Elliot's Impulse waves.(Part-5)
IMPULSE WAVES :- The Basics Waves that move the market in the direction of its main trend either up or down are called Impulse waves. 1....
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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... -
If the steady FIIs inflow reflects in the prices, 5405 should be protected going ahead and market may encounter minor corrections and keep m...
60 comments:
@ Umesh,
As per EW, the 3rd wave can never be the smallest. So "v"th wave can not be more than 181 points.
So a correction should start from 4960-75 zone.
But this will not help you.
What was your trading plan when you initiated a "Short @ 4849" and why was the short initiated?.
Loosing a 20 or even a 50 point is better than holding a losing position.
We follow the market...Hence, we do not know at which point it will reverse.
It could reverse from 4960-75 or it could continue to move higher.
First weakness would be below 4905, day's low.
Next weakness would be below 4860.
A simple strategy would be "To stay long above JNSAR & short below JNSAR".
Namaste Ilango Sir and JN Family
Thank you Sam.
I am trying to use PCR for my excel sheet.
Lets see how it works.
We can expect a good move 2 day breaking all cluster resistance.
BN and CNX IT is providing a good support for this.
@ Yash and Dhan,
PCR is also mentioned in Sanjay sir's OI EOD Update.
Just follow his link to marketpulse website.
@ Ilango
When the trend continues to be on one side why some people enter in a contra trade. Sir will you please explain? I am really perplexed. If I miss the entry point I prefer to wait for the next opportunity and never make a contra trade. Am I wrong
Thanks in advance.
Regards,
LV
@ Prabhat,
The temptation to sell a overbought market should be curtailed unless you understand the market well and do not require anyone else's advice.
And if you still end up selling in a perceived market, do not keep more than 20-30 points SL. It isn't worth it.
Get into the habit of looking for opportunities to re-enter a trending market till the trend gets exhausted/ reverses/ stopped out.Part book and re-enter in the direction of the market confidently and never worry about losing few points by being right. "Being right" is a good habit to be cultivated.
This is the only way out.
Previously it returned below 20 point without touching the resistance point.
See... DR Sir's posting..
http://tradeinniftyonly.blogspot.com/2011/09/nifty-intraday-update-iii_08.html?showComment=1315475268029#c7430895338081732004
@Master: Your words of wisedom saves me at many instances. I got your answers with your earlier advise to Umesh.
Good morning gurudev and friends
"Follow JNSAR + Kar etbar = Daulat Beshumar" - BankNifty Sant
@ Ilango
Thanks for your convincing explanations, though not meant to me, that answer all my queries.
Regards,
LV
Hi Ilango,
How to find re-entering opportunities in JNSAR?
What are the things one need to consider in re-entering?
If you already posted information regarding this, please share the link.
Thanks in advance.
Goodmorning Ilango Sir and all the Blogmates!
Thank You sir,
I will follow JNSAR.
Umesh
Thank you Sir for your last paragraph. I converted it into JPEG file to my desktop wallpaper
@ Ashwin kumar
same question in my mind too.
Thanks sir in advance
@Prabhakar Can you send it to me.... sorry for asking
readymade... but I am lazy kid...:)D
@ilangosir @drsir @kumarsir
Mail sent, plz check and replay at ur convenience
"v"th wave has done 125 points. Part booking around here is a prudent thing.
mynac - busy hai kya???pls. check mail
Part booked.... Money In my wallet...:)D
Good morning to all friends,
Following EW lables still probable ABC as ZZ
A 4532 4801 269 -126.3%
B 4801 4588 -213 -79.2% x A (ZZ)
C 4588 4953 365 135.7% xA
Max C, can do in a ZZ is C=1.618xA = 5023, will we go there?
Have a gr8 trading day!
@SAM: Sent.. Check mail box
@ Ashwin Kumar,
How to re-enter in a trending market.
We calculate Pre-market plans with buy levels based on "Pivot table" as well as developing DEma/ DLEma.
In a strongly trending market, DHEma itself is good enough.
There can never be a standard answer to this as each market is different with their own strength & weaknesses.
Traders are still searching for a formula to "sail safely" and Peddlers are all around selling such formulae. Till the trader stops his search and start to apply whatever little is known into the market, he/she will not evolve into a better trader.
Knowledge is essential but it can not be pursued isolation. Practical application alone will reinforce and you'll start developing "the feel for the market".
Shriram - I second little lower than you with 11 points anything is possible as retailer will participate late :D
Master ilango,
U R JUST A TRUCK FULL OF WISDOM,THOUGHTS & ADVICE
A never ending STORY.
Regards
Good Morning................
Well said sir......last few days, Nifty had been showing very volatile movement....was very difficult to plan out trade, but if some one patiently wait, and just avoid over trading in volatility, definitely survived………..
Sujatha ji,
Do u mean we can expect 5K in this leg UP ??
Boy oh boy! :-O
Dear Parminder,
Little correction. A never ending reality! :)
The HHEma-HLEma long trade from 4865 is still going.
As I had said, one hour we closed below HLEma but
the diff was 3 pts. If someone had continued ( since
we look for 15-20pt diffs usually ), the trade
ended up good.
