Trading Strategies Using Technical Analysis

[SwingKing]

Crown,

I have drawn 2 more probable trend lines. If Nifty breaches the last trend line, it could move sideways or start a down move. Trend lines represent pace of movement. Breaching of trend line does not necessarily represent markets going down. It just represents slowness in pace of trend, which in the present market scenario seems more possible.

P.S - Good work crown. Supports and Resistance have been identified well. Just keep this new concept of trend line in your mind now.

Tc

 

[crown]

Crown,

I have drawn 2 more probable trend lines. If Nifty breaches the last trend line, it could move sideways or start a down move. Trend lines represent pace of movement. Breaching of trend line does not necessarily represent markets going down. It just represents slowness in pace of trend, which in the present market scenario seems more possible.

P.S - Good work crown. Supports and Resistance have been identified well. Just keep this new concept of trend line in your mind now.



Tc

Thanks a lot Raunak bhai for sparing time and very valuable guidance.

Just one more querry... This very fact that "Trendlines represent pace of movement", has struck to me sometime back; but I was not as clear as now after reading your post. Does that mean that for ascertaining the trend, we have only one indicator i.e. price itself?

Thanks bhai

 

[SwingKing]

Thanks a lot Raunak bhai for sparing time and very valuable guidance.

Just one more querry... This very fact that "Trendlines represent pace of movement", has struck to me sometime back; but I was not as clear as now after reading your post. Does that mean that for ascertaining the trend, we have only one indicator i.e. price itself?

Thanks bhai

Most of the indicators around are derivatives of price and though they are very valuable, most of the traders (90% +) do not know how to use one. Infact, most of them do not even know how it is calculated. If a trader does not have sound knowledge on indicator construction, then no matter what he does, he cannot use it profitably for a sustained period of time.

Hence, the simplest and the most effective way to determine a trend is to study price action. One indicator which does not lag and which does not require in depth knowledge about its construction is price. Trader who can master this, can master the markets.

Tc

 

[SwingKing]

Dear Traders,

Do not be tempted to short the market. If and when the opportunity arises, I will let you know. Currently I would be looking for a close below 6000 - 5980 to get into SAR* kind of trades. As of now, be long.

* - SAR (Stop and reverse) kind of trades are where we short the market and if we get stopped out, we reverse the trade and go long. We keep doing this till we catch the correct direction.

Tc

 

[arti]

Raunak
I could not understand the lower bold TL which u have drawn in nifty chart posted by crown.

Atleast two pls should be considered na.I know what u have drawn is reflecting ur understanding for nifty,but am not getting it. If possible plz explain.

 

[crown]

Most of the indicators around are derivatives of price and though they are very valuable, most of the traders (90% +) do not know how to use one. Infact, most of them do not even know how it is calculated. If a trader does not have sound knowledge on indicator construction, then no matter what he does, he cannot use it profitably for a sustained period of time.

Hence, the simplest and the most effective way to determine a trend is to study price action. One indicator which does not lag and which does not require in depth knowledge about its construction is price. Trader who can master this, can master the markets.

Tc

Raunak Bhai

I am short of words to express my gratitude for your kindness to share the secrets. In fact, I am among those 90% who do not know how to use the indicators. Though, I have tried my best but still I am just a noob. From the past couple of months, I am only relying on one indicator i.e. CCI. I have tried my best to get that indicator in my mind as a part of my understanding and have been a little bit successful. I used to be surprised as to how people can use so many indicators, while I am struggling to deal with one indicator and I also used to curse myself for my inadequacy of not being so efficient. But now, I have understood what actually it means to be a trader. From now on, I will again start giving attention to only one indicator i.e. cci which I think I know and understand much more than it has been apparently used. I really feel blessed to have your kind attention on my posts. If Destiny allowed, one day I would like to meet you in person.

Deepest regards

 

[crown]

Raunak
I could not understand the lower bold TL which u have drawn in nifty chart posted by crown.

Atleast two pls should be considered na.I know what u have drawn is reflecting ur understanding for nifty,but am not getting it. If possible plz explain.

kindly do wait for Raunak Bhai's comment... I am offering my little understanding....

Those TLines are based upon Angles and Time. Raunak Bhai, being too much experienced, can draw them without any indicator. If you try looking for Fan lines, Fibonacci Fan and other, you may get some good idea behind those Tlines.

 

[SwingKing]

Raunak
I could not understand the lower bold TL which u have drawn in nifty chart posted by crown.

Atleast two pls should be considered na.I know what u have drawn is reflecting ur understanding for nifty,but am not getting it. If possible plz explain.

Dear Arti,

I have highlighted the word "Probable" when I have drawn the trendline. What this means is that out of my experience of how prices move, I have drawn two highly probable trendlines which could develop in the future. I am looking for the Nifty to take support around those two trend lines. If it does take the support, you would get your second point. Hope you get it.

This is called Futuristic evaluation of the markets where we try to figure out what will happen next when we meditate. With experience, it will come to you too.

Tc

 

[scplindia]

Dear Traders,

Do not be tempted to short the market. If and when the opportunity arises, I will let you know. Currently I would be looking for a close below 6000 - 5980 to get into SAR* kind of trades. As of now, be long.

* - SAR (Stop and reverse) kind of trades are where we short the market and if we get stopped out, we reverse the trade and go long. We keep doing this till we catch the correct direction.

Tc

Thanks Raunakji,

I also got the same feeling that it is not right time to short the market, as FII cash flow yesterday was once agains positive at 1186 cr, They are still investing in our market. I treat this as a positive indicator. Can I add one more lot of tata chem at the present price level.

Prem Kumar

 

[SwingKing]

Thanks Raunakji,

I also got the same feeling that it is not right time to short the market, as FII cash flow yesterday was once agains positive at 1186 cr, They are still investing in our market. I treat this as a positive indicator. Can I add one more lot of tata chem at the present price level.

Prem Kumar

Prem,

Tata Chem is still not above our buy level. Which means our positions are losing at present. Hence, I would like to see Tata Chem move first. It is only then that we can add and build our positions. You see, a trader must look to Average Up and not Average down.

Its better to take 'x' % loss on one lot than to take it on 'few'. Hope you get it.

Tc