Nifty Intraday Update-III

Nifty Intraday Update-II

Nifty Intraday Update-I

Nifty PreMarket View

Belated Birthday wishes to Raichand Shah.

Hi..Nirav,

Please go through the write up under Technical Analysis about "Macd-Trend indicator" and Stochastics-Lead indicator". Also read write ups on Oscillator reading.

I would like to add that when stochastics reaches 20 or 80 during a range move, it promptly reverses except when a break-out happens from the sideways range. During trending moves, stochastics stay above 80(uptrend) & 20(Downtrend) for longer time.

Macd being a lagging indicator, it may be used to confirm the trend, spot divergences. Bigger falls are possible when macd moves into negative territory. When macd moves below its trigger line, it is sell on rises.

Simple way of Support & resistances for trading.

Support and resistance are important levels at which point supply and demand exist predominantly. In the real market place, prices are moved by excessive supply (from resistances) and demand (from supports). Support & resistances form integral part of trend following.
In the good old times, traders remember two most simple points from where good amount of buying(support) emerged as well as sellers (resistance) appeared. They have kept only these two points of a particular time frame(short term- for intraday and medium term for positional) and carry out their trades. The moment a support or resistance points are exceeded significantly, they adjust themselves to the new development and change their supports to resistances in the case of a fall and vice versa.
In my price analysis, I give more weightages to such cluster points of supports and resistances and combine them with classic TA and Elliott wave study to add to a likely emerging patterns. To arrive at more reasonable cluster points, use a horizontal lines on the price chart & spot the points where prices have found persistent supports and resistances.
You will do well to study the price charts of all the time frames - month,week, day and Hour and use them in your trading plan. For eg: when a day cluster support merges with a month cluster support, expect it to hold and a strong rally to emerge.

For positional traders:
For Intradayers:
This is the most basic aspect of technical analysis and also the minimum home work that is to be carried out by any trader before venturing out to the trading arena.

No matter in what time frame you trade, these support & resistances exist in all time frame and the importance of them increases as the time frame becomes larger. And the trader would do well to assign weightages to these crucial numbers accordingly.

Get Rich Slowly and surely.

Gift of love that kept returning back again and again.

A man named Bob May, depressed and brokenhearted, stared out his drafty apartment window into the chilling December night. His 4-year-old daughter Barbara sat on his lap quietly sobbing. Bob's wife, Evelyn, was dying of cancer. Little Barbara couldn't understand why her mommy could never come home. Barbara looked up into her dad's eyes and asked, "Why isn't Mommy just like everybody else's Mommy?" Bob's jaw tightened and his eyes welled with tears. Her question brought waves of grief, but also of anger. It had been the story of Bob's life. Life always had to be different for Bob.
Small when he was a kid, Bob was often bullied by other boys. He was too little at the time to compete in sports. He was often called names he'd rather not remember. From childhood, Bob was different and never seemed to fit in. Bob did complete college, married his loving wife and was grateful to get his job as a copywriter at Montgomery Ward during the Great Depression.

Nifty pauses @ channel resistance with overbought hour readings.