Sunday, November 23, 2008

Trend following & Tech. Table reading..

There are various time cycles operating in the market all the time like monthly, weekly, daily, hourly, 5-minute, etc and each has their own trend.
For eg.We have presently the weekly trend down, daily attempting & nearly achieving a reversal, hourly turning up on Thursday and so on.

To confirm a trend, market need to close above or below 5 ema. Why ema? Because they give more weightage to the recent price action unlike the simple moving average which gives equal weightage to the last 5 days closes. And also the slow macd (Difference between 12 & 26 ema) should be up and above its trigger (9 sma of macd).Why 5 ? 5 trading days a week..Besides, I have found it to be stable , though some use 3, 4 etc.

If I wait for a daily buy signal, I miss 200 points from the bottom before the trend turns up. And after the trend turns up , market pulls back as a correction before rallying further and you may end up holding at higher levels for a brief period of time. So we look for the hourly trend to take position but this should be done only when the daily is in oversold status.

Similarly when the hourly is in oversold status, look at 5 minute to give you a buy signal for a possible reversal in hourly.On the fateful 27th Oct, Nifty's low of 2253 was accompanied by an excellent +ve divergence which helped to take a buy call even before the hourly buy signal.

If you see the Tech table in which Market is shown to be down in weekly (always closing below 5 ema) and in daily (Closed above 5 ema but macd is yet to move above the trigger and still closed below the 5 high ema).

5 High ema tells you the upward momentum in Nifty. As long as it closes below it, it is sell on rises.(So for Monday, Nifty needs to close above 2750 (high ema) to sustain the Friday's momentum..Just intra rally above 2750 is not enough). If it closes above it, then buy on dips & hold longs.Use it in conunction with weekly, daily, hourly.

5 Low ema tells you the downward momentum in Nifty. As long as it closes below it, it is hold shorts.If it closes above it, it is buy on dips & sell on rises till it closes above 5 high ema.

In simple terms
....Up & buy on dips above 5 high ema
....dn & sell on rises below 5 low ema
....sideways & trade supports & resistances as long as it closes
inbetween 5 high ema & 5 low ema.

These are certain indicative tools and not an absolute one for trading.

Use always channels for your trading along with other supportive indicators. the primary guide should be prices and that travels within channels most of the time. Channels most often break during a 4th wave. So keep that in mind. (Eg. Say a downtrend develops in to a 5 sub waves. After 1 dn, then 2nd up, then a 3rd dn and now on its 4th up. Draw a line connecting 1st bottom and the 3rd bottom. Bring a parallel line touching the 2nd top and you will find the 4th wave breaking this top trend line briefly and move back into the channel and make a low and then rise breaking this channel decisively. Barring these, Channels offer excellent trading guides.
Observe in all the "SAR" charts posted here, how these channels have helped in intra days and even helped in avoiding whipsaws.

Finally, an interesting article about the recent financial meltdown...you may have read the first few paragraphs already elsewhere but the last few paragraphs are the surprising ones. don't miss them.

62 comments:

Sujatha said...

Thanks for the above. Try to grasp something ...

sharath said...

Sir'ji aap acha tutor bhi hain. Well fine thanks once again for helping the blog viewer's who always look for your words.

salemaruvi said...

good guides you and doctor you may write about gapup/down trading mechanism its also very useful for viewers thanks

how to calculate 5H-ema ? any calculator/formula sites make a link

salemaruvi said...

you are breathing for much lives

Ilango said...

Hi..Salemaruvi,

Send me your email ID, I will send you an excel sheet that does the entire Tech. Table for you.

Best wishes

srinivas murthy said...

sirji
I have mastered nifty trade ,because of your tech table ,many thanks for your valuable site.
can you mail me excel sheet that does the entire
tech.
please this is a request.
my email id is 4.murthy@gmail.com

Yogi said...

Hi Ilango, please send me the excel too.

Appreciate your help.

Regards
Yogi
tiwari.yogesh84@gmail.com

dgpat said...

sirji

please send me the excel file too.

thanks for your help.

regards,
dhiren
dhirendradangaria@gmail.com

kris said...

sir can u send me the excel work sheet to me.regards, class analysis, i am getting clearning about myself by stept by step through ur experienced writeup.
thx.greetings

kris said...

my email is kr_ma_1966@yahoo.co.in

kris said...

your analysis and guidance gives ventilation to me

Ashok said...

sir i m a new trader. your views were good as i couldnot grasp much trying to learn
regards
ashok

AsHu said...

