Friday, February 19, 2010

Resistance holds on

On the Nifty charts, we have 4950 as a pivot point. This level is part of the lower highs pattern. In order to break the current downtrend, two events are required. 1. The Nifty should make a pattern of higher lows. This has been done. 2. The Nifty should have a pattern of higher highs. This works out if and when the Nifty moves above 4950. Over time, these numbers will change.

The trader can classify the current trend as sideways (one of the two patterns for an upmove are in place) or down (higher highs not made).

In either case, a sign of weakness is a selling opportunity. Keep proper stops.

WIll the markets trend, or will the remain choppy? The trader has to answer this question every day. If there is a trend, apply trend indicators / simple price analysis. If you sense a choppy market, use oversold-overbought indicators to enter and exit.

Trading requires practice, lots of it. It becomes easy when you have done the same thing a thousand times.

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If you are a member of the ATA, you will have access to a recording of the presentation made by Robert Grigg, presidnet of the Australian Association of Technical Analysts, which is scheduled for Saturday Feb 20, Please visit http://www.taindia.org/ for more details.


Have Fun!

6 comments:

men said...

Mr. Sudarshan, you have said ". The Nifty should make a pattern of higher lows. This has been done. 2. The Nifty should have a pattern of higher highs. This works out if and when the Nifty moves above 4950." if the above conditions are met ONLY ONCE, is it good enough for the trend to carry on unless broken, or should wait for a confirmation for 2-3 days.

Regards,

rajamani said...

Trade requires practice,a lots of it. True words.

sunita said...

Hello Sir,
Gourav here hope you remember me.
You say "Trading requires practice, lots of it. It becomes easy when you have done the same thing a thousand times."

So can we say someone who has been trading say for 10 year because of experience money will eventually come to him.

Expecting to hear from you in your next blog.have a happy weekend.

Regards
Gourav

ANAS said...

Respected Sir, I have written to you many times but unfortunately, I wasn't lucky enough to win your attention. My previous query remains the same. (about Dow Theory.] My next query is , ''is nifty making a making an ASCENDING CONTINUATION TRIANGLE on WEEKLY charts , from may 09 till date.??'' I request your kind comment. Thank You.

TOOCOOL7610 said...

sir

i think on friday it is now confirmed that nifty will not be able to goto 4950 infact a continuation of downturn has started which would take nifty to 4000-4200 levels in several days (BASED ON ELLIOTT WAVE ANALYSIS)please post your views sir

thanks

Gaurav Verma said...

Hello Sir,

I have asked many queries earlier but I wasn't lucky enough for your attention.

I need one suggestion,I am in software Industry and I have developed a software that compares cash and future prices and tell the difference in that.Also this software compares 400-500 stock Prices per minute.

Is this software useful for arbitrage trading in current trading environment or I am behind the current technology used in India.

Sir,Please reply for this.Its very imp for me.

THanks
Gaurav