Monday, April 27, 2009

PreMarket views for Monday Trading

What I know at 7:22 AM
The American markets closed higher on Friday.
Asia is slightly up. The SGX Nifty is almost flat, at 3475. There is no news flow as of now that will become the central theme of today's trading.
The trend is UP. Above 3500, there is another breakout.

But Nifty could simply drift throughout the day. The 15 minute rule may be appropriate if prices breakout after a period of consolidation. A second method for tracking today's market is to use a momentum indicator on five minute charts. Take mometum buy signals near the lowest ranges of the oscillator ("oversold") and exit near the high ranges ("overbought").

The two suggestions will work only for traders who follow these ideas regularly. They get practice and understand the nuances of the market place. If you do not have years of practice, then get that practice, by trading in smallest possible volumes, and, trading with discipline day after day.

4 comments:

sandeep said...

PRECISELY SAID SIR

Pankaj Pandekar said...

Dear sir,
My observation is that the 15min rule works good when the market is not volatile. How can a trader identify if the market is turning volatile? The rule did not work for friday's market so it was better to sit outside on friday. Is there a way to identify that the market is volatile in the first 15min and then take a call on whether to be in the market or sit outside.

Abby said...

Sir,

Are we seeing a flag in Reliance Industrial Infra, which gives a target close to about 1250 post breakout above 730?

Regards
Vipul

CHANDU said...

Hello sudarshan ji wonderful analysis,if u can explain how to read five minute chart and what time frame we have to choose it will be helpful.

thank you once again