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Barun Biswas

Barun Biswas

City: Howrah

Joining Date: 30 Sep , 2009
Last Login: 09:06 PM - 16 Jun , 2017
IP Address of Last Login - 47.11.13xxx
Profile Verified by Mobile.

Reply for: HAPPY BIRTHDAY lllllllllllll ( HEMANT )

Barun Biswas at 07:19 AM - Nov 29, 2012 ( )

THANK YOU HEMANT SIR & OTHER FRIENDS FOR YOUR WISHES.

Reply for: HAPPY BIRTHDAY TO NITIN POTADE : ( HEMANT )

Barun Biswas at 05:59 PM - Jan 25, 2012 ( )

MANY HAPPY RETURNS OF THE DAY!

 

Reply for: HAPPY BIRTHDAY ( HEMANT )

Barun Biswas at 05:00 PM - Nov 27, 2011 ( )

Thank you friends for remembering me. Now a days i am out of rading arena,hope to join the game later.

Reply for: New strategy - Rajesh Jindal

Barun Biswas at 08:24 PM - Oct 10, 2011 ( )

Thank you sir for sharing your new strategy..

Need more examples of chart to make it a crystal clear to all.

regards,,,

Reply for: Calls based upon chart reading

Barun Biswas at 09:38 PM - Sep 28, 2011 ( )

Thanks for sharing your learning experience.

ALL THE BEST....

Reply for: COMMODITY

Barun Biswas at 09:03 PM - Aug 12, 2011 ( )

Thanks Pradip da for creating a good thread for discussion.

WHERE TO FIND A FREE LIVE CHART OF COMMODITY, LIKE G OO GLE FINNANCE?

Reply for: WANT TO GIVE NIFTY AND STOCK TECHNICALS

Barun Biswas at 11:11 PM - Jul 26, 2011 ( )

Tongue out MOST WELCOME.

Reply for: Installing Husband

Barun Biswas at 09:22 PM - Jul 08, 2011 ( )

Refreshing....

Reply for: Some BO Trades For Next Week 30/05/11

Barun Biswas at 08:47 PM - May 29, 2011 ( )

GO GO GO GO >>>>>>>

Reply for: latest eye computer

Barun Biswas at 08:25 PM - May 29, 2011 ( )

Really it needs the latest eyes to read & understand !

Reply for: Finally i leave

Barun Biswas at 09:33 AM - May 29, 2011 ( )

Then what about your School of technical studies?

Reply for: Weekend Classroom : volume

Barun Biswas at 12:49 PM - May 21, 2011 ( )

Need regular classes from your end.

Thanx brother.

Reply for: Trading Opportunities for part time trader

Barun Biswas at 09:42 AM - May 19, 2011 ( )

Very good thinking..

Reply for: INTRADAY CALLS BASED ON EOD GUD SUCCESS RATIO

Barun Biswas at 09:58 PM - May 18, 2011 ( )

All the best...

Reply for: 0 RISK HEDGING STRATEGY ???

Barun Biswas at 11:35 AM - May 18, 2011 ( )

I am also interested.Sending details in your inbox.

Reply for: Jokes for free time

Barun Biswas at 10:48 PM - May 16, 2011 ( )

One day a Tiktiki(House Lizard) was singing......

After hearing his song-  all other Tiktikis felt down from the wall.

Do u know why?

 

 

Bcoz-- all Tiktikis gave hathtali.(Claps)

Reply for: AMBUJACEMENT

Barun Biswas at 10:25 PM - May 16, 2011 ( )

Very good technical pick.

Keep posting...

Reply for: Jokes for free time

Barun Biswas at 10:13 PM - May 16, 2011 ( )

World's costliest scotch-frm Scotland

wine- from France

beer- from Germany

vodka- from Russia

World's costliest RUM

from India..

It's called

 

2G SPECT'RUM.

Reply for: EDUCATIVE STOCKS FOR THIS WEEK

Barun Biswas at 08:00 AM - May 16, 2011 ( )

very good initiative dada.

