Trading Strategies Using Technical Analysis

[SwingKing]

Hi Raunak,

I have bought 5400CE @110 to protect my position in NF sold
@5445. Just want to understand how protection will work. I am planning to hold this position till Aug end. There may be two cases at the end of Aug.
1. Nifty @5200: I will be in profit as my lower breakeven will be
5335(5445-110)-5200=135point.
2. Nifty @5700 : I will be in loss. My call will be @300. Hence net gain in call will be 190point(300-110) but I will be loosing in NF 255 points(5700-5445). So my net loss will be 65 points(190-255)

Am I correct in my understanding?
My view is bearish on market. In this case should I put some stoploss if market starts moving upside?
Is there any point where I should reverse my trade?
OR should I add further lots for my barish view if market move up further?
Pls advice.

I'll ask you to post this query in options thread for a detailed overview. Also, if you are bearish in the market, you could also have followed what ST said, that is, simply buying put options.

Anyway with the strategy you have mentioned, I think you should be fine. Only concern is options eating away your profit. However, if you are a conservative trader, then this should work out well for you.

Whether markets will move up or not is difficult to answer. Indications have been for long that weakness is lurking underneath. But when does it materialize is something very difficult to answer.

Keep a SL of 5575 - 5600 in mind. I doubt we will reach 5600 levels. But then, I have been proven wrong so many times that it makes me feel really old at times. This is where Risk management comes into the foray.

Tc

 

[SwingKing]

Sir,

I had being reading your thread since morning and found it can be turning Point for me.
I want to start Trading under your Guidnace and with your help.
I would like to take Positional Trades in three of your Set ups :
Rectangle Pattern
3 - 4 Week Swing Trade
3 - 4 Days Swing Trading

I also found my mail sent to you on 18/1/2010 (Post # 263) requesting AFL for Metastock for EOD Data as all Set ups are Positional.

Sir, go through your thread, you have helped every one, Kindly help me also.

I request you to finalize two Set ups for me and give me their AFL for Metastock.

I will start Trading by investing Rs.10,000/- in each Trade with your help & Guidance. Along with this I will keep on Reading Books recommended by you and learn.

I hope you will help me and oblidge.

Regards
Karan

Karan,

The programming guys working for me are aware of Amibroker formula language. They don't know Metastock language. I'll still ask them.

Regarding setups, its better if you concentrate on positional setups first. Swing trading is something you can learn later. It is not easy to pick up swing trading. Hence once you become proficient in positional trading, you can start specializing in swing trading. I'll certainly help you with anything. Keep posting your charts and your trades and I'll take you through.

Tc

 

[AlokTewari]

Same here. Cover my intraday shorts at 5371 & went long. I don't see 5350 breaking in a hurry unless something unusual happens on global front. My theory is Nifty will give another shot at 5476 before seeing 5300. Retail money has to be on long side lock, stock & barrel for smart money to make profit from any significant fall.

Cheers !!!!

Alok Tewari

Today Nifty took a shot at 5476. So I was right about first half. Retail money seems to have got interested due to sudden upthrust during last 45 minutes or so. Now let us see what unfolds next tomorrow. If it crosses 5476 for 5525-5530 or starts falling from here itself. One intriguing part of todays sudden upmove was that it happened when Europe & Dow futures were in deep Red. Did Indian market operators knew that Dow will take U-Turn later so the up move or was it a perfect bull trap. We will know tomorrow.

Cheers !!!!

Alok Tewari

 

[Apurv7164]

Need Devil's advocates again... I hope seniors not finding it offensive when I write "Devil's Advocate". Kindly let me know if this is the case and I will not use this statement...

Back to the business, please see attached chart of ABAN offshore. I think it should give nice return....

~ Apurv

 

[Apurv7164]

SM,

I am too in bearish side after 5500-5550 range is touched. I am yet to enter in short trade. I think NF will fall to 5100 by end of August series. Will trade mostly with PUT, so that I do not have to think of SL. Will go for vacation after that

It will be interesting time ahead. You can be right as well. But I will bet what I understand.

Happy Trading!!

Resistance at the level of 5500-5550 is apparently visible to everybody. If I can spot it, many more rookie traders like me can spot it. Inexperienced traders need to get screwed for Biggies as well as seasoned traders to make money. With this logic, I dont think NF will be going down from 5500-5550 level.

