Return of the prodigal son

First Parable :
There was a man who had two sons. The younger one said to his father, "Father, give me my share of the estate." So he divided his property between them. Not long after that, the younger son got together all he had, set off for a distant country and there squandered his wealth in wild living.
After he had spent everything, there was a severe famine in that whole country, and he began to be in need. So he went and hired himself out to a citizen of that country, who sent him to his fields to feed pigs. He longed to fill his stomach with the pods that the pigs were eating, but no one gave him anything. When he came to his senses, he said, "How many of my father's hired men have food to spare, and here I am starving to death! I will set out and go back to my father and say to him: Father, I have sinned against heaven and against you. I am no longer worthy to be called your son; make me like one of your hired men." So he got up and went to his father.
But while he was still a long way off, his father saw him and was filled with compassion for him; he ran to his son, threw his arms around him and kissed him. The son said to him, "Father, I have sinned against you. I am no longer worthy to be called your son." But the father said to his servants, "Quick! Bring the best robe and put it on him. Put a ring on his finger and sandals on his feet. Bring the fattened calf and kill it. Let's have a feast and celebrate. For this son of mine was dead and is alive again; he was lost and is found." So they began to celebrate.

Nifty rebounds from short term "OS"..

Nifty Intraday update-II

Nifty Intraday Update-I

Nifty PreMarket View

Though "shorts" exited @ 5250NF yesterday, Exit @ 5260-5265NS as "Hourly" is oversold and there is a possibility of reaching 5305+(B of 4th) or higher to 5400+(5th wave). And read the earlier post suggesting good liquidity favouring uptrend and hence short term "Longs" are advised.

"I may not be available most time...will drop in to update".

FII's might in moving the market.

Below is the "monthly" as well as "daily FII Net inflows of march" to show "why liquidity following is very important to investment as well as trading."

You can find these data @ Moneycontrol.com

Nifty' correction continues with a minor pause @ low ema.

Nifty is stepping down from the top half of the channel to the bottom half and showed a bit reluctancy at "low ema" Getting closer to the 20sma and the time it takes to get there will help us to understand this correction better.
Hour charts are at Oversold zone. Depending on world cues, it can go to the resistance or supports as indicated.

Nifty Intraday update-III

NIfty Intraday Update-II

Nifty Intraday update-I

Nifty PreMarket View

Sundar's levels are : 5207 to 5317 with a downward bias.

Nifty's first sell after persistent negative divergence...

Due to UPS failure, I had to rush to express my "thanks" to Viren, Shai & Sundar before getting logged off at 3.15PM.
Such classy blogger will add tremendous value to all of us. "vtrender" will continue to provide their selfless service to all of us and they will be part of "My blog list".
Sundar's calculated lower level of 5250 along with downward direction proved quite useful...adding to our conviction.
Moneyvistas has sent me a link on "Market profile study materials". I appreciate his noble gesture.
This calculation has worked on three days in a row. Lets follow it quietly without much of an excitement....There is an unseen "Blessing Hand" on all of us and the sincere work as well as serious following will definitely benefit the humble amongst us.

Nifty Intraday Update-III

Nifty Intraday Update-II

Nifty Intraday Update-I

Nifty PreMarket View.

"Sundar" has gone through vtrender blog hosted by Viren and shai and he has applied his knowledge gained there about "Calculating the likely high & lows" for Nifty. He found the likely high as 5332 for 29.03.10 and Nifty made a high of 5330.
For today, he has calculated it as 5354 to 5250 with a bias towards lower level(Latter part) based on another study of "Options".
I have suggested him to test it out for few days initially and it could be combined with other studies for more efficiency.
I feel blessed to have such "sincere" people around me.
Thank you...Shai, Viren and Sundar.

Nifty stretching itself with Poor AD ratio.

Nifty Intraday Update-II

Chart updated at 2.30PM:

Nifty Intraday Update-I

Nifty PreMarket View.

Applying Divergences & ORB with Hour time frame.

Satheesh's quest for knowledge should lead to some profitable trades....only with some patience and persistence..The trick will be to to take a step back and see the bigger picture. That is to see a daily chart and fit in the "hour" chart into it.
1. I credit lots of success to "EW study" but never in isolation. The success rate is good only because it is combined with TA.
2. "Divergences play" alone bring you the biggest riches time and again. The more pronounced they are, the more gains they get you. And when these divergences coincide with a "perceived completion of EW ", the conviction level in a trader goes high to hold on to that trade.
The two lows 4766(3rd wave) and 4675(5th wave) coincided with a clearly pronounced positive divergence and the result has been extraordinary.
Subsequent to that we have had one -ve div but that happened just after a steep rise and the oscillators showed -ve div but it is to "time adjust" the steepness in prices.
Currently a negative div. is developing but there is some "doubts" in the EW count. The strength in bank Nifty & certain stocks may cushion any falls. This one would test one's patience and one should remember the main trend and its trending up within the channel.
3. Macd defines the "Moving average convergence and divergence". One of the potent steep move indications has often come from watching the short term moving averge converging towards a medium term average (Here we have taken 35hour/ 5-day & 70 Hour/10-day sma) and then start to turn away slowly without touching or just touching the medium term average and thus setting up a "fast rise" scenario.This set up often concludes the "corrective or sideways" scenario and commencement of the next up move.
4. For the trend followers, a continuation of Higher high(HH) and Higher Low (HL) will indicate the continuation of trend and they can simple hold on to their position till this set up changes to LH & LL.

I have put up nearly 14 "Stock Charts" in my "Stockwealth Blog" with divergence factor figuring prominently. Exchange your observations by either sending a chart or name of the stock by emailing to me and I will try to put it up for every one's benefit. It is not possible to monitor so many stocks daily consistently.
"Piyush Sharda" asked about "ORB" and selecting the correct day to use it.
I wish there is a simple answer to this. If one has understood the above lesson well, use of "ORB" too could be applied selectively.
Whenever you see an extreme reading in the indicators, use the ORB. It will work bothways meaning if the extreme reading is at the top in an up trending market, you get a corrective move down and ORB will guide you. Similarly when the reading is at the bottom, then the possibility of the correction terminating and the uptrend resuming and ORB will confirm that.
Even if one follows it consistently, the overall results will be very good after deducting the stop losses.