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...
15 comments:
Trade Plan 13th Jan2012
Today market opened gap down and it made high of 4869 from where market moved down side to touch 4804 and the movement is :5. which presently we label it as A/ 1 and subsequent movement terminating @ 4846 is being labeled as B / 2 and market closed @ 4831. This leaves us with obvious choice of C / 3 and it will be :5
Thus the details can be summed up as follows:
Wave A/ 1 = 4869 - 4804 = 65
Wave B / 2= 4804 - 4846 = 42
This leave us with possible C /3 as either one of the following.
i) 4846 - 40 = 4806
ii) 4846 - 65 = 4781
iii)4846 - 105 = 4841
Close below 4810 would have confirmed that down trend Wave 'G' has started. Since market closed @4831, it implies the Bulls still have some hold in the market and it may be a Trap for the last of Bull biased to get into market. We will able to confirm this only by knowing the market opening on 13th Jan 2012. Under these circumstances we need to be cautious and at the same time we can not be a mute spectator in case if the down trend continues and it is likely to touch 4740 level. Hence we need to devise a Trade Plan which has a chance for higher reward and lesser risk Accordingly my conclusion is as follows:
CONCLUSION
I am seeing good trade set up with lesser risk and higher reward at the current level. However strict Stop Loss has to be followed with the stop loss price of 4846 / 4857 depending on the risk appetite of the individual.
Also note if my assumption of Wave 'G' down started proved to be correct in the tomorrow market, the present down trend has the potentiality of correcting to the level of 4310. However we need to keep 2011 low of 4532 in back of our mind and accordingly it will be realistic to assume the market may go to the level of 4530 and it may happen on 24th Jan.2012. Remember, 25th Jan is the expiry day and 24th Jan. is the RBI monetary policy review meeting scheduled.
Wish you all Happy Trading.
@ SAM,
Thanks a lot. I changed the settings in my blog as per your suggestion and the Problem is solved.
@Illango Sir,
The concept of 'RISK AND REWARD RATIO' was properly implanted in to my mind by you. I am grateful for implanting this concept into my mind and every time I use this concept I remember you with gratefulness. I pray to Almighty to wish you long life to teach many more pupil who are in need of such great help in their trading life.
Hi sir and all Good evening :)
@ jayaraman - However we need to keep 2011 low of 4532 in back of our mind and accordingly it will be realistic to assume the market may go to the level of 4530 and it may happen on 24th Jan.2012.
"garlands @ ur doorsteps" :) if it comes if not "only doormat" :D
by the way sir your "vehicle No. also Nifty no"??? :)
thanks = PS :all left me alone and saying "Govinda"???( i spoke 2 govinda "Oh My Govinda which one is first"??5000++ or 4588/60?? if it's OK for you "then stop @4882" enough. he told me he will consider my request :D
January 10, 2012 9:54 PM
You are welcome Satheesh:)
@Jayaraman - forgot to add - If NF resisted @4889/90 then 4906/44 atleast possible, higher target don't want to give i will compare with NIFTY spot.
Sam - OK boss she will come..book the flight ticket and give your address please :) lol
@Sujatha ji,
I always laugh and admire your sense of your humor. Amazing. I pray to Almighty to wish you best of everything including '4588 / 4560 '.
I am doubtful anything beyond 4857. If it goes beyond that I prefer silent mode at least for a day.
@jayaraman,now ur young master for jn .nice analysis nn guidance thnx.
Namaste Ilango Sir & Blogmates,
Nifty unable to move above the highs and losing steam; Option Analysis for 12-01-2012
Duplicated at Wordpress Site
Thanks & Regards,
Sanjay Kr Jaiswal
Good evening Sir and friends.
@Jayaraman, thanks for nice analysis. That's quite big downside. At today's rates for 4700 put, we will need 5 bags if targets are met on expiry day.
We should take away the grinder switch from sis else... Govinda Govinda.
@Sujata Sis.... you can also come with her.... :)D
@ Durga,
I am floored by your praise. I gained confidence to do these sort of analysis since I am aware I am under the watchful eyes of a master and master knows I am making baby steps. I only pray to Almighty to give me peace of mind and happiness so that I can continue to learn and contribute to the individual traders in their "Pursuit of Happiness" .
@Shr,
The moment down trend is confirmed, please follow Illango Sir advice. That is ' SELL ON RISE'. For option traders Buy PUT ON RISE. If you miss even one more trading day , don't worry and enter only when you are sure and that leaves you good seven trading sessions. Also remember to leave something on the table as advised by Illango Sir.
Triskaidekaphobia is the fear of 13,a number commonly
associated with bad luck in Western culture
Paraskevidekatriaphobia is the fear of Friday,the 13th
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