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...
10 comments:
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.
Sir I have taken parts from two old posts of yours. They talk about usung ema and oscillators over various time cycles to get in and out. I am not able to understand and apply it. I wud be very grateful if u cud explain them with illustrations.
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.
hi Piyush,
i have been through the phase what you are saying.
i am silent reader of Ilangoji's thread. generally write very less here. but as i have been through the phase and i have developed good technique to overcome this so would like to show it here.
my prime analysis is based on e wave then you can add other indicators to it if you like.
this will give you right buy time and right sloss also it gives approx target. generally this is what a trader needs.
buy at the bottom of 2nd wave and sloss is start of wave one. as if it goes below wave 1 it means it is not the wave what we expected.
so you can play bigger wave 3 generally tgt is 1.6 times of wave 1
buy at the bottom of 4th wave end and sloss should be top of wave 1 as 4th wave never goes below wave 1 top. so you can play wave 5 and tgt is length of wave 1.
this will allow you to buy lower and sell high
this is what how you can play an upmove.
same way you can play down the downmove(but motive downmove and not corrective downmove) as corrective downmove are difficult to play.
this is one of the techniques which i used and it has helped a lot.
if you see this chart of i langoji he shows 4th wave could end near the 4th wave of previous degree around 5210. but here slos would be much far at 4950 top of wave 1. also tgt is around 5450 (wave 1 equal to wave 5) if wave 5 start at 5200 wave 1 was 4675 to 4950 approx. so here risk reward ratio is same. 250 points upside and same points downside. so if you like this risk reward ratio you can take position but if you dont then leave this trade and wait for better trade which gives you better risk reward ratio.
Kind Regards,
Nirav shah
thank u so much nirav sir,
the problem is i have not yet started reading eliot waves. i am working on oscillators and moving averages only yet as they are cornerstone of any trading strategy.
i was planning to start eliot waves once i have some understang of these which might take some time. i am a slow learner.
as far as my understanding goes the parts of the post reproduces does not require any e wave knowledge for understanding.
@nirav sir,i have saved your post for future reading once i start e waves.
ilango sir, i feel it is more important to grasp ta first then go for e waves. if u think otherwise, i'll start reading it right away.
@nirav
ths s amazing ..i tracked the channel u said..
but price action by sir is very imp.
some wht liquidity,news etc. are covered in PA..
EW is a cup and TA is saucer..:)
nyways be activ on d blog..it wl help amatuers lime me 2 learn
Dear Nirav Shah,CA,CPA,
Good eve.Thanks a lot.After so many days,apart from Dear Ilango,some has commented in such a commanding language on EW.Though I don't understand at all,still I got the feel that it is very studious and is Or will be helpful for me.I have also saved your comment because I am also in the Dear piyush sharda's Que but at the end,the last one.We need your frequent comments.Please.Thanks and good night.
@ Piyush sharda,
I will prepare some illustrations of the "first comment" this sunday.
@ Dr.NiravShah,
Your inputs here are highly appreciated.
Sir,,
I am a regular reader of ur thread..your daily charts and hourly charts are really helpful...specially the way u illustrated the channel play in ur previous post is just simple and amazing..Earlier i never knew the importance of technicals and used to trade blindly ,,but from the day i came across ur thread i came to know the importance of technicals..Thank you Sir for such a wonderful thread..
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