Wednesday, June 20, 2012

Is there a bull on the highway?

The classic definition of an uptrend is : higher highs and higher lows, holding of support levels, declines are shallower as compared to rallies.

So far, the up move from 4800 has broadly met these parameters. To me, these are signs of a change in trend from bearish to bullish.

With a lot of news around us, markets will not go up like a rocket. The up move may be filled with volatile movements. It is also possible that  markets may not go up. To take care of this eventuality, traders must have an exit strategy. For me, the up trend fails if the Nifty closes below 5000 - 4950. This is the broad area below which I accept that the up trend is no longer valid.

Analysis is one part of trading, it must be converted into actionable ideas. My plan is to focus mainly on long positions. Dips and breakouts.




5 comments:

Jitender Yadav said...

Respected Sir

Though there are many traffic jams on the way ahead, a bull is certainly being sighted on the highway, also being sighted are many proverbial deers (confused novice traders ) dazed by the headlights (headlines).

Your fan
Jitender Yadav

Nikhil Dalvi said...

I totally agree, this might be start of another bull market.

Rajveer said...

Sir, What time do you wake up in the morning and what time you go to bed? Time table is also important for a Trader? Please suggest your ideas?

gourv said...

Dear Sir,

You have advised to go long on market bu buying options ahed of big news.So days like today ahead of the FED meeting I bought 5200 call option.In this case which is right buying in-the money(for this case 5100)or one out-of the money(in this case 5200) call option.

Awaiting for the answer?????

Regards
Gourav

ANKIT BIGUL said...

Its always our nd my pleasure receiving ur comments..am a trader and constanly take update frm ur news in tv and daily visitor of ur blog..U r comments have always been useful to me in both making profits and gathering knowlege..Recently i bought ur book and super like to it, has been very helpful
Please sir be a regular updater to ur blog and nifty strategies..When you dont update ur blogs smtimes feels little sad, Ur daily updates in ur blog is like my mrng newspaper nd coffee thjt i cant miss.
Have d biggest dream of meeting u smday and touch your feet.
Loads of love nd respect and wish for ur great health always.