Trading NR7 setup

[SwingKing]

One shudnt forget that this Year as well as Qtr end and lots of fund managers wud like to close on the higher side....any major corrections wud only start from new financial year...MHO

Well, think this way. If we common people are thinking the way fund managers do, then it is quite possible that the fund managers begin buying a lot.

The VIX is at historical low (suggesting a top) but it can remain low and the index can still rally. It is a contrarian indicator and not a timing indicator. Anything can happen as far as market goes. Use trailing stops at this juncture so that you don't take a hit on ur profits and at the same time you don't miss any rally in case the market's expand to the upside.

 

[trader.trends]

One shudnt forget that this Year as well as Qtr end and lots of fund managers wud like to close on the higher side....any major corrections wud only start from new financial year...MHO

Shanki

Now consensus is emerging that the correction will come in the first week of April after the financial year closes. You know what happens when consensus emerges. Tomorrow at EOD it will be interesting to see what positions we can create. With volatility being low offers a good opportunity for both call and put spreads with good RR. Alternatively correction could come today/tom as no one is expecting that. NAVs be damned!

 

[AW10]

One shudnt forget that this Year as well as Qtr end and lots of fund managers wud like to close on the higher side....any major corrections wud only start from new financial year...MHO

Shanki, You are right and also think on the same line.
But that doesn't mean that on 31-March, 3.30 pm the Index has to be on the top of last 1 year. IMO, they will not wait till last day or last minute to fill their objective.
Frankly speaking, probably our DIIs have already done their shopping from 4700 level and now they are just holding the mkt. (kind of stmt from LIC that they are going to buy x Cr worth of stocks in last 4 days)..

Market works like typical Auction market.. and do you think if we go to auction, then we will show our kitty .. Isn't it common sense that if that is the case, then others will ramp up the price. They why would we.

Don't we do our winter shopping before winter starts, or do we wait for mecury to touch single digit before we buy our warm clothes. These are the common sense and practical logic but I fail to understand why we / majority of us don't apply this in market.

Happy Trading

 

[trader.trends]

Don't we do our winter shopping before winter starts, or do we wait for mecury to touch single digit before we buy our warm clothes. These are the common sense and practical logic but I fail to understand why we / majority of us don't apply this in market.

Happy Trading

Totally agree AW10. Whether the mkt ends at 5100 or 5400 YOY they have a nice show going.

 

[shanki99]

Shanki, You are right and also think on the same line.
But that doesn't mean that on 31-March, 3.30 pm the Index has to be on the top of last 1 year. IMO, they will not wait till last day or last minute to fill their objective.
Frankly speaking, probably our DIIs have already done their shopping from 4700 level and now they are just holding the mkt. (kind of stmt from LIC that they are going to buy x Cr worth of stocks in last 4 days)..

Market works like typical Auction market.. and do you think if we go to auction, then we will show our kitty .. Isn't it common sense that if that is the case, then others will ramp up the price. They why would we.

Don't we do our winter shopping before winter starts, or do we wait for mecury to touch single digit before we buy our warm clothes. These are the common sense and practical logic but I fail to understand why we / majority of us don't apply this in market.

Happy Trading

What u have said as well as Raunak has quoted....everything is fine

I just said that for those who expect a huge correction (so many are expecting for so long), then for them, they will have to wait for couple of more days....

what i have said was indeed a private comment from one of the Senior most Fund manager of a reputed Fund house to my friend who was subordinate to him....that was couple of yrs ago.....ofcourse u know that they all work in tandem at times....

 

[AW10]

I don't know how many of us remember the 31-March-2008 when mkt cracked by 4% on final day of Financial year closing.
Besides that, there is no significant edge on this, in last 12yr of data, there had been almost 50:50 chance of +ive or -ive close. And the deviation has not been major from prev day.
2008 was exception..though. in many ways.

Happy Trading

 

[kalyanr33]

Hi AW10,

In your NR7 system some people create as a software, and marketing ,

rK.

 

[AW10]

Kalyanr, I would like to know those systems and won't mind validating their system and if required, tell the truth.

by the way, it is not my system. It has been written by Toby Crabel ( i don't know in which year). As I use it in my trading, hence just mentioned it here on TJ.

Happy Trading

 

[kalyanr33]

Hi AW10,

how to trade with NR7 SETUP, please explain. :rofl:

 

[AW10]

It is upto you to encash on this setup and develop and use your strategy.

In this thread, I have given it as setup.. Not as trading system.. It is upto individual to develop their own trading system on it.
Plz refer to first few posts where I have given ideas about how one can trade it.

Happy Trading