iCharts Discussions

SwingTrader · Posted: Wed Aug 11, 2010 3:46 pm Post subject:

Dilesh,

Here is better explanation of what I posted below:

The red circled areas are all where shorts could have been initiated. They where not standard sell/short signals but I automatically look for these areas which give a clue to "who is in control - bulls/bears?" question. Price action around key moving averages & confluences of moving averages, levels & price are what I keep looking for and initiate my trades around these. Stuff like this is a bit difficult to explain as fixed/rigid rules can't be spelled out for these.

Do experiment with your own stuff like using these levels with your indicators like oscillators being in overbought area and price breaking down after hitting a level, divergences being confirmed by price breaking above levels etc etc. There is no limit.

I hope over time these examples posted will make things clear. Any doubts, please just ask.

SwingTrader · Posted: Wed Aug 11, 2010 3:53 pm Post subject:

One more important point:

90% of the time one of the following two things can happen:

1. Market (or any scrip) opens within a band. In this case things are clear. Wait until the price moves out of the band firmly. That is the near term direction and the trade to take.

2. Market opens between the bands - between bull & bear around loc like today and few recent days. In this case other tools like EMAs have to be used to gauge the flow and go with it.

There is that other 10% remaining. Market/scrip can open way beyond the bands, maybe somewhere around R3 / S3. Market can continue their trends from here or reverse. Usually breakout/breakdown of levels have to be monitored for such cases and trades initiated. During such gaps, make sure no indicators are used as they are of no use.

dilesh · White Belt Joined: 09 Aug 2008 Posts: 73

ST Sir,
Very kind of you to explain in detail with chart. Actually I did trade the initial short near LOC and covered at BEAR. I was never comfortable to short near BEAR. Now understood the points you explained very well.
Thanks a Ton for your levels, strategies & great support!

Regards,
Dilesh Very Happy

SwingTrader · Posted: Thu Aug 12, 2010 9:03 am Post subject:

NF & BNF have both opened within the BEAR-S1 band. Now a break on either side of the band will indicate the near term direction.

SwingTrader · Posted: Thu Aug 12, 2010 9:36 am Post subject:

As of now it looks as if BNF is going higher as it is now above BEAR. If it can stay above BEAR for little while, we can see it testing LOC & BULL.

NF is lagging behind...still in BEAR-S1 band.

dilesh · White Belt Joined: 09 Aug 2008 Posts: 73

hi ST Sir,
Currently SBIN faced Resistance of EMA 89 and R1. So we wait for it to break BULL level to open Shorts. Hope I am following correct.

Regards,
Dilesh

SwingTrader · Posted: Thu Aug 12, 2010 10:10 am Post subject:

SwingTrader · Posted: Thu Aug 12, 2010 11:03 am Post subject:

Market stats are currently neutral, this can go either way. Watchout for the 89 EMA and levels above, the resistance can be significant. If these can be cleared, only then a major upside move may be possible.

Sorry...I will be out for the rest of the day....too tied up.

Requesting people following this topic to post their ideas/experiences with icharts levels here.

Catch up with you all later. bye.

dilesh · White Belt Joined: 09 Aug 2008 Posts: 73

ST Sir,
Did a good trade in BANKNIFTY-1M. From BEAR to LOC.
Posting the chart herewith. Pl. send your comments.

Thanks,
Dilesh
Very Happy

SwingTrader · Posted: Thu Aug 12, 2010 8:31 pm Post subject:

SwingTrader · Posted: Fri Aug 13, 2010 9:19 am Post subject:

NF & BNF in BULL-R1 bands. It is clear cut....if they break above R1 there can be a significant move up, a break below BULL is bearish to sideways until LOC/EMAs are broken to the downside. Once LOC/EMAs are broken, there can be a significant move down.

SwingTrader · Posted: Fri Aug 13, 2010 9:48 am Post subject:

Currently market stats are totally one sided : Bullish. NF now should not fall below BULL...it will be bullish until this happens. BNF has already hit R2, it is very bullish.

Market Stats:

BULLISH : 140
SIDEWAYS WITH BULLISH BIAS : 47
SIDEWAYS : 130
SIDEWAYS WITH BEARISH BIAS : 12
BEARISH : 17

SwingTrader · Posted: Fri Aug 13, 2010 11:51 am Post subject:

I like days when it becomes effortless like today...at least up until now Very Happy

Market Stats:

BULLISH : 240
SIDEWAYS WITH BULLISH BIAS : 38
SIDEWAYS : 68
SIDEWAYS WITH BEARISH BIAS : 7
BEARISH : 15

dilesh · White Belt Joined: 09 Aug 2008 Posts: 73

ST Sir,
Thank you for your reply yesterday regarding BNF. It has motivated my thought process. Nowonwards I will booking part qty. at first level and trail stops for balance qty.
Currently ONGC consolidating above R1 since a long time should move up. Would like to know your view regarding it.

Thanks & regards,
Dilesh Very Happy

SwingTrader · Posted: Fri Aug 13, 2010 12:25 pm Post subject: