend or on forming three higher highs and lows or a slanting rise of the 20EMA
For me to trade the stock I wait for the 20 & 50 EMAs to start rising (sloping up) which indicates a clear uptrend.
Hiren said
I am hazy on one thing. I hope nifty and stock volume is the same-21 days volume enough for both?
SwingTrader said
>>I hope nifty and stock volume is the same-21 days volume enough for both?
I use 21 day SMA of volume for Avg Volume. This should be sufficient because I am just trying to gauge the extent of sudden spurt in volume on a breakout. Usually charting websites/softwares use 50 day SMA for avg volume. The difference will not be too much (for the task we are using it for) unless the volume has varied wildly (in which case it is best to avoid the stock anyway).