iCharts Discussions

[krishnalko]

Friends
I had posted my method of understanding the market in simple way on well known technical analyst sudarshan sukhani ji blog *** LINK REMOVED BY ADMIN ***.
He also liked the idea and also approved it on a broad basis & also suggested some refinements.
I am sharing the same here to seek further refinement from the friends at icharts.

here is this-
Dear Sir
I have learnt a lot from your blog.I thank you from the core of my heart for this selfless service to help retail traders like me in refining the skills.
As a retail trader I use just one simple funda for managing my trades.
First of all I decide my time frame before starting a trade.
I mean I must know that I shall watch & manage this particular trade on monthly/weekly basis.
Then I use previous close(monthly or weekly) as reference for my entries.Logic is simple that if a monthly or weekly candle is turning green or red then react & go with it....why to unnecessarily speculate..?? If the candle will chane its colour...I shall reverse my trades accordingly..
and to finally exit the trade I allow that particular candle to close..i.e. I shall hold the position for full weak or month or whatever is my time frame..
So I can say that yearly close for nifty spot was 2959.15 and so the yearly candle is RED and so market is clearly weak..I can use this reference for investment also like in mutual funds etc because normally most MF will show the positive return only if index itself shows the positive return by the end of year i.e. yearly candle for index closes in green. And no point in going for bottom fishing etc..I shall buy a bit costly (when yearly candle is green)so that I know clearly that what I am doing with my money..
Moreover this system puts me in the direction of right trend automatically..because if yearly(or any other time frame) candle for any stk or underlying in my portfolio turns into red..I shall drop it from the portfolio to protect my capital and can diver the same money in assets like GOLD ETFs (if they have green candle & give me entry)...and yes I can build portfolio for short terms also with this method..say monthly portfolio or combo portfolio etc..and with a little management I can sell at high and cover at low and if I reinvest my profits then I can build wealth brick by brick as suggested by you.
And for doing all this I just need data(quote) as that is sufficient. Need of very advanced charting skills or dependece on lagging indicators or speculative theorems & their targets/SL is eleminated.
I finally request you to kindly comment/correct/modify this method so that I can further refine myself in the art of investing.
regards

For sukhani ji response on the matter please visit-
*** LINK REMOVED BY ADMIN ***

I am keenly looking forward for further comments/critics/suggestions from my friends on icharts.
Regards

[vinst]

KK,
can you pls send the links to me

regards,
vin

[rksharma1091]

Thanks for your trading idea for positional traders.

[krishnalko]

I feel it is equally good for intraday traders. The only thing required is that you decide your time intraday time frame for trading and stick with it and do not get carried away.
Since intraday trading requires quick decisions to be made so access to intraday charts is helpful.
For instance one can easily use color of hourly candle as reference for intraday trading.
Thos who do not have access to intraday charts can look to intraday data provided on NSE site with the time of trade marked with it. This also gives an idea of where the market is moving in reference to previous hour of trading.
Somehow I have sometimes experienced that data provided on NSE site is not the real time and has a lag. This must be kept in mind.
regards

[mayurnsk]

krishnalko hi

I read your post.. the idea is really good and simple as well as less stressfull. Infact i suggest to newbies to follow it . And lazy traders too. Its beautiful strategy.

Mayuresh Jahagirdar
Nasik
Maharashtra