Reply for: 1-2-3- TECHNIC FOR TRADING

Barun Biswas at 11:05 PM - May 15, 2011 ( )

http://www.mudraa.com/trading/57602/0/trading-strategy-1-2-3-reversal-pattern.html

New Thread: INTRADAY TRADING-- How much you expect.

Barun Biswas at 10:21 AM - May 15, 2011 ( )

In my few years of trading experience,I have incurred huge loss & many of the trades were somewhere in a profit zone

but due to greed factor,could not booked it & ultimately ended in a loss.

So please share your ideas/experiences where to book  profit? And how much percentage of return you expect sufficient for a day trading ? Is it better to opt for a scalping strategy?

Regards...

New Thread: CANDLESTICKS PATTERN ---You like most

Barun Biswas at 08:14 PM - Apr 29, 2011 ( )

Please share your favourite candlestick/candlesticks pattern,

you like most to enter/exit your trade( daily/swing).

New Thread: DOWNLOAD LINK & SEARCH ENGINEFor trading E-books.

Barun Biswas at 07:03 AM - Mar 12, 2011 ( )

http://nettopdf.info/en/ebook/good%20day%20trading%20technical%20style-1.html

New Thread: MAGIC BREAKOUT--Trading Strategy.

Barun Biswas at 12:16 AM - Mar 07, 2011 ( )

http://www.magicbreakout.com/downloadbook.php?file=MagicBreakout.pdf

New Thread: secrets of successful traders

Barun Biswas at 11:34 PM - Feb 03, 2011 ( )

invictatrader.com/secrets_of_successful_traders.pdf



New Thread: Trading strategy--Combination of 1-2-3 & Bollinger band

Barun Biswas at 08:48 AM - Jan 15, 2011 ( )

May be useful for us-

http://www.trading-naked.com/library/Trading%20Manual_C30_257-266.pdf.

New Thread: Fault from Brokers end---Where & how to complain ?

Barun Biswas at 07:11 PM - Jan 10, 2011 ( )

Last THURSDAY( on 06.01.11) just after 12 noon,I told my broker to short TATAMOTORS(fut)

@cmp(1272)& to place a SL at 1286. But they placed the SL @ 1276 & it automatically stopped out few 

minutes later.Actually it never reached 1286 level after my trade.As i was not in front of a PC during that

time,cud not tracked it properly,later realized the actual fault was from their end. Already talked with them

 & they indirectly accept their fault.

 

Where & how should i complain about this matter? And what would be its ultimate result?

Regards....

New Thread: How to trade a Pin Bar The Pin Bar

Barun Biswas at 02:02 PM - Dec 19, 2010 ( )

The Pin Bar

The above picture is a perfect example of a pin bar.  A pin bar is essentially a candlestick that closes with a very small body and a very long wick in 1 direction.  Martin Pring wrote a book, Pring on Price Patterns, in the mid-2000’s, and in it he identified this candlestick formation.  In Pring’s research he began to notice this candlestick formation appearing at the tops and bottoms of large market reversals, and he ended up discovering that this small candle oftentimes indicates possible trend exhaustion and possible reversal.

How To Trade The Pin
First of all, not all pin bars are created equal.  Thus, in order to trade this strategy properly, you should only trade the most defined pin bars that form in currency trading.

Key Levels
The best pin bars form at significant areas of support/resistance.  Therefore, you do not want to trade pins that form in the middle of consolidation.  Instead, you want to trade them at exhaustion points of strong support/resistance as determined by the use of price action analysis via trendlines, fib levels, pivot points, previous swings, etc.

Trend is Your Friend
The best pins form in the direction of the overall trend.  Thus, if the overall trend is bullish and a bearish correction forms, you want to look for a pin bar to form during the bearish correction as a signal that price is about to resume the bullish trend.

Entry & Exit
Entry is always on the break of the pin bar’s nose and the stop loss is always placed a few pips beyond the pin’s wick.

