Trading Strategies Using Technical Analysis

[gangadharan]

Insider info is for short term.
Even son in law of Nifty chief cannot predict that !!!
It is just a view and we just trade the markets and not our views

Any reason for this belief
do u have any inside news or are u son in law of NIFTY chief

Yes Neetu, There is reasons for this bilief

Not an inside news……. Inside news never favors the retail investors like us…… it always make us in traps.

If you see the EOD carefully you can find several reasons for my view.
Why you all believe that TA works…… my believe is that TA works only because of most big investments comes in the market with the support of TA…….. Right? Now finding retrace levels are the part of TA.

Reason. No.1
If you carefully see the EOD you can find that previous bounce of NIFTY from 4th august 09 to 9th oct. 09….. 3rd Nov.09 to 5th Jan. 10…… 5th Feb.10 to 5th April 10 retraced breaking down their. 61.8% levels and reached up to 70% levels. If the sequence happen here it can come up to 5555 levels.

Reason No.2
As you know that there are difference in people using retrace levels.. i.e. a short term investor will always use a short retrace time frame like the nearest low to the top and medium term investor use a little bigger time frame and the long term investor can use the longest time frame. Now let us use here with the all three time frames and have a look at the levels.
short term 4806 to 6320…… medium term 3974 to 6320….. 2580 to 6320

We can find that the if 2 retrace levels of two time frames are more dependable than a single retrace level of a single time frame.
Here we can find that a two retrace level of two time frames come near 6750 and there for this will be a little dependable place.There is a chance the NIFTY to go up a little from here.But you can find that 2 retrace lines of two different time frames again meet at 5555 levels with another support of another time frame at 5380. Now I think you get my point.

Now let us live in present and think……. We can find that the FIIs came aggressively in our market in 2010 in the month of May and June with their SMART MONEY… And there is no doubt that they came to make money.
Now we can find a clear vision of their ACCUMULATION till August 10.(EOD) which is the first process of SMART MONEY.

After August 10 you find that nifty gone up very fast…….. This can be counted as the MARKING UP which is normally the second process by SMART MONEY And here is the place where DUMP MONEY enter the market.. And the third process by SMART MONEY is DISTRIBUTION and that they have started when the market was around 6200 plus levels.

The market touched 5880 levels twice and I believe all this was because of DISTRIBUTION. Here is the place where more DUMP MONEY enter the market including retail investors…

The next and the brutal process of the SMART MONEY is MARKING DOWN……. The process of MARKING DOWN is a very fast and forceful action. Because the SMART MONEY dose not want the DUMP MONEY to get a chance to come out from their position.
I DOUBT THAT IS WHAT HAPPENING NOW.

Reason No. 3
Think that suppose we are some one who is entering in the market with the support of thousands of millions of rupees at when NIFTY was at 5380 level…... What will be our target.. I believe that our easy target will be some where 6300 which is a nice place where the sentiments can easily reach
Then off course we will start selling from 6200 levels, Right. Even though we don’t have thousands of millions of rupees why cant we think like biggies…

Reason No. 4
Mr. Dow… said…… (I think Mr. Dow is not son in law of NIFTY Chief………………. Might be mother in law of DOW JONES….:rofl
No…….. If I am correct He was the founder of DOW JONES
Any way… in his words…. When market goes up.. All the Large Caps move 1st and Mid caps 2nd and small caps 3rd
But when the market correct it will work on the opposite way.. Small caps 1st mid caps then and Large caps last.
I think our Large caps are not yet corrected
Do you think the market will move towards 7000 when the Large caps start correcting.

After all………… This is just my view……. And we always trade market.. Not the view……… because the view can also change with the market. But now I am learning to trade with a view.

Only two words………… i.e.
Take Care.
Gangadharan.

 

[DanPickUp]

Hello thanks for quick reply as you says your analysis is base on price structure by coincidence in these days i am also learing price structue & change of behavior of trend,I am new in this price structue & i am mostly wrong this,i want to learn in deep,if you have any book about it or any dvd please recomend me or you will teach me about price structure & change of behavior,I listen one book back to basics trend trading with bbtt trading system by brent penfold this is very good book with basics analysis but its costly & at present i can`t afford it,i want to talk to you if you can give me your phone no. or send me messge at my cell at nine nine five three seven five five nine three zero or pm me please i am waiting for your reply.
thanks again navin bhatia

Hi navinbhatia

There are many books about that subject and you could loose much time to read all of them. The one I show you here has even a learning CD, which you only should use after reading the book. But this CD is the reason why I recommend the book :

Robert C. Miner : High Probability Trading Strategies: Entry to Exit Tactics for the Forex, Futures, and Stock

http://www.amazon.com/High-Probabil...81664/ref=ntt_at_ep_dpi_1/180-9633460-1376710

An other thing you really should do: Train your brain and eyes directly on a chart.

http://www.traderji.com/technical-a...-using-technical-analysis-329.html#post488791

Take care

DanPickUP

 

[Piuvbn]

Navin,

This entire thread is about how we analyze trades based on pure price structure for swing trades. Hence, go through this thread to understand that.

