Do not write off the "Hanging man" for he carried a message. Market did fall 125 points suggesting vulnerability at higher levels.
And for the day, Holding above 34Hr sma(5129) after having been resisted @ 5155(21 Hrsma), Nifty rallied to end the month at its high point.
No single day's action is "etched in stone" that one need to close his/her eyes after a pattern has formed (Hanging on to yesterday, you'll fail to see today)...Market evolves..flows and if you fail to read its ever flowing messages, it will be to your detriment only.
Understand the unfolding various T/F technicals and give its true weightage and each has a "Time element and price range" - Factor these into your trading strategies.
Tuesday, January 31, 2012
Nifty PreMarket View
Hanging man has given a follow up "down" candle. And a DHEma to DLEma trade too has been completed. OS intra charts would have a bounce towards & above DHEma being the last day of the month, attempting to close near the highs of the month.
Monday, January 30, 2012
Nifty follows "down" the "Hanging man" that formed at a critical point (200sma)
Formation of patterns at critical junctures should add to your convictions and make you confident to take those minimum steps such as "booking out" , if not the aggressive trades.
1. JustNifty TA(31st Jan)
Nifty PreMarket View
Follow up action for the "Hanging man" is likely to unfold today below "5215".
Manage your positions accordingly.
TataSteel seems to have completed a perfect 5-waves.
Manage your positions accordingly.
TataSteel seems to have completed a perfect 5-waves.
Saturday, January 28, 2012
He looked lonely but his life was full..
In the ever-churning universe of a city street corner, Carlos Guardado was that rarest of things: a fixture. For almost 20 years, he was there, a little guy in a metal cart, selling rice-and-bean burritos at 17th and K streets NW on Farragut Square. He was there in all weather, during uptimes and downturns, a dependable rock in the rapids of life in downtown Washington.
Until suddenly, this week, he wasn't, and a busy neighborhood paused to realize that it was a pretty big man who had been doing that little job.
Until suddenly, this week, he wasn't, and a busy neighborhood paused to realize that it was a pretty big man who had been doing that little job.
Friday, January 27, 2012
Nifty ends the week with a "Hanging man" which requires a follow up confirmation.
Nifty has formed a Hanging man pattern in Day chart.
The Hanging Man pattern is characterized by a small Real Body near the top of the price range. The Real Body can be Red or Blue, although a red candlestick is preferable. A red candlestick is slightly more bearish since it shows that the close could not get back up to the opening price level. The Hanging Man has a long lower shadow that should be at least twice the length of the Real Body. The upper shadow should be very small or non-existant.
A Hanging Man can be confirmed by a bearish gap between the Real Body of the Hanging Man and the open on the next session. In other words, the investor should look for the next session opening lower than the Real Body of the Hanging Man. The greater the gap, the stronger the signal.
A Hanging Man may be a stronger signal if the subsequent session shows a red Real Body with a close lower than the close of the Hanging Man.
A Hanging Man may be a stronger signal if it is followed by another, well-formed Hanging Man in the next session.
The longer the Lower Shadow of the Hanging Man the greater the significance of the pattern.
The smaller the Real Body and the Upper Shadow the more significant the pattern.
If the uptrend is strong and there are major bullish indicators before the Hanging Man, then perhaps the bullish momentum is overwhelming and the Hanging Man won't work. In such cases it is wise to wait for bearish confirmation before acting.
The Hanging Man pattern is characterized by a small Real Body near the top of the price range. The Real Body can be Red or Blue, although a red candlestick is preferable. A red candlestick is slightly more bearish since it shows that the close could not get back up to the opening price level. The Hanging Man has a long lower shadow that should be at least twice the length of the Real Body. The upper shadow should be very small or non-existant.
A Hanging Man can be confirmed by a bearish gap between the Real Body of the Hanging Man and the open on the next session. In other words, the investor should look for the next session opening lower than the Real Body of the Hanging Man. The greater the gap, the stronger the signal.
A Hanging Man may be a stronger signal if the subsequent session shows a red Real Body with a close lower than the close of the Hanging Man.
A Hanging Man may be a stronger signal if it is followed by another, well-formed Hanging Man in the next session.
The longer the Lower Shadow of the Hanging Man the greater the significance of the pattern.
The smaller the Real Body and the Upper Shadow the more significant the pattern.
If the uptrend is strong and there are major bullish indicators before the Hanging Man, then perhaps the bullish momentum is overwhelming and the Hanging Man won't work. In such cases it is wise to wait for bearish confirmation before acting.
1. JustNifty TA(30th Jan)
At the bottom(4532), a Hammer was followed by a red candle(down) to shake off pattern followers before the reversal took place. However, the second Hammer @ 4588 played true.
Thursday, January 26, 2012
Maa Tujhe Salaam... Vande Maataram
IT was just another Sunday. Lazy souls like me generally prefer an extra hour of sleep on Sunday mornings. I jostled out of the blanket and with reluctant steps toddled to the bathroom. Once out, I settled myself upon the sofa, tucked myself with a shawl and before taking the first sip from my coffee cup, flicked on the TV. Seeing the parade on the screen it suddenly occurred to me that it was 26 January, our Republic Day. Somewhere deep within me everything got scrambled and I could no longer remain in ease.
The parade was on. Our freedom was being exhibited in strict discipline.
Wednesday, January 25, 2012
Nifty, uptrending, ends the settlement firm & closer to the next major no: 5212.
rock said...
expiry will be at 5156...nifty moving average 36 point per day during these days..
January 25, 2012 1:10 PM.
expiry will be at 5156...nifty moving average 36 point per day during these days..
January 25, 2012 1:10 PM.
And NF Jan series closed @ 5158.
Congratulations to you.
Thanks to all those who participated in it.
Thanks to Jiignesh for conducting it.
1. JustNifty TA(27th Jan) 
Nifty PreMarket View
5150-70 is the strong cluster area which meets with the requirement for the "High" for the settlement as well as 3rd wave completion. Technical sell has not yet emerged.
VIX range for the day is 5070 to 5185.
Hour TA has been stretched to its maximum. Only strong reversals after a prolonged fall would cause such a behaviour.
VIX range for the day is 5070 to 5185.
Hour TA has been stretched to its maximum. Only strong reversals after a prolonged fall would cause such a behaviour.
Tuesday, January 24, 2012
Nifty PreMarket View
Resistances remain the same around 5100 & 5135.
Weekly Pivot @ 4980, a major support.
Weekly Pivot @ 4980, a major support.
And Day pivot @5040( likely DHEma) sits exactly at the centre.
Settlement day volatility may unfold a day ahead with RBI policy/ Non-policy.
Settlement day volatility may unfold a day ahead with RBI policy/ Non-policy.
Monday, January 23, 2012
Nifty PreMarket View
Channel resistance in Day T/F comes around 5100-5135 from where market could take a pause & consolidate. There are cluster resistance @ 5165 and then 5210-200sma above 5135. The remainder of the days of this month need to defend 4959-MEma for the larger reversal possibility.
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