Tuesday, April 14, 2015

List of 25 Small & MidCap Stocks - #Stock Market #Equity Research #Performance #Price Action


As Mentioned on 3rd Jan, 2015 - Even if one would have made equal allocation to all 25 stocks above, this is how you would have performed. I post what I do, I can be 100% wrong. Do your own research before following me. Being an "ANADI" I just use the information as per my understanding & knowledge, which is too little in comparison to the market. I respect market's, which always supreme.

Monday, April 13, 2015

Ultimate Oscillator - a tool for making money with a combination of (9,18,36)

Developed by Larry Williams in 1976. The multiple time frame objective seeks to avoid the pitfalls of other oscillators. Many momentum oscillators surge at the beginning of a strong advance and then form bearish divergence as the advance continues. This is because they are stuck with one time frame. The Ultimate Oscillator attempts to correct this fault by incorporating longer time frames into the basic formula. Williams identified a buy signal is based on a bullish divergence and a sell signal based on a bearish divergence.

The Ultimate Oscillator can be used on intraday, daily, weekly or monthly charts. It is sometimes necessary to adjust the parameters to generate overbought or oversold readings, which are part of the buy and sell signals. Relatively docile stocks or securities may not generate overbought or oversold readings with the default parameters (7,14,28).

To minimise risk, it is better to use a combination of (9,18,36). It is sometimes necessary to lengthen the time frames to reduce sensitivity and the number of signals.

Buy Signal
There are three steps to a buy signal. First, a bullish divergence forms between the indicator and security price. This means the Ultimate Oscillator forms a higher low as price forges a lower low. The higher low in the oscillator shows less downside momentum. Second, the low of the bullish divergence should be below 30. This is to insure that prices are somewhat oversold or at a relative extremity. Third, the oscillator rises above the high of the bullish divergence.

Sell Signal
There are three steps to a sell signal. First, a bearish divergence forms between the indicator and security price. This means the Ultimate Oscillator forms a lower high as price forges a higher high. The lower high in the oscillator shows less upside momentum. Second, the high of the bearish divergence should be above 70. This is to insure that prices are somewhat overbought or at a relative extremity. Third, the oscillator falls below the low of the bearish divergence to confirm a reversal.

Here are some live backtested charts :- 
Nifty

​SBIN

​Relaxo

​Nestle India

​ITC Ltd


Hope you found the article and practical understanding useful. Keep reading the "Anadi" like me, if you find something useful. You are most welcome to unfollow me if you don't like it :) 



"The fault, dear investor, is not in our stars—and not in our stocks—but in ourselves...."

Each mistake offers an opportunity to learn from the error and to modify one's approach based on this new information.

A person who never made a mistake never tried anything new. - Albert Einstein

The most used alphabet 'A' doesn't appear in the spelling of 1 to 999
It appears for the first time in 1000 and continues forever.
"Success requires Patience"

Work like you don't need money, love like you've never been hurt, and dance like no one's watching