Sirji,
I am new in trading & your site is very helpful.
Request you please send me your excel file & can you please explain how to calculate 5 High & 5 Low EMA.

thanks for your help.

regards,
Ashok.
aharyani@gmail.com

wallace said...

Sir Ilango,

You are an amazing teacher. Learing the basics. I will appreciate if you could send me the excel worksheet @ wallacebaba@gmail.com

Cheers

R said...

Sir,
Please send me an excel work sheet
@rpandurangi@gmail.com

Appreciate
Ranga

R said...

Sir,
I am a child in trading with a just 3month old.

what i should do precautions to save my interest of investments.

Should i choose to trade Future? Options? ya only cash?

any basic study required?
any cases kindly post me @ rpandurangi@gmail.com

R said...

Further, I am stuck with few stocks which I had bought in last couple of weeks.

In chances to exit atleast with cost to purchase
before of end of this month?

I appreciate your guidance

Rgds
Ranga

cadlancer said...

Please send me an excel sheet that does the entire Tech. Table

Antony

daytradar@yahoo.com

Gopi said...

Dear Sir

Please send me the excel file.

Thanks in advance for your help.

With Regards,
Gopi
rgopi2007@gmail.com

Kumaresan said...

Can U please send me the excel file to learn and trade. Please help me

Thx..Bala. Mail ID kumaresan1969@gmail.com

Kumaresan said...

Sorry the mail id is kumaresanb1969@gmail.com...thx

ravik said...

Please send me the excel file as well. Thanks in advance. my email: rkollipara@gmail.com

rahul said...

Dear Sir
I am new in trading & your site is very helpful.
Request you please send me your excel file & can you please explain how to calculate 5 High & 5 Low EMA.

thanks for your help.

Regards
Rahul
shahrahu@gmail.com

Mat said...

Dear Sir,

I am new to the site & for the past week I am reading
the study material which is really good.

Sir I recqest you to send me the excel sheet that does
the entire tech table.

Thanks for your help,

Regards,

Mathews.
(mathews.philips@gmail.com)

lithiummonty said...

Dear Sir


I am new to the site & for the past week I am going through

your blog.Can you please send me the excel sheet for tech table.

Regards
Abhinav Banta
lithium.monty@gmail.com

G Madan said...

Dear Sir

I am new to the site & for the past week I am going through
your blog.
Sir I recqest you to send me the excel sheet that does
the entire tech table.

Regards
Madan
madan.mpl@gmail.com

ganya said...

dear illango sir,

iam new to this site pls sent me excell sheet

may god bless you

vazha valamudan

thanks
ganeshlingam

ganya said...

dear illango sir,

my id is ganeshyogi@yahoo.co.in

THIRUKKUMARAN NT said...

Ilango ji,

I am a daily visitor of your blog and i am interested to view your excel sheet .Plz forward me.Thanks


My mail id is :
ntkumaran@gmail.com

eMiniSchool.blogspot.com said...

Hi Ilango:
I am interested to view your excel sheet .
My e-mail ID: dorairaj_s@hotmail.com.
Regards,
Raj

jmoorthy said...

Ilango Sir,

I'm new to your blog & it looks very interesting. Could you please
share that tech.table excel sheet to my mail id jmoorthy@gmail.com

Thanks
Jana

vnavin said...

Hi,
Sir please send me your Tech Table excel sheet my
mail id is vnavin78@gmail.com

Thanks & Regards
Navin

RAJ said...

Ilango Sir,

Just today I am surfing your blog & it looks
very interesting. Is it possible to you to share that
tech.table excel sheet.
Please mail me on sawanttrade@gmail.com

Thanks
Sawant

vote4LDF said...

guru ,

I am a daily visitor of your blog and i am interested to view your excel sheet .Plz forward me.Thanks
sobish184@gmail.com

jkp said...

May I also request you for excel sheet on 5 & 5 h-L.
My email--jkpahuja12@gmail.com
Thanks & regards
Jk Pahuja

karim said...

sir plz send ur excel sheet
-karim-
karimyakub@gmail.com

rajan said...

sir i will be obliged if can please send me too the excel sheet.Thanks.My mail id is rajanchopra5@gmail.com.

aadi_dilip said...

