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Thread: P&F Super Pattern

An effective price pattern defined using properties of P&F charts.

#Superpattern #Pointandfigure #Definedge

 Point & Figure is an oldest charting method where price is plotted vertically, and the chart moves only when price moves. It is a different way of looking at the price, the objective box-value and reversal value offers advantage of identifying objective price patterns.
When price is moving up, it is plotted in a column of 'X'. When it is going down, it is plotted in a column of ‘O’. Normally, three-box reversal criteria is used to define the trend & reversal. Unlike a bar or candle, the P&F column can have multiple sessions in it.
Link to know more about the subject:
https://t.co/2xtLAVPBvm

See below chart. Price is in a strong uptrend, P&F chart would produce a long of column of 'X' with more number of boxes in it.
If such a trend is followed by some time bars without meaningful price correct, P&F chart would not move, and it will remain in column of 'X' in such a scenario.
If there is a price correction, P&F chart would turn to column of 'O'. If price correction is not large or significant, boxes in 'O' column would be less.
If it turns out to be a shallow correction and price bounces back immediately, it indicates that weak bulls are shaken and weak shorts are in - in a strong uptrend. There is a trade opportunity when price goes above previous high.
Column of ‘X’ in a P&F chart would go above previous high. It is known as a basic Double-top buy pattern when column of X goes above high price of previous column of X.
The strong trend should not be a corrective move. There has to be a breakout before that.

So, the pattern is: Breakout, strong trend, shallow retracement & follow-through price action.

How it is defined clearly and made objective on a P&F chart?
Breakout = Double-top buy

Strong trend= More than 10 boxes of 'X' after breakout

Shallow retracement = Not more than 4 boxes after strong trend

Follow-through = Double-top buy after correction
The trade plan is also objective. Buy upon follow-through breakout (double top buy) and place a stop-loss below the bottom of shallow retracement.

Initial stop-loss in affordable and risk-reward is high that makes it a tradeable pattern with positive expectancy.
Vice versa for bearish super pattern. The objective definitions can help us in trading this price pattern on any instrument and timeframe. I suggest Daily chart for EOD segment and one-min timeframe for intra & derivative trading. One-min on P&F is v different & useful timeframe.
The pattern was introduced in my book on P&F charts. It has clear entry-exit and risk management rules. The logic and definition is Super, hence I gave that name. I have defined many such price patterns using important properties of different charting methods.
This simple looking pattern & combination is a result of lots of efforts & experience. More filters & variations are possible. It can be traded objectively, or chart analysis can improve the results. It can also be traded in combination with candlestick patterns or other methods.
The pattern can help in identifying stocks in momentum, strong breakout and offer affordable RR. Most of the momentum indicators are in favor during such breakouts. The pattern and setup has stood the test of time for me. Its not about P&F, its about objective price setups.

More from Prashant Shah

Prashant Shah
Prashant Shah
@Prashantshah267
Thread: Camarilla Levels

Continuing our discussion on pivot levels, we look at the Camarilla levels which is another widely followed tool.

Word ‘Camarilla’ is borrowed from Spanish. It translates to a group of confidential & private advisers of the King or person in authority.


The Camarilla equation was first developed by a bond trader named Nick Scott in 1989. It is said that he didn't disclose the equation, but people studied the levels & reverse engineered it to find the formula. There r different versions of this formula.

We discussed about ‘Range’ in the earlier thread. The range is basically the difference between High & Low of the session.

High – Low = Range of the session
Continuing with the same levels as an example, If High of the day is 105 and Low is 95, Range of the session is 10 points.


Range shows us activity during the session irrespective of the trend.
Narrow range = Not much movement
Wide Range = Strong activity

Camarilla calculation depends on the Range of the session.

Let’s expand the range to 110%. If Current range is 10, let us make it 11.


Let’s now divide this Range in four parts.

9.17%, 18.33%, 27.50% and 55% of the range.

