In uptrend, it is the close below DHEma that suggests of a correction and it normally extends upto 10-20 points below DLEma. Depending on the nature of correction, it could even close below DLEma one day and reverses.
In downtrend, it is the close above DLEma that suggests of a correction and it normally extends upto 10-20 points above DHEma. Depending on the nature of correction, it could even close above DHEma one day and reverses.
Divergences are excellent indication of stretched market/ exhausted market.
We have two scenarios at work:
Correction is over @ 50Sma and next phase of upmove starts OR
A bounce is on upto 5110-5130 zone & moves again down towards 5015-25.
Hour TA would reflect the changes.
38 comments:
Dear Golfdude,
I just saw your comment in the EOD post in JN. My current view as posted two days back ---
https://picasaweb.google.com/112295801969323600289/Indices#5664309957251837666
I sure hope you will excuse any errors on my part.
GM All,
Blog updated...you may go to my profile and get my blog link from there if interested to read.
Best,
Lee
Master,
Just checked the TT and voila! Many many many thanks...
Good Morning Ilango Sir and Friends
Reliance Charts: CLICK HERE
GM ilango sir
Am a silent reader of yr blog.been trading with the median line method and regularly posting in my blog of my daily analysis.
you were the first person to comment and encourage to follow the method which interested me and glad to say
It has been a good year.as I don't do intraday,I refer yr daily levels for a parallel confirmation.
Wanted to share my chart as it is similar to your views for today' trading.hope it's ok.
http://niftytradeswithpitchfork.blogspot.com/2011/10/18102011tuesday.html
Thks& rgds
@FIRE,
Longer term this seems reasonable. Shorter term,
I feel we are completing 4.c.(iv) where 4.c.(i)-(iii)
is run from 4729 to 5137. 4.c.(iv) is a flat between
5137 and 5010. It has taken enough time also. So I feel
today a run to 5100+ is a possibility.
I am learning through this experience that even
among A-B-C correction, B wave is the one that consumes
the time. A and C are quick.
Namaste Ilango sir and all,
Bullish crossover of 50Hr MA over 200Hr MA
Hour Chart 50MA Bullish crossover
Hour chart Update:
Hour Chart Update
gm.
Trading plan -
Aggressive -
Long at 5035 with 5015 SL
Short at 5085-5100 with 5120 SL
Conservative -
Short below 5012 ( DLEma - 10 ).
Long after 5110 (DHEma+10/WHEma ) .
Notes -
Week trend is caution. Sideways.
Day trend is slightly down to sideways ( below D-5Ema ).
Month trend is down.
CAUTION is the call.
EW analysis -
Wave 4 flat is my best guess. Timeframe supports this
guess.
Takeaway -
DONT FIGHT THE TREND AND SAR VALUES.
Namaste Ilango Sir and fellow bloggers
LV
Some money management thoughts I had -
200 trading days in a year.
1 lakh initial investment.
Goal: To double in a year ( 100% returns )
Target: 500Rs per day ( 1L profit target/ 200 days )
500Rs = 10 points in futures
Yearly Nifty points required - 2000 ( 200*10 )
H-JNSAR has given 1000 points in less than 2 months
with one lot !!!
5080 at open.
Good morning and thank you Master and Seniors for all the inputs and guidance.
Gap up open... - Pull back is normal.
Good morning master ILANGO,
Thanks for the updaztes and the change in the TT as well.
Regards
hi,
if today one has to go long one should go long at the opening itself or wait for 15 min.
Good Morning Master and copy to all
Good morning Master, seniors and friends
Have a great trading day.
@ GD great calculations.
Good Morning Master and friends.
Master,
Is it a island reversal...is it bearish as we have opened on the upside..
Good Morning to sir and all ,
Wishing you all a very happy and Prosperous Diwali !!
See you all soon..
Rgds
Smita
GM All..
ORB: 5089 - 5074
good morning blogmates,
orb broken on upside & over r2.
pdd
17K coming
Just Seventeen
Get it or regret it every Wednesday
http://2.bp.blogspot.com/_eA7ZafYKvfU/S_Cxvhf1cxI/AAAAAAAADEc/keyI6uFZAoA/s1600/Just+Seventeen+UK+May+31+1989+Herb+Ritts+copy.jpg
prabha,
its a bullish island reversal if we dont close the gap today at 5057-5075.
Thank you MANOJAGJI
So, a TA Buys low (when the stock is oversold and lost momentum) and Sells high (when the stock is overbought and lost further momentum).
Once in a trade, he moves along with the Trend, following the second Mantra. When he sights his stock enters into OB/OS condition, he repeats the process.
In between, there is every chance that one might contract a disease called “Prediction”. Even learned and experienced traders/investors suffer from this disease. Where the market will go from here? TV, Media, analysts make a living out of it and you know how many times they are right.
It is absolutely necessary to guard ourselves against the thought of finding future direction of the market. One moment a cloud in the sky takes a shape of a dog and the next moment it changes into a crow’s shape. Prediction is injurious to trading. Let us go with the market and when it reverses we will also reverse.
Courtesy : Technical Investor yahoo group
Good Morning Master & Friends
@DR,
OB/OS is also strength/weakness. Trading based on that
can be injurious to health and wealth.
I hope your note didnt mean to short when OB
and long when OS.
Its earnings season and nifty usually behaves like this
during earnings season. A good move will come once
the earnings news tapers off
Namaste Ilango Sir and JN Family
PE 5100 OI +6,48,800 -> 22.74% up at this moment.
GD
You are 101% correct
there is something called Momentum
its essential for a trend to continue
Script can remain OB/OS for days but thing to keep
an eye on is momentum
"(when the stock is oversold and lost momentum)
:D
@DR
how to know that the stock has lost momentum.
Nifty trying to fill the GAP created yesterday.
@DR,
Keep this going. How does one gauge momentum ? I know there
are some momentum indicators - what do you use ???
Thx
New Post Done.
@DR Master...yesterday at eod analysis u told about pulse of BN...How to find the pulse of Nifty...
Thank you Master in advance..
gap filled.divergence wid uk n us market.
Post a Comment