Nifty Futures Trading Part 2 (Positional)

[satyamsit]

satyam, you are right, mathematical calculation of rsi is such that we call it leading indicator.RSI has the tendency to break TL before actual prices.
Also i forgot to mention, in S & P 500 chart we had a same rsi divergance but interestingly unlike nifty, one rsi bottom is below 30 and one above 30

Absolutely bhaiya, and when RSI breakout is confirmed by Price action, it talks abt the strength of the price movement depending upon the time span we r dealing with. ydays support at 2775 has already given a sense of bulls attempt over a short period of time and rsi and price trend line brkout is also indicating at the same direction. i think some good news is waiting for the bulls.

Plz try to post S&P 500 chart along with that RSI failure swing as we can get a visual confirmation also.

 

[orderflow13]

Absolutely bhaiya, and when RSI breakout is confirmed by Price action, it talks abt the strength of the price movement depending upon the time span we r dealing with. ydays support at 2775 has already given a sense of bulls attempt over a short period of time and rsi and price trend line brkout is also indicating at the same direction. i think some good news is waiting for the bulls.

Plz try to post S&P 500 chart along with that RSI failure swing as we can get a visual confirmation also.

cat is already out of the bag..
Repo rate cut by 50 basis points to 7.5 percent with effect from Nov 3.

- Cash reserve ratio cut by 100 basis points 5.5 percent in two stages

-Cash Reserve ratio cut to release 400 billion rupees into the banking system.

- Banks statutory liquidity ratio cut by 1 percentage point to 24 percent from Nov 8

chart u asked

By alex_laxya

see the divergance, one below 30 and one bottom above 30

 

[mitasatyajit]

Alex, is it divergance ?

 

[satyamsit]

Alex, is it divergance ?

Satda there r no divergence if we consider high -low chart, but divergences on closing chart is the most popular and logical way to see it. And in case RSI the formula considers closing prices as,
RSI = 100-100/(1+RS)

where RS(relative strength) = avg of 14 days higher close/avg of 14 days lower close.

 

[orderflow13]

Sat Da This will be divergance, prices making new lows and rsi making new high, most powerful indicator in technical analysis

edit .. haven't seen satyam reply, yes this down trend line on price chart i made is of closing pices ( observe trendline touching real body of candles, not wicks )

 

[orderflow13]

also just for observation, in s&p chart, the big white candle on right edge coined in candle stick as ' BELT HOLD BULLISH ' a reversal pattern

 

[orderflow13]

100
RSI = 100 - 100/ 1 + RS


RS = Average Gain / Average Loss

Average Gain = [(previous Average Gain) x 13 + current Gain] / 14
First Average Gain = Total of Gains during past 14 periods / 14

Average Loss = [(previous Average Loss) x 13 + current Loss] / 14
First Average Loss = Total of Losses during past 14 periods / 14

Note: "Losses" are reported as positive values.
see 'x 13' in formula, which made difference of leading indicator from lagging indicator.B'cuz of this rsi trendlines break first before price,and if we plot rsi value '7' then we get very early rsi breakouts, but as usual we need confirmation from prices as well,depends on everyone's method,risk apetite etc..

 

[praveen taneja]

cat is already out of the bag..
Repo rate cut by 50 basis points to 7.5 percent with effect from Nov 3.

- Cash reserve ratio cut by 100 basis points 5.5 percent in two stages

-Cash Reserve ratio cut to release 400 billion rupees into the banking system.

- Banks statutory liquidity ratio cut by 1 percentage point to 24 percent from Nov 8

chart u asked

By alex_laxya

see the divergance, one below 30 and one bottom above 30

Is not it prove that some one powerful known earlier that this going to happen thats why mkt bounce from 2775 to 2920 in 15 mnts And people says mkt run on its own

 

[Czar]

but ALEX no new lows were made by s&p you are considering new closing lows, but on candle basis no new lows were made when rsi made a higher bottom...

 

[satyamsit]

Is not it prove that some one powerful known earlier that this going to happen thats why mkt bounce from 2775 to 2920 in 15 mnts And people says mkt run on its own

Yes praveen, thats how the mkt works. well informed will always take the upper hand compared to less informed, my guru says... to less informed layman like us there is technical analysis and levels like 2775 ... if we can get it right, some news definitely will come in.