Tuesday, September 30, 2014

Short term price rise meets with selling pressure from "Supports-turned-Resistances @ 8025-65 zone"

Nifty Intraday Update-I

Allow the ST action to exhaust while keeping your focus on MT technical to have the right perspective..

Approach the market with a "Prime study" of your choice.
Understand it better by using "Secondary studies", preferably 2 or 3 to the maximum.
Wait patiently for these studies to align better, if not the best, and then make your trading plan.
I have chosen Elliott wave as my prime study; Classic Technical analysis with Ema & JNSAR inputs as secondary studies to validate the primary study.
EW shows primarily the direction. The labeling is just secondary.
The fight for labeling, at best, should be treated with amusement.
Only market validates it.
Only an open mind makes you conscious of such subtle shifts...
Now, weigh your risk reward considering all the time frames, giving more weightage to higher t/f and choose a reasonable level to initiate a trade using the lower t/f's volatility.
When you initiate your trade based this way, there will be tremendous level of discomfort as your secondary studies would not be confirming and the counter trend moves are swift & powerful to unsettle even the experienced.
Do it anyway with a proper stop loss which should keep your risk limited and the planned execution providing big reward, if not unlimited.
Unlimited happens when your tool of execution is one of a daring kind. More on that later.