So, if Range is 10 points:
10 x 9.17% = 0.92
10 x 18.33% = 1.83
10 x 27.50% = 2.75
10 x 55% = 5.50
INDICATORS
Prashant Shah
Prashant Shah
@Prashantshah267
Thread: Central Pivot Range (CPR)

CPR is another popular tool. Three lines are plotted on the chart when we plot CPR.

The three lines are: CPR, TC and BC.

Let’s understand the calculation.


You may recall that I explained the calculation of Pivot levels in an earlier thread. CPR stands for Central Pivot Range. It is always a center line of the three lines that gets plotted in the chart.

CPR is a Pivot price. Pivot is average of HLC as explained in the prev thread.


We also discussed about Mid-range of the session. Mid-range is average of High and low price of the session.

The mid-range of the bar is known as BC in the CPR calculation. BC stands for Bottom central pivot.


Pivot level captures the relationship of the closing price to the range of the session.

Pivot price above mid-price = bullish pivot
Pivot price below mid-price = bearish pivot


So, CPR line is Pivot and BC line is Mid-range.

What is the difference between both?
Mid-range is average of High and Low.

Pivot is average of High, Low and Close.
What will make the difference between the two?

Close.
FINANCE , LEARNING
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Prashant Shah
Prashant Shah
@Prashantshah267
Back-testing of some candlestick patterns 🧵

I hv back-tested patterns shown below on 500 stocks (Nifty 500 stock group as on today) since inception on daily timeframe charts.

Below is some interesting information.


I was doing to design multi-chart setups. But the information in the thread can be useful for people practicing candlestick chart patterns. There are many patterns & we keep coming across more. The data can give you a rough idea about the past performance of patterns.

Patterns are defined based on the popular rules of identifying them. I have also tested bearish patterns for bullish trades and vice versa (Contra approach).

Criteria: Hit ratio & returns of pattern giving 1:1 risk-reward if the entry is at the closing price of the pattern.

Some top bullish patterns have below hit ratio:

Inverted Hammer or Shooting Star – 74.72%
Multi-Harami breakout - 65.23%
Bullish Harami cross – 64.6%
Bullish Kicker – 63.53% (Got better returns)
Bullish separating line – 61.69% (It has got better returns)


Doji breakout hit ratio is decent (63.71%) but occurrences are v high so need more confirmation.

Engulfing and Harami patterns have got better returns when traded at next candle of confirmation.
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Prashant Shah
Prashant Shah
@Prashantshah267
Thread: Darvas Box Theory

#Darvas #knowledgesharing #Definedge


Nicolas Darvas (1920 – 1977) was a professional dancer and he travelled around the world. He founded a Dance company in 1950s. Someone offered him shares against his Dance programme and that is how he came across stock market and the business of trading.

He reportedly turned thousand dollars into millions in the late 1950s.

He wrote a popular book during 1960 “How I made $2000000 in Stock Market” in which he explained his Box theory. It is a must read.

He used a combination fundamental and technical approach for investing.

He believed in investing in only growth stocks. I think he did not explain a few things in his book, and I found some difference in interpretation of box-theory at various places because of that. This post is my interpretation of his theory.

Darvas was tracking stocks only making new high. I do not think he really talked about 52-week high. He mentioned about stocks breaking 2-3 year high. But 52-week high is mostly tracked for this theory so let us keep it that way to begin with for the sake of objectivity.
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Prashant Shah
Prashant Shah
@Prashantshah267
Thread: 5 Important bullish & bearish chart patterns in technical analysis.

Triangles, Broadenings and Rectangles.

#trading #investing

Many traders analyse and practice western chart patterns. There are many such patterns and enough is talked about them in various books and resources.
Long back, I read a book “Encyclopedia of Chart Patterns” by Thomas N. Bukowski. It’s a brilliant work (Must read).

He backtested many patterns & ranked them based on their performance. Most imp is that he separated the patterns based on their performance in uptrend & downtrend.
I read about those patterns at many other places & in different theories and I realised that most of them are-

-variations of broad category of patterns. I have bifurcated these patterns in various categories.

Triangles, Broadenings & Brackets or Rectangle patterns are most common & effective patterns. Below are 5 bullish & bearish proven, time-tested patterns of these categories.

Bullish Patterns:
Rectangle Breakout:
Horizontal pattern breakout. Price remains between two horizontal lines before upward brkout. Its a decent continuation breakout pattern when appears in uptrend. Reversal pattern when appear in downtrend (Decent Risk-reward). Tend to pullback
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Kostas \U0001f468\u200d\U0001f4bc \U0001f4c8 \U0001f4b8
Kostas 👨‍💼 📈 💸...
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If you want to become financially independent and don't know where to start, here is a thread that will help you get started

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1. Review your expenses and make a budget

It will help you see where you overspend, make a plan to save, pay down debt and start


2. Set your investing and retirement goals

How much do you need to support yourself in retirement and when do you want to


3. The earlier you start investing, the better.

Here's why and how time and compounding can become your


4. Invest in an index fund

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Bayo Adeyinka
Bayo Adeyinka
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Travelogue: Ibadan-Hills, Bottoms, Masquerades & Research

More than 15 years ago, I met an Italian who had lodged at KS Motel at Total Gardens, Ibadan.

He was in Ibadan for the first time and he was very fascinated with the city when I informed him that Rome and Ibadan shared a very unique similarity: both of them are built on seven hills. He asked me to take him round Ibadan which I did.

The seven hills are Oke Padre, Oke Ado, Oke Bola, Oke Mapo, Oke Are, Oke Sapati and Oke Mokola. But Ibadan is not just a city of hills. It is also a city of 'bottoms'. Loosely translated, 'idi' means bottom or the backside.

Several people have attached sexual innuendoes to the names. However, the actual translation indicates that some of the 'idis' indicate how the settlers converged at a point thereby leading to how they arrived at the names given.

Go round the city and you can locate Idi-Arere, Idi-Ose, Idi-Ishin, Idi-Ape, Idi-Ayunre, Idi-Obi and Idi-Ito.
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Prashant Shah
Prashant Shah
@Prashantshah267
Thread: Central Pivot Range (CPR)

CPR is another popular tool. Three lines are plotted on the chart when we plot CPR.

The three lines are: CPR, TC and BC.

Let’s understand the calculation.


You may recall that I explained the calculation of Pivot levels in an earlier thread. CPR stands for Central Pivot Range. It is always a center line of the three lines that gets plotted in the chart.

CPR is a Pivot price. Pivot is average of HLC as explained in the prev thread.


We also discussed about Mid-range of the session. Mid-range is average of High and low price of the session.

The mid-range of the bar is known as BC in the CPR calculation. BC stands for Bottom central pivot.


Pivot level captures the relationship of the closing price to the range of the session.

Pivot price above mid-price = bullish pivot
Pivot price below mid-price = bearish pivot


So, CPR line is Pivot and BC line is Mid-range.

What is the difference between both?
Mid-range is average of High and Low.

Pivot is average of High, Low and Close.
What will make the difference between the two?

Close.
FINANCE , LEARNING
SG
SG
@GhoshSubhag
Way to #Financial freedom

1) Rule of 72 (Double Your Money)
2) Rule of 114 (Triple)
3) Rule of 144 (Quadruple)
4) Rule of 70 (Inflation)
5) 4% Withdrawal Rule
6) 100 - Minus Age Rule
7) 10, 5, 3 Rule
8) 50-30-20 Rule
9) 3X Emergency Rule
10) 40% EMI Rule
11) Life Insurance Rule

1) Rule of 72
No. of yrs required to double your money at a given rate, U just divide 72 by interest rate
Eg, if U want to know how long it will take to double your money at 8% interest, divide 72 by 8 and get 9 yrs

At 6% rate, it will take 12 yrs
At 9% rate, it will take 8 yrs

3) Rule of 144

No. of years required to, quadruple your money at a given rate, U just divide 144 by interest rate.

