iCharts Discussions

SwingTrader

Please see the attached NF 5 mins chart today with iCharts levels (as of 11:50 AM). The reason for posting this chart is to explain what to look for when price opens far away from the key sup/res bands - BULL-R1 / BEAR-S1. Today NF opened at S5, got supported there and rallied immediately. NF is now in the BEAR-S1 band. How price reacts to the strong resistance here is important. If it breaks through BEAR it is bullish, a reversal from here will be very much bearish.

Yesterday & day-before-yesterday too were similar and the trading strategy would be the same - if price is too far away from the key bands then trade for a move in the direction of a key band as price will tend to go there. Once price is near a band watch out for a breakout or reversal for further trend confirmation.

vinay28 · Black Belt Joined: 24 Dec 2010 Posts: 11748

Thanks a lot for such example. How did you calculate (obtain) various bands? Please explain.

vinay28 · Black Belt Joined: 24 Dec 2010 Posts: 11748

Even as I wrote it made a high of 5107.90. What is the permissive deviation from S1, reversal from which still indicates bearish trend?

vinay28 · Black Belt Joined: 24 Dec 2010 Posts: 11748

Sorry, not from S1 but from Bear line (5107)

SwingTrader · Posted: Tue Aug 09, 2011 12:20 pm Post subject:

vinay28 · Black Belt Joined: 24 Dec 2010 Posts: 11748

Thanks ST. When you say break below S1, is it even if it goes well above 5107 intra-day?

SwingTrader · Posted: Tue Aug 09, 2011 12:28 pm Post subject:

SwingTrader · Posted: Tue Aug 09, 2011 12:32 pm Post subject:

Price right at the point from where it reversed yesterday (in terms of levels, not price. it reversed y'day from just below LOC).

vinay28 · Black Belt Joined: 24 Dec 2010 Posts: 11748

Thanks but sorry for harassing you since questions keep on coming in my head. Also, sorry for what you think as stupid questions. e.g what is LOC? Also, is what you have said for today only or its it even if it breaks on lower side tomorrow or later? This is because you have posted today's intraday chart.

SwingTrader · Posted: Tue Aug 09, 2011 12:42 pm Post subject:

Well....well....well....NF in BULL-R1 band. What a move!!! Major resistance here in BULL-R1 band. A break above R1 can be very bullish....of course, watchout for fake moves here. A reversal from here will be quite bearish in the near term.

SwingTrader · Posted: Tue Aug 09, 2011 12:45 pm Post subject:

vinay28 · Black Belt Joined: 24 Dec 2010 Posts: 11748

Thanks for the support from you and others like Casper who have never hesitated to respond to my queries. My problem is that it is too late in the day to study TA, FA, etc. and have to depend on spoon feeding, although I am a young boy trapped in an older body. Wink

But I never miss reading each thread and post and try make some sense of it.

SwingTrader · Posted: Tue Aug 09, 2011 1:02 pm Post subject:

NF reversed from BULL-R1, now watch BEAR-S1 very closely as this band is now a significant support. If NF manages to stay above R1 then we may see higher prices. If NF breaks below S1 then it is a quick ride down Very Happy

vinay28 · Black Belt Joined: 24 Dec 2010 Posts: 11748

It just broke S1

SwingTrader · Posted: Tue Aug 09, 2011 1:29 pm Post subject: