iCharts Discussions

NittinP · White Belt Joined: 23 Sep 2012 Posts: 48

Hi ST,

Looking at the breath market chart, can we deduce anything??

Can this can be used as indicator along with other techincal indicator.

Example: Looking at attached breath chart, I can conclude that whenever short term and medium term co-inside, market takes reverse turn..

Your expert advice will be highly appreciated..

Thanks,

NP

SwingTrader · Posted: Wed Oct 31, 2012 7:31 pm Post subject:

SwingTrader · Posted: Wed Oct 31, 2012 9:36 pm Post subject:

NittinP,

An example of how I am using the breadth chart:

The main line I focus on is the short-term RED line. I will talk about the most recent signal using this chart. The short-term red line went above +80% on 10.09.2012 (almost immediately after NF started to rally after completion of the Aug end pullback. One would watch the line daily and start to look closely at the NF chart/indicators once the red line rolls down below 80% indicating possible weakness and a coming down move. The line went down below 80% on 05.10.2012. The added bonus was that medium term breadth line also was above 80% so one would want to ride with the down move just in case medium term breadth also turns down taking market down for a deeper pullback (which is what I have been hoping for). After 5th Oct onwards one would watch the NF chart (in my case 60 mins one) for a breakdown. If I was trading this down move I would have bought ITM puts or put spreads or shorted NF on 9th Oct or after that (after simple EMA 13/39 crossover down on 60 mins chart). The sell is still in place and the red line today has gone below -80% so one would monitor the NF 60 min chart from tomm for possible trend turning to the upside to initiate a bullish trade.

The above is almost exactly what I am doing in a separate account using small positions as part of live "forward testing" of this timing strategy (the only added complication is that I am using options sentiment also but it is not necessary). I will let you know what I find later after I have trade few turns with the breadth chart.

The medium-term blue line has larger implications, we'll discuss later...

NittinP · White Belt Joined: 23 Sep 2012 Posts: 48

Hi ST,

Excellent analysis..

I believe in keeping things simple.

So assuming I am Positional Trader who executes trades not more than 4 trades a month, this breath chart will add value to overall analysis.

As you are already forward testing this with Time frame of 60min, Let us all know your findings.

Keep GOING... You are doing great JOB... AEOM

... KEEP GOING

We will develop consistent trading strategy using this as a additional confirmation point...

Warm Regards,

NP

SwingTrader · Posted: Thu Nov 01, 2012 12:36 pm Post subject:

SwingTrader · Posted: Sat Nov 03, 2012 10:35 pm Post subject:

Options sentiment continues to be in sell mode despite the gap up move. The on going correction would be in question if NF closes a day above 5757 (9th Oct day high).

Short term market breadth is cycling up as medium term breadth is on the verge of rolling down. It will be interesting to see if medium term breadth keeps going down from here. This would indicate underlying weakness and would clue us into the next significant move. For now we'll have to see where this short-term breadth cycle takes us.

druzva · White Belt Joined: 26 Oct 2010 Posts: 47

ST sir, agree market is doing system cleaning ( constipation Niwaran) since last 3 months . Now big move is going to come post Bihar ( US ) election any time. Let us see when Very Happy

SwingTrader · Posted: Sun Nov 04, 2012 6:20 pm Post subject:

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SwingTrader · Posted: Mon Nov 05, 2012 9:32 am Post subject:

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