Technical Analysis works only with wide participation ( sanghvi movers and reliance capital).

Technical Analysis works only with wide participation ( sanghvi movers and reliance capital).

Yesterday at tradingkamai we took positions in Sanghvi movers. The theory on which we took the call was that Sanghvi movers had formed a kicker with a reversal at a bottom

At the same time we reliance capital also excellent charts with kicker + doji.

But for various reasons we took our positions on Sanghvi movers. After we took position we found Sanghvi movers not moving at all. We tried to hunt reasons for the same. What we found is that there is a large mixed participation in reliance capital as compared to Sanghvi movers.

Look at those straight vertical and horizontal lines in Sanghvi movers which shows that the participation is coming from handful of traders. While look at those crowded zigzag trade lines in reliance capital which shows wide mixed participation base.

Now technical analysis works very well with wide mixed participation base as compared to handful of traders who can take any moves any times.

So today we are exiting from Sanghvi movers and this is one more lesson learnt in our trading journey. Take positions in wide mixed participation based stocks rather than stock which are run by handful of traders who are just speculating and manipulating. 

See syllabus for Technical analysis training in Mumbai,India.

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