Nifty Entry ,Exit ,Target levels with Median Line Charts

[Kavima]

4.11.2011_Friday

60 min chart below
Refer yesterday's chart with the levels and today's 60 min chart ...The median lines and trendlines show us the path of price so well :thumb:

 

[4xpipcounter]

Kavima, it doesn't seem your MA factors in much to your trading decisions. I'm just curious how you use it.

 

[Kavima]

hi 4x pip

Using 50 SMA in my chart is with a very simplistic outlook- above 50 sma - trend is up and viceversa.
Mainly I use it to quickly identify the pivots of alternate swings ie a swing is drawn between the lowest point below 50 sma and connect it to the highest point above 50 sma . While the move is happening ,when price crosses / starts moving below the 50 sma , I draw in a PF to see how the price responds to the median line set. Very often, there is quite a significant move once it crosses the 50 sma especially in the lower time frame charts.- ( 60 min and below)
Forecasting with median lines and combining it with trendlines gives the target zones .I combine it with stochastics for confirmation.Sometimes in Smaller timeframes, use EMA crossovers also for entries and exits.:lol:

 

[4xpipcounter]

Maybe I'm missing something. You floored me when you said it is a 50 SMA as it is oscillating too much to be a 50 SMA. Then, I plotted it on my own platform and saw it was much more smoother. Then I noticed is says 2 SMA on your chart. Were you making an ulterior reference somewhere for the 50 SMA?

BTW, I do like your usage of the SMA, regardless which one it is. I agree that the furthermost point from the MA yields the best trading opportunity.

hi 4x pip

Using 50 SMA in my chart is with a very simplistic outlook- above 50 sma - trend is up and viceversa.
Mainly I use it to quickly identify the pivots of alternate swings ie a swing is drawn between the lowest pint below 50 sma and connect it to the highest point above a swing. While the move is happening ,when price crosses / starts moving below the 50 sma , I draw in a PF to see how the price responds to the median line set. Very often, there is quite a significant move once it crosses the 50 sma especially in the lower time frame charts.- ( 60 min and below)
Forecasting with median lines and combining it with trendlines gives the target zones .I combine it with stochastics for confirmation.Sometimes in Smaller timeframes, use EMA crossovers also for entries and exits.:lol:

 

[Kavima]

4x pip

In my charting program can plot 3 timeframe smas.the SMA 2 with the colour code refers to my second sma which is actually 50 SMA.

 

[Kavima]

New post on Trading setups in other thread.

 

[Kavima]

8.11.2011_Tuesday

Price was perfectly supported at 5250 zone at the magenta and green LML parallel as expected and charted in 4.11.2011 chart.
Today's move after being supported well,moved up and broke the descending trendline resistance from 5381 level, and closed near the open level, a Doji bar.
Looking at the positive side, we have a double bottom at 5250 zone for an upmove to commence.
The path for the next two day's probable move - 5283-5270-5350-5320.
Stoploss trigger for long positions will be a strong break of 5250 .

 

[timepass]

Looking at the positive side, we have a double bottom at 5250 zone for an upmove to commence.

Do your oscillators indicate an upside ??

 

[Kavima]

hi timepass

Stoch and RSI has a Bullish reverse divergence with the double bottom levels formed today and the double bottom at 5200 levels.

"Bullish reverse divergence" is when price is making a low and higher low whereas the corresponding level in the oscillator is making a low and lower low.It can signal that a sizeable swing in the direction of the stock's underlying trend is about to take place.In this case it's a double bottom and not a low and higher low, so will wait and watch how it turns out.

adding the chart below

 

[timepass]

Yes, I see what you mean - the stochastics are making lower lows while the price is making higher lows.

RSI seems to be going up continuously i.e. the red RSI is going up while green line hasn't crossed downwards seriously.

My problem is that I am no longer sure about RSI ever since I learnt about different methods of calculating RSI, specially since at this point both the methods give diametrically opposite views.

I have mentioned it in this thread. So I don't know whether Nifty has passed a peak or merely paused on the way to the peak.

Aside :
"Bullish Reverse Divergence" .. something new learnt. I guess "Bearish Reverse Divergence" will be price making lower lows and oscillator making higher highs ??