Wednesday, September 17, 2014

Nifty retraces 50% of the last fall to catch up with ST averages...

Nifty Intraday Update-III

Nifty Intraday Update-II

Nifty Intraday Update-I

Nifty Pre-Market View.

Please guide me about using 34hrsma as a sar.
1. Entry/exit rule. Whether to trade on crossing it or wait for hrly close?
2. Imp one..how to decide SL. Suppose 34hrsma is 8000 and nifty trading below it. Now when nifty cross it should we enter entra hour or wait for hrly candle close? If we take as it croas it and close above it but in next hr if again it crosses from above to below it? How much to keep sl( fixed 20 points) in case of sudden reversal?
SuggestionYour question starts with the answer - i.e: Use it as a SAR. However, I suggest you to use it as a reference pointer-Look at the Hour chart with the 34 hrSma in "Red" colour. It breaks down first but there was a recent low at 7856 and it holds at 7862 & reverses-the recent low helped; the 2nd break down happens and another recent low at 8061 provides support with a low at 8050;