Timeframes
In classical technical analysis, it is known that technical setups that occur on higher timeframes tend to be more reliable because the setup is encompassing a wider set of data.  Thus, a price pattern on a 4 Hour chart will tend to be more reliable, then a similar price pattern that occurs on the 5 Minute chart. Pin bars are no different.  The best pin bars are those that form on the 4 Hour and Daily chart.



New Thread: Trend Reversal Stock Trading Strategy

Barun Biswas at 12:25 PM - Dec 19, 2010 ( )

http://www.zimbio.com/Trading+and+Investing/articles/YMgbW3nO-eQ/Trend+Reversal+Stock+Trading+Strategy+Predicting

 

Seems to be a good article for  week end holidays.

New Thread: GOOGLE FINANCE ????

Barun Biswas at 09:50 AM - Dec 16, 2010 ( )

Not showing any fresh update in charts today.

Are you facing the same?

New Thread: USE OF INSIDE DAY (HARAMI)--- For short term trading

Barun Biswas at 08:32 AM - Dec 11, 2010 ( )

Swing trading is profitable only when there are oscillations and good volatility. However, this volatility is quite cyclical in nature; the market experiences a constant ebb and flow of range contraction /range expansion. Toby Crabel elaborates on this principle in his book, Day Trading with Short-Term Price Patterns and Opening Range Breakout. He states that after the market has had a period of rest or range contraction, a trend day will often follow.


A trend day is one in which the market opens at one extreme of its range and closes at the other extreme. It covers a lot of distance with very few retracements and can initially “creep,” picking up steam as the day progresses. Traders who come into the day unaware of the possibility of a trend day are usually caught trying to trade in a countertrend mode. As they scramble to cover losses in the late afternoon, the market may well tend to accelerate into the close.

How does one know when to jump on board a trending move? It is extremely difficult for the majority of traders to learn to switch gears from a “swing trading” style, looking for reactions and tests, to a “breakout mode” that calls for jumping on board the train. Many floor traders will make money 9 out of 10 days and then give half of it back trying to fight a trend day.

The first step is to learn to identify ahead of time the conditions which lead to a trend day. Label these days as “breakout mode” and then only trade them from a volatility-expansion system or a specific rule set.

This first pattern, ID/NR4, will explore one such rule set. It is a simple, effective entry combined with a resting stop. The whole key to trading this pattern is pre identifying the existing ID/NR4 condition.

An NR4 is a trading day with the narrowest daily range of the last four days. An inside day has a higher low than the previous day’s low and a lower high than the previous day’s high. Combining the two conditions sets up an ID/NR4 day.

ID/NR4 pattern idnr4

Crabel’s initial approach suggested a day-trading strategy following this setup. However, our research suggests that the trade should be held longer than one day.

In the breakout mode we can’t predict the direction in which we are going to enter the trade. All we can do is predict that there should be an expansion in volatility. Therefore, we must place both a buy-stop and a sell-stop in the market at the same time. The price movement will then “pull us into” the trade.

Here are the rules:

  1. Identify an ID/NR4.
  2. The next day only, place a buy-stop one tick above and a sell-stop one tick below the ID/NR4 bar.
  3. On entry day only, if we are filled on the buy side, enter an additional sell-stop one tick below the ID/NR4 bar. This means that if the trade is a loser, not only will we get stopped out with a loss, we will reverse and go short. (The rule is reversed if initially filled on the short side.)
  4. Trail a stop to lock in accrued profits.
  5. If the position is not profitable within two days and you have not been stopped out, exit the trade MOC (market on close.) Our experience has taught us that when the setup works, it is usually profitable immediately.

Here are a few examples.

ID/NR4 pattern idnr4 2

  1. An ID/NTR4 day. Tomorrow, we will place a buy-stop one tick above today’s high and a sell-stop one tick below today’s low.
  2. We are filled on the sell side. A second buy-stop order is placed one tick above yesterday’s high in case of a reversal.
  3. This type of sell off is fairly rare (18 points in five trading sessions!), but they are the reason to trade this setup.This strategy gives you small gains and small losses, eventually producing a setup such as this one.

