How to trade Commodities - Gold, Silver, Crude Oil, Natural Gas

[abhi_neth]

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hi Mr. abhi,
yes u r right, the TL was NOT drawn correctly, actually i was in a hurry to post it, as what i have drawn is a COMMON SENSE TL not TOM DEMARKS TL...........missed the swing low.....any how later it became a useless TL as it was broken, and where as the smaller RED line is concerned it denotes the TOM DEMARKS TL , it signifies the most recent swing lows in an UPTREND. and for that it to be validated there is no need to form higher highs as its formed during an UPTREND....ACTUALLY I WAS MORE CONCERNED HERE ABOUT THE CONJUCTION OF TWO TLs which according to DEMARK was an significant SIGNALLING POINT.........any how need to wait till markets are opened till monday, to confirm its trend............thanx for sharing.........CHEERS!!!!!!!!!!!!!!!!!!!!!!!!!:thumb:-------------------MR

I've not been through TD's book completely but feel that they are high risk methods. A drawback is plotting TD TL so soon after a major TL is broken is we are not sure whether it is a bullish signal or whether the market may go sideways or drop-down after retesting the broken TL. I also beg to differ that a broken TL becomes useless, infact a bullish TL, which was acting as support earlier, will act as resistance after it is broken & opposite for bearish TL. Mr. Kamlesh has shown in many of his posts how these broken TL's can give good entry signals.

 

[uttamkamlesh]

Uttam Sir,
If one can buy 5600 call now (one can get it cheap) and short 5500 call when nifty kiss BRL
what would be pros and cons of the same with the trade suggested by you ?

(For Education purpose only)

Both trades are different.

Your trade is more directional one, i.e. it needs NIFTY going up then coming down, but my trade only needs NIFTY expiring below 5500, and both my calls expire worthless, i retain the initial premium collected.

 

[uttamkamlesh]

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hi Mr. abhi,
yes u r right, the TL was NOT drawn correctly, actually i was in a hurry to post it, as what i have drawn is a COMMON SENSE TL not TOM DEMARKS TL...........missed the swing low.....any how later it became a useless TL as it was broken, and where as the smaller RED line is concerned it denotes the TOM DEMARKS TL , it signifies the most recent swing lows in an UPTREND. and for that it to be validated there is no need to form higher highs as its formed during an UPTREND....ACTUALLY I WAS MORE CONCERNED HERE ABOUT THE CONJUCTION OF TWO TLs which according to DEMARK was an significant SIGNALLING POINT.........any how need to wait till markets are opened till monday, to confirm its trend............thanx for sharing.........CHEERS!!!!!!!!!!!!!!!!!!!!!!!!!:thumb:-------------------MR

Which book by TOM D Mark is in discussion?...

 

[abhi_neth]

Which book by TOM D Mark is in discussion?...

The New Science of Techinical Analysis

 

[mdrafi67]

which book by tom d mark is in discussion?...

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its about "the new science of technical analysis- thomas demark"

 

[uttamkamlesh]

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[uttamkamlesh]

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This market Psychology is of confusion (Overbought markets)
and Big Boys are not going to buy more unless very supportive reasons are there.

 

[timepass]

..and Big Boys are not going to buy more unless very supportive reasons are there.

Excellent analysis, Uttambhai :thumb:

and I am still looking at the M's and W's that you had posted earlier. I had always thought that an M with higher right shoulder may mean a weak downtrend..

 

[uttamkamlesh]

Excellent analysis, Uttambhai :thumb:

and I am still looking at the M's and W's that you had posted earlier. I had always thought that an M with higher right shoulder may mean a weak downtrend..

I am happy to see what you have quoted.
Welcome to the thread.

 

[hills_5000]

HI Uttam,

The last W. you would have shorted at point 5 , right ? it then went down and retraced all the way to point 7. Would have been a failed W right since SL would have been hit seeing the price reverse and head towards point 7.

So with real money I dont think it would have worked for sure. It would have been a losing trade.

Next. Isnt there a W formed ( bullish one) and as of today the price is on its way upto the EPA?

just my observations

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This market Psychology is of confusion (Overbought markets)
and Big Boys are not going to buy more unless very supportive reasons are there.