When taken singly doji are neutral candlestick patterns, but with adjoining candlesticks they indicate market reversal and bullish or bearish trends.
Common Doji: The candlesticks look like a plus sign, cross or inverted cross. When they occur after a significant uptrend or downtrend, they indicate trend reversal/ exhaustion.
13 comments:
Why should we go for any tips now if free tip is
readily available about market direction. Who else can
give such a great analysis just after market close?
Thank you Illango Sir, we all are fortunate to have a
mentor like you. May God give you strentgh to keep the
good work.
Yes, absolutely ... Indeed, a very selfless service and guidance and so much to learn.
Sir kindly update what input feed are used in stochastic oscillator
Shame Shame Shame!!! Alisha Jain and Prototypes
Namaste Ilango Sir & Blogmates,
Huge buying by FII’s today, they seem to see Nifty at much higher level; Option Analysis for 02-02-2012
Duplicated at Wordpress Site
Thanks & Regards,
Sanjay Kr Jaiswal
big FII buying figures. I am surprise by seeing these numbers.
How this is happening ? Is there any fundamental change ?
If not then why they are buying ?
I want to know the "funda" behind this.
@Victorious,
Is there any site to know whether FIIs buying is from Inflow.
I presume their modes operand i is to short Niftyfutures
first, make basket selling after putting buy orders at
lower levels their software provides. Thus they can buy
for more amount(utilising profit also) without involving
fresh funds. That may be the reason for Nifty/sock(today SBI)
does not go up even after large FII buying.
Bala~
Good Morning Ilango Sir and Blog Mates,
@Victorious and Nandi, it is coincident that my posting of today has some analysis of FII activity. This is how I understand their activities. Some more inputs from Ilango Sir and Blog mates will help all of us to have better understanding of FII's activity
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Trade Plan for 3rd Feb.2012
From Day high of 5290 market moved downwards to 5226. Also market Opening Price and Closing Price almost equal thus forming a Doji. Normally Doji is a indication of trend reversal or pause before further movement.
In our case, market formation looks like a contracting triangle (CT ) with 'a' leg length being 65 points and it implies market may move to 5330 ( 'e' leg at 5265 + 65 = 5330 ).
There are two possible scenario in the market.
1. Market may open flat to positive to reach 5330 and there after a good correction can be seen.
ALTERNATIVELY
2. Market may open flat to negative and drift downwards further. ( Thrust area failure of CT ?)
Depending on the global cue any one of the above will play out. In any case downward movement in inevitable. Hence initiating short from every rise is advisable. Tomorrow being Friday and uncertainty set in to market a decent correction is expected.
CONCLUSION
Initiate Short at current level or any higher level with proper trade management. Though I am of the opinion market will correct minimum to the level of 5100 I am not giving Stop Loss Price since entry price can be decided after market opening and market is presently pivotally placed.
1. Also if market fails to hold 5070 one can expect 4580 level shortly.
2. Even if market holds 5070 it can hold temporarily and make an unsuccessful attempt to reach 5200 / 5250 and there after correction will continue furiously.
3. After holing 5070 if market successful to scale 5250 it can reach maximum of 5340 and there after correction is possible.
4. Market may surpass 5340.
NOTE
I have given Four different scenario in the aforesaid conclusion to enable us to plan our trade management well in advance so that we can successfully navigate the Fear and Greed which grips our mind when actually market unfolds.
1. If market breaches 5070 initiate short with stop loss price of 5100
2. If market holds 5070 initiate long with stop loss price of 5060 and exit at 5200 / 5250 / 5340 by trailing stop loss price
3. If market touches 5200 / 5250 / 5340 initiate short position and we will work out the stop loss once market evolves and reaches the said levels.
4. As and when market crosses 5340 we will analyze the same.
In my opinion, Scenario Two has more chances to play out especially after keeping the fact that FII has invested close to Rs.4,000 Crores in Two days which fundamentally changed the market environment. Remember in Jan.2012 they have invested close to Rs.11,000 Crores.