ID/NR4 pattern idnr4 3

  1. The range of the S&P bar on March 9, 1995, is the smallest range mi four days and is an inside bar.
  2. Our buy-stop is placed at 488.20 (one tick above the previous day’s high) and is triggered on the opening at 488.50. The sell-stop placed at 486.10 (one tick below the previous day’s low) is doubled in size in case of a reversal. As you can see, the market explodes, closing at 495.00, up 6.50 points from the opening. As
    this position becomes more profitable throughout the day, a trailing stop should be used to lock in the profit.
  3. The market rises steadily over the next week. Our position has a healthy 10+ point profit, bringing us to another ID/NR4 setup on March 20. (For simplicity’s sake, let’s assume that we locked in our profits from March 10, 1995 and are flat.)
  4. This type of setup happens from time to time and is a good example of what you can occasionally expect.
  • ID/NR4 setup
  • Buy-stop filled at 500.75
  • Sell-stop and reversal sell-stop filled at 498.90
  • Next day (two days after the setup) the market closes .45 points above our sell point. The position is closed out.
  • The loss from the March 20,1995 setup is approximately 2.25 points plus
    slippage and commission.

If you trade this strategy and most other strategies in this manual, you must get used to this type of trade. As we mentioned in the previous example, this setup pattern often makes and loses small amounts of money, and occasionally you will get a trade that explodes, such as the one that occurred on March 10, 1995.

ID/NR4 pattern idnr4 4

  1. An NR4 inside day.
  2. A sharp 10 percent two-day sell-off.

ID/NR4 pattern idnr4 5

  1. An NR4 inside day.
  2. The breakout is to the upside. As you can see, the market opens on its low and doses on its high. You will often see this type of pattern from this setup.
  3. A trailing stop will ensure locking in profits as the position corrects itself. Also, notice how the market rallies a few days later. Unfortunately, we will miss these occasional moves to assure capturing the one to four day profits.                                                                                                                                                              (THIS IS A COPY-PASTE ARTICLE)               

New Thread: CHARTNEXUS---Not working,Any solution ?

Barun Biswas at 04:16 PM - Dec 05, 2010 ( )

From yesterday my chartnexus software is not working . Not able to download BSE/NSE data.
At the middlle of the downloading process it always shows an icon with a word showing

unable to download file;   BSE_20101122_2007.dat.(also unable to write to file)

also showing; NSE_20101122_2007.dat.(also unable to write to file)

Few days back same problem happened only with BSE data but it was solved with
installing newer version of chartnexus.

Already tried with a fresh installation ( after deleting existing software from controlpanel),but the
problem still persists.

Is there any wayout ? PLEASE HELP ME.

New Thread: TRIANGLE TRADING METHOD

Barun Biswas at 11:27 PM - Nov 28, 2010 ( )

http://www.forexnet.lv/Portals/2b5f83cd-2e41-4a77-9cc0-d657a8c275bb/David%20N%20.Windover%20%20The%20Triangle%20Trading%20Methode%20%28futures%29.PDF

New Thread: Mechanical Trading Systems

Barun Biswas at 08:05 PM - Nov 17, 2010 ( )

Just go through this link...

http://www.babypips.com/school/mechanical-trading-systems.html

New Thread: HOW TO CALCULATE SAR. ( copy & paste article)

Barun Biswas at 09:19 PM - Nov 12, 2010 ( )

. WHAT IS SAR.?

ANS: SAR is acronym for STOP AND REVERSE.


It is level of nifty/bank nifty (example of stock/Index) used to decide the direction of trade. i.e. long / short.


Hereafter for the sake of example I will refer to nifty only – whereas this SAR system is applicable to any tradable security/index.


Whenever Nifty is trading above SAR than its considered as one should trade long and whenever NIFTY is trading below SAR than one should short nifty.


Our SAR system is only Namesake of PARABOLIC SAR, which was developed by Welles Wilder.