For eg, if U want to know how long it will take to quadruple your money at 12% interest, divide 144 by 12 and get 12 yrs

At a 6% interest rate, it will take 24yrs

4) Rule of 70

Divide 70 by the current inflation rate to know how fast the value of your investment will get reduced to half its present value.

The inflation rate of 7% will reduce the value of your money to half in 10 years.

5) 4% Rule for Financial Freedom

Corpus Reqd- 25*Annual Expenses

Eg- the annual expense is 500,000 then the corpus required to retire is 1.25 cr.

Put 50% into fixed income & 50% into equity.

Withdraw 4% every yr, i.e.5 lac.

This rule works for 96% of the time in 30 yr period
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Fincademy
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@FincademyIn
Everything You Need To Know about Emergency Funds

A Thread 🧵👇

1/ Let’s understand the meaning of Emergency Fund, it is a fund that will help you at the time of financial crisis or unplanned scenarios. It is also known as contingency funds.

An Emergency Fund is the first step towards financial freedom.

2/ For example, when the Covid-19 hits many people lose their jobs which results in loss of financial support and people find difficulties buying basic necessities for themselves. So, having emergency funds helps you to sustain the period.

3/ Now the question arises, how to build an Emergency Fund?

An emergency fund cannot be built overnight but it can be done gradually. Firstly, you need to analyse your monthly expenses and then, you need to set aside a particular amount every month.

4/ Say, you have decided to have an emergency fund of ₹3 lakhs. In this case, you can set aside ₹45000 or ₹50000 every month to accumulate the corpus you need. It is fine to even cut down on your investments to build this amount.
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प्राचीन काल में गाधि नामक एक राजा थे।उनकी सत्यवती नाम की एक पुत्री थी।राजा गाधि ने अपनी पुत्री का विवाह महर्षि भृगु के पुत्र से करवा दिया।महर्षि भृगु इस विवाह से बहुत प्रसन्न हुए और उन्होने अपनी पुत्रवधु को आशीर्वाद देकर उसे कोई भी वर मांगने को कहा।


सत्यवती ने महर्षि भृगु से अपने तथा अपनी माता के लिए पुत्र का वरदान मांगा।ये जानकर महर्षि भृगु ने यज्ञ किया और तत्पश्चात सत्यवती और उसकी माता को अलग-अलग प्रकार के दो चरू (यज्ञ के लिए पकाया हुआ अन्न) दिए और कहा कि ऋतु स्नान के बाद तुम्हारी माता पुत्र की इच्छा लेकर पीपल का आलिंगन...

...करें और तुम भी पुत्र की इच्छा लेकर गूलर वृक्ष का आलिंगन करना। आलिंगन करने के बाद चरू का सेवन करना, इससे तुम दोनो को पुत्र प्राप्ति होगी।परंतु मां बेटी के चरू आपस में बदल जाते हैं और ये महर्षि भृगु अपनी दिव्य दृष्टि से देख लेते हैं।

भृगु ऋषि सत्यवती से कहते हैं,"पुत्री तुम्हारा और तुम्हारी माता ने एक दुसरे के चरू खा लिए हैं।इस कारण तुम्हारा पुत्र ब्राह्मण होते हुए भी क्षत्रिय सा आचरण करेगा और तुम्हारी माता का पुत्र क्षत्रिय होकर भी ब्राह्मण सा आचरण करेगा।"
इस पर सत्यवती ने भृगु ऋषि से बड़ी विनती की।


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Anu Satheesh 🇮🇳...
@AnuSatheesh5
Thuravoor Narasimha Swamy Temple
Alappuzha, Kerala
#KeralaTemples 🚩

Thuravoor Narasimha Swamy or Thuravoor Mahakshetram is situated in Alappuzha with Narasimha Swamy and Sudharshana Moorthy as main Prathishta.
Temple has separate Sannidhi for Vadakkanappan ( Narasimha) and 👇


Tekkanappan ( Sudarshana).

