Trendlines can be drawn on all "time frame" charts such as month, week, day, hour & minute.
The larger the time frame more valid the supports & resistances.
The correct way to approach this is to know your time frame of trading and adopt it accordingly.
The best way is to keep all time frames side by side and take a cohesive study of them which could give clues of market's choppy action.
For eg: Just looking at the minute & hour trendlines/ channels, market could break many times and may look choppy but if you study it together with a day channel, it would look within that "day trendline" and you will be able to accept those choppiness as part of a correction within a trend.
Divergences are effective when it is followed by a price reversal. If not, they end up as traps.
A channel that has been working well for the past 60-70 days. However, it can change course depending on the demand & supply that is emerging in the market place. So far, it is predictably poised. There will be always an "unpredictable act". When that happens, we change track.
Attempt is continuing to move past the Monthly High ema which may rise to 5250-5260. Notice the support rising fast as the days go by (Day low ema moved up from 4999 to 5103) i.e. from the day the "Longs" were initiated @ 5035, 10th June.
17 comments:
i bet tomorrow sensex will drop by at least 300 points.
@ GB (nifty + equity)
please invite me to ur blog @ skaransingh@gmail.com
Thanks in advance
govt to impost capital gain tax on FII seems we are for the rrun till 4750
Very best practical downtoearth advices can be got only from someone who has put theory to practice also.
Thanks sir.
Sir - mail.
I second mok. Wish the second paragraph remains permanent/prominent for all of us to see every day. Anyone who reads and understands these lines, will desist from being doubtful and will reduce so many repetitive queries. "Time Frame" and "Trend" - A and B of TA.
So clearly put sir. Thank you.
Could anybody explain about what is the impact on market
when impose of capital gain tax on FII?
Double taxation avoidance is still in place for these FIIs so there should not be much of problem for them.
Dear Illango,
Excellent educative lesson. I have learnt a lot from your blog apart from Nifty Doctor previously. Your good work will develop a lot more people to stand on their own analysis and decisions. It is said "Teach fishing rather than giving fish and you will feed him life long". May god bless you and your family in your endevour of teaching.
Regards,
Veer
@powertrade
"govt to impost capital gain tax on FII seems we are for the rrun till 4750" <--- got a link? Nothing on google about it.
Yoda
it is Draft code of Tax. It is model and yet to be discussed & submitted for passing in the parliament. Besides, as manoj rightly pointed out, double tax avoidance treaty is still in place. so there is no problem as such.
@yoda
read a joke somewhere
we should believe in god because google doesn't have all
the answers
Flashed on CNBC and on money control and to be discussed in monsoon session of parliament
http://www.moneycontrol.com/news/economy/second-dtc-draft-addresses-wealth-tax-anti-avoidance-rule_464272.html
DTC draft to be tabled this monsoon session...
url -
http://www.moneycontrol.com/news/economy/second-dtc-draft-addresses-wealth-tax-anti-avoidance-rule_464272.html
should short at 5D/14D 0n 100 or buy at 5D/14D on 1 ????????????????
wah, piyush,
what a divergence joke this is ...
u got good ones ...
:)
dear ilango i boughjt 5200 put at 66 rs,
now it is trading around 42 rs, could i
exit tomorrow or hold, pls suggest me, i bought 7 lots.
lol, piyush. google, like god, doesn't have any answers if you ask for the wrong thing.:)
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