Ours is totally a different approach than PSAR.


2. HOW TO CALCULATE SAR.


Ans:For understanding the calculation of SAR, we have to understand the 5 DMA close of nifty and GUESS the value of 6th day.


For calculation of SAR only excel sheet is used. With calculations of closing values of nifty and average of last 5 day closing values.


# As shown in above screen shot there is only four main columns used for SAR.

First column is of DATE, second for CLOSE , third is AVERAGE / MA of last 5 days and fourth is SAR.


I don’t think its important to explain 1 & 2 columns, so I will rush to 3rd column.


It’s a simple average value of last 5 closes. I.e. for 2nd march 5 sma stands at 4906, which is nothing but average of previous 4 day plus close of 2nd march.


Now, this column of 5 DMA is programmed in such a way that whenever closing of any particular day is coming above its 5day average than it will be in green color which indicates to go long and whenever color is red, we have to go short below SAR value.


Now, if Long trade is going on than we have to calculate closing value which will make the 5dma red and if we are having short trade going on than we have to guess the value which will make the 5dma green.

For calculating SAR for any particular day in advance we have to put the value of close in advance for that particular day.

As shown in above screen shot, if we have to calculate the value of SAR for 4th march 2010 than first of all we have to copy n paste the formula of 3rd column, or pick and stretch down it. Currently 5dma is in green, means we have long trade going on. [ignore the red cell- which is because the closing value in 2nd column is not entered]

Now, if we add 5100 as imaginary closing value than – as the long trade is going on – we will have again green cell in 5dma but we want to calculate SAR for long trade so it must be the value which will make the 5dma cell RED.

Now , again if we enter 5000 as close than also we are having a green cell., so guess another value.

Cell remains green if we enter 4990. 4980. but…..


Now, as per screen shot above if we enter close as 4970 than we are getting 5dma value in red.

It means if nifty closes below 4970 than trend will change and we will cover our longs and go short.


So , SAR for 4th march will be 4970.

Now we have REAL closing value of nifty for 4th march, i.e. 5080. And we will repeat the same procedure for calculating SAR for 5th march


After entering various nearby values to 4970 (i.e. previous SAR) we get 5020 as SAR – the color changer value for 3rd colomn.

New Thread: Chart Pattern For Trading ( Copy-Paste article)

Barun Biswas at 07:48 AM - Oct 26, 2010 ( )

I trade using just a handful of trading patterns. I primarly use moving averages, and volume for my technical indicators. Everything else is based off of time, and price; supply and demand. My style, and chart trading patterns used, are mainly derived from techniques used by Jeff Cooper, Steve Nison, Oliver Velez, and Greg Capra. I don’t use many technical indicators when trading. I believe when you start adding too many indicators, it just confuses the situation. All technical indicators are based off of time and price anyway. Pattern recognition is one of the first steps to becoming a profitable trader. I hope some of these patterns will help you.

I’ll use real trading examples for this page, and the abbreviations I created for each trading pattern I use in my trading journal.

LONGS: BL1, BL2,

SHORTS: BS1, BS2,

LONGS:

BL1: In the two charting examples, this trading pattern is used on the daily chart. It occurs when the stock closes near the low after three to five days in that direction, but gaps open higher than the previous wide range candlestick. In essence, bears are trapped, or those that sold will need to buy the stock back which causes buying pressure. The success of this day trading pattern is very reliable.

profitable-stock-trade-pattern.jpg

trading-pattern-of-hans-020907.jpg

BL2: This setup is a classic chart trading pattern. It’s basically a trade in which you follow the trend by buying the dip. The trade works best when the pullback is 3 – 5 bars. Watch for moving averages that are moving the same direction as the trade, which would be up, with this pattern. In the first example chart, you see the stock gap higher and trade up with higher than average volume. The stock proceeds to pull back 4 bars on decreasing volume. An entry is taken when the stock makes a higher high. In this case, it’s on the 6th bar. A stop is placed under the pivot low, or the day’s low based on your amount of risk. This trading pattern is in play on all time frames.

