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Technical Analysis: What indicator works best for you and why? (equities, not real time)

My answer to Technical Analysis: What indicator works best for you and why? (equities, not real time)

Answer by Ruchir Gupta:

I dont know under which category should this be method be classified. However, this has been working Superb for me. And I use them for Positional Trading.

Certainly it is not Technical Analysis, however it is a great tool for making money in any Indices, Stocks, Currencies, Commodities. The Method is Astronomy, used by many Profitable Traders (including WD GANN: A legend in the field of Trading who used Astro and Planet movement for Prediction) but its yet under cover and not known to general public.

There many techniques like:

  1. Planetary Ingress, that is when a planet enters in new house: watch in this Image, Gann had marked the times of Planet Ingress is this chart.

2. Planet conjunctions, oppositions (180), square (90), Trines (120): Seen that many a times these aspects of two planets separate by a particular degrees produce some magnetic energy to flow from one place to another which disturbs the regular trend and hence a reversal in a stock, commodity, currency is made

3.Planet Retrograde and planet again Turning Direct: As each planet has its own magnetic field and it stays at one place (or moves slowly) when becomes retrograde then also stocks have been seen to got reversed. For Eg: watch Saturn retrograde and your major stocks and indices, you will find a correlation.

4. Solar and Lunar Eclipse: They also have been seen cause market reversals. I have back-tested these techniques so I know that they work, in case you are seeking to go ahead and test them let me know.

Technical Analysis: What indicator works best for you and why? (equities, not real time)


Is there any scientifically valid way to distinguish non-random stock price movement from random noise?

My answer to Is there any scientifically valid way to distinguish non-random stock price movement from random noise?

Answer by Ruchir Gupta:

Yes, there is a scientific valid way, however first you need to understand why it is scientifically valid.

Reason is a lot of people dont believe in Astrology and that is fine as I have also been a not believer, however I was able to make room for understanding that Astronomy is scientific and reason was simple that there is a gravitational pull of all these planets which hold them together hanging in the space and this gravitational pull or Magnetic Current also influences Human mind, influences the weather on earth, alters tides and currents and brings natural calamities.

I am just giving you a hint go and test that when Saturn Retrogrades* what happens in the Global Equity Indices, it could be S&P, Nasdaq, TASI, FTSE, DAX or even currencies. Saturn Retrograde often correlates with fall in major Equity Indices. If you are backtest and see the correlation you will be amazed. This is just one phenomenon. There are many more. If feel excited after testing the results with Saturn, test for other planets are well.

Retrograde Motion: This is referred as when a planet starts appearing to move backwards when viewed from earth.

Is there any scientifically valid way to distinguish non-random stock price movement from random noise?


What makes the price of gold fall?

My answer to What makes the price of gold fall?

Answer by Ruchir Gupta:

  1. Many People may say that Golds Prices Fall when Stock markets rise.
  2. Some will Talk about Demand and Supply.
  3. Some refer it as a fear indicator so, if fear rises amongst the equity market Gold prices rise and if all things and global events are doing well, in other words no fear then Gold prices fall.

While, the fact is that the prices of all the stocks and commodities including Gold are governed by Planets and cluster of stars known as Zodiacs. I am not talking about Astrology but Astronomy. Which is just simple a method by which a reversal could be predicted by knowing which planets to look at. I have tested these Methods myself and predicted market and stocks reversals in advance many times using these methods.

You may understand very simply that Sun causes day and night, our body cycles and body clocks are tuned with sun. Photosynthesis in plants is dependent on SUN. So we can say that is there is no SUN then there will be no life. We have to accept that SUN has some powers and so have all the other planets got. If we could look market is this manner and understand the magnetic currents and energy flows of these planets then we may find a method which could be used to predict the Reversals in the Gold or any other trading commodity.

What makes the price of gold fall?


If stock price movement is random, how can technical analysis help in providing profits from trading?

My answer to If stock price movement is random, how can technical analysis help in providing profits from trading?

Answer by Ruchir Gupta:

The stock prices are not random and they are being governed by the planetary movement. WD Gann who was the Richest Trader in 1930–50s used Planets and Astro effects for predicting the moves in the market. I was fortunate to learn his methods and I have tested that these methods work by myself.

The Price movement may be random, if the stock is less traded or has low volumes of trading. Even with in the Randomness of the stock price there is a pattern and if this pattern could be identified, some serious money could be made. Elliott wave is one such study, which adjusts these patterns and fits them to predict the bigger picture.

Also, I must say some thing that Technical Analysis alone is not sufficient you need to mix it with proper money management to gain profits from trading. People sometimes very good in Technical Analysis might fail if their money management is not good. So Technical Analysis can tell that this stock is about to reverse but booking profit at proper levels is necessary which comes with money management. Also, every Technical Analysis method is 100% and this drawback could only be handled with money management.

If stock price movement is random, how can technical analysis help in providing profits from trading?


What are some of the better methods used to predict movement for forex?

My answer to What are some of the better methods used to predict movement for forex?

Answer by Ruchir Gupta:

One of the methods which could be used to predict movement in Forex or stocks or commodities is Gann Astro Methods. Every pair has its own set of planets majorly influencing the movement of the particular currency pair. If you are able to catch it you can start predicting the moves.

Elliott Waves is also one such tool where the prediction could be made on any Forex or stock or commodity.

And if you learn to use both together then you can start doing miracles in the market.

I my self have been using Gann Astro Methods to predict stock movements in Indian Markets and I have full faith in these methods.

What are some of the better methods used to predict movement for forex?


Is there a way to get information by email on IPO Initial Public issue shares in india?

