Wednesday, February 17, 2010

Spring in the Air

Gains in the American Markets has led to similar gains in India, on Tuesday. It appears that Indian Markets should open higher and are likely to find support on dips.

In our intraday charts, there is a significant pivot at 4950. A close above this point will change the intermediate trend from down to sideways. Since the primary trend remains up, the bias will be on the long side.

Technical Analysis does not say: This will happen. It says, This is the most likely road, given the information available now. Classical TA puts importance to patterns of lower highs / lower lows and the reverse. I  pay lot of attention to these patterns. These are the easiest way to determine a trend, the direction of the trend, and by getting whipsawed - the absence of a trend.


saket said...

Sir this might sound a bit silly but what does quantitative trading systems mean,please explain in short.

Anuj Joshi said...

Hi Sudarshanji
When i started trading initially using technical analysis,I gave a lot of importance to indicators like moving averages, stochastic, MACD and RSI
But recently I changed my approach and began to trade using price while reducing my dependence to indicators.
I have been observing price (patterns of lower highs/ lower lows and the reverse.) and my results have improved massively
I have recently started a blog ,I update my analysis on stocks and futures based on price.

Sudarshan ji is it possible for you to write a post on cycles? you have mentioned about cycles earlier ,in this post

Can you write about cycles in different time frames in nifty or a simple method which can be use to identify a cycle in stocks?
If thats not possible can you suggets a book ,which gives details on cycles?
Thanks for being such great support to fellow traders

SANJEEV said...

sudershan ji, nifty did manage to hold the gap up which was gifted to it by the global markets.... most of the analysts have been saying from the past few days that 4900-4930 is a good range to go short.... what do you think looking at todays price movement, whether most of these people did go short or just kept on waiting? as the volumes were is not suggesting that there has been a big fight among the bulls and the bears.. your comments pls.

SANJEEV said...

sudershan ji,

market was able to hold the gap up which it got in the morning. most of the analysts have been saying from the past few days that 4900-4930 is a good plae to go short... my question is ...why did most of these people did not short the market today... instead every small dip had a very instant buying coming in for support... is market ready to go past 5000 once again?

arvind said...

i am too looking to short nifty but waiting either swing lows to break or any indicator (i.e macd, sts,rsi)on daily or atleast on hrly basis confirms it. or let the nifty to break heigher resistance level to change stretgy. is it right sir?

arvind sahu

Swingtrading said...

Dear Sir,

Another case of misuse of proprietory trading
How Does Goldman Sachs Make Its Profits?
How fair they are to their clients and how they use trading for their own advantages.

Its intresesting to go through this . Its 15 min video in two parts but worth watching.

One more thing. How can a small trader like me living in Mumbai can get access to GUEST LECTURE BY PRESIDENT OF THE AUSTRALIAN TECHNICAL ANALYSTS ASSOCIATION.

Best Regards