Trading-by-technical-levels

[timepass]

Boom Boom !!! What a vertical take off in US indices...

But no volume spike.. is there ??

 

[manoharpillai]

Good to see some of old friends joining in with their comments hope they will continue post their views in this thread.
In my earlier post i stated market can retrace minimum to 5620 and it did..
I was shocked when i checked chart today to see a big dip.. later found it was a freak trad
5640 to give big support for now. This should be sl for long trader on closing basis.. expect 6030 in this expiry. Immediate support at 5705.

 

[Tharu]

Good to see some of old friends joining in with their comments hope they will continue post their views in this thread.
In my earlier post i stated market can retrace minimum to 5620 and it did..
I was shocked when i checked chart today to see a big dip.. later found it was a freak trad
5640 to give big support for now. This should be sl for long trader on closing basis.. expect 6030 in this expiry. Immediate support at 5705.

All those freaky candles spoiling the chart.... Do we have to edit everything.?

 

[manoharpillai]

Yes these Freak trades spoil TA particularly TL..any way we have to ignore the line and take closing candle for analyses.
Spot nifty have to close above 5820 to push further move up that would take place by next week ...yet be ready for volatile Market ahead, 5640 should not be broken for the trend to remain intact
As i earlier (in the month of July when market was at around 5200 ) stated that we will have very cheerful n happy Diwali ..hopefully Nifty to trade above 6000 + by Nov. 2012. Please note RSI is slightly high around 80 possibility of consolidation around 5650 to 5850

 

[trade4putuval]

Yes these Freak trades spoil TA particularly TL..any way we have to ignore the line and take closing candle for analyses.
Spot nifty have to close above 5820 to push further move up that would take place by next week ...yet be ready for volatile Market ahead, 5640 should not be broken for the trend to remain intact
As i earlier (in the month of July when market was at around 5200 ) stated that we will have very cheerful n happy Diwali ..hopefully Nifty to trade above 6000 + by Nov. 2012. Please note RSI is slightly high around 80 possibility of consolidation around 5650 to 5850

After seeing your chart, I was thinking of the following points.
1. RSI has been overbought since a very long time, indicating correction or cooling is required.:annoyed:
2. The resistance and support band has been drawn and nifty was at the resistance on Thursday. It was followed up with a bearish engulfing pattern if you ignore the long tail of the candle, indicating bearish trend in the short term.
3. A middle line can be drawn between the resistance and support lines to indicate a intermediate support line from where nifty can bounce back. If you see the past candles in the chart, the middle line provides a sort of support or resistance for the trend. I must agree that the middle line will not exactly be in the middle. But then we can add or subtract 50 points to go long from that area.:thumb:

These are only my findings. I may be wrong!

 

[manoharpillai]

Nifty had closed at its TL support at 5740.. if it breaks next support at 5703 which is 10 MA i always give value to this for shorter time frame and final TL support comes at 5640 watch this level anything below this could change the trend.. yes as per Friday's close expecting some softness but 5820 close could change the scenario again in Bulls favor.

 

[manojborle]

Nifty had closed at its TL support at 5740.. if it breaks next support at 5703 which is 10 MA i always give value to this for shorter time frame and final TL support comes at 5640 watch this level anything below this could change the trend.. yes as per Friday's close expecting some softness but 5820 close could change the scenario again in Bulls favor.

Sir, one question....
In this chart the trendline which you have drawn is not touching any price points in between except the first and last price point.

So, will it be a valid trendline ?

 

[timtim1]

any one please help me out m attaching a file here please try to find out how these sheet made and what calculation is this for help m also giving u ohlc for silver 3rd oct and this sheet is for 4th oct so please understand this sheet and help me how v can made this sheet please help me out

 

[manoharpillai]

Sir, one question....
In this chart the trendline which you have drawn is not touching any price points in between except the first and last price point.

So, will it be a valid trendline ?

True the tl drawn today is not touching in between candle .. please understand what i said nifty took TL support at around 5740 as per close of previous day.. had the TL drawn on Thursday it would defiantly show 5740 support a day past the Tl differs as per the next candle .. i did not save Thursday's closing chart with TL..
It is very valued point you raised.. . I am human and still to learn more i do commit some mistake some time if it's worth answering i would do so ..have all the time in the world to answer with respect.. Thanks.

 

[Rish]

Nifty Weekly chart just for study purpose

Nirahjan