My answer to Is there a way to get information by email on IPO Initial Public issue shares in india?

Answer by Ruchir Gupta:

Yes surely, If you own a D-mat Account your Broker Generally Informs you in advance either via personal communication or the Brokerage house sends mass email to all its clients.

For this you may ask your other friends, If their Brokerage Company mails the upcoming IPO information to them or you can yourself esquire from different brokerage houses if they mail this information.

As a confirmation you can ask them to show you the past emails.

Is there a way to get information by email on IPO Initial Public issue shares in india?


How much I will lose if I forgot to buy back 100 shares of binani industries which I shorted?

My answer to How much I will lose if I forgot to buy back 100 shares of binani industries which I shorted?

Answer by Ruchir Gupta:

If the stock be covered at lower prices at the time of auction then you may infact gain.

Also, Stock Exchange imposes some penalty if shares are shorted this way, which is very nominal as it is obvious the quantity you traded was very small.

As an alternate step you may buy Binani Industry Shares 100 quantities and square off when the auction is done (as in auction which is around 1–2 pm, stock exchange will buy back your shares)

You can also consult your broker for exact date and time when auction will take place.

How much I will lose if I forgot to buy back 100 shares of binani industries which I shorted?


Is someone else getting poorer when I make money?

My answer to Is someone else getting poorer when I make money?

Answer by Ruchir Gupta:

Really, a sensible and thought provoking question, I also had a same question many years and it got stuck into my mind and I kept thinking about when ever I was free.

The crisp answer is “NO”. No one is getting poor, if you are making money. I will explain you a third component which is Nature or Universe which is balancing everything.

Example 1: Trees are coming from nowhere: Suppose you plant 100 trees on a farming land for selling the wood in future. Trees after 10 years are ready to be sold. You sold them, got money generated simply from the air. You did not do any thing except planting them and giving water in few initial months. (so in this case money is not coming from people, it is coming from Nature and your hard work)

Now the person who has bought wood from you will recycle it , make furniture, doors, windows etc and or may sell it further.

Think about Abundance: We are thinking in terms of scarcity most of the time while we should think of abundance. If one truck of Uranium (or some other Mineral/Metal) bought from moon would be sufficient to fulfill the requirements of US for one full year, But we are fighting for limited resources.

Example 2: Consulting services offered by you are being generated from your mind and they are benefiting people so they are paying and your knowledge is adding value in their carrier. So this money is coming coz of mutually beneficial relationship.

Under this Example let us take different cases:

Case 1: You tried to help and the person got benefited. In other words Doctor operated the patient, did the surgery and operation was a success. Both Party are beneficiary. Doctor gets fees and Patient life is saved. Will you not feel good and accept the fees as a doctor?

Case 2: As always you tried to help but the client or patient did not benefited. In other words doctor tried to save the operation but the patient died. Now in this case doctor is a beneficiary, while patient has lost life as well as money. However does this means Doctor should not receive the fees?

Example 3: You sold goods/ service to other people and they further sold it at profit and the chain continued. So no one became poor. By the way the goods you sold were perishable and they got damaged at one person’s ware house after changing hands from two suppliers. Whose Fault? This person surely will get poorer. Should you regret?

Example 4: You sold a Gun to a Eskimo, he will gain from it by hunting, you gave a nice thing in nice hands, but if you sold a nice painting to Eskimo what will he do from it? This will surely make him poor.

It requires a lot of introspection on what we are doing and for what purpose we are doing it and does it makes us satisfied or it increases worry inside of us after we do it. The real key lies in what we feel inside after we do that action.

Is someone else getting poorer when I make money?


How could I create a web software tool like stock screener to value a stock?

My answer to How could I create a web software tool like stock screener to value a stock?

Answer by Ruchir Gupta:

May be I dont have a direct answer for your query however , I have attached couple of you-tube video links that may help you one way or the other and your purpose might get solved.

Also, there are a couple of excel screener models on Invest Excel – However I am unable to locate those excel files right now ( I saw them some 2 years ago in this site)

Hope you will find some way to move ahead or spark a new idea from the this information.

https://www.youtube.com/watch?v=C2rptGOMJcghttps://www.youtube.com/watch?v=Y4GHgJjIQnkhttps://www.youtube.com/watch?v=b0nQ_cPN3Hk

How could I create a web software tool like stock screener to value a stock?


How professional (experienced) traders advance their skills?

My answer to How professional (experienced) traders advance their skills?

Answer by Ruchir Gupta:

Professional/ Experienced Traders have own strategy which they hardly change if it has been continuously working. If some thing is working fine and giving consistent results then there is not point changing it.

However, they keep learning new methods and dont mix the new methods with the exiting system. They keep thinking about, how the new skill/method could be used for further advancement, and they :

  1. Either take one or two components from the new method and integrate it with old system to get better results.
  2. They may take the new method, learn it , understand its potential and profitability and start a new system, without tampering the old system which is being run with old methods.

Also, they can also advance the present skills, as the more they trade with one method they become master of it. For eg, if they trade with Moving Average they will start knowing in advance that if the crossover will happen or not. Getting these insights and intuitions in advance only happens when, one practices his trading skills for quite a while. In reverse changing trading style every month will not let him specialize that technique or method.

Another example of Gann analysis I will give, suppose a reversal in a stock happens when ever 3 planets come in to aspect to each other, then suddenly analyst stops tracking these planets and starts focusing of different combinations, his specialization will get affected and his prediction for reversal may not work. Same Applies for Elliott Waves and other technical analysis methods.

How professional (experienced) traders advance their skills?