classic-chart-trading-pattern.jpg

monthly-chart-pattern.jpg

skf-60-0724081.jpg

SHORTS:

BS1: This trading pattern is directly opposite of what occurs in the BL1 trading pattern. I’ve found this to be quite a profitable stock trading pattern, because like the BL1 chart, it catches traders off guard. As you can see from this daily chart of HANS, the stock closes near it’s high (look for 3-5 days in this direction). Bulls are feeling good. The next morning, the stock opens below the low of the previous day’s candlestick. Those buyers are now in panic mode. This allows an opportunity to short the stock under a 5-minute low, or using another intraday technique to enter this trading pattern.

hans-021407.jpg

Here’s another example of the BS1 trading pattern from a 032807 trade.

ango-032807-daily-trading-pattern1.jpg

BS2: This second trading pattern in the Shorts category occurs after a stock has seen some buying strength. This usually happens on a bounce after the stock has found some support. The trigger will usually occur after 3 – 5 bars. A stop is placed above the 4th bar in this example of TOL, or above the high of the day. Look for moving averages heading down in whichever time frame you’re trading the setup. This pattern works in all time frames. 5-minute – monthly charts.

toll-brothers-5-0222071.jpg

New Thread: Any News For POWERGRID?

Barun Biswas at 09:40 AM - Oct 21, 2010 ( )

Given a gap up opening,up by 2.25%,trading with
huge volume.Any news behind it?

New Thread: Gap Trading Strategies ( copy-paste article)

Barun Biswas at 11:17 PM - Oct 18, 2010 ( )

Gap trading strategy is quite simple and can be applied to weekly, daily or intraday gaps. When you find a stock that has a price gap from the previous close, you should watch the first hour of trading to identify the trading range. Rising above that range signals a buy, and falling below it signals a short. In order to successfully trade gapping stocks, you should use a disciplined set of entry and exit rules to signal trades and minimize risk - gap trading rules.

There are eight gap trading strategies defined by full or partial gap, gap up or gap down and price range in the first hour of trading. We have categorized them in long and short gap trading strategies and sorted them by their power - the strongest ones with the highest potential/risk ratio are presented the first - full gaps are more powerful than partial and trading in the direction of gap is less risky than trading contrarian gap trend. When reading the setups, you will see the term 'Tick', which is defined as the bid/ask spread and is different from stock to stock.

"Long" Gap Trading Strategies

Gap Trading - Full Gap Up: Long

Full Gap Up: Long

If a stock's opening price is greater than yesterday's high and after one hour of trading the price is still above opening gap price (green candle), set a long (buy) stop order two ticks above the high achieved in the first hour of trading.

Gap Trading - Partial Gap Up: Long

Partial Gap Up: Long

If a stock's opening price is greater than yesterday's close, but not greater than yesterday's high, and after one hour of trading the price is still above opening gap price (green candle), set a long (buy) stop order two ticks above the high achieved in the first hour of trading.

Gap Trading - Partial Gap Down: Long

Partial Gap Down: Long

If a stock's opening price is less than yesterday's close, but not lower than yesterday's low, and after one hour of trading the price is above opening gap price (green candle), set a long (buy) stop order two ticks above the high achieved in the first hour of trading.

Gap Trading - Full Gap Down: Long

Full Gap Down: Long

If a stock's opening price is less than yesterday's low and after one hour of trading the price is above opening gap price (green candle), set a long (buy) stop order two ticks above the high achieved in the first hour of trading.

"Short" Gap Trading Strategies

Gap Trading - Full Gap Down: Short

Full Gap Down: Short

If a stock's opening price is less than yesterday's low and after one hour of trading the price is still below opening gap price (red candle), set a short (sell) stop order equal to two ticks below the low achieved in the first hour of trading.

