Get to Know your Technical indicators to use & keep aside....

Most would like to look at their technical indicators everyday for clues to "future price behaviour" which is like going to the doctor everyday to look at your future health problems based on ECG/ BP, etc..
Just as you go to a doctor when you are exhausted or your body gives out certain warning signals, go to "TA indicators" when markets look exhausted either during uptrend or in downtrend. For day to day monitoring the prices, trendlines/ channels as well as ability of the prices to stay above certain key averages/ emas would do.

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Reader's query: I have been trading in Nifty as well as Nifty Options.
I have been using your Tech Table. But get confused looking at so many numbers like High EMA, Low EMA, Pivot Points, JNSAR...
Sometime feel which to follow...I have made the tech readings..

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Markets are always flowing like a river with quite a lot of minor movements. We play these minor movements. The major shift takes place once in a month or two. Larger shift takes place in still larger time frame. Be with the larger current to assist you with the smaller currents till a major shift takes place.

The simple guide would be to choose the numbers closest to the "last close" and follow them along with intraday charts. The challenge in most intraday trading is how to read oscillators. The thumb rule is to gauge the oscillator move against the last price rise or fall against the current price fall or rise. Smaller the price action with a full move of oscillator means it is a corrective one while a larger move would obviously a trending move. Oscillators would be of lesser value in a trending market.

Whenever more numbers in TT confluences closer to a number, it becomes a critical one. For eg: today, 4933-M.Pivot, 4934-J10SAR, 4936-W.Pivot,4940-DEma makes 4935 as the critical number.

4950-WEma, 4952-R2, 4954-JNSAR would become resistances.

4865-HLEma, 4876-D.Pivot would become supports depending on gap-up with +ve global cues.

Our markets have mostly used the global cues to its advantage and traded. Accordingly a gap up closer to our critical number/resistance would provide a selling opportunity. How the EOD TA emerges would determine our market's strength/ weakness.

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Overbought Hour TA as well as Daily TA started off with a sell yesterday and likely to continue today at the open with world mkts cues being negative.

Trading below Month pivot-5091(5094-DEMa), the first weakness which will get aggravated below Week's Pivot-5046(5045-DLEma/5051-JNSAR).

In the past, when TA is in uptrend, negative world cues have given intraday rally. This time too, it is possible if 5045 is protected and subsequently if Nifty starts to trade above 5091.

Nifty correcting up the fall, holding above 5550.

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Onset of hourly correction with a -ve divergence and moving down in a channel with lesser price fall but consuming more time and it is still continuing. Compare the same with the rise wherein this oscillator rises steadily while price advances rapidly confirming a trending up move -- That is oscillator reading in a more objective way coupled with Tech.Table reading.

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We have spotted the "Hammer pattern" yesterday; Now for a follow up on it today. It could gap up, move higher too but the close below the open as well as below yesterday's close would alone qualify as a reversal. Till then, "Hammer" represents some "Selling tendency" in a supply zone.
I have covered "9-Rsi" today and it has been found to be quite reliable.

Nifty Intraday Update-I

This indicator gives you the lead. Once it reaches above 80 mark, it becomes Overbought. But the moment it starts to make the "dots" and stay above 80, know that it is trending up. Similarly for "Downtrend". Only in a sideways market does it oscillate between 80& 20.

Nifty impulses down below 5355 after having shown weakness below 5455 for a few days...

Use the oscillators at the right moments.........

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Tangotaurian, One of our oldest reader has created an excel file called TRADING SIGNAL that would benefit both index/ stocks traders to calculate various levels as well as auto generate trading signals. Though it has many stocks in it, you can choose to keep the number you wish to track in them, deleting the rest. He has made your job quite simple. Thank you TT.

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Following is a classic example of reading oscillators in combo with two time frames - here for short term traders with Day & Hour. Since the first sell emerged coupled with a close below DHEma on 3rd June, it has been a sell on rises till the Daily Lead indicator generates a buy.

Hello sir,
How are you doing.Hope you remember.I continue to follow your blog and the sar system.I had a query regarding profit bookings.Specific concern is about the way exits are shown on the table,particularly for 1st lot.

For Ex, the trade on 27-05 ,the first lot was booked out in 60 points,but the latest trade on Fri was booked out in 52 points,and sometimes i see bookings in 100+ or < 20.

How are these exits decided when you put on table.I ask because in real time trading we wont know when to book out. How do we decide when to exit.We can wait for 50 /100 /150 points,but its not a good way to book out.The second lot ,of course takes care of itself.

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Profit booking is generally based on Hourly technicals as well as the "Aggressive intraday supports/ Resistances levels".

Each market moves are unique with varying TA set ups in different time frames. One needs to understand the overall market dynamics using "Tech.Table" and act accordingly.

Never attempt to find a fail-safe system. Our Part booking strategy was devised to mitigate that problem. After profit booking, if you get Nifty to initiate a resell/ rebuy closer to JNSAR, do so. This maximises profits.

Best wishes.

Nifty PreMarket View.

Price has corrected 50% of the rally from 5690 to 6069 @ 5880 and the oscillator has completed a trip from Overbought to oversold region and developed a minor positive divergence too. This action of oscillator v/s price move's length suggests that this fall is of "corrective nature" only.

The corrective move from 6069 to 5880 has unfolded in a clear 3 wave form in a channel and this channel resistance comes @ 5925. Trade above yesterday's high,5960, will give short term strength whereas moving past 6001 may reverse the short term trend.
NF channel shows a bit different channel resistances..NF 5960-70 would be a critical zone to cross at the open and thereafter the value comes down.

NIfty confirms a short term bottom with a close above all Sma.

The TA tools that has been chosen to follow a trading methods are Stochastics (Leading Indicator) and Macd(Lagging Indicator). As traders/ investors tend to cling on to each word and do things in a mechanical way, the writers of TA books have given the "Safest way" to use these indicators. That is theory. Most follow it that way, by going long when Stochastics move above 20 or 30 mark and go short when it moves below 80 or 70 on a scale of 0 to 100.
However, in reality markets bottom out much earlier than these signals. The experienced as well as an aggressive trader may take action at the oversold or overbought levels using other studies such as Elliott wave, trendlines, Supports & resistances, market profile.
How the Cooking was taught in the catering colleges and how it is actually done in the Star Hotels, there is a vast difference. Unfortunately the so called "Practical Classes don't show the "Practices" of the industry.
What we are doing here is "Applied Technical/EW". If you can follow these simple studies consistently, believing in them, you will find a "Stillness" descending on you and a "Clarity" emerging to follow the markets, listen to it, feel it. And you will then go on to make winning trades and Get Rich Slowly.

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I have given below Daily stochastics(5.D) and Hourly stochastics(35.D) combination which gives a very good lead indications, especially in a sideways market.
Weekly stochastics (5.D)has turned down last week and now 4 days to go for the week. The follow up actionfor the week's signal isimportant. However, the current daily trend has turned up
This hourly stayed below 20 mark the whole Friday though it has reached the "OS" level the previous day. Another instance of market's delayed action to throw you off guard. Now watch this after moving higher & breaking below 80 mark for signs of weakness. If macd is in buy mode when this gives a sell, wait for confirmations to act. But if macd is in OB, then you may act as per the lead indication. The 5 wave count from 5478 to 5349 helped to take a reverse position.

Nifty Intraday Update-III

Oscillators" travel from top to down and down to top while the price action will be different each time.

Nifty Intraday Update-I