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...
59 comments:
REPOSTING...
Hi all,
I am planning to study options in details...can you suggest a good book on options
@mynac,ka,prosenjit,viren...and all regular option traders...please mention your personal favorite book on options
@sriganeshh
Actually I was confused whether to start with options or fundamental analysis...I have got basis information on both...but want to take it to advanced level...What's your view...options or fundamental analysis...and why?..please suggest some books as well on both
Cheers
anuj,
john c hull is good place to start with for options.
Ilango sir,
I wanted to compile a mail of all my doubts and send it to you, but the list goes neverending. So I put my doubts here. Sir if it disturbing during market hours then i shall ask later after market hours. Can I continue now or later?
GA to all
Satheesh - Please keep putting them up. We are all benefitted. Ilango can answer whenever possible - we will relate it.
Ilango sir & All,
GA.
@Anuj,
My recommendations are
1. for derivatives...www.numaweb.com and investopedia site. These are sufficient to get good grinding on the subject. On Text books, only one is John C Hull...simple and best. These days i learnt it is coming with software also.
2. By Fundamentals, i dont know what u mean. Now you are a technical person, why u want to get in to fundamental analysis.? Still if u can explain the term, can refer some..
@ All,
is anybody doing trade through mobile, if yes, kindly share the modality?
best
sri
@Raja,
on your excel sheet, cld u add
take nifty levels with associated volumes and apply calculation of normal distribution curve fitting technique....arrive at +/- figures at 95% and 99 % confidence levels...monitor the figures ...my guess is it should match with viren's market profile value.
just refresh your CA statistical knowledge or S P Gupta is always there to refer..
best
@all tech buffs,
pls guide how to export data from now to excel. its done frm odin,pib, how to do frm now?????
My broker send msg:
26/03/2010 12:39:19 Govt: FDI plans of over 12 bln rupees need Cabinet panel nod
26/03/2010 12:39:54 NW18: Cabinet panel: FIPB to directly OK up to 12-bln-rupee FDI plans
--NW18: CONTEXT: FIPB currently OKs only up to 6-bln-rupee FDI plans
@ Anuj,
"Mok" has sent me a lot of "readings" on Options. I will forward them to you.
@ Satheesh,
"Yaen yendra kelvi inghu kedkamal....."
One of my favourite.. So shoot away all your questions and I will try to answer to my best as well as depending on time during the day..if not EOD.
@Rajagopal,
I am thrilled to know about your "Mighty connections"..
My first song that thrills me till this day is "Ulagam pirandadhu yenakkaaga"..
:) it features first in one of my other blogs..
Ilango sir,
"naan yendra yennam konda manithar vazhuntha thillai"... yennoda favourite song sir... Ippa puriyuthu neengalum oru vathiyar fan na:)
sir
mail me too manunidhi21@gmail.com
"piyush sharda said...
anuj,
john c hull is good place to start with for options."
at first glance I read it as just chill is a good place ...:)
Ilango sir, according to trading levels given in premarket view, can we have a intraday short here with 10 points sl?
@Illango,
Saw your earlier post to close out longs.What are the concerns you are seeing at these levels?
@ Bhavesh,
In the "Advance & Decline chart a negative divergence "may" form as the Nifty makes new highs but broader mkt fails to do so. Until that happens, it remains as our "opinion" only. When that appears, I will post that chart with a "Clear warning" to either hedge your portfolios or "Part booking".
I update this AD file everyday. Will post if any actions are warranted.
@srigannesh,
The distribution curve is MP. Why 95 and 99 %??
Ilango,
Grand Old man...(Both Mr and Mrs were at bedside when Granny passed away).
Other hand -
Old man was childwood classmate friend of the opponent.(They learnt smoking together ha ha ha)
Instances the family suffered because of these and how rescued were hilarious.
Both songs sung by the Great Man !!!And written by Kannadasan.
......
......
Nan padaipathinal yen peyar Iraivan....
GA Viren,
The main reason being "100 points" intra coming off the highs in US markets where a correction is expected. Some say "corrections" and some expecting a major trend reversal.
As per EW we have been counting the up move from 4675 as either an "abc(3)" or as "5-waves".
By moving past the 5270(Prev. high), the 5 is in force and it can go higher or may have already topped. "Negative div." persists. Hence, taking off the profits.
Based on our parameters followed in tech table, a close below "Day High ema" will be the first sign of a sell.
Dear Ilango,
"Mok" has sent me a lot of "readings" on Options. I will forward them to you"
=== please keep me in the loop.