Gap Trading - Partial Gap Down: Short

Partial Gap Down: Short

If a stock's opening price is lower than yesterday's close, but not lower than yesterday's low, and after one hour of trading the price is still below opening gap price (red candle), set a short (sell) stop order two ticks below the low achieved in the first hour of trading.

Gap Trading - Partial Gap Up: Short

Partial Gap Up: Short

If a stock's opening price is greater than yesterday's close, but not greater than yesterday's high, and after one hour of trading the price is below opening gap price (red candle), set a short (sell) stop order two ticks below the low achieved in the first hour of trading.

Gap Trading - Full Gap Up: Short

Full Gap Up: Short

If a stock's opening price is greater than yesterday's high and after one hour of trading the price is below opening gap price (red candle), set a short (sell) stop order two ticks below the low achieved in the first hour of trading.

Other Factors To Watch When Trading Gaps

If you will check a few historical charts and search for gaps, you will notice that gaps are most often established on very high above average volume. This means, that institutional traders and professionals are leading the game, which is a very strong indication of continued movement in the same direction of the gap. On the other side, if gap is established on low or normal volume, you should be especially careful when trading partial gaps; be more conservative in your trading strategy and wait until the price breaks the previous high (on a long trade) or low (on a short trade).

Another factor to watch with gaping stocks is support/ resistance levels. A gapping stock that crosses above resistance levels provides reliable entry signals. Similarly, a short position would be signaled by a stock whose gap down fails support levels. It is also important to look at the longer term charts of the stock to know where the long-term support and resistance are.

New Thread: The Morning Star Candlestick Formation ( copy-paste)

Barun Biswas at 08:41 PM - Oct 13, 2010 ( )

A morning star candlestick formation forms at the end of a downtrend (it’s the bottom), potentially signaling a reversal into an uptrend.

A morning star formation, which includes three or more candles, is characterized by a larger bearish candle, followed by a small-bodied bullish or bearish candle (a spinning top or a doji), followed by a larger bullish candle.

Basic morning star formation

The morning star formation is a trend reversal signal. Three candles are necessary for form a basic morning star formation.

In order to qualify as a morning star formation, the third bullish candle must close at or above 60% of the original bearish candle’s opening (counting the bottom of the middle candle as 0 and the opening price of the original bearish candle as 1).

As you can see in morning star picture below, a morning star formation can consist of more than three candles.

A morning star candle formation

A morning star formation with more than three candles

The defining characteristics are the initial larger bearish candle and a final larger bullish candle that closes at or above 60% of the initial bearish candle’s opening.  In between those two candles can be a single doji or spinning top, or several.

You can confirm the morning star once the final bullish candle has formed.

If you identify a morning star and decide to trade it, buy at the opening of the candle that follows the morning star’s final bullish candle.  Set your protective stop loss order at the last level of support (which will be the low of the morning star’s middle candle).

Trading morning stars can be particularly lucrative if you have a convergence (that is, the reversal implied by the morning star is further implied by a trendline or some other indicator).

New Thread: HERO-HONDA

Barun Biswas at 01:45 PM - Sep 15, 2010 ( )

