Saturday, February 11, 2012
Friday, February 10, 2012
"ORB" and Day pivot would be used.
For intraday traders, only the opening session is based on previous TA. Subsequently new TA start to develop during the day which is unknown to us. Traders try to figure it out using very short term T/F tools which carry high risk/ high reward factors.
Use them only if you are proficient in them. Be prepared to accept the strength/ weaknesses displayed by the flowing prices and "go with the flow/ trend".
Thursday, February 9, 2012
How to Identify it
What it Means
In an uptrend, a long white day occurs, following by three days of small real bodies that fall into a short downtrend. On the fifth day, the bulls come in strong to close at a new high. This small downtrend, in between two long white days, is consistent with investors taking a break. The upward trend should continue.
For the day, one would be short below 5365 towards recent lows of 5325 breaking which S2-5292 is the 1st target(the developing JNSAR for tomorrow)& 5272-(10Dma) the 2nd target.
Wednesday, February 8, 2012
A candlestick formation that occurs when the entire daily price range for a given security falls within the price range of the previous day. Inside day often refers to all versions of the harami pattern and can be very useful for spotting changes in the direction of a trend.Investopedia explains 'Inside Day'
An inside day is often used to signal indecision because neither the bulls nor the bears are able to send the price beyond the range of the previous day. If an inside day is found at the end of a prolonged downtrend and is located near a level of support, it can be used to signal a bullish shift in trend. Conversely, an inside day found near the end of a prolonged uptrend may suggest that the rally is getting exhausted and is likely to reverse.
Using HEma & LEma for Trading from Tech.Table(TT):
In the TT, there are four guidelines given for using HEma & LEma in trading:-
When prices move above Low Ema & Closes: Buy on dips to High ema+
When prices move above High Ema & Closes: Buy & Hold as upward momentum picks up.
When Prices move below High Ema & Closes: Sell on rises to Close Ema/ Low Ema-
When Prices move below Low Ema & Closes: Sell & Hold as downward momentum picks up.
Trend indicator in TT is 5DEma. One could opt for JNSAR too.
While the market is comfortably above 5DEma/JNSAR, the close below HEma suggests weakening of upward momentum which means short term traders would move into sell on rises...investors have taken a pause as well as do part booking.
Subsequently, if market survives the LEma, it would attempt to move higher. In a strongly trending market, such as the current one, market is coming only upto 5DEma so far. And after a two days of sideways move, it has closed above DHEma & poised to take another move higher. In normal conditions, the close below HEma generally takes the market towards LEma-20pts.
Markets have occasionally closed above HEma but has gapped down next day. Most TA studies suggest overbought conditions but the corrections have been of “intraday” nature so far.
While the market is comfortably below 5DEma/JNSAR, the close above LEma suggests weakening of downward momentum which means short term traders would move into buy into dips...investors return to re-enter into their fallen favourites.
Subsequently, if market is unable to close above HEma, it would attempt to move lower again and the downward momentum returns once it closes below LEma.
Knowing the market strength/ weakness with the help of prices’ positioning in the Tech.table of different Time frame, one could choose good trade set ups and initiate trades at appropriate levels. The levels are arrived at using Pivot table and Tech.table and other considerations such as Fibonacci table, Elliott wave study, etc.
It is the same with religion and reaching out to God. You may be surrounded by many, participating in the Bhajans but your own life's trials get you closer to the GOD.
Let yourself be exposed to the market more & more...let its harshness temper you..prepare you for that lonely but enriching journey.
Let nothing along the way distracts you...be it the loose talkers or your own excitement/ despair that is borne out of success & failure.
Remember, everyday market evolves..it has something new to show to you. SO keep your opinions on hold...Listen to it. And as you get clarity, move in and as it gets unclear, stay out.
Yes..Smita.. that pony tailed hanging man/ woman is an instance of this evolving market.
Tuesday, February 7, 2012
- The candlestick should form after a significant uptrend.
- The price should open above a significant gap and the opening price should be the highest price of the day.
- The day should be noticeable with high bearish activity and the price should close at or near the lowest price of the day.
The confirmation of trend-reversal can be a bearish candlestick, a lower gap opening or a lower close on the next trading day. Traders are also used to use other tools and indicators confirm price trends and to enter and exit trades. 1. JustNifty TA(08th Feb)
As long as the higher T/F TA is uptrending, the Hour weakness will produce 50-100 points of corrections only.
Monday, February 6, 2012
Day Pivot @ 5305 & DHEma is likely to be around 5305+-A close below these would weaken the upward momentum.
EW/TA reversal confirmation below 5250.
Tata steel in its last leg of an "ending diagonal towards 492 or 502".
After a near 450 points rise since 4957-Mth reversal, intra month consolidation may be on & then to go back towards the highs at month end.