men asks "Why no updates, hope everything is ok"
My Notes: Thanks for the concern. I appreciate it. Everything is ok.
The markets are a wonderful being. Often, they behave almost in a textbook pattern. A sudden, sharp dip to 4550 brought the Index to the 4500 - 4550 zone we discussed earlier. What should be the enxt step? The market should provide a test of the lows. This happened today, when the Nifty suddenly fell to 4600. IIn the process, a small but visible bullish head and shoulder pattern was made in the hourly charts. The neckline was broken at 4700 approx - the point at which we should go long. (We did!). The pattern target is 4850 approx.
Is this the real thing?
The question can be reframed thus: Will we see new highs again? The answer is: why worry about a future event. Focus on the present. The short term trend is up. Go with the flow.
If someone does not track the hourly chart, what is the signal that the markets are showing strength ?
Krishna says "You had wrote in the last article
"The first sign that the market has bottomed out will come when w have a higher low, bullish candles, for more than one day. You have to wait."
We have got two green candles..is it a sign of market bottoming out?"
My Notes: The asnwer is yes. Sinc the primary trend is up, the last two days tell us that the Nifty is showing signs of strength.
dineshrishi asked about articles on arbitrage. I am not into the study or trading of arbitrage opportunities. have you trie to do a google search. It is my impression that the Markets and Google can do anything!
Jazz asks: "plz let me know the merits of becoming a member of Association of Technical Analysts. why should i choose this and not something like MTA or CFT ????"
My Notes: CFT is not a technical analysis association, so we can let it be. Now between the MTA and ATA, MTA is a society located in New York. ATA is located in New Delhi. Both offer certification exams. To retain your certification, you have to remain a member of the association. Annual membership of the MTA is $300 (Rs 15,000/-) while it is Rs 2,000/- for the ATA. The MTA is not associated with any international organization, while the ATA is part of IFTA (International federation of Technical Analysts).
The first exams of the ATA will be held in end december 2009. I strongly urge readers to take the level 1 exam.