So as sir said, it is all about sticking to a system
and be disciplined.
Dear Shriram and Sujatha,
It seems NS will face good resistance at 4970-75, moving above may take NS to 5k+:)
4955 resistance then 4975 second resistance lets see ! part booked at 4955
@ GD,
How do u update Hrly data ? Do u update it hrly in the excel file ?
Is my following understanding correct : ?
1. If price moves Above HrHEMA , Go LONG
2. If price stays between HrHEMA & HrLEMA DONT change positions or wait @ sidelines
3. If price moves below HrLEAM, Go ShORT ??
Pls do guide me , am trying to learn the use of the TT Table, but a bit slow on the uptake :-)
rgds
SMO
Friends along with thanks EE also
@shriram,
Yes. But switch only when close is above 15pts of HHEma or below 15pts of HLEma.
Until then stick with original trade.
This is just a blind implementation of ilango sir's note about "sell and hold"
and "buy and hold" in his TT.
Thanks Master !! bye everybody for the day !
@prabhakar ji
please send me also the wallpaper at jjtn@rediffmail.com
thanks,
HCLTECH Testing resistance level : CLICK HERE
Tks GD,
Is this HrHi-Lo EMA funda to be used for intra day or can be for swing too?
And can u pl explain, how to combine this info wid the JNSAR vlaue for buying or selling on more than 1 day Time Frame ??
rgds
@Shriram & Golfdude: I try to follow the hourly close, low & high. Why?
Master mentioned that prices though move in contradictory positions during the time between hourly closes, at the end of the hour, they move back towards the direction of the trend.
Given today's data: Notice that hourly closes for 10am & 11 am have been 4942 & 4943.
Hourly highs: 4945, 4953.
Hourly lows: 4904, 4937
If we notice this, the intraday lows & highs have been inreasing with the close remaining the same. This says that, the highs are being corrected at the end of the hour. So any hourly close outside of 4940-4950 range could signal the direction for today.
@Master: Is my above understanding & approach correct?
San,
is nifty at 100 sma resi line at present?
rgds.
@shriram,
I dont combine this with JNSAR. That is its own
system. I just use HHEma-HLEma to trade with a filter
added in when initiating a trade. SLs is what you
are comfortable with. One could wait for next trade
to initiate to have that as the SL ( like a stop and reverse system ).
@Hitendra
100 SMA is at 4937
@golfdude: Yesterday it closed two times above HHema.(e., above 5 points and 2 points only). In this circumstance how will you execute a position?
@ Praba - right 4977 possible how it will react let us see
@ Shriram - EW??? am BIG ZERO in that :( that's simply of EOD chart i told u
Thank u prabhat ji,
But if hrly price closes below Hr Close & yet stays within HrLEMA & HrHEMA
then wot to do ???
rgds
@prabhakar: But it has been a long from 4865 on Jan 13.
So nothing to change about that trade.
** CLARIFICATION:
I mean if Current hr price closes below prev 2 Hr Closes, & yet widin HrLEMA & HrHEMA then ?
rgds
@golfdude,
Request you to explain your system once again with
your rules of trading HHEMA AND HLEMA.
@shriram,
Continue trade until closing price falls outside
HHEma-HLEma ( with a filter of 10-15pts ).
@ GD,
Got it! Thanks.
Also, Is Hrly hi-lo EMA system restricted to Intra day trades ?
or can it be applied to 2-3 days Time frame also ?
@golfdude: Thank you for your reply. But I was confused yesterday your posting. I thought you exited with 41 points loss.
@Shriram: I do not follow EMAs.
1.I follow price movements & volumes. I keep observing how much time/volume nifty spends at what level (this I call average trading prices) which I combine with hrly data.
2. OI data of nifty options. Following OOM options on both sides - say 200 pts from spot gives early indication of any impending moves.
If current level of nifty is above/below previous hourly close & trading above/below the average trading prices + OI data I take positions. This I do not know to explain it further, so kindly do not follow me.
Hourly HEMA-HLEMA trading system:
I have found this slight modification very useful.
Identify Trend using Day HEMA - LEMA system.
Initiate trade after signal generation from Hourly HEMA-HLEMA trading system, in the direction of day Trend.
IF hourly is turned down but day is still up, Book Profit.
Ignore this Hourly signal for short/Reversal (and viceversa). Just stay neutral till next signal.
This gives less whipsaw trades (hitting SL) in long term
For first hour 25 pts SL, then 20 Pts
कितने दिन हो गए! आलिशा जैन नजर नहीं आई!
@Shriram: I dont mandate myself to trade everyday. I may opt to sit idle for weeks anticipating a sure shot move rather than entering unsure/risky trades. "For me not making loss is more important than making profit."
I am still learning from Master as to when to enter into trades as it comes with experience & wisedom as Master follows Military Discipline of JNSAR & TT.
hahaha.. tks prabhat ji,
As long as it helps rope in the dough, wot more can one ask :-)
rgds
Saving all these replies in a word doc..
will read them up & imbibe.
Humble thank u !
New Post Done.
HHEma-HLEma system explained here
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