Nifty Futures Trading Part 2 (Positional)

[kiranb]

flag is generally a continuation pattern where both boundry lines are parallel .
while in pennant boundry lines are converging.
a pennant may also be called a short wedge.
here one boundry line is upslanting and the another one is downslanting so its not a pennant but a triangle.
but diminishing vol indicates possible breakout which should be accompanied with the surge in vol to confirm the trend.

Thanks Mahesh for writing your view. You said, "one boundary line being upslanting and the another one downslanting is not a pennant but a triangle", I think there are very minor difference and people judge them by their knowledge and experience. Please refer below from John J. Murphy's Technical Analysis Of The Financial Markets book. This example has one boundary line upslanting and the other downslanting and is he calls it a pennant.

Kiran

 

[kiranb]

Lt after Break out

 

[pkamalesh]

Dear P kamalesh

Trend resistanceline drawn is correct but trend support line is not correct drawn (support line will be23-01-09 low & 05-02-09 low). After correction chart pattern not rising wedge. So, rising wedge rules not applicable here.

Thanks

Pra

 

[pkamalesh]

We managed to break the 61.2 or 62 % fibo levels on friday which was around 2960-65 but dint manage to hold on and close above that.Now the monday closing would be great to see if we can hold this point and break it sunstantially to move upto 3200. Just in case we dont manage to hold on to the bull power we have to hold to 2895 which is the lower support of the wedge to stop any downfall.

 

[smpsd]

why do we rise further is there any big event which will take it through 3000+.If no then why can't profi booking can come before expiry on 26th and test 2760 support again ??? Market is showing negative strength despite of negative clues from US and world markets and it will not sustains its gain as DOW is breaching 8000 again and again.

 

[pra]

Dear P kamalesh

Now this support line will be secondary & it is correct but primary trend support line will be as said earlier . Theoriticaly this rising wedge not validate with secondary support due to different conditions. So, major trend will not be change untill primary support starting point hold in price channel. Temporary mkt will retrace for correction due to overbought condition which told me in the short term chart but no evidence till not developed in al charts that mkt will change direction. Forget this rising wedge, this type of formation occoured frequently in the short term . For major trend change in bear market rally required 3-6 months data to form validate rising wedge & that has been developing. So, medium term mkt will test oct low.

Hope, i clarify my views & acceptence & appreciation is your personal sentiment and change your view frequently will hurt others. If i want my reputation point beyond 2000 that will be made within 7 days but i feel & beleive reputation point is not my criteria.

Thanks

Pra

 

[pkamalesh]

Hope, i clarify my views & acceptence & appreciation is your personal sentiment and change your view frequently will hurt others. If i want my reputation point beyond 2000 that will be made within 7 days but i feel & beleive reputation point is not my criteria.

Thanks

Pra

Bhai...now from wher did this reputation thing pop up from yaar??? I just wanted to clarify agian and u gave a perfect reason..thats it...so now from where does this reputation thin come from yaar??? Seriously i care a damn abt my reputation and all...what ever u think...

 

[pkamalesh]

If i want my reputation point beyond 2000 that will be made within 7 days but i feel & beleive reputation point is not my criteria.


Pra

Guess stayin out is better than to forcefully taste the bitterness thats developing....God bless ya guys..

 

[rajendrani]

dear rajendrani,

any bo could be false bo and should be traded with utmost caution.
reasons being the
proximity to the apex wrt bo
volumes definitely ruling out both flag and triangle...
both rules is something which i have learnt from 2 of my fav boarders of this thread.
all the best
please correct me if i am wrong.

Sorry got delayed for the reply, was busy doing something else,

Ok continuing with the learning process, shishir bhai, I was just pointing it could be a symmetrical traingle, and if bd happens then the expected target could be that as pointed in the picture.

About the symmetrical triangle,
here is some charts, taken from stockcharts.com

Link to the page
http://stockcharts.com/school/doku...._analysis:chart_patterns:symmetrical_triangle

Hope seniors can enlighten more on this one please.

Regards,
rajendrani

 

[learn2trade08]

dear rajendrani...
i sincerely appreciate your effort,hope this will help me understand triangles better...
now from stockcharts:
1) The pattern contains at least two lower highs and two higher lows. When these points are connected, the lines converge as they are extended and the symmetrical triangle takes shape.
>>>>>>>though we have a lower highs and higher lows we are not able to connect them with a TL in the early stages(especially the hl's)....
another important thing that i have learnt from boaders here on traderji is,the presence of white space(empty space) in the triangle is a negative for the pattern....

2) the price is too close to the apex and failing to bo/bd (again a negative).

3)As the symmetrical triangle extends and the trading range contracts, volume should start to diminish. This refers to the quiet before the storm, or the tightening consolidation before the breakout.
>>>>>please take a note of the volumes...

all the best...
P.s: L2T or SK would be just fine ...thanks