Tuesday, May 5, 2009

Trading the Dip

Today morning, I suggested that we could use oscilaltors to identify intra day dips and go long. I had also given a chart. I am giving below a chart with two trading setups today. Both resulted in fairly deent rallies. Traders should plan to exit once a range expansion has taken place.

[Some people have asked me if why there are ads in the blog. These are ads inserted by Google. When a reader clicks on the ads, Google pays a small amount of money to the blogger (me, in this case).]

Now for the 5 minute chart. Ask yourself the right questions: how will I enter ? Where will be my initial stop ? Where is the range expansion bar ? Today's setup worked mainly becasue I was having a view that the markets were in a strong uptrend.


shaq said...

sir,which oscillator is shown in the graph...is it the RSI/MACD...any link from where we can get these live intraday mappings..

vs said...

Your 'trading the dips' using oscillators is interesting. A few queries.
1. Do you need to consider volumes while taking the decision?
2. Is there a good real time source in the open public domain for intra-day volumes at script and group (say an index) levels?
3. In the case of an index (say nifty) what is the importance of Advance/ Decline ratio?
4. Of the two - A/D ratio and volumes - which is of more importance?
5.How will you resolve cases when the signals are contrary to perceived trend?

Thanks and Regards

men said...

Mr. Sudarshan,
How mcuh will the eps of your company go up as you are being paid for the ads. Can't help it as I track the eps of tech companies to arrive at the targets, cheers have a nice trading day.
Sudhin Bathija

men said...

Mr. Sudarshan,
Based on the intraday setup what percent of the set up were you successful in getting, and how do arrive at the entry and exit levels. Also a word on setting the stop loss for the above.
Sudhin Bathija

sano said...


I play very small time option trades - that too in quite OTMs of the Nifty. I buy a small put here and a call there - believe me - this gives me as you say a small dinner at least one time a month in a good PUNJABI Restaurant in Chennai. But what I find here is that Nifty Options do not move about the same way it is written in most of the books on options. I mean there is no proper match between premium and the stike price. At times I see that both the prices are moving against me or for me. Can you guide me to any good books on options, Sir?