Tuesday, January 24, 2012

Stay with your time frame

My earlier post evoked a number of comments. many thanks for your thoughts. Since trading is more of an art it is possible for many of us to have different ideas to reach the same objective (profitable trading).

Once a pattern target is met, I believe it is wise to stay with the timeframe and wait for new patterns to emerge. While 'taking a rest' seems like a good idea, the hitting of a pattern target is not a stressful event that requires subsequent rest.

For the Nifty, the pattern that has triggered is visible: the Index has crossed 5100 which was a significant pivot high. New highs are bullish. Buying new highs also carries risk because a failure can mean the trader has bought at the top. But that is the way I trade: go with the trend. The trend is up, so look for opportunity to go long. Crossing a previous pivot high is such an opportunity.

7 comments:

ajith2020 said...

hi sir,
trend is looking bullish but looks like everyone trade with caution.

regards
ajith
calicut kerala

Pratik Mukasdar said...

Sir on the Weekly charts if a Trendline is drawn from the 6300 top it comes at 5140,the 50 Week EMA is at 5142 which is our today's high if profit booking starts i suggest supports are at 5000,4960,4930...and fibonacci retracement 50% is at 5153 and 38.2% retracement is at 4850 ....Sir if i have done any mistake in my analysis pls pls pls tell me ...i wud be really Happy....thanks

rocky said...

respectes sir i was long @ 4854 and cut nifty 5145. now as per ma analysis i can go short with s/l of 5170. is it fair deal waitin for reply...

Rajesh said...

Dear Mr. Sudarshan, I have been day trading since a while now and failed to get the timing right on plenty of occasions. Technically there is no rocket science to this but the psychologically a trader must have the will to stick to his technique no matter what he hears on TV. He must stay out and watch when his indicators are not showing great risk to reward ratios, its ok to miss a few opportunities making profit, but in the process we avoid every major loss. It is easier said than done, but this I have learnt it from you. Wish you much success and continue you passion for sharing knowledge.

Regards,

Rajesh, Bangalore.

Ashish said...

Sir, according to fib exp. my first target comes at 5246 & 2nd at 5396 i.e. 61% & 100 % respectively.I sit right? Also can you pls suggest some brokerage plans for F&O-good & cheap without d hidden costs!

Regards.
Ashish

Naran said...

Dow Jones near 12 months high.Closed above 8 months high!!!!

Avijeet said...

Sir
I follow daily data for long , if 60 min data enter in negetive, can I exit from my long position or hold for daily data to negetive?

Regards
Abhijit Patra