Retracement strategy, a must for traders.
Trading strategy that works wonders besides the supports & Resistance is " Retracement strategy ": The strategy that has wor...
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I 'll always be there for you. To make you feel that you're secured. And even if the rain is pouring hard and the sky is almost dark... -
5010-5039 supply zone proved a ST resistance. 5002 proved a break down point. 4945 to 4982 proved a corrective rise, monitored with an ... -
Trading strategy that works wonders besides the supports & Resistance is " Retracement strategy ": The strategy that has wor...
49 comments:
Hi ilango
Sir your 10.00 bar low is 5154! i have low of 5134 (i use PIB) and NSE Site says 5136. sir could you explain the reason behind your low price of 5154.
hi ilangoji,
-ve divergence is developing in 5m charts can we short here
what could be the s/l
regards
rajamani
hi..Ghosh,
You have yesterday's close as Open & Low but we had a gap up & the first quote is "5153.60".
Check at NSE Home page graph..See the first tick.
http://www.nseindia.com/marketinfo/charting/OnlineContractIndexChart.jsp?instrument=FUTIDX&symbol=NIFTY&expirydate=29OCT2009&optiontype=&strikeprice=&indexname=S%26P+CNX+NIFTY&charttype=ONLINE_CONTRACT_INDEX&series=EQ&mkttype=N&key=&segment=FO&symb=&flag=0
Hi..rajamani,
Any shorts here, have s SL of 5183. Any correction may be a shallow one to 5155-5165.
sir can we take fresh longs now??
Thanks for Clearing my doubt Ilango Sir. So we always take the first quote price.
Ghosh
As I said earlier, Stay long as long as 5125(approx) holds. Yes, you can initiate a long here..
Reversed to "Shorts" @ 5125.
hi ilangoji,
thanks for your update
we have -ve diveregnce in all time frames (5m- materialised,60m, eod and weekly)
regards
rajamani
:) yes. 5181 again does the trick. triple top. even harder to scale :)
hello ilango sir ..wat will be the stoploss 4 the short ....
d.a. you could again take 5181 SPOT.
Satheesh,
Yesterday you had asked about the LONG straddle.
What is a Long straddle ?
A long straddle is an option strategy where an investor buys a call and a put at the same strike price.
e.g., buying Nifty call and put at strike price of 3600 on May 15, 2009
What kind of an option strategy is a LONG straddle ?
A LONG straddle is a high reward (unlimited profits), low risk (risk limited only to premium paid) strategy.
Why does an investor want to buy a LONG straddle ?
An investor wants to buy a LONG straddle because he anticipates a huge spurt in volatility. As a result he expects to counter to move beyond the premium paid.
The best example of buying a LONG straddle would be May 15, 2009. Had you bought a straddle on May 15 (just before election result came out), on May 18, the market gaps up by 17+%. As a result, your calls would appreciate in value, while your puts will be worthless.
HII Ilango sir, Now our SL for shorts is 5125, i hope??
Thankyou KKR for your response.
Sir,
What couldbe the next level to go long? i.e where can we expect it to bottom out from this level of 5110 without disturbing the uptrend?
i feel we should book profit for short
Hour TA has turned down decisively as of 1.00PM.
Day Ema is @ 5118. Any close below that will give confidence to the Bears.
A close below 5084(Yesterday's low) will be more bearish.
Weekly ema @ 5005. It may not give a weekly sell..But topping out seem to be indicated with a triple top.
Thank you sir for your levels. Your pivot levels and support resistances are very useful. I follow only that for intraday trading. Buy above pivot and sell near resistance and vice-versa. I have to admit that I did make handsome profits this week using your article about pivot, resistance and support. I sincerely believe that I would easily come out of my losses. Thank you once again
Sir
pls help how to spot positive and negative divrenge and which chart is assesiblbe for intraday
thank you sir
Hii Ilango sir, i m a conservative trader, not having any position at the moment.Sud i short here or near closing(if closing below 5118 day ema)??Plz suggest.
hi ilangoji,
what`s your conservative short rate and s/l
regards
rajamani
Ilango Sir,
Your analysis of a rounding top on daily chart seems to be coming true. can we wait till 4870 if it closes today below 5064.
Ideal level to Short is @ 5135-5145 with a SL @ 5160.
Update:
US S&P mini Future at 3 day high trading at 1108
regards
Dear ilango,
Thanks to you for sharing your views with us.We study your graphs and can judge little bit.Its only due to your valuable contribution.Again 5180 Zone,and call writing at above strike rates became critical for market.It looks like for some while bulls will have to or will forced to stop a battle.At 5180 everyone comes to sell.
hi all
from 1 dec nifty in a range 5050 to 5182 & volatile ,so positional trader should wait for break the range don't take fresh position .
