Nifty And Heavy Weights Major Moves

[bvpraveen]

Hi all,

Refer to the attached chart.

Note the absence of failure swings in the many places in the first case. We had higher highs being made in RSI, whose low wasn't taken. Finally we had a failure swing, which led to short term down trend.

The second example also shows clear failure swing, which was bullish in this case.

Praveen.

 

[bvpraveen]

As said before, RSI divergence doesn't appear just during market turns, but in other position too.

Refer to the attached chart.

 

[Satyen]

.

Satya, Swagat, Jaykiru: Now tell me, how you will describe the move when the momentum(RSI) starts picking up and breaks the previous top? How then you stand to your previous comments reg. divergence has happened?

Currently I'm in office. Will try to post some charts tonight, with illustrations.

Cheers,
Praveen.

hi praveen what i know about divergence is

" Divergences only give warning signal and never Decission making signals " so divergence on the RSI.Again,we know that a correction is in the offing,but we ride the trend till we see a break in it.So far,no break,we are fine.......


Regards
Satya

 

[SavantGarde]

Guys,

For Those On Tenterhooks About The Indexes Where It Is & Are Expecting A Correction Any Day & Can't Stay Away From The Markets.

Here Is My Suggestion:

If You Play The Futures & Take Positions In A Couple Of Stocks On A Daily Basis....Then What One Must Do Is Go Short In One & Go Long In Another......That Way You Will Protect Yourself To Some Extent With Whipsaw.

Candidates For Shorting Would Be: PUNJ, McDowell, IVRCL, ACC, RPL, RELIANCE, RELIANCECAPITAL, PRAJ & JUNIORNIFTY

Candidates For Longs Could Be:ONGC, INDIACEM, L&T, BHEL & Bharti

Abovementioned Stocks Are Just Indications Due To Their Beta.

One Can Play Like This Till Correction Is Confirmed & Also Presuming That You Need Your Daily Dose Of The Market...


Happy & Safe Trading

SavantGarde

 

[swagat86]

Reliance must start its upmove soon, again. It can be a ver safe trade ryt now.
If one buy at CMP @ 1684 with 1644 as stop, the nearest target wud be 1840. Max loss is 40 pts and gain cud be 156. This cud be a very gud RR.






thansk

Reliance on its way up.


but guys pls be careful with Nifty. there is a hell lot of resistance on the upside. this rally can make it go upto 4600.thats just 85 pts up hardly 2%. Not a big deal.

but then be ready.



Caution is the watch word.

 

[swagat86]

Reliance must start its upmove soon, again. It can be a ver safe trade ryt now.
If one buy at CMP @ 1684 with 1644 as stop, the nearest target wud be 1840. Max loss is 40 pts and gain cud be 156. This cud be a very gud RR.






thansk

RIL done.............

 

[msiddique]

Congrats Swagat86, Good Work, Keep it up !

 

[Czar]

so for understanding sake, this jet chart the RSI bottom swing has been broken & lower top has been made in RSI, so does it signify a sell ?