Trading Strategies Using Technical Analysis

[SwingKing]

Raunakbhai,
I'm hereby posting a chart, can you explain it please?

Prashant,

Thanks for the chart.

I guess explanations are useful only when they can be used to make some profits. Hence, just for a short term trade, if SBI makes a high greater than 2850 tomorrow, then one can go long for 1-3 days keeping a stop loss of 2790 for a target of 2910-2920. Hopefully this trade should work out.

Now to your chart. There is nothing more to comment than what you have already posted. It is near a good support base and hence can be traded for a day or two. On the whole, it is going to take at least 10-15 sessions for this stock and the banking sector to show where the next move is heading. Largely I see the stock and the sector fluctuating in a band forming some sort of range exhibiting some volatility. Till the range and future course of sector is not clearly visible, I would prefer not to park my funds for investments atleast.

Short term trading though can be carried out.

Tc

 

[SwingKing]

Ruanak Bhai Just a quick question if you look at the chart I am posting didn't nifty make a short term top on 5th Nov because RSI made a lower high but Price made a higher high and as soon as RSI came below 70 it was the perfect time to short the index? Am I understanding it correctly?

Nimish,

Shorting an Index is never easy. If you look carefully, you will find atleast 100 trades based on what you are suggesting which fail more often than they succeed. We tend to focus on trades which work and hence see only that aspect. We often fail to see where the trades actually failed. This is very common.

Also, If you see, I rarely short stocks/index. In this entire correction, I have shorted only three stocks; Tata Steel, DLF and Praj. Tata steel gave me small profit, in DLF I captured more than 80-90 Rs and today in Praj I captured 2 rs per lot. Most of my trades in this correction have been on the long side and have resulted in small losses. The reason behind this is very simple. In bull markets, I never go short. In Bear market, I never go long. In other words, buying in Bull markets is very easy and shorting in Bear markets is very easy. Hope you get my point.

Currently, as of 15.30 P.m., we are still in a Bull market. Hence, my aim is to search for trades on the long side till we enter a Bear market. If you intend to be a good buyer and a good short seller, then never Short in a bull market and never Buy in a Bear market. Once you think this way, the techniques will automatically show up.

Tc

 

[RajeshDua]

This is so unnatural... Perfect timing. Your intraday system is excellent.

Gangadharanji,
It helps learning and gives confident to attempt intra day trades,
Greatly appreciated if you post your charts regularly at end of day..there is nowhere in this entire forum have example like your charts with clear entry and exit with indicators for intra-day low time frame.. for novice ..

Regards
Rajeshdua

 

[SwingKing]

Raunak Bhai,

But I bought IBRL today.Off course as BTST
My first TA chart.So guys kindly excuse me of any mistakes.
PFA the IBRL charts.

On a closing basis it has a double bottom.
Inverted hammer in candle stick.
Stoch has'nt confirmed the move yet.

But I guess the stock should move a tleast a little.

But the sharks are again net sellers :annoyed: that is what it is worrying.

Welcome your comments,critics.

Thanks in advance.

Best Regards,
JK

Jagan My dear,

There is no harm in Bottom Fishing based on Technical Patterns.

But, do that for the strong stocks. In the current market that would be stocks like Titan, Bajaj, Cummins, Tata Motors etc. .There's more chance that such stocks will bounce more faster.

Technically your chart looks good. But had this chart been of the above stocks, I would have been more convinced about the trades. Just keep this in mind.

Tc

 

[nimish_rulz]

Nimish,

Shorting an Index is never easy. If you look carefully, you will find atleast 100 trades based on what you are suggesting which fail more often than they succeed. We tend to focus on trades which work and hence see only that aspect. We often fail to see where the trades actually failed. This is very common.

Also, If you see, I rarely short stocks/index. In this entire correction, I have shorted only three stocks; Tata Steel, DLF and Praj. Tata steel gave me small profit, in DLF I captured more than 80-90 Rs and today in Praj I captured 2 rs per lot. Most of my trades in this correction have been on the long side and have resulted in small losses. The reason behind this is very simple. In bull markets, I never go short. In Bear market, I never go long. In other words, buying in Bull markets is very easy and shorting in Bear markets is very easy. Hope you get my point.

Currently, as of 15.30 P.m., we are still in a Bull market. Hence, my aim is to search for trades on the long side till we enter a Bear market. If you intend to be a good buyer and a good short seller, then never Short in a bull market and never Buy in a Bear market. Once you think this way, the techniques will automatically show up.

Tc

Thanks bro always learning from you. One more thing wanted to ask you was which sector to you is looking most bullish in this correction that is it has not fallen or runs up earlier than anything else. For me it seems Auto sector is holding pretty well. I am asking this because usually when a sector shows strength or refuses to go down that sector runs up faster than any other. Your view on this would help me. Will give you an example in May when we were correcting the banks refused to sell off in the correction and when the markets resumed the rally they went up and gave the best gain in the rally so far.

So identifying the sector is my mission in this correction. :thumb:

 

[SwingKing]

Friends,

Where Nifty is going to reverse ?
I welcome all your inputs.

Thanks in advance.

Best regards,
JK

Jagan,

Just extending what I wrote to Nimish.