( Intezar meetha hota hai)
I agree with "amtrender" that Nifty is still in a trading range. SO trade the points.
"Prosenjit" has well contributed on his doubts about certain Options writing cautioning on this upmove earlier.
"Rajamani" has pointed out the -ve div at the right time. All one need to do is to close the Longs. That is locking the profits.
"KKR" Short straddle should be a revelation to many and one more strategy to employ.
"Mynac" contributes from time to time and so do many here. This is quite a responsible sharing..level headed & mature stuff.
one observation is addition of more than 10L calls today at 5200 resulting in OI crossing 65L now...
on 6day, monthly basis S&P is in an uptrend.... Nifty must breakout of this trading range.... fractals also show not much upside.... timewise is says might enter into correction around new years time
Addition of 22,30,000 in nifty O.I. will be crucial at the closing if nifty close will be nearer to it's low.
Looks like an intraday bear flag formation. Since it is a continuation pattern, should resolve to the downside eventually and hopefully :)
bears may come out bazoka... boom bang to 4860 .... lakshman rekha for bears is now 5180-5220 (see 5200CA OI).
And fundamentally FII books profit in Dec every year, so why not in 2009. After all we are far from 2009 low.
Ilango sir,
would it be correct to interpret the daily chart patttern as a modified "Cup & Handle" with 5181-82 as the neckline?
Yes., ranajay,
It could be interpreted as a cup & Handle pattern, provided 5050/5015 holds.
I think this has become an excellent educative blog, except Ilango sir others shd refrain from put their trades as it is a distraction.
Nifty is right in the middle of this range of 5080 to 5180. Staying below 5130, pressure will continue. Above 5130, bulls will attempt 5140-5145+.
"Shorts" are not advisable above 5120 close. Stay neutral. If your shorts are @ high levels, one can hold it.Conservative Longs SL is still 5084.
I will be off line due to "Computer maintenance".
ilango sir do u think holding longs for 2moro will b a sensible thing to do???
B Band sqeeze on 5 min.
sqeeze let loose.....
If market cant go up it will definetly o down, but the confusion is addition of 5100PE. Almost 6.4L added today.
Although bears did a great job in shorting 5200CA, total 11.8L added in OI.And 5300CA added 4L and 5100CA 9,8L.
On PE side 5000PE and 4900PE was lost 4.5L and 1.9L
Everything looks fine for a 5005-5015 visit except the 5100PE(may be it was to stop a bigger fall today) addition. Lets see on Monday.
I am holding my shorts on Jan NF @5172(avg) now. Sold 5300CA in morning rise and again bot @35.Also holding 5100PE @103.CA:PE 1:3.My SL is 5216.
Hi,
Can u kindly explain about Fractals
Thanks,
Gop
Dear Ilangoji,
we have seen tripple top around 5180 in nifty.
i give here links of 2 sensex charts which were prepared based on some clues given in alternatives given by u.have a look at it and give yr comments.
http://2.bp.blogspot.com/_fJ202bMkEkU/SyIwcO2Z6SI/AAAAAAAAAcY/ifGdco7lZsQ/s1600-h/sensex+option+2+new+as+on+27.11-724265.09
http://4.bp.blogspot.com/_fJ202bMkEkU/SyIwbRaqbKI/AAAAAAAAAcQ/SuCtv5uxbfE/s1600-h/SENSEX+AS+ON+11.12.2009-721634.PNG
Pankaj Shah
sir pl see us dollar index month chart , with high volume this month [ 10 days only], pl explan ,so can we shot nift and hold. thanks
Yes..Saravanan,
As posted yesterday, Dollar index is poised to move up in its big 3rd wave which is likely to affect equity markets adversely.
After a triple top, one could hold the shorts.
Dear Pankaj Shah,
Good analysis on Sensex. My Nifty proejctions are also in simlar line as explained below.
"there will be five minute waves up from 4538. on 25th Nov. we completed minute wave 1 at 5145. Then we went into minute wave 2 at 4806 on 27th Nov. From then we are into minute wave 3. Considering the facts that the wave 3s are swift and bigger in magnitide, we may shoot out from the barrier of 5200 NT and proceed to 5300+ in incoming week. After this we may go for some corretion in minute wave 4. Then the final journey on minute wave 5. Here we should end the recent bull market in the regeoin of 5400-5500.
Dear Ilangoji,
For your comments please.
Hi..Pankaj, Rajvada,
As long as the correction in Nifty is restricted to 5040-4970(approx..), the possibility of an EW B.C.3.ii exists. Many stocks have such a possibility too.
In the weekly semi-log chart, Nifty is still trending up within a channel but close to the bottom. Any upmove should happen soon or a danger of deeper correction is possible.
best regards.
ilango
Dear Ilangoji,
thnaks a lot !
Pankaj
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