Tuesday, December 22, 2009

Nifty Tech.Analysis File explained-1.

  • Pivot Sheet: As you key in the high, Low, High of any stock or Index, this table calculates the "Pivot" point, three supports & three Resistances. This could be used for trading purposes. For more on this, read "Pivot, Supports & Resistances".
  • Blog Data Sheet: This is the most important sheet in the file and it collects vital data automatically as you update the "Data.W(eek), Data.D(ay) and Data.H(our)" sheets.It has Date, High, Low & Close in the first four columns. If the high clears the previous two day's high, the colour changes in the cell. Similarly if the low breaks previous two day's lows, the colour changes telling us the change in the swing highs and swing lows.Generally a two day swing clearing is an indication of a change in direction. But there are also false breakout/ breakdown in this, hence I have taken 5-day high & Low breaking as one of the factors for "Conservative Trade" initiation.
  • 5.Ema:This is placed in the 5th column(E) and it is the most important short term average. Unlike a simple moving average which averages the last 5 days prices equally, ema gives more weightage to the most recent prices by a mathematical calculation and thus it is a good indicator of short term strength or weakness of the market. The colour of the cell & the font changes to "Red" the moment the close price closes below this critical ema indicating the onset of weakness. And it changes to green if the close price closes above it indicating strength. As long as the weekly close was above this ema, the daily falls were bought into. Since the 18th Dec "weekly sell Signal" as per this ema, the first day resulted in a sell(21.12.09). Now the highly oversold daily as well as Hourly with positive divergences will attempt a reversal. For the week, the first week after the sell signal is the "fight back" week if there is any strength left in the earlier uptrend. A continued close below the week ema on 24.12.09 will more or less confirm a larger time scale reversal in trend. Similarly when the day close is closing below the 5day ema, a sell signal is generated and use this signal to sell in the hourly time frame everytime there is an intraday rally towards either hour ema or Hour high ema. Always give more weightage to the higher time cycle and play the lower time cycle till a "overbought or Oversold" situation arises in the higher time cycle when one should approach with caution but continue in the same direction.
  • High ema:This is placed in the 10th column(J) and it is the 5 day ema of the highs made on the previous 5 days giving more weightage to the most recent highs. Thus, as the Close price stays above this the upward momentum is intact and the market is expected to make continued up moves and new highs.The moment the close price closes below this, the colour changes to yellow and font to red signaling the onset of a correction. Sell on rises come into play and market will attempt during this period to move higher than this "High ema" during intraday but only a close above this will bring back a lasting momentum. Similarly the moment the close price closes above this the colour changes to green and font to green signaling the resumption of the upward momentum. Buy on dips come into play and market will attempt during this period to move lower than this "High ema" during intraday which generally is bought into but only a close below this will bring in a correction.
  • Low ema: This is placed in the 11th column(K) and it is the 5 day ema of the lows made on the previous 5 days giving more weightage to the most recent lows. Thus, as the Close price stays above this the uptrend is intact and any fall till this low ema may be construed as only a correction.The moment the close price closes below this the cell & font colour changes to red signalling the onset of a downtrend. Sell on rises come into play and market will attempt during this period to move higher than this "low ema" during intraday but only a close above this will bring back a "Neutral mode". Similarly the moment the close price closes above this the cell colour changes to blue and font to blue signalling the "likely end of a downtrend". Buy on dips for trading may come into play and market will attempt during this period to move lower than this "low ema" during intraday but only a close below this will continue the downtrend.
  • D.Macd & S.Macd: These two are placed in 6th & 7th Columns (F, G) and they are the values of fast macd(5,10,9) and Slow macd(12,26,9). As this numbers are ascending, it is in uptrend and as the numbers are declining, it is in downtrend and the colour changes to Red during downmoves and to Green in upmoves. For more on this MACD, please read an exhaustive write up here.
More on the "File & Chart Reading" tomorrow - Part-II.

39 comments:

GSM said...

Dear ilango sir,

Thanks

HAPPY CRISMAS

satheesh said...

Good Morning Ilango Sir.

Thank you very much for your wonderful explanation. I really wonder whether you really know the extent to which you are helping all who follow your blog!! and such a readymade analysis for anyone to follow !!! Even persons who just dont know the ABCD of trading can just blindly follow your methods and keep earning & earning!!!!! HATS OFF once again Sir!!!!!!!!

Prosenjit said...

Good morning Ilango sir,

I was thinking as all of us use the same excel file, will it be possible for you to use http://docs.google.com

That way you can share the spreadsheet to all of us as well as can embed the file directly into the blog.

That way you can eliminate screen capture part as you may be doing now and we can get the original ilango sir's excel sheet to view.

Thanks.

Prosenjit said...

I forgot, you can just import the excel file in google spreadsheet and it will get all the macros calculation automatically from the excel file.

sekar said...

Dear Sir,

Once again thanks for the explanation on the sheet and for providing the sheet. This is a nice way to remember the numbers as you posted in one of the blog about the importance of remembering the critical numbers. For me the "WEEKLY PIVOTS & AVERAGES" and "DAILY PIVOTS & AVERAGES" is not getting updated automatically. Other things work, Am i missing something..

r m said...