Above 1742 level,might give a intraday break out.
Threads by Barun Biswas
TitleDate
INTRADAY TRADING-- How much you expect. [6 ] Learning Section 15 May, 2011
CANDLESTICKS PATTERN ---You like most [26 ] Learning Section 29 Apr, 2011
DOWNLOAD LINK & SEARCH ENGINEFor trading E-books. [6 ] Learning Section 12 Mar, 2011
MAGIC BREAKOUT--Trading Strategy. [12 ] Learning Section 07 Mar, 2011
secrets of successful traders [5 ] Learning Section 03 Feb, 2011
Trading strategy--Combination of 1-2-3 & Bollinger band [9 ] Learning Section 15 Jan, 2011
Fault from Brokers end---Where & how to complain ? [12 ] General Discussion 10 Jan, 2011
How to trade a Pin Bar The Pin Bar [2 ] Learning Section 19 Dec, 2010
Trend Reversal Stock Trading Strategy [6 ] Learning Section 19 Dec, 2010
GOOGLE FINANCE ???? [10 ] General Discussion 16 Dec, 2010
USE OF INSIDE DAY (HARAMI)--- For short term trading [14 ] Learning Section 11 Dec, 2010
CHARTNEXUS---Not working,Any solution ? [7 ] Learning Section 05 Dec, 2010
TRIANGLE TRADING METHOD [10 ] Learning Section 28 Nov, 2010
Mechanical Trading Systems [1 ] Learning Section 17 Nov, 2010
HOW TO CALCULATE SAR. ( copy & paste article) [8 ] Learning Section 12 Nov, 2010
Chart Pattern For Trading ( Copy-Paste article) [1 ] Learning Section 26 Oct, 2010
Any News For POWERGRID? [7 ] Learning Section 21 Oct, 2010
Gap Trading Strategies ( copy-paste article) [13 ] Learning Section 18 Oct, 2010
The Morning Star Candlestick Formation ( copy-paste) [5 ] Learning Section 13 Oct, 2010
HERO-HONDA [4 ] Intraday Section 15 Sep, 2010
Some break out candidate [1 ] Learning Section 09 Sep, 2010
IRB-Looking hot [1 ] Intraday Section 09 Sep, 2010
AN OBSERVATION ON CHART [10 ] Learning Section 18 Aug, 2010
ROLTA--Is it a BULLISH GARTLEY parttern ? [1 ] Learning Section 18 Aug, 2010
Intraday Trading Tactics ( copy-paste article) [9 ] Learning Section 06 Aug, 2010
BULLS & BEAR [1 ] Learning Section 05 Aug, 2010
Three Inside Up & Three Inside Down--Trading technicals [5 ] Learning Section 03 Aug, 2010
HINDUSTHAN MOTORS LIMITED--- currently in a good shape? [9 ] Learning Section 24 Jul, 2010
watch--CITY UNION BANK [1 ] Learning Section 09 Jul, 2010
CORE PROJECT(LEARNERS CALL) [1 ] Learning Section 09 Jul, 2010
Trading strategy-- 1-2-3 REVERSAL PATTERN [7 ] Learning Section 07 Jul, 2010
BHARTIARTL-- On break out mode? [6 ] Bharti Airtel Ltd. 06 Jul, 2010
E - Books on swing trading. [5 ] Learning Section 05 Jul, 2010
WATSH--Bata india [3 ] Intraday Section 02 Jul, 2010
MAN OF THE SERIES(June)-- Your Vote . [30 ] General Discussion 24 Jun, 2010
LEARNERS CALL- IDEA CELLULAR [1 ] Learning Section 23 Jun, 2010
Learners call---3IINFOTECH [1 ] Intraday Section 21 Jun, 2010
LEARNERS CALL- Indiabulls finance service ltd [5 ] Learning Section 21 Jun, 2010
LEARNERS CALL- cairn india [10 ] Learning Section 10 Jun, 2010
LEARNERS CALL-Tanla solutions [5 ] Learning Section 04 Jun, 2010
Website for ATP tracking [1 ] Learning Section 03 Jun, 2010
CHARTNEXUS-- Not updating [3 ] Learning Section 31 May, 2010
CENTURY TEXTILE-- waiting for an intraday breakout ? [4 ] Learning Section 27 May, 2010
AN OBSERVATION—May be effective for Day trading, but needs some fine tuning. [9 ] Learning Section 22 May, 2010
LEARNERS CALL-Gienmark [2 ] Learning Section 19 May, 2010
WATCH--ONGC [5 ] Learning Section 13 May, 2010
BATA INDIA--IS IT A GOOD BUY AT CMP ? [2 ] Learning Section 12 May, 2010
TREND IS YOUR FRIEND--But how to detect it early ? [2 ] Market Outlook 10 May, 2010
Suggest Option strategy on RIL-RNRL. [4 ] Futures & Options 07 May, 2010
ONGC--Is it a buying candidate ? [8 ] Learning Section 30 Apr, 2010
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