Happy Singhal's File is uploaded only now....
Elliot's Impulse waves.(Part-5)
IMPULSE WAVES :- The Basics Waves that move the market in the direction of its main trend either up or down are called Impulse waves. 1....
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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... -
If the steady FIIs inflow reflects in the prices, 5405 should be protected going ahead and market may encounter minor corrections and keep m...
20 comments:
Good morning everyone,
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you can check it out from following link
http://financeandtradingmadeeasy.blogspot.com/2010/03/neglected-essential-simple-money.html
@Paresh and Mash
Its a must read for you.Paresh, your trades last few weeks in tatamotors made me think that there is something wrong with the strategy,this plan might help you as it diversifies the risk in a simple way.
@manu bhai
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Cheers
The rise yesterday was so sharp, i see closing around 5170 today.
@anuj
thanks i'll check.
Illango, Happy Singhal's link is broken still.
Good Morning ilango sir and other blogmates
-arpit
Hi Illango sir, Viren & mynac...am sorry. These days its getting difficult for me to participate or trade since am caught up with busy schedules both domestic and official.
@ Viren's qurey y'day :
5000 PE showing reduction in OI.
Now y would PE writers do that in the middle of an upmove?
Can the OI analysts on the blog confirm the reduction??
Actually, writers tend to define the market range for the immediate short term. They fix the possibile range for the market. That way they should be guaged. Normally, as far as my understanding goes ( plz correct me if am wrong ), writiers tend to shift their base in a trending moves to arrest the erosion of value b/c of time and liquidity. It is very obvious to grasp the logic of OI build up. Yes, the retail participation is higher nowadays but i think it would be of much significance to alter anything since their volumes would be very meagre when compared to seasoned campainers. Another significant point to be noted here is, besides the regular writing, the OI does also involve more hedging strategies which, of late, have gained significance with insititutions and people using various option strategies to hedge.
Buildup of 5200 PE OI almost confirms Illango sirs point made y'day that 5300 is on the cards. means, 5200 would act as a base for the coming trading sessions. In this scenario, you can see build up of 5100 PE to 5300 or 5400 CE.
Anyways has any corrective views plz share...I hve just put in my views.
thanks
Dear Ilango Sir,
The link to Happy Singhal's file is not working, please do the needful.
Thanks & Regards
Sanjay Kr Jaiswal
GM Ilango & mates. Keep up the good work. Team is forming. All the best.
Good morning Ilango sir and all
sir & family
GM
interestigly sir one of my friend is still keeping a long frm @4670(missed squrng bcoz ws on holidays):)
@ joshi pa ji..
garmi bahuat ho gayi hai..kachha nahi pahna jata ab sidhi chaddi jab sir ji kahenge..will do paper trade and get back 2 u..
GM All
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Ka,
Thanks for your input.
To the best of my knowledge, (and here I speak about the institutional angle) writers form a view for a particular expiry ( nothing less) and buidup OI in anticipation for the same.As rightly mentioned these are hedges for their positions in stock futures/ cash.
I disagree with you that they tend to shift their base becuase of time erosion and liquidity, becuase when writing, time is your friend.However if a position does not go their way, they tend to take another postion in the opp direction to offset their loss. This explains the steady buidup of OI throughout the month.
A writer will close his losing position only in the last few days of expiry...a winning poition he will let expire worthless. This also explains the huge volatility around expiry.
Thanks Viren for that clarification. Noted !
At the same time Viren, VAH, POC & VAL have all becomes greeks to me and am seeing that a lot in discussion nowadays, to my distress ::))...plz help me to ponder over that..
thanks again
luks like shorting for 10-15 points will be gud idea
Ka,
If you go through the archives here, Illango has done a post about the same, I think on a weekend edition.
Hi, I have been following this blog for some time and found interesting to learn the process, to master the process. Sir, is there a link to explain how to interpret the table.
@Viren,
do you think that at this point SELLING a Nifty March call with strike price at 5350-5400 is a good idea? Assuming you are well capitalized etc. ... appreciate your view. thanks
You will find them in Labels under "Technical Analysis:
Part:1
http://tradeinniftyonly.blogspot.com/2009/12/nifty-techanalysis-file-explained-1.html
Part:2
http://tradeinniftyonly.blogspot.com/2009/12/nifty-technical-analysis-explained-2.html
You can download the Nifty T.A file from the top right side of the blog everyday and it will be worth reading the entire "Technical Analysis" section.
Good luck & Best wishes to you.
Student of market,
Based on current calculations, 5370 and 5100 should not be overcome for this expiry.
So you are safe with 5400 call, however do note that with the low IV and current uptrend your return will be neglible.
You are safer writing the 5000 or 5100 put.
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NEW POST DONE
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@ Viren,
thank you ....
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