Dear Ilango,

A big THANK YOU!

Best regards.

vallala said...

Sir gm iam missing some thing in tech table, low ema colmn doesn't there plz mail me another one Tech and pivot table thank you

tangotaurian said...

Good Morning Ilango Sir,

Thanks a lot for sharing in detail explanation.

Regards,
TT

arvind said...

Sir,
Thanks a million for the explanation.
In Gratitude.
Arvind

musti1780 said...

Dear Ilango Sir, it really Hats off to U,the way U helping the investors it just imremarkeble.
We all here really apreciate your kind work.
Reagards

Ilango said...

Thank you all very much. I want you all to know, it has also improved my approach to the markets as well as grasping them.

Hi..Prosenjit,

I will learn a bit about uploading the "Google documents" for sharing and will surely do it which will save a lot of time for many. That is one fantastic suggestion.

prabha said...

Thank you very much...HAPPY NEW YEAR

GHODBLESSU said...

MY DEAR IILANGO SIR
SIR THIS MAYB A BIT SILLY QUESTION AS I HV JUST VISISTED DS WONDERFUL SITE 4 D FIRST TIME SIR. FROM WR CAN I DOWN LOAD DS EXCEL SHEET AND GT D CALCULATIONS AS PER THE TABLE. PLEASE HELP AS DS SEEMS 2 B D BEST WAY 2 DEAL IN D MARKET. THANKS 2 U. GOD BLESS U

Amit said...

Dear ilango..
thanks for such wonderful explaination. i only trade in
nifty fut. and i think ur post is going to help me
immensly. Can u please send me the tech excel sheet.
thanks i advance.
amit (letter2amit22@gmail.com)

myuga77 said...

Dear ilango,

Thank you providing the details of Tech sheet.
Please provide the Tech excelheet to my mail id
myuga77@yahoo.com

C H S said...

Dear Ilango
I learned a lot from your blog.
"This much is there in stocks trading" Wow.
You are a genius in using Excel spreadsheet.
There is a science lying behind the art of stock trading
Thank you for your blog site
Thank you for the time you had spared for educating new comers
Kindly provide me the Tech excel sheet to my email id chs1515@gmail.com

NNP_Dasila said...

Dear Respected Sir,

First Thaks a lot for u r hardworking for all peoples.

Sir can u send me this excel sheet in my mail Id

Prakash_051176@yahoo.co.in

Regards
Prakash Singh

www1004 said...

Calculated and announced values of support and resistance from different places are different for short term trading. can you suggest a unified method or best method for its computation.

www1004 said...

Continuation to the above...
Business line is giving some junk numbers (Lokeswary on Sundays). My Malayalam paper is giving another number for next week. Again my broker is giving entirely different, but all claim it for short term not intra day.

Pradeep's Take said...

Sir, thanks for sharing your approach. Can you please tell me where we can get Nifty hourly OHLC data for free?

Thanks a lot again.
pradeep

Pramendra Singh Solanki said...

sir pls send me table and oblige. my id is pssolanki@dileep.in.

LV said...

Sir, can you mail me the table,my id is greenlivings@gmail.com

Thank you

Venkat said...

Master could you please mail me the table to my mail id venkat.mail1971@gmail.com
Thanks you.

abdul lathif said...

Dear Sir,

would you please forward this TT excel sheet to me at alvaniyu@yahoo.com

hats off to your selfless services being rendered.

abdul lathif said...

Dear Sir,

would you please forward this TT excel sheet to me at alvaniyu@yahoo.com

hats off to your selfless services being rendered.

Vivekp4 said...

Dear Sir,

Nice work, Hats off u,,
would you pls forward this Excel sheet to me at vivekp4@gmail.com

Thanks

CHANGE THE LIFE said...

Dear sir,

Really great sir... I am interested to travel our community can you please kindly mail to me Tech.table at (mjmlucky6@gmail.com).

Thanks,
Manojmurthy

vasu said...

Kindly mail Tech Table
i.d. svasudevan05@gmail.com
Thanks a lot
vasu

VAIBHAV said...

Pls help to send tech table at vaibhavnagpal75@yahoo.com

VAIBHAV said...

Pls help to send tech table at vaibhavnagpal75@yahoo.com

Arun C said...

sir pls kindly send the tech table at arun.afac@gmail.com

Arun C said...

SIR PLS KINDLY SENT THE TEC TABLE

Praveen Kumar Pallikonda said...

Hello Ilango Sir!
Sir Kindly Mail the Tech Table at Praveenkumar.pallikonda@gmail.com
Thank You

Vikas Kumar said...

Sir Please mail me tech table at vikas.k.vikas@gmail.com

Regards
vikas kumar

Bhushan said...

me too at anand.bhushan4@gmail.com

fareed said...

Greetings...


Dear sir kindly mail me the tech table to kalanthar6664@gmail.com.

Warm regards
A.kalanthar

sri said...

dear sir,
Thaks a lot for u r hardwork Can u please send me the tech excel sheet.
thanks i advance.my mail id is:" sreenag1680@gmail.com"
thanks
vasu

Harish said...

Pease send excel to me harish.keycomp@gmail.com

utuberamji148 said...

Pls send the file to ramji148@gmail.com

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