Nifty Futures Trading Part 2 (Positional)

[Sunil]

now we have a triple top at FUT 4100 (to be broken today), and the H&S neckline at 4225 SPOT.... (ideally should provide resistance)

 

[Sunil]

and if DOw's 400+ move was not enough, not FUTS are +200... (ie at 11200)!!!

 

[orderflow13]

shorted nifty fut. 4222,

 

[Sunil]

check out the SCO value now, alex...80!!!!!
from 0.5 to 80 in just around 7 hours of trading sessions

 

[orderflow13]

about to say .. lol

 

[uasish]

What is this SCO ??

 

[Sunil]

What is this SCO ??

Da, it's the same webpage which i refer to for stoch....
below the two charts, there's this SCO value & its explanation is given in box... the author had once explained it to be like a modified RSI

i have been following it since last few weeks & it works well for positional trades...
http://niftyintraday.googlepages.com/nifty50

 

[Sunil]

about to say .. lol

but it actually proves now that mkt needs a bit cooling...
from 3800 (SCO 0.5), it went up till nearly 4050 (SCO close value 33)..
and now it jumped till 4200 (SCO 80)..

ie 10% move in nifty in one wave...
needs hajmola (a small correction/sideways movement for rest of day) to digest...
though as explained, SCO value of +95 is the real hajmola level, maybe when SPOT crosses 4200 today w/o going any further down

 

[tulika]

SCO value helps a lot.. provides gud guideline. But is there any way of using it for stocks also //??? Searched a lot but dint find such an indicator any where. If some body got any clue plz let me know.. Now it is above 81.. does that mean not much upside from here???

 

[parttimetrader]

I wouldn't read too much into the SCO value for the same reason that a high RSI value (traditionally indicating 'overbought') doesn't imply prices will come down. I am sure you know this, but very high values being registered for price oscillators (e.g. RSI) is the first thing which happens when a trend reverses - the oscillator moves high and stays 'overbought', and prices keep rising. That is the inherent problem with using oscillators traditionally - work quite well in ranged markets, but fail when a (new) trend sets in - an uptrend in this case (my $0.02).