FII Activity during 12 months period of 2011 given below will give insight into why I chosen the scenario 2
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Equity (Rs.crore)
Months Gross Purchase Gross Sales Net Purchase/Sales
December 2011 38,865.80 38,994.30 -128.50
November 2011 44,026.60 47,973.20 -3,946.60
and so on Please refer my Blog
February 2011 59,002.20 62,756.70 -3,754.50
January 2011 57,949.90 64,280.10 -6,330.20
Total 608,086.40 611,728.80 -3,642.40
What ever one purchased between 4600 to 4800 if he start distributing it between 5100 to 5300 he still makes minimum of 300 points which is around 6 percent, By seeing the
investment pattern made during 2011 it is obvious that maximum investment made is Rs.7,400 Crores in 2011. Nobody will keep on investing without taking profit from the table. Presently FII's invested Rs.15,000 during 2012 which is against the net negative investment of Rs.3.600 Crores during 2011.
The retail investor got in to wagon somewhere between 5100 to 5300
( After RBI policy - Buying furiously ) will be the poor loser when he sells, out of fear
below 5100 level.
This is on going process and to make profit in such a environment by trading one need to be
1. Super Cool ( Wait for good Trade Set Up ) 2. Financial goal has to be clear and achievable ( Greediness has no place )
3. , 4 , 5, 6 . 7. 8 ......etc.. the list can be expanded by readers so that it will help the people to understand why they fail and how they can correct it.
-------------------------------------------------------
With today posting I have completed 25. This helped me to improve my entry point. To improve my exit point I am fighting, may be in few weeks time I will be able to achieve that.
FII Activity during 12 months period of 2011 given below will give insight into why I chosen the scenario 2
------------------------------------------------------
Equity (Rs.crore)
Months Gross Purchase Gross Sales Net Purchase/Sales
December 2011 38,865.80 38,994.30 -128.50
November 2011 44,026.60 47,973.20 -3,946.60
and so on Please refer my Blog
February 2011 59,002.20 62,756.70 -3,754.50
January 2011 57,949.90 64,280.10 -6,330.20
Total 608,086.40 611,728.80 -3,642.40
What ever one purchased between 4600 to 4800 if he start distributing it between 5100 to 5300 he still makes minimum of 300 points which is around 6 percent, By seeing the
investment pattern made during 2011 it is obvious that maximum investment made is Rs.7,400 Crores in 2011. Nobody will keep on investing without taking profit from the table. Presently FII's invested Rs.15,000 during 2012 which is against the net negative investment of Rs.3.600 Crores during 2011.
The retail investor got in to wagon somewhere between 5100 to 5300
( After RBI policy - Buying furiously ) will be the poor loser when he sells, out of fear
below 5100 level.
This is on going process and to make profit in such a environment by trading one need to be
1. Super Cool ( Wait for good Trade Set Up ) 2. Financial goal has to be clear and achievable ( Greediness has no place )
3. , 4 , 5, 6 . 7. 8 ......etc.. the list can be expanded by readers so that it will help the people to understand why they fail and how they can correct it.
-------------------------------------------------------
With today posting I have completed 25. This helped me to improve my entry point. To improve my exit point I am fighting, may be in few weeks time I will be able to achieve that.
yesterdays
Rohit. S.Update
The Nifty achieved the first key target of 5285. Now a breakout above 5285 looks possible
based on extentions showing up on intraday basis and stock rotation and extentions in
stock prices. So the next target should be 5392 with key support near 5170 from the rising
trendline for the entire one month move. Recently doji patterns as todays are acting as
continuation patterns and should be treated negatively only if if the lows break or on a loss
of trading volumes.
GM master.
@Experts: what is the site which shows live sgx nifty? http://sgxniftylive.co.in/ is not showing anything
@ prabhat
SGX
http://www.forexpros.com/
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