Wednesday, March 09, 2011

New Chart Series

I have been working on a Fibonacci based charting method - wherein the algorithm tries to pick up support and resistance levels  based on a pre-defined criterion (not going to be disclosed - so please don't ask). I will be sharing some charts for some heavily traded stocks on Indian markets. There are two things that put the algorithm off-track - one of them is dividends and another is splits. I'll try wherever possible to adjust the charts for splits - but I am not going to be able to adjust for dividends - given the sheer volume involved. Understandably  - my inability to adjust the charts for dividends takes away a bit from the accuracy of the levels - but overall I have found these charts to be very useful. Hopefully, all of you'll benefit as well.

 For every script there will be two charts  - One based on Bullish formations and the Second based on Bearish formations. I could have combined the two charts into one - but that makes it very confusing to look at - so I'll stick to two charts for each script. I have my one methods of looking at when a particular level is useful for trading purposes - but that's a fairly long explanation and I'll leave that for another post perhaps.

I do not wish to pick and choose charts which look good - so I'll be posting charts periodically starting in alphabetical order, regardless of whether the levels have worked in the past or not . So, here's the first chart of the series - ACC.

The comments and posts published in this blog are NOT trading recommendations. They can not be considered as trading calls or advices. If you decide to use the information offered here for your real trading, it is at your own risk.