I personally still believe that we are in a Bull market. I review my position every evening and hence I can still say that we remain firmly intact in a Bull market. The way I am seeing, our markets will remain volatile between 5800-6000. That would be the broad based channel. Even if the channel is violated on the downside, I would review again before declaring the Bull dead.

As far as extremely short term trade goes, one can go long in Nifty tomorrow if it makes a high above 5940 with SL of 5880. Target would be around 6000-6010. RR of 1:1.

Traders and Investors always have a lot of time to position themselves for the next upcoming move. It is just that majority of them fail to realize this. Hence be patient. Even if bear markets are coming, we will trade it just as well as we have traded the Bull market.

Tc

 

[SwingKing]

Thanks bro always learning from you. One more thing wanted to ask you was which sector to you is looking most bullish in this correction that is it has not fallen or runs up earlier than anything else. For me it seems Auto sector is holding pretty well. I am asking this because usually when a sector shows strength or refuses to go down that sector runs up faster than any other. Your view on this would help me. Will give you an example in May when we were correcting the banks refused to sell off in the correction and when the markets resumed the rally they went up and gave the best gain in the rally so far.

So identifying the sector is my mission in this correction. :thumb:

Nimish,

Identifying Sectors/Stocks is secondary in nature. Try and understand what I am writing.

Hence, let me again reiterate to you.

Before getting in the Buy or Short mode on respective sectors and stocks, you need to get into broad based market definition mode. For example,

If (Markets are in a Bull phase)

a) How do I define Bull phase
b) What is the current Economic cycle
C) What about market data (inflation, valuations etc)
d) What about the strategy I will use (Long or short or Long/Short)
e) Will that strategy be for low/high volatile market
f) Which instrument will I use
g) If its highly volatile, will I hedge
h) Which stocks have done well in these phases
i) What is my backup plan
j) How do I give this plan a feedback

This is just one of the scenarios I have explained to you for varied market conditions. You need to have scenarios like these prepared for different market conditions. Hope you get my point.

Tc

 

[jagankris]

Raunak Bhai and Friends,

Any one having Nifty tick data.If so request to upload for this month.

Thanks and Regards,
JK

 

[gangadharan]

Raunak Sir,

I am trading in this market with out any knowledge of chart or technicals for last 3 years. Though I lost in the beginning a couple of lakhs I earned very much from the market for last two years. The Strategy i use was enter in to the intraday trade and sell it off if I earn 1 percent or take delivery if the price go down. If once the delivery is takenI use to sell it only on 10 percent appreciation and average it on 30% down fall. There have been many heart breaking days in my trading life but I never came through with such fantastic technicals like MACD/STOCHIATICS/MOVINGAVERAGES/ etc. Even I had all this facilities in Trade Tiger.This is only after I joined this Traderji.com especially in this thread I came to understand all these. Many many thanks to traderji.com and this thread. My special thanks to you because I feel very confident when trading with the suport of 2 MOVING AVERAGES/MACD/STOCHIATICS.

Thank you Very much
Gangadharan

Gangadharanji,
It helps learning and gives confident to attempt intra day trades,
Greatly appreciated if you post your charts regularly at end of day..there is nowhere in this entire forum have example like your charts with clear entry and exit with indicators for intra-day low time frame.. for novice ..

Regards
Rajeshdua

Hello Dear Rajesh,

Thank you very much for your post. I will definitely try to post it every day. And the reason for me posting charts here is for any correction by the gurus and if any one appreciate it may help to concrete my confidence. You can see the above quote. I think that is the first post by me to this thread.. and it was just before 3 months. Believe me before that I did know nothing about Moving Averages... Bo-linger Bands.. or any Technical tools.
I learned to use Bolinger Bands from Columbus Sir..... Moving Averages trade set ups and price actions from Raunak Sir.......Learning Volume Spreading from Karthik Sir, Option Trading from TradewithHunder & AW10....etc.There are many more gurus in this forum..
But apart from all this we need an winning attitude(NOT ATTACHED TO YOUR WORRIES OR GREEDINESS) which is very well said by Raunak Sir in his every posts."it is only a winning attitude you need"

And what is a winning attitude?.... It is well described by Krishna to Arjuna

"YOGASTHA KURU KARMANI
SANGHAM THYAKTHUA DHANANJAYA
SIDHYA SIDHYOHO SAMO BHUTHUA
SAMATHUAM YOGA UCHIYATHE".

"Hey Arjuna.... don't be attached to your personal feelings when you are performing your duties....and be even minded about the results...evenness of mind will always lead you to success."

Now my dear friend, Investing and trading is a business for me and no business is a success with out proper planing. So I will do it in every possible way.

As you said... shorter time frame... I trade intraday in a shorter time frame with the support of longer time frames and till date I am winning on 80 percent trades.

Thank you,
With Regards,
Gangadharan

 

[gauharjk]

Hi Gangadharan bro,

I have your super-secret excel file with all the details of your trading strategy.

But still, I want to ask, how do you fine tune entry and exit points for Nifty intraday?

Is there a shortcut? Intraday has to be very quick, not like swing trading. Following Column B to Column Q is difficult...