Daily Tryst with Nifty
- Thread starter Sunil
- Start date
Good afternoon every one !
guys may I ask a questions. I have come across the thread where Mr Sharma ask about the margin trading " Evaluate my Margin Trading Technique plz
After making considerable loss in Margin Trading Intraday...Now I wanna start right...So started paper trading now...Here's the technique I wanna follow and pl be aware I do not know to use charts and do not want to use one becoz, It is harder to automate the trade in later time (which I am strongly planning to do)...
1. Market Trend : Identify whether market is going up or down.
2. Sector Trend : Identify whether sector is going up or down.
3. Stock Trend : Identify whether sector is going up or down.
4. Volume Trend: Confirm volumes are according to the trend.
5. Place order and book profit.(Im expecting 0.4 percent per transaction,)
Example: Assume I wanna buy ICICI Bank in the following situation:
Variables:
1 Market Trend: Positive (Market is moving up)
2.Sector Trend: Positive (Banking sector is up)
3.Stock Trend: Positive (change more the 1 % of previous day close)
4.Volume : More buyers than seller (total bid to total offer ratio > 1.2%)
5.Check Derivatives of the particular stock (This seems to be important but I do not know what's derivative (after considerable reading) and how to deduce anything out of this.)
DECISION: In the above conditions I BUY ICICI Bank and keep checking for all the above trend remains same during the period I hold my stock.
> If any of the above conditions change, especially Volume, say if total bid to total sell ratio falls to 0.9 percent (price should fall, Square off with Loss)
> If total bid to total sell ratio reaches more than 1.2% say 1.5% the Square Off with profit.
I know there a lots of Punters here, Pl don't laugh at this, If this is pretty lame. Pl tell me whether this technique works or any suggestions to improve this technique or pl tell me if this doesn't work at all.
Thanks a lot guys...hoping to hear responses...
please resopond to this will immensely appreciated
guys may I ask a questions. I have come across the thread where Mr Sharma ask about the margin trading " Evaluate my Margin Trading Technique plz
After making considerable loss in Margin Trading Intraday...Now I wanna start right...So started paper trading now...Here's the technique I wanna follow and pl be aware I do not know to use charts and do not want to use one becoz, It is harder to automate the trade in later time (which I am strongly planning to do)...
1. Market Trend : Identify whether market is going up or down.
2. Sector Trend : Identify whether sector is going up or down.
3. Stock Trend : Identify whether sector is going up or down.
4. Volume Trend: Confirm volumes are according to the trend.
5. Place order and book profit.(Im expecting 0.4 percent per transaction,)
Example: Assume I wanna buy ICICI Bank in the following situation:
Variables:
1 Market Trend: Positive (Market is moving up)
2.Sector Trend: Positive (Banking sector is up)
3.Stock Trend: Positive (change more the 1 % of previous day close)
4.Volume : More buyers than seller (total bid to total offer ratio > 1.2%)
5.Check Derivatives of the particular stock (This seems to be important but I do not know what's derivative (after considerable reading) and how to deduce anything out of this.)
DECISION: In the above conditions I BUY ICICI Bank and keep checking for all the above trend remains same during the period I hold my stock.
> If any of the above conditions change, especially Volume, say if total bid to total sell ratio falls to 0.9 percent (price should fall, Square off with Loss)
> If total bid to total sell ratio reaches more than 1.2% say 1.5% the Square Off with profit.
I know there a lots of Punters here, Pl don't laugh at this, If this is pretty lame. Pl tell me whether this technique works or any suggestions to improve this technique or pl tell me if this doesn't work at all.
Thanks a lot guys...hoping to hear responses...
please resopond to this will immensely appreciated
Though personally not played for it to full extent of ideal target, the earlier 25pts worth pattern, which failed, has given 50pts on opposite side
4540(head of inv H&S)-50 =4490
4540(head of inv H&S)-50 =4490
Sri,
the scenario is as follows:
1. The charts show an apparent ranged trade (defined by HORIZONTAL lines) such as rectangles, H&S, Inv H&S
2. The theory says that break of one side will lead to move equal to the height of the pattern (difference between upper & lower levels of the band) and the movement will be towards the direction of the break. Let's call this difference as "T" and direction of initial break as "D-1"
3. If the price does not move "T" points towards the direction of the break, retraces back into the band/rectangle, and then breaks the opposite level of the band (D-2) then this is called breakout/breakdown failure (as case may be).
4. I have observed that in case of such failures, the resulting movement would ideally be equal to twice the "T" in direction "D-2".
If the apparent band is 4395-4430, we know that it is worth 35pts in direction of initial break.
If 4395 breaksdown with proper filters/room, ideally it should go down till 4395-35 = 4360.
If the price pulls back even before 4360, and later breaks 4430, it should target twice the initial 35pts ( ie 70pts)
Thus, we get 4430+70=4500 target for breakdown failure.
USUALLY, the entire process will seem like a divergence with RSI or other indicator.
In the above mentioned data, the whole thing resulted in a +ve divergence in RSI chart, and can be seen in the chart
(PS: This is my personal observation, and I may be wrong)
the scenario is as follows:
1. The charts show an apparent ranged trade (defined by HORIZONTAL lines) such as rectangles, H&S, Inv H&S
2. The theory says that break of one side will lead to move equal to the height of the pattern (difference between upper & lower levels of the band) and the movement will be towards the direction of the break. Let's call this difference as "T" and direction of initial break as "D-1"
3. If the price does not move "T" points towards the direction of the break, retraces back into the band/rectangle, and then breaks the opposite level of the band (D-2) then this is called breakout/breakdown failure (as case may be).
4. I have observed that in case of such failures, the resulting movement would ideally be equal to twice the "T" in direction "D-2".
If the apparent band is 4395-4430, we know that it is worth 35pts in direction of initial break.
If 4395 breaksdown with proper filters/room, ideally it should go down till 4395-35 = 4360.
If the price pulls back even before 4360, and later breaks 4430, it should target twice the initial 35pts ( ie 70pts)
Thus, we get 4430+70=4500 target for breakdown failure.
USUALLY, the entire process will seem like a divergence with RSI or other indicator.
In the above mentioned data, the whole thing resulted in a +ve divergence in RSI chart, and can be seen in the chart
(PS: This is my personal observation, and I may be wrong)
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