My charts (and yours too........)

[Romeo and Elliott]

Nifty was heavily overbought as per Stochastic but still it continued the rally, strange ?

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Not strange at all.

"overbought" : In order to determine if something is "OVERbought" one needs to compare it against its true value. this is why i hate indicators, your stocastic indicator only told you there was buying interest on it. It cant interpret if the said interest was justied / rational or overdone.

If i get my hands on any indicator that could tell me something is "overbought" or "oversold" i'd be on my own little island

 

[Visualize]

^ Stochastic is good indicator in sideways market, it did not mean overbought as a permanent term but for the moment as you know price moves in waves. Check price-stochastic correlation after 11:00pm.

Like you said indicators are not perfect but they prove handy to enter trades.

 

[enygma]

Check out Raghav's journal on intraday trades on a good use on using stoch to reject trades and new entries. It is a good combination of price, BB and stoch that allows a higher probability trade.

For me, 2 min chart is a bit of a overkill - 5mins are decent enough for a intraday trade.

E.

 

[babukraman]

Check out Raghav's journal on intraday trades on a good use on using stoch to reject trades and new entries. It is a good combination of price, BB and stoch that allows a higher probability trade.

For me, 2 min chart is a bit of a overkill - 5mins are decent enough for a intraday trade.

E.

Hi enygma,
Thanks for the reference :thumb:........ but............. for lazy people like me , could you please provide the link here?

 

[Visualize]

^ Try this:

http://www.traderji.com/advanced-trading-strategies/48445-bollinger-bands-fmi-trading-system.html

 

[enygma]

Babu,

I was talking about this thread

http://www.traderji.com/day-trading/40980-my-daytrading.html

E.

Hi enygma,
Thanks for the reference :thumb:........ but............. for lazy people like me , could you please provide the link here?

 

[enygma]

NF 30 min chart

A gravestone doji after a breakout bar - that breakout of a range made the last 5 days - provided a very good setup - going short below the lows of the doji (with some filter) with SL at the highs ....

On 30 minute charts, I have seen that this works very often immediately after a very prominent breakout especially when volumes of the breakout bar and the doji are nearly similar as in this case. A high probability setup with good R/R ...

(Nearly same on BNF 30 min as well)

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[Pralhad]

Hi enygma,

I loved your chart and interpretation. Keep it bro.

-Pralhad

 

[Romeo and Elliott]

NF 30 min chart

A gravestone doji after a breakout bar -
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Nice, Enygma

what makes it even more spectacular is the 250 EMA.
x=====================x====================x

What!! 250!! what kinda MA is that ?
Thats the 50 on a weekly. 5 trading days X 50 periods = 50WMA = 250DMA

Why EMA ? Why not SMA ?
Cuz i see a recoil earlier in May '10 off the EMA. Where it broke thru the SMA to bounce off the EMA. These characterstics are a part of the instruments 'personality'.

not resized owing to scale

 

[Visualize]

^ and 100ema became the turning point on 30min chart. Like enygma pointed out, it was not just a doji but a doji on 100ema.