rsi

I donot know whether this is the right place to post it. If not, moderators please remove this post. There is a great free software to edit the still images. Just google paint.net. Download the programme and see whether it serves purpose. I have found it useful.

All right. Let me try to put it in this general way, without any charts. Incase of V shaped rally or ^ shaped downfall (as the case maybe), I think it will be impossible to see climax and distribution (accumulation), breaking of ice (JOC) etc. Or may be I may witness climax (buying or selling as the case may be) but not the other phases. What I am intending to ask is, in the absence of some of the sequences in developing of trend or changing of trend as described by Wyckoff, what would be the guidelines to be followed to detect such end of trend or change of trend? What should be/could be the safeguards one can take in such situation so as to avoid giving back all profits earned? Are there any other methods described by Wyckoff? (other than many non Wyckoff methods such as breaking of trendline, 1-2-3- formation, moving stoplosses etc.) I sincerely hope I have made my point clear this time. Thanks and Regards

Sorry. I donot know why charts are not appearing inspite of uploading them to imageshack and pasting the link using "insert image" option Please see the charts from the imageshack itself, links of which I have given in my original post Sorry for the inconvenience and trouble caused by me.

Here is the first chart mentioned in my last post Hope chart appears at least this post

I have a question. In case of some stocks, downtrend persists for very long period (may be for years altogether). In such cases, there may not be weak holders at the end of such prolonged period. It may be impossible to see a "selling climax". I mean to say large volume wide range down bars as such. In some cases it may even move up even without witnessing any accumulation phase. I am attaching charts herebelow to show what I mean. Of course, this stock has not move up yet. First chart is weekly. http://img127.imageshack.us/my.php?image=weeklyra4.png Note the prolonged downturn from 275 to nearabout 40 over such a long period. Now the daily (of couse some may argue that we are witnessing accumulation right now) Daily chart http://img398.imageshack.us/my.php?image=dailyra7.png See another chart http://img398.imageshack.us/my.php?image=weekly2kw6.png Here stock moved from around 170 to 27 in between April 2006 to May 2007. We did not see any accumulation phase at all. Selling climax is also not visible. So my question is how can we detect end of downtrend (or may be markup phase) in such cases? Twisting the question slightly, how can we see the end of uptrend in the absence of buying climax and distribution? Thanks in advance and regards

Well. I have a question with regard to Point and Fugure charts. I am still studying Wyckoff method. I have read that Wyckoff was using Point and Figure charts to estimate price target. Am I right? If the answer is yes, then I have a suggestion. How about starting a seperate thread on teaching Point and Figure charting methods, its uses and its benefits etc.? I am quite sure, there will be many members who are eager to learn these aspects. I must confess, I am yet to learn this method of charting. Thanks in advance and regards

That is great. Please do it at the earliest and post the link here. Thanks in advance and regards RSI

Db, Can you provide some chart examples for explaining capitulation? Commentary as to how to look out for capitulation, how it proceeds, what to look for in capitulation etc. would be icing on the cake. Thanks in advance and regards

Are you going to rely on daily chart when you are trading on such a long time frame (i.e. August and January)? What is capitulation in August was on daily chart and it was a capitulation on daily chart only. You have to analyse it in the context of daily chart and the trading should be taken which is suitable to that timeframe context. A capitulation on hourly chart should be traded on that timeframe trading only. A capitulation in hourly chart may not be visible on weekly chart at all. Multi timeframe analysis is quite different.

I think we have to distinguish between low volume tests that are happening after capitulation and low volume tests without having capitulation in the background. Capitulation implies that sellers are done. So a low volume test points that there are no more sellers. If there is no capitulation in the background, the whole volume spike and low volume test (I mean the entire move taken as a whole) can be interpreted as redistribution. A failed test with this setup confirms it as a redistribution. The key point is capitulation in the background.

Soultrader, Thanks a lot

Great effort. Can you make it in downloadable shockwave file format so that some of us can download it and view them offline? When I get connected to TL Video site, my internet speed drops down to 10 KB/Sec. You know how painful it is to watch video on that sort of internet connection. Thanks and regards R.S.I.

Tried to copy the answer given by other students here. But I could not as the handwriting was too bad to read :doh: So I am trying on my own as I have no other alternative :crap: 1. Upthrust 2. Stopping volume? Any way, I will not jump in to trade on the very next bar as one of my teacher (was it soultrader himself?) told me to wait for the completion of next bar. He also told me that by doing so I will be able to reduce bad trades considerably. I have to heed to the advice of the teacher. So wait and watch. Bar 1 and 2 taken together means that price is not going either upward or downward. So let the market decide where it wants to go. Then jump in to it. 3. Another move to trap over eagerly bulls. Upthrust 4. Wide range bar which closes in the middle with huge volume. Examination of earlier bars shows that prices were already in a nice uptrend. Prepare for a downmove. 5. All that I can say on bar numbered as five is that I will not take any trade either on this bar or on the next bar. Price was already moving down for three bars continuously prior to bar numbered 5. Volume was heavy on all four bars. Noted that all four bars including bar numbered 5 are WRBs. Apprehensive to short more and equally apprehensive to go long. Wait and wait. Price will either move sideways or reverse shortly. I am not going to attempt to board the train before it stops in the station. Let the market show its hand. 6. Ditto for bar numbered six. No clear sense of direction. Volume is decreasing. With clear weakness in the hindsight, it is clear that sellers are exhausting themselves, but close of the bar on its lower bottom tells me that buyers are not at all enhused inspite of seeing all prior bars. So I will wait for another opportunity for what? To short. 7. Didn't I tell you not to be in a hurry to go long? :o If you have gone long now repent. Action at bar numbered 7 emboldens me further to short. See even after all the WRB down movement, there is no buyer. That means price will not go up. Price will move down. I will short at the opportunate moment. 8. Action at the hard right edge. Another classic message from the market that there is only weakness. Short on the close of the bar below the low of the last bar with a stop a few ticks above the high of bar numbered seven. Still conservative stop could be just above the low of congestion in the area between bar numbered 3 and 4. Tell me teacher, have I passed the test? If I have failed, do not tell my dad and mom. They will scold me like anything. If I have got more than 80% marks, do tell my dad and mom. They will be happy. If I have given a wrong answer tell me why I am wrong and where I have gone wrong. I will try to learn.

Wow! I was fooled by the size of files. One is hardly 92 K. B. and the other is 6.2 M. B. Anyway thanks to both of you for the quick reply and timely action. Thanks once again Regards RSI

Thanks for the help JJ. But I have already successfully downloaded the file zipped by you. I was asking about the file uploaded by soultrader. Sorry for the confusion caused in my post. Can you zip the file posted by soultrader? Thanks in advance and regards RSI