Wednesday, October 19, 2011

Case Study : DSEGEN INDEX

How I read chart after every trading day? I'm sharing my one with you.

Please look at the below Chart - 1 (Minute) :

Chart - 1

As indicated in the chart : 
A : Index point went down with large volume.
B : Got a support, but the volume did not increase.
C : As a result volume went down again. One important thing is that it did not form a Lower Low (LL).
D : Index point got support again with rising volume. So, index went to up.
E : We found that point fall with one large volume for taking hurryly profit. Thereafter seller were not interest to sell in low price (Low volume indicated that).
F : As seller were not interested to sell in low price, so price went to up with rising volume. That's all.

Due to the above Chart -1's up and down, we find the below candlestick. Please look at the Chart - 2 :

 Chart - 2

DSE General Index point Open at 5307. After huge sell pressure, Index went to 5118 which was the today's lowest point. Then the index/market got the support from the interested buyer and went up to at 5258 (Close) after two corrections.

Finally, please look at the below Chart - 3 (Day Chart) :

Chart - 3

Please look at the circle. Support zone was tested 2nd time within 5 days.
=> If support and resistence zone tests several times then we may see a sideways market.
=> If support zone breaks down then index will go down.
=> If support zone sustains and volume increases then we may see a up trend.

TA (Technical Analyst) will say that - You have used only Moving Average, Bollinger Band and Volume.  Tomar chart-e MACD, ADX, CCI, RSI, MFI, OBV, Stochastic, TRIX, William's % R, Mass Index, Chaikin, Aroon, AccDist,  Parabolic SAR, ect. dekhci natho. Tumi tho TA na miah.

Yes, You are 100% right. I'm not a TA.

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