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...
48 comments:
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October 24, 2011 12:02 PM
Sir, one question, as daily is overbought and hourly shows
negative divergences what about creating a short near day
high with just 15-point SL?
GD,
My 2 cents. Close the position by EOD. You won't lose much.
Use Hr JNSAR only for intra and Daily JNSAR for positional.
Happy Dhanteras...................
GOOD MORNING ILANGO SIR AND SENIORS
CAN ANYONE TELL ME WHICH BROKERAGE IS GOOD WRT LOWER CHARGES AND GOOD SERVICE (LOWER DOWNTIME AND GOOD CONNECTIVITY)
@AD
I use RK Global. I have been quite satisfied
with their trading terminal. Downtimes happens
maybe once or twice a month, and usually gets
resolved quickly.
They charge a fixed monthly amount of Rs 300
or so for the ODIN software. Brokerages are
just Rs 9/lot.
If 5148/5148 is not crossed in next hour then
fall will start.
This is favoured by Daily overbought &
low rollover.
RBI may even increase the rates beyond 0.25%.
Watch 5121/5015/5092 on downside.
pdd
Dear GD - for protection against gap ups / gap downs when trading with JNSAR you can buy a call or put option which has to be at the money - this will strictly be BTST and should be squared off if the market opening is normal - BTST brokerage is of 5 points which i am willing to pay as insurance premium for peace of mind - have been doing the above for 8 months now - everytime JNSAR is triggered I initiate a trade and at the end of day buy a Call or Put option which is squared off the next day - regards Deepak
Dear Mr. PCM - i do this only when the volatility is high and nifty movements are aggressive both ways - this is not default please - regards Deepak
@deepak,
Good one.
Deepak,
If you wish to capture maximum gains from any mechanical trading system, then detach other indicators and other strategies like option hedging etc. Let it be independent.
Since you are doing it for 8 months, do a back test with your option strategy and without option strategy. Results might be more or less same.
@ilango sir,
Somebody here had mentioned that as MACD approaches
zero, indicates end of wave 4. Looking at daily chart,
Now one can spot a flat between 4720-5168 ( maybe a
little more left upside in flat C ). And MACD on
daily is flattening at 0. Thoughts ?
Dear Nanjil - your views are correct but by nature i am a nervous individual - the hedging is done when the volatility is high and when Nifty is near JNSAR and it is strictly BTST - during whipsaws option does not save me from loss but it reduces the same by upto 50 to 60 percent which is helpful - otherwise i am very sincere with following Ilango's principles - also near Day HEMA and Month HEMA i do the hedging with the option which proves to be very beneficial most of the time - just sharing my method - regards Deepak
@deepak,
What kind of ratios do you do for hedging ?
Dear GD - professional traders follow Delta - however since the basis of my JNSAR trade is trust, I cover 1 lot of nifty with 1 lot of nifty options - this is not hedging in absolute terms since I want to profit from Future and not option - as i mentioned earlier the loss is brought down by 50 to 60 percent but my gains from JNSAR are fantastic which is what i want - just want to ensure that the whipsaws take as little money away as possible thats all - regards Deepak
The gaps are getting to be a nightmare for short term traders.
The wave count could either be that wave 2 is over or only wave a of 2. A dip to 4900 would retrace 61.8% and give us time to analyse the structure better. While 5200 is a barrier like the great wall of china the markets can attempt to push into it a little before all is done with the upside. Friday it looked like the attempt was given up but today there appears more steam. The final outcome is still progressing
@deepak,
Wondering if you will have the time to do a
writeup with some examples. You seem to have
come with a good scheme to trade using JNSAR.
Thanks
Falling volumes and a lower IV are
two indications of short term exhaustion
at higher levels.
these are the comments of Rohit S.
@Ilango
1 pm close is below hourly pivot and previous hour's
close ema and struggling at 10-20 points above day high
ema....sell on rises??????
Would welcome your inputs
Deepak,
I appreciate your strategy. Let me put my thoughts.