@Viren,
not sure as to how the market profile values are arrived at on normal distribution basis...hence wants to take a broader view to monitor and then narrow it down for day to day...it is an experimentation process.
@ilango sir,
ur comment makes me wonder and guess i said something wrong about raja...just no clue...
best
sri
sir reposting, my question,
Sir, if possible pls tell days when orb strategy can be used. My understanding for today is that we r close to breakout level. If we breakouts, it is going to give us few points. If we breakdown then again might give large part of yesterday gains. So orb best equipped. Sir pls tell more about it
Sir
Bajaj sugar.....throw it out the window from 100th floor ? If it cnanot move when nifty is mving up, what will happen when nifty goes down.
ilango sir,
option gyan for me too piyush_sharda@rediffmail.com
rajgopal sir,
for longs till 2-30 only , fri 2-30 negative right???
Sir
What is your reading of Bank Nifty? I am short in Bank nifty and it seems to be going only in one direction - up ...
Thanks
dear ilango sir can i short tatasteel and hindalco at current level?
Sir
Why our market is not understanding problem with china and hangseng mkt.
china is trading below 200 ma is it not? Also 50 ma is below 200 ma is it not?
hagseng is still 10% away from high made from oct/nov 2009. india is trading a few pt from newer high.
why this divergence is happening even between emerging market.
Arun-Ilango,(Iam not a fan. Just a fanatic).
The best song that sails us through (like when others laugh at my TA knowledge) is:
"Ange sirippavargal sirikkattum athu Aanava sirippu
Inge nee sirikkum pun sirippo Aananda sirippu"
@ Sriganeshh,
You did not say anything wrong at all.
My comments were for "Satheesh" to continue to ask questions.. :)
Piyush "fri 2-30 negative right??? (I know you don't beleive).
Can it be dear Piyush - (since) I said it !!!
Just extra cautious. Last three Fridays the trend was broken. Wondering whether the broken trend will break?(that is my TA expression)
Thanks Illango.
Will keep that in mind.
Personally, I expected the correction from 1175 to come till 1155-57 in the ES, it's stopped at 1158.25.We are at 1166 now and further move from here will put us at 1185 and 1190.
I think Nifty is doing a great job holding up above value.It just points to higher prices before the month-end.
Sri - about me - it was due to some mail exchange. (BTW - did u say something?)
Thanks ilango sir. My doubts are:
All the indicators put together gives only few entry points. For eg., at the reversal from 4675, all parameters, RSI, 5D/14D, fmacd, smacd all gave a buy signal.
from 4880-4930 levels the stochastics was OB. But as you said it does not work in trending markets.
My doubt is if one misses an entry at those levels then for positional trades based on what parameters can one enter a trade? Is EMA alone sufficient? Then how do we place the stoploss?
one can know if it is trending market or sideways only after the day is over. for eg, Nifty was trading only within ranges every week, one day it shoots up and again traded within a range of say 100 points for the whole week. During such days one tends to loose heavily.
Also considering fmacd and smacd if an entry was initiated based on fmacd then should it be terminated only based fmacd or should we look for confirmation with smacd or any other parameters?
Sir, more doubts will follow one by one!!!
@ Govind,
Some commodity stocks take opposite route to Nifty. A +ve div. continues but the price conf. is awaited. It is recommended for investments with a SL.
Regarding the divergence in the world mkts: It is clear case of "individual markets' T.A. Use the external cues to your advantage to trade them.
@ Hitendra,
when you play a trade against the trend of an index or stock, have a strict SL. These trades are in anticipation of a top and if the top is violated, you cut your loss immediately.
sir..please mail me too the related option readings at saif_shakeel@yahoo.com
Dear Piyush - please don't be irritated. Are you looking at two points of the ORB? Had you looked inbetween you would have got 12 points 5 times so far.
@raja,
no man..how i can say something against you..then i can't enter chennai...right.?
btw...do u confident of your patchi joshiyam..? nifty spot is rising.
sri
Sri-Patchi says a.1 to 1.30 up 1.30 -2 Euro Tunes 2-2.30 Recovery and 2.30 rrrrrrrrrrr
well rajgopal sir,
me irritated???when we look at the chart it looks so simple. when u start doing it u fail. this is what happened when i tied ur p2p sys. i am waiting for write up from u. will try googling for saclping so i can learn it.
rg sir, how can knowledge be transferred, either by reading or seeing u doing . if it was so simple everybody wud be multimillionaire like.......
@raja,
so today we can see nifty closing at new high...?????????
sri
@Piyush ,Sri and Ilango(will wait for mail)
Thanks
@Sri and piyush
is it "Options, Futures and Other Derivatives"?
