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...
22 comments:
Dear Sir, Can there be a probability of a double bottom, IF we rally from hereon in a short span of time?
Awaiting your reply
sir ji,
GE,
when eod is below d-lema: w-lema & m-lema
what could the next tgt on the dnside go to?
Suresh,
Ideally if that happens it would imply an aggravation in the downfall unless Nifty spot gives an hourly, then daily closure above the LEMA of that time frame. However I'm sure this is a question more for learning purpose since for this month MLEMA is at 5659 which is below NS -5694, atleast for today. :)
20-Mar-2013 17.60 (data released by nse) we are @ lowest price to earnings ratio and price to book value and dividend yield since Jan 2012(For Nifty)
@ Bharat Kumar,
A double bottom should be looked out for "closer to a bottom of a sustained fall"
This supposed double bottom possibility around "5665" could at best be a "Pause" in downtrend since this reversal from 6112 has come after a sustained rise and it is in it's early stage based on mth/ wk technical studies.
Let the prices show "end of month" reversal above MEma-5772.
The OS Hour with its "falling wedge" could show minor strength above "5715" initially & more above "5745 & 5775".
Time is running out for the month close with 2 holidays in the next week.
Let us follow one at a time.
Bounce Back For Nifty is evitable in a Day or Two !!!
@ suresh,
Prices when break a "support line" during downtrend, they would attempt to break the next support base.....before which the prices would have to deal with earlier resistances that would act as support now.
How do we find these...earlier resistances and support bases..??
Take a daily chart having 2 year data or more if need be;
Draw horizontal lines where prices have clustered to form a support base on numerous occasions....more time a horizontal line finds supporting low prices, more reliable that support base would be.
Similarly, draw horizontal lines where prices have clustered to form a resistance zone on numerous occasions...more time a horizontal line finds resisting high prices, more reliable it would be as an "earlier resistance zone" which could act now as a support to the falling market.
Depending on the "momentum involved in the downtrend" (Month-very severe; week- severe; day-moderate), the likelihood of these supports holding or getting broken down.
One needs to be well prepared with "Channels" operating in different time frames to get vital clues to likely target zones or break down points.
All prev bottoms of 4770,5032,5548,5664 was between 17.65-17.80, Today we are @ 17.60
Namaste Ilango Sir & Blogmates,
Bearish: 5800 level has been taken away by the Bears and now they have their eyes set on 5700CE, with huge addition of 19.9 lacs for the day, time for Bulls to make a comeback or else we can have an expiry at the lows of the series..: Option Analysis for 20-03-2013
Dedicated Option Open Interest Blog
Duplicated at Wordpress Site
Thanks & Regards,
Sanjay Kr Jaiswal
NS: 200DMA 5610, daily Stockastic, Macd and RSI14 are heading downwards.
hdfc is trading very close to 3 years old trend line ... trend line support at 620 holding same will give a bounce .. more strength above 635
Majority of front-line stocks are trading below 200DMA. many more are hurtling towards 200DMA.
sir ji,
thank you
Bank Nifty has moved below 200DMA, this is not a very good sign!!
@Ilango Sir - Thanks for the clarification
Sir,how trader should approach market?channel to be studied under differt time frame,ew to be followed,TT to be followed,pattern to be identified,gaps,flags to be find.how are we going to enjoy trading?what is real trading? Is it mathematical calculations only?
mayur gala ji, keep it up. no bounce back. it should be terrible panic short covering.
@ Satish,
You are making it sound like some complex "NASA research programme".
Channel- kids stuff, even to do diff. t/f
EW- counting numbers and a few alphabets, an objective mineded person will get it at a cursory glance but the "obsessive one" mess it up. (A minute's job)
TT- following made easy with colours...isn't it simple enough.
Patterns- they form over a period of time. If you find the patterns in hour T/F is too much work, stick to the day t/f which takes time/ days...are you patient enough...
You'll not enjoy trading if you find it as a "work".
What is real trading?
Each will have an answer depending on the approach chosen.
We have given the "Maths" significance to appeal to most and make it more mechanical/ disciplined.
Satish, look around to see how much people work harder to make a day's wages...how much they risk...how much they sacrifice.
In this financial jungle, knowledge & its diligent application with patience and a balance of mind (Not getting swayed by extreme emotions) will bring in riches beyond one's imagination.
Are you committed enough? If so, why such questions..?
Sir,
What a beautiful explanation to a complex NASA research program.. Even NASA scientist could not have made it so simple. Hat's off to you!
Warm Regards,
-Ravindra.
dont panic just yet ...its time to relax as market is likely to get into consolidation here before it resumes the downtrend...quarterly earnings calendar is yet to unfold and dont see market going down in hurry..." i remain bearish about poor second half and year end target of 5000...all the best n happy trading"
Immortal said...
market rising on short covering gives me no confidence of the pullback
March 5, 2013 at 11:35 PM
good morning, respected ilango ji and friends !
quote for the day-
“There are two things people want more than sex and money: recognition and praise.”
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