Also, as per Nithin's request I am going to make a "Condensed" post which would on the whole cover all aspects of looking at the stock and selecting it for trade. The posts are posted separately in the thread and I intend to bring most of the important posts together. This would take some time as post has to be organized.

Tc

Raunakji
Thanks in advance for the condenced trading education. To go through all the post that appears in your thread in itself is quiet a task and then answering them is another,now comes this new asignement!
I want to learn time management also!! 'Am simply greatfull. My best regards.
Partha Roy

 

[SwingKing]

Hello thanks for quick reply as you says your analysis is base on price structure by coincidence in these days i am also learing price structue & change of behavior of trend,I am new in this price structue & i am mostly wrong this,i want to learn in deep,if you have any book about it or any dvd please recomend me or you will teach me about price structure & change of behavior,I listen one book back to basics trend trading with bbtt trading system by brent penfold this is very good book with basics analysis but its costly & at present i can`t afford it,i want to talk to you if you can give me your phone no. or send me messge at my cell at nine nine five three seven five five nine three zero or pm me please i am waiting for your reply.
thanks again navin bhatia

Navin,

1. I have only read very few trading books and honestly I haven't developed any of my trading techniques through any of them. Hence, I don't know what to recommend you. See what Dan has posted about Robert Miner's book. GO through it. The concept of multiple time frames is something which will help you a lot. Lot of my way of looking at the markets depend on that. In this thread, there are some posts where I have explained about price structure. You will have to find it. Else wait for my post in 1-2 weeks time.

2. I do not give my cell number on forums. Hope you understand that. Moreover, it won't be ethical on my part to give few my number whereas to not give the same to others.

3. By the look of it, you appear to be in haste to learn a lot. My only advise to you would be that your enthusiasm towards learning is well appreciated, but on the whole relax back and learn slowly.

Tc

 

[SwingKing]

Raunak Bhai,

Some how I am not able to come out of the view that TA has all the required answers about markets.
Will think about it again.

I don't have much idea about volume foot print charts and order flow analysis.
Reg - Tracking SM - I was expecting answers in those lines.

1.Request to share your views about FP charts and Order flow analysis.
2.Your charts are looking different curious to know your SW's name.

TIA.

Best regards,
JK

Jagan,


This is what I said. TA does not have answers to everything. In fact nothing has. Its a mixture of TA, FA, Macro view, Inner instinct etc.

My answer to your SM query was answered earlier as well. To repeat the same, I would say that I don't indulge into trying to recognize smart money or dumb money. In a very polite way, I would like to say that I am smart and I like to believe that where I put my money is where smart money is putting it. In the end, whether I am right or wrong, is for the Tape to decide. Nothing more and nothing less.

Tc

 

[jagankris]

Jagan,


This is what I said. TA does not have answers to everything. In fact nothing has. Its a mixture of TA, FA, Macro view, Inner instinct etc.

My answer to your SM query was answered earlier as well. To repeat the same, I would say that I don't indulge into trying to recognize smart money or dumb money. In a very polite way, I would like to say that I am smart and I like to believe that where I put my money is where smart money is putting it. In the end, whether I am right or wrong, is for the Tape to decide. Nothing more and nothing less.

Tc

I like to believe that where I put my money is where smart money is putting it :thumb: :clapping:
Thank you Raunak Bhai.

 

[jagankris]

Not offensive. but you are having your view as bearish and perfer to trade by shorting is not mean that you are trading your views ?

I try to follow the markets like a child.

My views are nothing but whims.
Some times my whims are correct and some times wrong.

I cannot take credit for markets moving as per my whims and it doesn't mean that I am trading my view for the decision to enter the trade is not my view but markets.

 

[gangadharan]

[
Very Impressive :thumb: :clapping: beating analyst's expectations
I am bullish on Gangaji !!!

Why three lots of puts in Chambal ?

Yes Jagan,

That is a part of my rule.............. The rule is to hedge the investments with a maximum 5% of the total value of a particular investment.

Take care,
Gangadhran:thumb:

 

[gangadharan]

Jagan,


This is what I said. TA does not have answers to everything. In fact nothing has. Its a mixture of TA, FA, Macro view, Inner instinct etc.

In a very polite way, I would like to say that I am smart and I like to believe that where I put my money is where smart money is putting it. In the end, whether I am right or wrong, is for the Tape to decide. Nothing more and nothing less.

Tc

Raunak Sir,

A very positive attitude. After all it is your attitude that leads you to success... not only in trades but also in life.

Thank you very much for your healing encouragements.

With Regards,
Gangadharan

 

[SwingKing]

Reversal for Tata Steel is pegged at 614 & 620 respectively.

Will be monitoring it closely.

Tc