Just downloading
@sri
fundamentals...I mean balance sheet components analysis and financial ratios etc
Why fundamental analysis...well I just dont want to be tied down with one approach...It will add new perspectives to my trading..just as we use stochastic and moving average as per different market conditions ...then why not TA and FA?
I would use FA for stock screening purpose and establishing a bias for long term, TA for short term entry and exit..
Did you find william o niel book useful...Seems I am following his way...but slightly more biased with technical analysis
Cheers
@all
http://www.4shared.com/file/147540184/e9489772/Options_Futures_and_Other_Deri.html?s=1
above is the link for option book referenced by Piyush and Sri
Cheers
Sir
Thank u for reply.
I threw Bjaj. Stop loss you had mentioned earlier as 137. Today it crossed below 137. Is this correct decision sir. Sorry for troubling u. But i do not want to kee[ making mistake again and again.
Piyush - I think Like this. Nifty moves today with in ORB between +11 and +24 (outers are +8 and +27).(NS gain points).
Simple. Onward only at +11 and return only at +24. (6 points either side is SL).
No big Tech involved. Try this please.
============
Sri - No. Your way if the broken trend continues. Other way if broken trend is broken and conservative trend emerges.
sir,
pls try to answer my orb query,
also pls tell i read that in trading ranges like today momentum like macd, rsi , stoch, fall. so negative divergence will automatically appear.
how to use divergences now??????
@Anuj,
My humble suggestion, please buy Hull book Print version. It is not so costly..hardly should be around Rs.500/- By ebook reading, eyes will be spoiled in the longrun. Further u get option software also along with the book.
William o neil is good but i am waiting for the 4th edition to be printed by publisher in India.
Ok. Regarding fundamental analysis, u mean financial fundamentals...There are lot of books of available on it depending on the methods of investing. Value, growth, CANSLIM (oneil) etc.,
There is one small book "intrepretation of financial statements" ..written by benjamin graham.
Since you are in Delhi, go to ICSI, Institutional area, they have one good booklet on how to analyse balancesheet in the investor awareness series..
These things should help you to begin with
sri
Great questing Piyush. Ilango-san kindly reserve "how to exploit divergence and stochs" - a few lines when you can. Remember Piyush saying -ve divergence .... about my N50 Table.
As suggested earlier "SOLD @ 5305 NF" SL. 5350.
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NEW POST DONE
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@ RajaGopal,
I will definitely check your files this week end.
To me "Charts alone" can show the way. Numbers come next only. I can never use a "Mechanical method" but they are definitely a great "reference table" to assure us.
Ilango sir,
one more added to the question list.
Can a -/+ divergence be taken as valid only if the 9 ema crossover takes place in fmacd/smacd?
rg sir,
how u calculated orb for 15 min in i chart my low was 5268 5282.65 closing 5260, so orb was also +8 +22.
outer ranges must be forming after inner ranges.like u take a long position and then it starts falling what u do , ur outer range not formed yet how do u keep sl.
Anuj,
Excellent decision to delve deeper into options.I cannot add to the resources mentioned, but check www.cmegroup.com also.
I would advise everybody to emulate Anuj and get a deeper understanding of the subject.There is truckloads of info in the option table which can help you in your trading.
Just to get your curiosity going, check this post from Shai where he has used the vix to predict the Nifty range:
http://vtrender.blogspot.com/2010/03/nifty-expiry.html
@viren
that ws gud wrk by both u and shai..
i posted it in d morning for sir coments..
but prob will get by eod..
@sri
thanks for your concern...yes its more than 800 pages...that will take ages in PDF form..can you buy this online?..can you forward a link if any?...
"intrepretation of financial statements" this is nice quick reference guide
Thanks a million for help
Cheers :)
@Anuj
You could try here:
http://www.firstandsecond.com/store/books/info/bookinfo.asp?txtSearch=2889623
rajagopal sir,
Have you shorted in renuka??????
hi anuj...to add on to ur FA question...outlook profit recently was giving a short book on analyzing fin statements...i have gone thr it and its a good one..check this for more details.
http://119.82.71.58/sfa/profit_handbook.asp
@Saif
thanks for the link...or should is say
WOW!! (kya bhadiya link diya hai yaar,asa link toh aaj tak kisi ne nahi diya hoga!!)
just joking ...dont mind
@all...so much information about everything...difficult to choose which one to choose...thanks every one for support...have a nice weekend ...wait for Ilango story now....
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