anil Trivedi
I was going thro once again what all you had replied to my quries.
I have a basic, beginner's query.
I refer post 2094 in conjunction with 2192 where u had stressed the imp of Sup / Rest for yr Entry/ Exit.
Though many have written extensively on this, pl post how you arrive at S/R from Dly/Wly charts,
You had also stated that when u trade NF ( yr only exception in Future Trade ) for intraday, you take Dly S/R for entry.
You may agree that It it Not necessary for the scrip to come near yr entry values every time & if so, does it mean, u never trade until that happens.
Can u pl post yr trade if u had traded on 4th NF or any other day or any ideal trade since it is for learning only
Dear Rangarajan,
How i do chart analysis is lengthier process for someone who is focussing on indicator only, but easier for those who focus on price only...
Just open a weekly chart, and place S/R lines at crucial peaks/troughs which got tested at crucial reversal zones, from where price correction/Rise had been significance...Now open a daily chart, try to repeat it, now zones arriving on both weekly/daily are importance...
Second draw weekly trendlines, then draw on daily trendlines...This is second line of analysis...
Third is just see where price is moving...I mean what we called uptrend is series of higher highs and higher lows...be it on any timeframe...So you need to give importance to monthly highs and lows of previous month bar, similarly its weekly highs and lows of previous week is of importance...
Now consider, price is in downtrend...What it will do first, it will first try to chase weekly high, sustaining it will give a clue, yes trend is changing...
So now until is closed below weekly low, its sure price can go sideways to up...Similarly in process it can chase, previous months high, if price sustains above it , it is sign of continuous strength coming in...
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Remember if we trade on intraday, i regularly refer price sustaining above prev days high, why is shows strength of bulls to mark higher high and sustain above it...
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This are all nuances based on price, one needs to understand...Indicator if you want to focus can come in part -2 of your analysis...But if on price alone basis you know strength coming in, you had confidence in your trade...Moving averages and all that come naturally, fits in our line of analysis...
Also, whenever price chase two-bars high on daily, its again sign...these 2-bars swing highs-lows are important telling us whats going on...
You can also use swing pivot method, here shared in this forum...it can have many alterations...i also include that in my analysis...
For Nifty trading, i use SAR method for positional basis and if using intraday then these all levels come in handy...
Now, you will say..if you had 'n' number of levels, which are important...Its simple higher timeframe levels carry more importance...if you trading on 5min, daily-weekly carry more significance than hourly itself...