Thursday, November 29, 2012

Nifty pattern targets

In an earlier post, titled "potentially bullish nifty futures" , I had shown a bullish head and shoulder for the Nifty. The pattern targets for this are around 5750.

It seems possible that the futures will touch the target or at least come close enough to it.

Chart patterns will usually work out, and, when they do not, we have our risk management procedures to keep losses small.

My question today is: What happens after a pattern target is met?

Answer to this question will depend on the trader profile, as well as on the strategy developed to trade the pattern.

I will exit once my targets are met. Then, the search is for a new pattern, probably on a lower time frame. If such a pattern is located, my next trade will have much less volume.

But, each trader can have a different approach and all can make money. The market is willing to reward traders who have the discipline and patience to trade.


Dinesh said...

Dear Sir,
I think once the target is met, one should analyse whether it makes sense to initiate a new trade depending on the conditions, market setup etc. If it makes sense to initiate a fresh trade, then continue with the current trade else exit.

Vasant kumar said...

Sudarshan, I am a big fan of you. Today morning I saw you recommending short on NTPC. But, if you have observed the chart carefully, its saying otherway round. On Weekly charts, The chart formed a parallel channel and for the past two months the stock consolidated in the range of 165-175. Now it broke down from the Bollinger band squeeze and suggesting the stock would eventually go and break above the upper trend line where its consolidated. Let me know if you have any inputs. Thanks

Dinesh Rishi said...

Thanks Sir

"The market is willing to reward traders who have the discipline and patience to trade."

Dinesh Rishi said...


When is next seminars scheduled?