Friday, July 25, 2014

Nifty Pre-Market View.

I need a clarification on retrace method to enter a trade . 
1. Are we to go long or short @ 50 % of the difference and add TO OUR POSITION at 61.8 % of the difference with 80 % of the difference as stop loss ? 
Is it applicable for both rise and fall.
Consider the strength/ weakness of the trend by its prior retrace and consider "cluster presence" as well as "Key numbers" to coincide with the retrace % to choose the "%".
You could choose to trade "Only with the Golden ratio" & ignore other trades.
Knowing EW helps in identifying the sub-waves of a corrective & its likely end..
Yes..It is applicable to both rise & fall. However, during an uptrend, choose only the "long trades by monitoring the last rise retrace" till a reversal happens and choose only the "short trades by monitoring the last fall retrace" till a reversal happens.
This week has shown some easy "long trades" with prices trending up within a rising trendline with HH & HL..
FII's have been buying again for the last 6 days, after 3 days of minor selling- a resumption of the major uptrend. 
Prices, in the short term, have closed above the two key ST averages. (As long as prices close above these, technicals remain strong; only a close/sustaining below it would reverse the ST trend
The ST direction is "biased UP" (Remaining OverBought in Hour T/f for long suggests of bullish undercurrents), as long as prices stay above 7785 & close above these two key averages (21 or 34 hr smas). 
The strategy that has worked consistently well with low risk-high reward ratio is "Initiating a trade at 50%-61.8% retrace with 80% as SL". Adapt to it
Aggressively Holding above 7796-7804(50%-61.8% of last rise), Conservatively Holding above 7772(DHEma/ last pivot low), uptrend continues....
Aggressively Holding below 7789, correction could resume....
(EW wise, another 61.8% retrace held at 7772, sub-waves continue to unfold...)


marina s rao said...

GM Master & Blogmates.

Wish all Long life, Health, Peace & Wealth.

venkatapathy l said...

Namaste Ilango Sir and blog friends


Jeetendra Mistry said...

GM Master and all blog mates,

In uncharted territory, we do not have Resistance Levels of any past fall.
In such circumstances, how would we work out on Resistances ?
Is there any way to use any Extension Levels and whether they worked well ?
Please explain, considering past experiences.

D.S.SASAN said...

Good Morning Dear Sir, Bros. & Sis's

Have A Happy Day.

Bharat Kumar said...

@ Prabhanshu - IDFC view pls!

mynac said...

Dear Jeetendra Mistry,
For charted or uncharted Day trading territory Dear J R Julius's FB retracement calculator is the best...his mail i.d may try this..

Magesh Waran said...

good morning illango sir & blog mets

Ganesh IC said...

Good Morning Sir & JN Family

Prakash said...

gudmorning master and all frnds

Prabhanshu Raman said...

GM Sir and Friends.

Bharat: Having close look at IDFC Chart, -WW triggered on day tf. 1-3-5 line trigger was 158.30 (day before yday - closed below 158) and 158.50 (yesterday - closed at 158.30).
Now we have to see how it will turn out now.
SL will be same breach of 1-3-5 line on upside on day tf

Bharat Kumar said...

@ Prabhanshu - Got it. Thanks!

Unknown said...

goodmorning Sir. Cairns seems to b right for a Bounce Back Sir. on a Monthly basis, its lower bolinger band is 314/45 n is very very Highly O/S. on a weekly basis its lower band is apprx 326 n is very very highly O/S as well. wud you kindly throw some light Sir.

Nilesh Patil said...

Good Morning Master & friends

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