I agree with you guys my only concern is that Nifty closing below 4860-70 levels. If you see from the low of 4766 and connect the lows..nifty has been making lower lows which is correct even today but the close just fell below the new uptrend line started on the 28th Jan. Also if you see Fibonacci project levels, from the lows of december to the Highs of January, we should have closed above 4900 to test the new F_level, however my system signaled a buy on 29th Jan I am still unsure about the validity of that signal as market went up after that but has fallen too. I was expecting a correction to the range of 4870 but it closed well below that which concerns me a bit. If you see for example Dow gave a buy signal with a close above 10170 which I have been saying is a massive support for God knows how long. Yesterday it tried to go down but it found strong support at 10250 which was entry point of the bulls. I am not able to see that confirmations on our index.
Trading with Volume Spread Analysis (VSA)
- Thread starter bunny
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there are two things to understand bro
first, you can not draw the trend line within such short duration of candles; in that case you will always have to amend or change it. Trend line is to be drawn when we have seen some significant upmovement, and thereafter the correction or decline is to be connected.
second thing is there are lot of highly qualified and well equipped traders who are in the market. The only thing they are best is in cutting the stoplosses, whether be in down side or up side. Today move is just to cut the stoplosses of those who were long with usual and well known technical triggers.
If you find it confusing now, just waist for 2-3 sessions; and you will be able to see it
first, you can not draw the trend line within such short duration of candles; in that case you will always have to amend or change it. Trend line is to be drawn when we have seen some significant upmovement, and thereafter the correction or decline is to be connected.
second thing is there are lot of highly qualified and well equipped traders who are in the market. The only thing they are best is in cutting the stoplosses, whether be in down side or up side. Today move is just to cut the stoplosses of those who were long with usual and well known technical triggers.
If you find it confusing now, just waist for 2-3 sessions; and you will be able to see it
Finally some support for both Bunny and adultvish. What you are saying also makes sense in regards to today's buy and sell values of FIIs and DIIs a second consecutive day of money inflow although today it was very small around 90 crores worth of net-buying from the two combined. FIIs were net sellers in the cash market today to the tune of 155.38crore on the other hand DIIs were net buyers to the tune of 241.39 crores. Still waiting for the F&O positions. Check this in a bit to see the F&O update too.
NSE gives the following figures for today.
Traded Value (Rs. Crores) 13075.97
1. I want some help in understanding this. Does the traded value mean Buy+sell? Is that the turnover? Then the total turnover of institutions adds up to 6000 crores. Since the institutions are supposed to make up 90%(is this assumption correct?) of the TO, here we find them contributing to only 50%. Is the balance 50% retail?
2. Since smart money has only bought and sold 50% of the trades today, how do you make out who sold and who bought the rest?
3. It is not true that the FII and DII act as a cartel. So when Smart Money A is selling if Smart Money B is buying, how do you know what SM is doing at the end of the day?
4. The assumption that SM is always making the correct moves is not true is it? Stories of big funds collapsing due to wrong bets are strewn all over. So how safe is it to follow the SM movements and take trades?
There was no activity at all on the VSA front and I am glad Bunny took the imitative and others are contributing positively to it. Though difficult to understand stuff like hidden strengths and weakness, it is educative and hope to learn something here.
Traded Value (Rs. Crores) 13075.97
Code:
Inst Buy Sell Net
FII 1730.04 1885.42 -155.38
DII 1451.51 1210.11 241.39
Total 3181.54 3095.532. Since smart money has only bought and sold 50% of the trades today, how do you make out who sold and who bought the rest?
3. It is not true that the FII and DII act as a cartel. So when Smart Money A is selling if Smart Money B is buying, how do you know what SM is doing at the end of the day?
4. The assumption that SM is always making the correct moves is not true is it? Stories of big funds collapsing due to wrong bets are strewn all over. So how safe is it to follow the SM movements and take trades?
There was no activity at all on the VSA front and I am glad Bunny took the imitative and others are contributing positively to it. Though difficult to understand stuff like hidden strengths and weakness, it is educative and hope to learn something here.
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The reason why I use DIIs and FIIs is the amount of money flowing in the stock market. My justification for that is that the more positive the money inflow the better it is for the stock markets as it will expand. Traded value means total volumes of stock multiplied by the average price gives us the total traded value for the day. This information is only half correct you need the details for both the cash market as well as the F&O markets. They might be buying in cash market but selling Futures thus hedging themselves completely. If the overall movement in both markets is positive the market should behave positively. The reason why I believe its a good estimate is one or two funds of institutional investors may go wrong but not all. The most surprising thing is although the NSE website quotes positive inflows for the past 2 days. Yesterday CNBC was on about negative inflows and said FIIs had been taking money out at a great pace(this was yesterday afternoon) however when the data from NSE website was taken this found to be completely untrue. No idea why such a reputated channel would do something like this. This is obvious fraudulent information provided to the viewers.
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