BollingerBands

[enygma]

SM-Bhai posted sometime back about the need of a red candle on the top of the BB. And here we are at the bottom of the BB ...
Next 2-3 days would be critical since we are near some supports. The middle line 20 EMA would now be a resistance. Writing 6000CEs on moves towards 20 EMA wouldnt be a bad idea ...

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[columbus]

SM-Bhai posted sometime back about the need of a red candle on the top of the BB. And here we are at the bottom of the BB ...
Next 2-3 days would be critical since we are near some supports. The middle line 20 EMA would now be a resistance. Writing 6000CEs on moves towards 20 EMA wouldnt be a bad idea ...

Hi enygma,

Yeah, the last candle moved down LOWER band,in case of piercing pattern
we expect the next candle to be GREEN.Reversal takes place in case of
piercing pattern.So next couple of days is crucial as said by you.After the
trend is confirmed ,one can take 6000CE.

 

[enygma]

Columbus,

True - now firstly we have to wait for the green candle ..

And I meant shorting the 6000 calls if there is a rise towards the middle line because now the middle line would resist ...

Thanks,
E.

Hi enygma,

Yeah, the last candle moved down LOWER band,in case of piercing pattern
we expect the next candle to be GREEN.Reversal takes place in case of
piercing pattern.So next couple of days is crucial as said by you.After the
trend is confirmed ,one can take 6000CE.

 

[columbus]

And I meant shorting the 6000 calls if there is a rise towards the middle line because now the middle line would resist ...

Thanks,
E.

Once a bounce back is confirmed ,why shorting?My knowledge about
option terminology is rather poor !!

 

[enygma]

Shorting near 5950-6000 (near the 20 EMA line), since if you look at previous instances, 20 EMA becomes a resistance on a bounce back.

Just like your middle line in the "Worm" thread ...

E.

Once a bounce back is confirmed ,why shorting?My knowledge about
option terminology is rather poor !!

 

[columbus]

EOD=11.1.11 Nifty chart of last 7 months.

 

[spacenoxx]

EOD=11.1.11 Nifty chart of last 7 months.

We dont have a green candle but we have a Doji instead. Doesn't it indicate a probable reversal or am I being too optimistic?

 

[columbus]

We dont have a green candle but we have a Doji instead. Doesn't it indicate a probable reversal or am I being too optimistic?

 

[columbus]

To be frank ,I am getting conflicting signals. Nifty closed at 5754.Future closed
at 5809.That means HUGE ,55 points Premium.Huge Premium generally indicates
Bullishness.My previous message has got somewhat bearish tone.
Better to wait ,before jumping.It is likely to be another good day-trader's day.

 

[SwingKing]

Columbus,

In my opinion, If you look closely, today's session is more like a "high wave candle". This basically depicts market reluctance to either go up or down. This falls in line with what you were discussing with others that next 2-3 days remain extremely crucial for the markets.

Usually, when we get a high wave candle after significant volatility, this implies we may have a short term bounce. This also coincides with the premium built up and the strength shown by Banks today (which incidentally has been sold the most).

Tc