As a trader, we stick to a mechanical trading only because we cannot run along with the price with such fluctuations. It should not be clubbed with a discrete trading. Entering into option trades are such discrete trading. Got your point that volatility makes you nervous. But look at it from other angle. Volatility makes most of the market men nervous and shake them and make them to drop position. But being a mechanical trader, you are somehow managing the volatility ofcourse with some whipsaws. One fine day, you will be rewarded. But if you are with hedging, it becomes speed braker to the main system and it reduces the momentum of profit.
That’s why I asked you to backtest your last 8 month trades based on what if option strategy was not attached to the system?. Compare the results to understand how much you saved or missed.
Hitendra,
Rohit watch this space. Just fyi.
Check comments from him on 20th Oct EOD post.
@ nifty
Thanks a lot nifty for giving the cheapest broker name!
I was in pursuit of that.
Indus,
to me looks same.
I expect fall from 2.15 pm onwards.
By that time, another tech table will be there for refer
pdd
Thank you Nifty Sir
Indus,
More than 3 whipsaws from JNSAR. You may get another one also either today or when we open tomorrow. But time to hold it tightly. Don’t get carried away by any comment, opinion, news or anything. And think twice before entering contra trade.
Above comment is only for JNSAR followers and not for discrete traders.
@ Indus,
This being a break-out after the consolidation of 5 days from 5160, the sudden OB readings are natural.
21 & 34Hr smas @ 5085-5095 are the supports.(R1-5101 is another one).
Daily TA turning up again which will be confirmed by the close.
nanjil
ok
@nanji, hitendra, Ilango
Thank you for inputs
Happy Dhanteras & Diwali.... May this year and the year's to come bring lots of Love, Luck, Money and Prosperity to you and ur Family...
@GD - last week i was short at 5068 (2 lots) - the volatility was high and there was news that EU was meeting at weekend to take call on Greece - now that news can make markets go either way - so bought 2 lots of 5000 call at 85.30 - now i am down by approx 72 points per lot in nifty however the call is giving me approx 57 points per lot - so my loss has been brought down by approx 79% -
@ Nanjil - the above looks good only in today's scenario of big whipsaw - most of the times the profit margin also comes down in near equal proportion - like i said I follow hedging in uncertain times which was last week due to high volatility + EU meet + RBI meet of 25th - otherwise if Nifty is Rangebound i go with naked JNSAR strictly - regards Deepak
@GD forgot to mention - i have reversed JNSAR today @ 5031 - 2 lots so if nifty moves further i will have zero losses - regards Deepak
@ Ilango - Sir your JNSAR method has been a boon to me - I am regular follower to this blog but my purpose is to learn as much as possible but trade only with JNSAR for maximum profit - heart felt thanks once again - Deepak
@Deepak 5031 today ?
@SAM - my typo - was 5131 - apologies - Deepak
http://www.cnbc.com/id/45010347
Weekly MACD has turned positive today
Day is already up
Hour is up
Bulls will celebrate Diwali.
Bears will celebrate Diwala :P
@ Traveller
After Diwali
Bulls....... Diwala
Bears--------Diwali
Actual
Bulls=Bears= Diwala....
If not reading & follow this blog.
pdd
@Hitendra
Ha....Ha....Ha.......
CNX IT & MIDCAP ARE AT THE LOW OF THE DAYYYYY
pdd
If 5148/5148 is not crossed in next hour then
fall will start.
This is favoured by Daily overbought &
low rollover.
RBI may even increase the rates beyond 0.25%.
Watch 5121/5015/5092 on downside.
pdd
October 24, 2011 12:28 PM
If this is really an Irregular Flat, it may be close to be over soon.
New Post Done.
PUNTER'S CALL
5150 crucial
The Nifty opened positive this morning and is expected to be range-bound between 5150 and 5030...
http://www.sharekhan.com/CMT/Upload/NewsLetter/Report/Highnoon-Oct24_11.pdf
Ilango sir,
I asked you earlier today " Sir, one question, as daily is overbought and hourly shows
negative divergences what about creating a short near day
high with just 15-point SL?
October 24, 2011 12:08 PM"
Nifty has not been able to move past day's high since then
and falling down. Was my observation correct?
5085 again?????
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