Nifty Futures Trading

[MurAtt]

What abt INFLATION figures. Maybe this rally was Inflation magic.
Just logged in at 3.15 and sq off my long positions (RelCom n Nifty).
Was wanting to short at 3030 but refrained, tomorrow is another day.
Lets see ...

Lets see whether Monday will start a new story or continue the upmove ...

Murtaza

 

[praveen taneja]

Some FACTS of today ,

1. LOWEST mkt turnover after April 2007
2. Adv Dec ratio at 7:1.

I am having very serious doubts on this rally now , April 2007 and Jan 09 lowest TO and we shooting up like anything.... Tick Tock Tick , a time bomb is ticking Most of the stocks are now in process of making Dbl tops...
Seems DII FII were also missing today??? Saara maal Sunil sir ne utha liya... Hope he regained his patience and was saved frm being a patient.

Tu To Analyst hui gawaa re

 

[columbus]

Asish Da had mentioned about how to use "average price" at open... something - i don't remember properly; maybe because it required Metastock for it... that's why, I missed it...

I use only RSI
Rahe Saath Iska
Rahu Saath Iske
Real Supporting Indicator
Romance Shaadi Ishq
Roshan Sada India
.
.

everything with RSI only
wish my name was R. S. Iyer - my ID would have been RSI (like a member of this forum)

 

[Sunil]

My dear "friend" Columbus,

seems a case of deja vu of exactly one month back, when you had put up a same view about RSI & L2T had mentioned about hidden divergences in RSI...

here's the link, and I would like all to check out replies by Mahesh & Learn2trade too
Post #17463 of this thread & onwards

u seem to have never practically used RSI, and treat it like a Moving Average!!! (expecting it to EXACTLY mirror the movement of the underlying price). If u have not studied or tested RSI, then it's not my fault - If I say I follow a particular indicator, then I dont expect all to do the same blindly - I am not going to explain my stand again & agian

The fact that RSI was going down, while price was going up, GAVE A BIG SIGNAL TO ME NOT TO GO AGAINST THE TREND & SHORT @ HIGHER LEVEL, for a scalping corrective move down... there was a definite change in intraday trend/momentum
at 3040, i could have exited my longs & reversed to shorts (like I usually do)..
but by that time, RSI had cooled down, momentum was still up, i stuck to longs & got the prized 3050.

I did not short at 3050 - because even then too RSI was below 70 - atleast not a confident sign to sell...
and the momentum lasted till the very last minute...

if the textbook says, it's bearish divergence & if technical analysis is a game of probability (expecting what is more probable), then tomorrow one should not expect more continuation of upmove - rather a decent corrective downmove in the initial hour.

by quoting my message, if u meant I am misleading others, then it would be better I don't post anything in this thread...

If I find it "reasonable", then I might open a new intraday thread for myself....
You see, like you, I cannot open 22 threads for any vague reason or any dumb discussion.

 

[learn2trade08]

dear columbus,
another hidden bullish divergence(price making a higher low and indicator making a lower low),a good scalper as it was on 1 min charts...

all the best.

 

[Sunil]

and in the same 2-Dec illustration, where u posted the headline "misleading RSI" (ignoring hidden bearish divergence), then just check out the next day's result of that divergence:

Future opened with small gap up @ 2679 (30points), and there was immediate heavy selling/profit-booking one way till 2612 (later on low was 2602)
2679 remained unchallenged high of the day

If technical analysis is just a game of more probability, then one should know how & when to use an indicator -
no use criticizing it, if u don't have time & patience to study it (or if u r following some other indicator)

And by the way, it's not me who has invented RSI that I should feel bad when someone criticises it;
but why to quote my loyalty to an indicator and declare as misleading...(happened second time within a month)

If that's the criteria, then tell me one system/method/indicator in this world which is never misleading and which is always 100% right...

 

[coolboy007]

Sunil sir ,

I want to ask you that when RSI touched that upper line ( i think its overbought indicator) , then shouldnt we had shorted , ofcourse with known resistance levels as i many times went long when Rsi touched 20 ( oversold) and made quick money with use of nearby support as said by you.
I always used just Slow stochs and Rsi with Supp/ Res in April when did Intraday. I am more comfy with Stochs but it also gave me wrong signs sometimes alias hidden divergences. Same way you comfy wid RSI , no prob shud be there at all. One thing i learnt frm TJ is that we always have to use A COMBI of indicators to trade , Single one can never mint money , its Just Diff people give various Preferences to various indicators

Be easy sir , this thread is GEM of TJ and plz dont start new thread , post here only. Come to Chit chat to refresh yourself.

 

[learn2trade08]

another index giving divergence...
price making lower low and indicator making a higher low....classic bullish divergence.

 

[TrendPlayer]

What i have read long back goes as follows :

Regular Divergence:

Bearish : Price making HH & Oscillator making LH
Bullish : Price making LL & Oscillator making HL


Hidden Divergence:

Bearish : Price making LH & Oscillator making HH
Bullish : Price making HL & Oscillator making LL

Please let me know whether my understanding is right/wrong

(what a formatting i did vah vah )

 

[TrendPlayer]

another index giving divergence...
price making lower low and indicator making a higher low....classic bullish divergence.

L2D: Nice pictorial example