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...
7 comments:
Good Evening Ilango sir / Blog Mates
Trade Plan for 25th Jan.2012
As per the Chart given below, I labeled 1 to 5 and accordingly market has to go up in 'abc'( In the Chart I mentioned it as ABC). The fall from 5141 to 5113 is 28 points. From this 'abc' length is from 14 points to 22 points. But market closed at 5127 which is approximately 14 points from 5113. I am assuming ABC is completed at this level since even another 8 points target on higher side will not make much difference which one can always adjust after opening of the market.
As per the above, market has to come down from closing price of 5127 by 28 points or 45 points or even more. In view of this, it is difficult to predict the down side maximum Price action. Daily RSI is around 68.6.
Market Trading is always risky business and at times one need to take risk. Hence I am of the opinion it is advisable to go long @ 5083 / 5077 with Stop Loss Price of 5070.
For Option trader, it is worth to wait for 5077 with Stop Loss of 20% of the day low. Catching the price at lower level is a challenge. Most of the time the Call Price of 5100 low normally is between Rs.14 to Rs.16 in situation similar to today. This is just a observation and it is not a rule. Hence preferred Stop Loss may be 13. If you are not familiar with option trading don't risk your capital.
The possible higher target for the market may be from 5082 + 91 = 5173 or alternatively 5077 + 91 = 5168.
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NIFTY Chart on 24th Jan.2012
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In the above chart I mentioned a contra situation which I nullified it by working out lower target of 5082 / 5077 and now harmony is established with the counting and 12, 26 EMA crossing.
CONCLUSION
I am of the opinion Trade Set up exists @ 5082 / 5077 with STRICT STOP LOSS PRICE.
Exit the market @ 5160 and if possible manage your trade by Trailing the Stop Loss Price.
If market trades below 5070, it is advisable not to trade for a day and let the market resolve the situation conclusively to initiate Short.
Market may also touch 5200 + by few points. Hence my suggestion for Trailing Stop Loss Price.
Wish you Happy Trading.
Dear all
Will AGNEEPATH cross all records made in 2011 or will it
be a super duper flop? For details visit
www.nnumbergame.blogspot.com
Thanks
Namaste Ilango Sir & Blogmates,
The last of the Bears were killed by the RBI Governor with a 50 bps CRR cut, Will Nifty Expire at the high point of the series???; Option Analysis for 24-01-2012
Duplicated at Wordpress Site
Thanks & Regards,
Sanjay Kr Jaiswal
I made the "hourly close and different EMAs" chart a
permanent link and plan to update it with one
chart per month. CLICK HERE to access it. It will be permanently
available on the right side of my blog under "lessons"
section.
@gd very painstaking work. but a suggestiopn .please plan for day also /as it may be more useful thnx .
@durga - you can use the same chart for daily too.
Because you can take a trade at close of day or at
open based on day/week values.
Quote:
Dinesh Rishi said...
16 Dec High breached
BN at double top (Bearish sign)
double top breakout (Very Bullish Sign as per PNF)
if closes above this
January 10, 2012 10:19 AM
Unquote.
BN then was ~ 8600 !!
Hats Off!!
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