Wish u a very very happy new year 2012 to you sir.I am very much overwhelmed by your sheer dedication to your ownwork along with EW & TA in stock markets.Its not been very long since i used to read your lessons coz i have a great affinity towards EW.And on learning the lessons of EW,it seems that EW is very simple to understand but difficult to implement in real terms.I bow down to your sheer mentality of helping others with no expectations from anyone of any kind..great sir.

Today,i went thru the lessons of pivot trading,support/resistances,MACD,money management etc.and found it very useful.This site was referrred to me from one of my friend famously known among us as Shri Smo.thanks to him also..

i was very surprised to see how u use tech.table for ur reference and a tool to create succesful trades.overwhelming sir.
plz accept me as a student and share with me the excel sheet which u referred to us earlier in this article.my mail id is aadil133@rediffmail.com i.e.AADIL ONE THREE THREE

THANKS ONCE AGAIN,SIR

navtash said...

Respected ilango sir ,

pl send me the excel sheet , my email id is jjtn@rediffmail.com , thanks and regards

Faisal said...

Dear Sir

I am new to the site & for the past week I am going through
your blog.
Sir I recqest you to send me the excel sheet that does
the entire tech table.

Regards
Faisal
fkoroth@gmail.com

INDIA LIVE said...

Ilango Sir,
Could you please send me the excel sheet which can do all the calculations.

Regards
sanjay

ritesh said...

I am a daily visitor of your blog and i am interested to view your excel sheet .
Plz forward me.Thanks
ritesh444@gmail.com

vardaraj said...

Dear ilango master,
I am a regular visitor of your blog.Please send me the excel sheet which do all calculations.My email is,
vardaraja56@gmail.com

sunil said...

Sir,

Could you please send me the tech. table. in excel format
my id: sunilkumar87@hotmail.com

shahrahu said...

I am a regular visitor of your blog.Please send me the excel sheet which do all calculations.My email is shahrahu@gmail.com

muin ali said...

hi sir i m new here
kindly send me too.
niftycrazy786@gmail.com

maulik00777 said...

hello sir plz also send me that excel sheet i would be thank full to u

Maulik00777@gmail.com..

& thanks for such a nice guideline sir

Ravi Pillai said...

SIR
The kind of followers.
from all walks of life.
U R great.
Regards.
I am trying to understand your method.
may take long.
I will try.
Regards.
Ravi

SG said...

Sir,
I'm new to ur blog but found it extremely helpful.
Trying to understand the trading methods. Request you to pls send me the excel sheet with all calculations on sagar.gaikwad@gmail.com.
Have a nice day.

Selvan Raj said...

sir,
i am new to your site.last 3 months I watching your datas.
it helps to improve my trading knowledge.
i request you pl.send the excel sheets and trading tech.
Advance thanks to your kind help.
email:selvanrajk@gmail.com

Krishnamurthy said...

Rwspected Str,
I am your regular your followe o the technical sheet and analysis. will pl send to my e-mali I.D given below the excel sheet.

MY E-MAIL I.D IS skmurthy1949@yahoo.co.in

THYAGARAJ H said...

DEAR SIR

THANKS FOR THE INFO.
SEND ME TECHNICAL DETAILS TO: MYSTOCK345@GMAIL.COM

Vivekp4 said...

Hi Ilango, please send me the excel too.

Appreciate your help.

Regards
Vivek
vivekp4@gmail.com

KBN said...

Hi sir iam new kindly send excel file me kbnxerox@gmail.com

jaymurugan said...

hai sir, will u plz kindly send me the excel file to jaymurugan333@gmail.com

Binu MT said...

Hi Sir,
Please send me too the Excel sheet to bmtmmb@gmail.com
Thanks and regards,
BINu MT

shahrahu said...

sirji
i am new to your site.last 6 months I watching your data.
it helps to improve my trading knowledge.
i request you pl.send the excel sheets and trading tech.
Thank You in Advance to your kind help

my email id is shahrahu@gmail.com

Vikas Kumar said...

Dear respected Sir.
Please send me excel sheets and trading tech.
my e mail id vikas.k.vikas@gmail.com

sriniwaas said...

Dear sir, kindly send me excell work sheet me too sir , i will be ever greatful to you , my email address is srinu19@gmail.com

Amar said...

Can U please send me the excel file to learn and trade. Please help me

mundadaamar@yahoo.co.in

Wish Rajkot said...
This comment has been removed by the author.

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