Sthala puranam says that Vigraham of Narasimha was brought from Varanasi. Swami Padmapadar, shishya of Adi Sankaracharya, had worshipped the same Vigraham at Kashi.
A Namboodiri, on his way to Kashi saw a powerful light which disappeared here 👇


Namboodiri dug the place and he found a beautiful beautiful Vigraham made of Anjanasila. It is said that the vigraham occupied a site, which was the place of Durga Devi
Sudarshana Moorthy is about 6 Ft, Chaturbahu. Deepavali is famous festival here.
Om Narasimha Swamine Namah
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Anu Satheesh
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Ameda Temple
Ernakulam, Kerala 🚩
#keralatemples

Ameda Ksetram is located in the banks of Vembanad Lake. Temple is very unique and Powerful Sarpa Kavu.
Parashurama did Prathishta here. Vilakku which was lighted by Parasurama is still seen inside the temple.


The oil from this lamp is given to bhakthas for recovering from illness.

Sthala puranam says that, Once, when Parashurama was travelling through Kerala, he reached this place. As it was evening, he stepped into the Lake for Sandhya Vandanam
At that Sapthamathrukkal 👇


(Brahmini, maheshwari, kowmari, vaishnavi, varahi, indirani and chamundi) were travelling there on a tortoise through the water. The tortoise was unable to move, because the Water had made its way for Parashurama. The place where the tortoise became Still came to be known as 👇


Aama Ni Nidayam' ( Aama means tortoise) and later become ‘Ameda’. Parashurama came to know about the journey of Sapthamathrukkal. Thus, he did Prathishta for the Sapthamathrukkal here.
7 forms of Aadi Parashakthi are Sapthamathrukkal. Veerabhadra and Ganesha have Sannidhi here.


The main Garbhagriham in the temple is the Sapthamathrukkal. There are Sannidhi to Nagas, Nagayakshi and Vishnu too. Sarparadhana or snake worship is done here. Naga Panchami is famous here. Those who have Naga Dosham come here and get relieved of their Doshas.
🕉🙏🕉
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\U0001f1fa\U0001f1f8I Support Our Military & Law Enforcement\U0001f1fa\U0001f1f8
🇺🇸I Support Our Milita...
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1. There are more people added on the list of arrests and executions of famous people but no further intel is available at this time.

ARRESTS and EXECUTIONS OF FAMOUS PEOPLE 2020 UPDATED
Explanation of the latest military tribunal arrests and executions of famous people in 2020.

2. The tribunals are arresting these people in plain clothes. We saw the Obama’s arrest, although we didn’t know it was an arrest at the time. The arrest was done nonchalantly so as to not get noticed by the public.
All arrests of these famous people were done this way.

3. If the person is convicted of child sex trafficking, crimes against humanity or treason, they will be executed.
If the person arrested has evidence on someone else to help their prosecution, or is willing to help Trump, & they want to cooperate, they may be allowed to do so.

4. A sentence of execution down to life in prison may be accepted if their evidence is worth anything.
When a plea deal is done, the defendant must present evidence they have to make their sentence lighter. This information is given to the prosecution, defense, and to the judge.

5. If evidence is accepted, they are presented the plea deal. They will have to make a guilty plea to the crime with a video confession & written statement. That is how all plea deals work.

All famous people arrested were either treasonous or involved in satanic worship rituals.
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AHOBILAM NARASIMHA SWAMY KSHETRAM: KURNOOL (AP)
#andhratemples

Ahobilam is the place where Prabhu appears in his fierce form, called Ugra Narasimha, who is Svayambhu (self-manifest).
Ahobilam is one of the 108 Divya Desams. It has 9 shrines for different forms of Narsimha.


Ahobilam was the exact place where Sri Narasimha appeared and tore apart Hiranyakashipu to save Prahlad. At that moment, all the Devas appeared and praised him as Ahobala (Aho is mighty and bala is strength). So the place came to be called Ahobilam.


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Jwala Narasimha Swamy shrine is the actual spot where the fierce anger of Prabhu reached its culmination when he tore Hiranyakasipu.

Ugra Stambham is the pillar from which Narasimha appeared with such force that the entire hill split into two.
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