We need to have false breakout above this level OR going down before that level is required for seasoned players to make money....

No personal offense towards your opinion Simple_Trader, just my opinion.

Still learning,
Apurv

 

[Karanm]

Karan,

The programming guys working for me are aware of Amibroker formula language. They don't know Metastock language. I'll still ask them.

Regarding setups, its better if you concentrate on positional setups first. Swing trading is something you can learn later. It is not easy to pick up swing trading. Hence once you become proficient in positional trading, you can start specializing in swing trading. I'll certainly help you with anything. Keep posting your charts and your trades and I'll take you through.

Tc

Sir,

Thanks for your supporting reply, all I can say- May God Bless you.

As advised, kindly Recommend the Posiional Set Up you feel is the best for me
I will prefer to Trade in Cash, only Buying with very Small Investments. If possible Metastock AFL For Metastock EOD Charts.

Lastly how much Amibroker will Cost me along with EOD Data and from where I
will get it as I know only Metastock Data Vendor.

Thanks once again.

Regards
Karan

 

[scplindia]

Need Devil's advocates again... I hope seniors not finding it offensive when I write "Devil's Advocate". Kindly let me know if this is the case and I will not use this statement...

Back to the business, please see attached chart of ABAN offshore. I think it should give nice return....

~ Apurv

Aban is finding sever resistence between, 900 to 910. It has already made 4 attempts to cross it.

 

[scplindia]

Today Nifty took a shot at 5476. So I was right about first half. Retail money seems to have got interested due to sudden upthrust during last 45 minutes or so. Now let us see what unfolds next tomorrow. If it crosses 5476 for 5525-5530 or starts falling from here itself. One intriguing part of todays sudden upmove was that it happened when Europe & Dow futures were in deep Red. Did Indian market operators knew that Dow will take U-Turn later so the up move or was it a perfect bull trap. We will know tomorrow.

Cheers !!!!

Alok Tewari

Today Nifty crossed 5480, towards the end, at that time FTSE was 1.5 percent in red, the rest of Europe was around 1 percent in red, US fut was also in red. Now at 7.30 PM Europe and US all are in green. How come the indian operators were aware of this real U Turn in world indices.

 

[Apurv7164]

Sir,

Thanks for your supporting reply, all I can say- May God Bless you.

As advised, kindly Recommend the Posiional Set Up you feel is the best for me
I will prefer to Trade in Cash, only Buying with very Small Investments. If possible Metastock AFL For Metastock EOD Charts.

Lastly how much Amibroker will Cost me along with EOD Data and from where I
will get it as I know only Metastock Data Vendor.

Thanks once again.

Regards
Karan

Karan,

I would not suggest spending money on software initially rather spend those on experiments and buying books. You can start with free charts available on many sites online. Once you are sure and confirmed that technical trading is the business you can make money with, you can go ahead and buy it.

But still if you want to buy AmiBroker, you can visit their site online and download trial version. Then make payment and they will send you required details to register your trial version. This is what I did when I bought it.

Regarding EOD data, you can get search on the forum and will find many free data sources as well as paid data vendors also.

Bests,
Apurv

P.S. If you observe my charts, they are many times from online site even if I have licensed AmiBroker. It is just because initially I started with this site and I m still equally loving it so sometimes using it when AmiBroker is not handy. Also it is something like regards for that site where I started from.

 

[MurAtt]

Here's a small conversation I had wid someone ....

MurAtt

I do not follow/track DOW at all ... as of now even don;t know where it is .. above or below 10K ...

Sometimes very helpful .. sometimes backfires ...
So since its a 50:50 .. anyways ... i prefer not to keep track ..

One index is more than enuf

AC

DJ sara duniya ko nacha raha hain

AC

Close Kya hoga maloom neh

MurAtt

Jab 250 gira tab kya apne ko effect hua ....
Toh kya jab 200+ close hoga to kya effect hoga ?

Maybe woh ab hame follow kar raha hai
isliye down se up hone laga jab NF upar aane lagi

AC

Same log ...Dono taraf hi hain

So now you know how a U turn is made ........

Cheers .........