Namaste - My Learning of Trading in Nifty

[jagankris]

Thanks Crown Bhai,

I haven't tried VSA.

There are several institutions and fund manager's.
They have to get prior approval before buying or selling shares from their offices if it exceeds certain limit.

I will quote an example how distribution is done.
IFCI break out happened at 56 rs after consolidating for few months.It went to 62 rs.
There I am not sure I guess it is (JP Morgan) they sold 10 lakh shares at 61-62 levels.Again it was bought by another Indian SM (A prominant SM aka warren buffet of india).
Then it went to 64 rs and there it was distributed and the share price again came to 59 rs.

Thomas cook stake of 4.6 % was sold by a company(Don't remember the name).That day buy call on Thomas cook was issued by several brokerage houses.ICICI securities bought 10 lakh shares of Thomas cook on that day.

IMO - SM doesn't represent one single entity it is a Syndicate of Highly influential money power.

Similarly SM initiates heavy selling pressure to bring down a stock price.
Negative campaign.
In Reliance case every broker house issued sell call on Reliance with a downside target of 850rs.

It could be that during accumulation there could be one or two days false selling pressure.

But the concept is same.
SM will squeeze the share prices and accumulate shares from weak hands.
Even if Shares are transferred from SM to SM distribution will be done on the heads of weak hands.

-JK

 

[jagankris]

Thanks Jagan

But it really does not occur in the market in the same way it has been described and taught in most of the TA books and seminars. Had it been so, people using VSA would have made millions, while on the contrary I found most of them confused most of the times. I myself tried to apply it, but the success rate are just 10%; and that is sufficient to understand that it is not as it is being displayed.


First of all, When it has been established (at least upto my understanding) that even Smart Money is not united at all; and even they are trapped by their counterpart Smart Money; I donot find it safe to just go by following the Smart Money.


there are times when one can see good volumes in a script at lower levels, and after a few days, it goes down breaking its previous support levels.

And, until the script really started its upside movement, it is very difficult to ascertain that the script is actually trading at its actual low price.

For example, if you see the chart of RIL for 28 July to 3 August; it fulfills all the conditions, which you mentioned. But the script went down immediately.
Now, it is very easy for anytell to pin-point some extra reasons for the downside move, but overall it is the volume which misguided; Or in other words, it is the volume which was not understood in the correct manner.

Crown Bhai,

28,29 th the day before expiry.
The script broke the entire month range.
Monthly low break out.
High volume - sharp decrease in share price - distribution.
29th - Expiry again heavy selling - distribution.

But your question is how to distinguish between distribution and accumulation volume or why it shouldn't be classified as distribution volume as it is a heavy selling at the low compared to the entire month.

I don't know please let me know if you happen to know

Thanks,
JK

 

[crown]

Crown Bhai,

28,29 th the day before expiry.
The script broke the entire month range.
Monthly low break out.
High volume - sharp decrease in share price - distribution.
29th - Expiry again heavy selling - distribution.

But your question is how to distinguish between distribution and accumulation volume or why it shouldn't be classified as distribution volume as it is a heavy selling at the low compared to the entire month.

I don't know please let me know if you happen to know

Thanks,
JK

Thanks a lot Jagan bhai

My purpose is to try to identify the correct move of correct SM with TA only.

Regarding bold matter

This is all, I am trying to find out and this the thing we are discussing.

Lets see, if something comes out.

 

[crown]

Exited long from Aegis @ 327

Entered long in Century Ply @ 70.80
Entered long in Rainbow papers @ 55.50

 

[bikashkumar11]

Crown bhai Good morning,
Had just spoke to viratech they are sending the quotes. After your comment; start developing lateral view on market upside down.. great insight, No qualms on accepting the mistakes. I am forever indebted for your valuable advice. over all great going; you are doing great in this thread.
Regard,
-Bikash KUMAR

PS: gratitude (when you truly felt blessed and when you can't repay )

 

[crown]

Crown bhai Good morning,
Had just spoke to viratech they are sending the quotes. After your comment; start developing lateral view on market upside down.. great insight, No qualms on accepting the mistakes. I am forever indebted for your valuable advice. over all great going; you are doing great in this thread.
Regard,
-Bikash KUMAR

PS: gratitude (when you truly felt blessed and when you can't repay )

Bikash bhai
kyun mujhe sharminda kar rahe ho
abhi mujhe aata hee kya hai
jo maine aapko bataya koi bhi bata dega idhar.
All are very kind and great persons, though I am still trying to develop myself.

 

[crown]

waise bikash bhai
Aegis ne bhi kamaal kar diya
10% ke aas paas de gaya

 

[crown]

@ Bikash

Bhai, try the following link

http://www.traderji.com/advanced-tr...ve-rule-its-fibonacci-ratio-relationship.html

I have already gone through this around 5-6 times, and still trying to understand.
Such posts are the gems.
I hope it will definitely help you and me too

 

[bikashkumar11]

waise bikash bhai
Aegis ne bhi kamaal kar diya
10% ke aas paas de gaya

dekha maine! aegis ko maine kaafi din se track par rakha tha; jab se debashish Basu.. ne apne magazine money life mien recommend kiya tha. aadmi yahan wahi jeet ta hain jo pehle haanth marta hain.

 

[crown]

dekha maine! aegis ko maine kaafi din se track par rakha tha; jab se debashish Basu.. ne apne magazine money life mien recommend kiya tha. aadmi yahan wahi jeet ta hain jo pehle haanth marta hain.

:clap:
very well said Bikash Bhai
aur yahi to seekhana hai ki kaise ham bhi pehle haath maar sake

Though, there are many other ways, but I am trying to find out this only on the basis of TA.
And, it seems that I am very close to the conclusion. There are certain misnomers, deliberately spread through various concepts/logics of TA; which hinders the clear view.

And, this is the key of TA.

The advancement of technology and internet has made is possible for the large community (which was not much informed earlier) to know almost all the principles of TA including candles, patterns, momentum, averages, volume, volatility etc. etc. Therefore, in order to operate smoothly, the Smart Money has to be ahead of what is currently prevailing. Smart Money is definitely there, no doubt about it. But the Smart Money can not be considered Smart, if they can just be spotted so easily merely on the basis of Volume. In that way, they can not continue to be smart enough.

Therefore, the principles of TA, which were good and appropriately applicable some time ago, are no longer applicable now. The principles have to be changed as per the current trading pattern. Those, who fail to identify this change are only left with one option; TA is useless.

TA is useless when you apply it on the basis of copy and paste.
TA is excellent when you understand the overall system and psychology and amend it regularly, as and when required.