Trading Strategies Using Technical Analysis
- Thread starter SwingKing
- Start date
- Tags trading strategies
Raunakji,
Thanks for sharing your informative views. Just to add to my earlier views :
- There is no doubt Indian economy is growing & hence medium to long term outlook on market is very positive which leaves no doubt that Nifty will touch new highs during 2010
- Short term outlook ( for month of Feb2010 ) remains pessimistic due to :
- FIIs withdrawing over 7000 crores from market during last few days. there is no
reason for them to come back just few days after withdrawing
- Dollar Index rising & threatening to cross 80+ due to which commodities will be
under severe pressure
- Obama's war on banks & Wall street has just begun ( Add China's monetary squeeze
to it )
- Next bad news is waiting to come from Europe anytime soon ( Read Greece )
- There is unlikely to be anything in Budget which can please industry
Against this backdrop Friday's Hammer in Nifty makes things interesting.
Cheers !!!
Alok Tewari
Thanks for sharing your informative views. Just to add to my earlier views :
- There is no doubt Indian economy is growing & hence medium to long term outlook on market is very positive which leaves no doubt that Nifty will touch new highs during 2010
- Short term outlook ( for month of Feb2010 ) remains pessimistic due to :
- FIIs withdrawing over 7000 crores from market during last few days. there is no
reason for them to come back just few days after withdrawing
- Dollar Index rising & threatening to cross 80+ due to which commodities will be
under severe pressure
- Obama's war on banks & Wall street has just begun ( Add China's monetary squeeze
to it )
- Next bad news is waiting to come from Europe anytime soon ( Read Greece )
- There is unlikely to be anything in Budget which can please industry
Against this backdrop Friday's Hammer in Nifty makes things interesting.
Cheers !!!
Alok Tewari
For Investment Purpose Only.
Stocks selected here are not based on any system mentioned in the thread. This is based on my own personal system which I use for my trades. Unfortunately, it is not an AFL but a customized application. Hence, I cannot release this on the forum.
P.S. Please select stocks out of these lists suiting your own investment criteria. These are pure technical play outs and I don't know whether they are fundamentally strong or not.
Last edited:
RSI Divergence on Daily Charts
RSI Divergence Strategy Using Daily Charts
Tools Candlestick/Bar Chart, RSI(15)
Trade Setup On Daily chart frame, this strategy is going to give out extremely good results if you continue to stick with it. The setup is fairly easy, but you do need to monitor selective group of stocks to get a feel of their levels. Hence, this strategy does require some subjective analysis.
Time Validity - I trade this pattern only on daily charts. I use this particular time frame because divergence is more easily visible here. Once the trade is initiated, I carry forward the trades for 2-7 days.
When does it occur and How to Trade it- This pattern occurs when a stock or an index runs up quite a bit and retraces back to some level. From there on, the stock/index ralies again and makes a significant new high. It is during this high that we need to look at the RSI level. If the RSI level is significantly low than the previous high's level, then initiate short position with High of the rally as a stop loss. I have particularly used this strategy to short the Nifty recently at 5300 level which I had disclosed on this thread.
Examples - I have provided example of Nifty. Refer to the chart below to understand the setup properly.
RSI Divergence Strategy Using Daily Charts
Tools Candlestick/Bar Chart, RSI(15)
Trade Setup On Daily chart frame, this strategy is going to give out extremely good results if you continue to stick with it. The setup is fairly easy, but you do need to monitor selective group of stocks to get a feel of their levels. Hence, this strategy does require some subjective analysis.
Time Validity - I trade this pattern only on daily charts. I use this particular time frame because divergence is more easily visible here. Once the trade is initiated, I carry forward the trades for 2-7 days.
When does it occur and How to Trade it- This pattern occurs when a stock or an index runs up quite a bit and retraces back to some level. From there on, the stock/index ralies again and makes a significant new high. It is during this high that we need to look at the RSI level. If the RSI level is significantly low than the previous high's level, then initiate short position with High of the rally as a stop loss. I have particularly used this strategy to short the Nifty recently at 5300 level which I had disclosed on this thread.
Examples - I have provided example of Nifty. Refer to the chart below to understand the setup properly.
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