Nifty's weekly trend asserted itself at the critical "5971"....

We decided to follow the market using "Pivot table" this week on Monday as we have done few years ago with update of the 5-minute chart  and it proved once again to be highly rewarding.
There are various studies available to "follow the markets";
Choose yours and never deviate from it.
We also suggested to have a pre-market plan to follow day's proceedings:
Ours for the day was:
If manages to hold above "5885", the pause/ reversal possibility could work and the resistances would be 5940-51 initially and then "5971".. (Market made a low of 5887 and rallied to 5972)
We also alerted at 11.38AM the other pre-market plan:
Day of "weekly trend" to assert itself. And daily trend, too, is in downtrend.
(From "5971", our critical resistance number of past many days, it broke the channel and the weekly trend asserted itself with a reward of 100 points to 5871).
Stay objective to your studies....the only way to make your successful trades.
To do that, take a step back and see how the market is doing as per your studies..
Get Rich Slowly & Quietly.

Nifty bounced off 50 dsma & confirms a "pause mode" with close above all LEmas..

NIfty could manage only a small "pause" in its downtrend..

Nifty gets sold above the critical "5971" resistance...

For Intraday trading, use "Supports & Resistances" and "Pivot table".
It may take a while to understand how these act as a critical number between demand and supply and
today, the supply overwhelmed demand.
In the opening session, a move above the pivot produced 25 points but was struggling at resistance zone.
Objective trader would have sensed the "unsustainability of pivot" despite oversold hour TA and
In the afternoon session, the break below Pivot produced 46 points, almost reaching S1.
Whenever the distance between Supports & pivot as well as the distance between Resistance & pivot is high, the trend would prevail.

Nifty breaks "5970", heading towards 100/50 DSMA.

We decided to follow the market using "Pivot table" this week. Reading through the write up would have given the trader an edge to makethe first successful trade for the day & the week.

Nifty reverses after reaching Month's R.2 @ 5630 with day -ve div.

This MahaShivratri, we listened to "Jaggi Vasudev's" discourse and he said..
Become shameless to know your true potential. He meant "shed all your inhibitions". You won't find your answers in the I-phone but in the "I" packed with God's software.
Shameless here would mean that you are being yourself and not pretending, you are not ashamed to act the way you want to. Shameless would also mean that you do not react to people's opinions.
When I read some of my readers' mail, I feel sad for all their struggles in this financial jungle. But it is their struggle and they'll come out of this with more objective application. It is their Karma and my Karma is to teach...only that. You'll find it Kid's stuff.
I just shed a bit of my inhibitions to demonstrate how various studies such as EW, OI analysis, Pivot table, ORB, divergences could be applied in real time to make money.
Everyone knows how the accelerator works but only the experienced knows how much to press..when to leave it besides manuevouring with steering wheel.
We did anticipate the end of the 3rd wave and whenever it showed continued strength, we accordingly shifted the labels and we even pinned the "Breakout @ 5415" when Nifty stayed sideways for few days.
This correction has equalled the last fall from 5217 to 5077(140 points).
We do not need to know how far the rise or fall will go but we definitely need to know the direction as well as whether we should be in a trade. Part booking as well as trailing SL would take care of the steady money flow.
Whenever subjective opinions take over your intellect, check the TT and take your trades based on its strength/ weakness.
It pays to remember always that markets are irrational and having accepted that fact, we could study the prices..its patterns to find a method to make some confident trades.
Day chart shows "3/C" being completed and "4/B" wave unfolding..

Nifty PreMarket View.

Short trem is weak and nearing Oversold zone. Longs would be safe above 200sma-5718 (38% retrace)above which price cluster support exists. Nifty needs to trade & close above Pivots to bring strength back. Incidentally, the pivot is the same as 5DEma.
I have shown an excel sheet with relevant numbers for day trading to monitor price behaviour at various points during the day. Traders with software may draw such lines with different colours to alert them of possible support/ resistances as well as Pivot points to facilitate trading.

Pivot Trading, if applied in the last 5 Trading days.

Read about "Pivot Point Trading" here.

Nifty started the week with Hour Overbought readings but with trend of all Time frames in UP mode. Keep an excel file with these crucial numbers drawn as horizontal line or in your chart and move into trading and see how these numbers have helped in trading along with a simple addition of trendlines.

We also started with our analysis of 5935-5965 as a cluster of resistance points and watch how that has acted as resistances and Nifty after Monday's uptrend failed to move past R1 in all days; started to trade below Day pivots; closed below Pivot from Wednesday. Also notice that due to uptrend how when prices started to weaken, S1 gave support when Pivot was breached till Thursday and on Friday, it was exactly opposite of what happened on Monday that Nifty touched S3-5826(On Monday Nifty cleared R3-5904).

......................................................................

