Friday, January 6, 2012

Nifty, uptrending in the short term, asserted itself when it mattered most.

Knowing that there are many technicals working at all time...month/ week/ Day and Hour, etc.. will help you to be prepared for the most important aspect of "Technical Analysis" which is "Trend asserts itself when it matters most which is - at the close period of month/ week/ day & Hour, etc". This is the reason why prices may behave contra to the trend most part of the hour but go back towards the trending side at the closing of the hour. Similarly for day, week and month. Intra week upmoves get fully retraced on the last day of the week. Intra month rallies are retraced towards the last part of the month. Intra settlement moves are well settled in favour of the trend at the close of the settlement.
Believe in this most important characteristic of technical analysis, the most practical one. The prices will make you most uncomfortable with their counter trend moves during the "intra period but within the permissible levels" but will go back to their trending direction when the said period (Month or week or Day or Hour) comes to a close.
If you can believe in this, and make it a part of your strategy, you'll then look at the counter trend moves as opportunities to initiate the most rewarding trades and if you are already in the trending trade, you will learn to "sit through the counter trend moves with amusement".

19 comments:

golfdude said...

HHEma-HLEma short trade from 4748 ended at 3:30 with
a loss of 5pts ( 4748-4753 ). But didnt initiate
the long trade yet as close was too close to HHEma.
Will decide at 10AM Monday.

With money management, one had an opportunity to make
50+ pts in the last short trade also ( 4748-4687 ).

Have a nice weekend.

Somak said...

Ilango Sir, tomorrow market
will be opened from 11-00am to 1-00 pm.
http://www.nseindia.com/content/circulars/CMTR19734.pdf

u.k.Raj said...

Weekend reading

http://www.rediff.com/business/slide-show/slide-show-1-great-walmart-of-china-and-why-fdi-in-retail-will-kill-indian-jobs/20120105.htm?sc_cid=emailshare&invitekey=b020db48d46ee61b4424f88e68fe6062&err_accptd=1

http://www.rediff.com/getahead/slide-show/slide-show-1-career-management-lessons-to-learn-from-anna-hazares-village/20111230.htm?sc_cid=emailshare&invitekey=a0569da732dc19457fa87d2fc8e5e280

rcg said...

Dear Mr. Ilango !

Your blog is awesome !
Instead of saying , BUYxxx TARGETxxx SLxxx, you expressed
the essence of your un compairable knowledge of TA,
in detail, yet summarised in a chart. Which I have to
say all in one.

The indicator shown in the lower part of your chart is alone
sufficient to indicate the further move of Nifty.
Could you please share, that which indicator is that? is that
a refined/personalised form of Stochastic oscillator.
If so, what are the settings of that.
If that is not like stochastic then what indicator is that.
To say that I be obliged is not necessary coz am already obliged
getting your such lovable blog !

Ilango said...

@ rcg,

You can download the excel file that contains more charts including the above ones from the link provided at the top right corner of the blog as "JustNifty TA (09th Jan).

I have, now, given the link in this post too.

dare said...

SIR,

PLZ UPDATE BANKNIFTY TA FILE....&
STOCK FILES IN STOCKWEALTH ATLEAST RIL TA & SBI

piyush sharda said...

sir ,
as the file is uploaded for monday how will tomm trading effect hour ta/day ta/or we ignore tomm data altogether???

Sujatha said...

Sir - the same :Q" as Piyush raise...is tomorrow's candle v hv to take, will nse show that figure?? how to calculate for this week.

tks n advance.

regds

Janak said...

golfdude - "HHEma-HLEma short trade" - do u mean to say that
a short taken at 3 pm will give decent return at 3.30 pm in
simple words?

venkatapathy l said...

Namaste Ilango Sir and fellow bloggers.

LV

San said...

Nifty Weekend Update: CLICK HERE

SAM said...

Good Morning Ilango Sir and JNFamily..

Jigar Patel said...

Hi Can any one tell me how to read this Tech Table &
Pivot Table. when to go long or Short & what is my Stop
Loss.

shiva said...

good morning,seniors..

SAM said...

Today.... I think No trade Zone is there.....

sri said...

Hi Golf dude,

Could you plz help me to know about the dynamics of HHEMA-HLEMA trade.

regards

SAM said...

Tell me who made trades in Nifty today????????

And in profit..... or for broker ...:)))) D

rcg said...

Dear Mr. Ilango !

Thanks ! thank you very much ! for the response !
The link given by you, & the material there is awesome !
Am really grateful to you !
I have a query yet ! If some one wish to check the
correctness of any mathematical information at any site or software,
The Best way is to check that calculating manually now & then.
thats why the query is:
for calculating ema we need to know last ema i.e of last day's
ema or last hour's ema or so.. but from where/how we can know
that( checked & authenticated).
Hope , you know the query is of pure academic taste.
would love to have your reply.

with
regards !
rcg

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