Monday: Trend up in all time frames; Gaps up; ORB breaks but finds support @ Pivot-5832 and moves steadily up, rising on a trendline, pausing @ Day R3:5904, finally reaching Week R1:5918.
Tuesday: Hourly divergence starts to affect the prices at the open after a gap up; ORB breaks but supported by Pivot(5887) & bounces and the channel breaks down @ 5903, moves down breaking Pivot and moves down to take support @ Day S1 @ 5855; bounces off it, pauses @ Pivot for awhile, takes channel support and moves to Week R1:5918.

Nifty resisted @ DHEma again...

This is the indecisive phase, there being few possibilities unfolding. Manage your positions either with JNSAR or the changing pivots.
For a medium trader: Monthly Pivot of 5370 is important - it has been "Long" above it with periodical profit taking & re-entering.
For the short term trader: The weekly pivot of 5485 is important - it went below it to the crucial 5400-5415 zone and moved above it today after stopping at 5485 yesterday. Moves have been around it.
For the daytrader: It was 5455 today and market opened above it and longs made money. And for tomorrow it has jumped up to 5505 and the action might centre around it using the RT chart.(Real time yahoo chart).
There are so many ways of "Following the market". I have outlined some of them under "Always start trading with these". You can find your way using the Pivot & Tech table combo. Just as the sailor has his compass, you find your own method to map your way through the prices.
VIX getting into a narrow range - watch VIX-22.50/23.00 along with price above 5550 and VIX-26.00/26.25 with price below 5460 or 5410 for some decisive moves.

Pivot Points Trading (The Most Basic)

Using pivot points as a trading strategy has been around for a long time and was originally used by floor traders. This was a nice simple way for floor traders to have some idea of where the market was heading during the course of the day with only a few simple calculations.

The pivot point is the level at which the market direction changes for the day. Using some simple arithmetic and the previous days high, low and close, a series of points are derived. These points can be critical support and resistance levels. The pivot level, support and resistance levels calculated from that are collectively known as pivot levels.

Every day the market you are following has an open, high, low and a close for the day. This information basically contains all the data you need to use pivot points.The reason pivot points are so popular is that they are predictive as opposed to lagging.

Because so many traders follow pivot points you will often find that the market reacts at these levels. This give you an opportunity to trade.

If the market opens above the pivot point then the bias for the day is long trades. If the market opens below the pivot point then the bias for the day is for short trades.

The three most important pivot points are R1, S1 and the actual pivot point.

The general idea behind trading pivot points are to look for a reversal or break of R1 or S1. By the time the market reaches R2,R3 or S2,S3 the market will already be overbought or oversold and these levels should be used for exits rather than entries.

A perfect set would be for the market to open above the pivot level and then stall slightly at R1 then go on to R2. You would enter on a break of R1 with a target of R2 and if the market was really strong close half at R2 and target R3 with the remainder of your position.

If, after starting the day above the Pivot, the Price crosses back through the Pivot, the Pivot will act as a Resistance area. Pivot Points and Support and Resistance levels behave exactly like any historical Support and Resistance level.

Unfortunately life is not that simple and we have to deal with each trading day the best way we can. Combine these with simple channeling, retracement levels, past critical supports & resistances, SAR will enhance the success rate.
Pivot Points - Trading Methodology:
To make the discussion a bit less abstract, let's take a most superficial look at some simple trading methodology employing Pivot Points.
Step 1
"In general, if the day's Price Action starts above the Pivot, it will tend to stay above the Pivot.
This simple observation provides the basic rules for two of the simplest Pivot trading systems.
System 1:
Open is above Pivot: Buy
Open is below Pivot: Sell
System 2:
Place Buy and Sell stops bracketing the Pivot. Whichever is not filled acts as safety stop for the other.
These "systems" are very much too raw for my tastes. Too much chance of getting whipsawed. Let's take it one step deeper. Let's refine these simple systems just a bit more:
Step 2
First Fundamental Of Pivot Trading After the opening range (first 15-30 min. to one hour), if price is above/below the Pivot, Price Action will strongly tend to remain above/below the Pivot for the session.
Although this rule bids us to wait out the Opening Range and thus avoid much of the wildness and whipsawing, overlooking the next Fundamental Of Pivot Trading could be disastrous:
Step 3
If the market opens, or later trades at the extremes (R2, R3 or S2, S3), it will exhibit a tendency to trade back toward the Pivot. Thus, the general rule, 'Avoid buying the High or selling the Low', becomes increasingly more stringent as price moves farther from the Pivot.

I have picked 5 days of last week and what follows are some ideas on how you could have traded those days using pivot points.
........................26.10.09-Monday.......................
.........................27.10.09-Tuesday....................
.........................28.10.09-Wednesday.................
.........................29.10.09-Thursday.................
.........................30.10.09-Friday....................
.......Week starting 26.10(Mon) to 30.10(Fri).....
Keep those weekly, daily Pivots and fine tune them to perfection.