iCharts Discussions

[mahson]

NIFTY FUTURE IMPORTANT LEVELS 15 NOV 2011

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MA BAND TREND RESISTANCE : 5252 - 5270



HEAD AND SHOULDER PATTERN NECKLINE

TRADING RESISTANCE : 5185 -5177.



PARALLEL LINE

TRADING SUPPORT : 5122 -5112



FIBO RETRACEMENT [ 50% ]

TREND SUPPORT : 5086 - 5073

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NIFTY FUTURE INTRADAY TRADING LEVELS



NIFTY FUTURE BULLISH ABOVE : 5210

TARGETS : 5271 - 5310 - 5372.STOP LOSS 5186



NIFTY FUTURE BEARISH BELOW 5186

TARGETS : 5124 -5086 -5024.STOP LOSS : 5210

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NIFTY FUTURE POSITIONAL VIEW

NIFTY FUTURE HOURLY CHART NOW FORMING "HEAD AND SHOULDER PATTERN ".NIFTY FUTURE ONCE TAKE RESISTANCE AT PATTERN NECK LINE THEN TAKE POSITION SHORT ENTRY WHO ONE MISS YESTERDAYS POSITIONAL SHORTS.

AS PER PATTERN BREAK-OUT TARGET IN DOWN SIDE : 4858.

POSITIONAL TRADERS KEEP STOP LOSS AT OUR TREND RESISTANCE.

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Trading Signals in head and shoulder pattern

Go short at breakout below the neckline.

Place a stop-loss just above the last peak.

After the breakout, price often rallies back to the neckline which then acts as a resistance level. Go short on a reversal signal and place a stop-loss one tick above the resistance level.



Never trust a head and shoulders pattern where the neckline is clearly ascending (the second trough being higher than the first). Also, the more level the neckline, the more reliable the pattern.

[ongc123]

v nice broo keep it up

[bharatpatel]

Dear Mahson,

Really very nice work done. easy to understand. pls keep posting.

wish u all the best.

Happy Trading.

Bharat

[mahson]

NIFTY HOURLY FUTURE CHART

WOLF WAVE PATTERN

[vinay28]

Can't read Y axis to find target

[mahson]

NIFTY FUTURE IMPORTANT LEVELS 16 NOV 2011


HEAD AND SHOULDER PATTERN NECKLINE

TREND RESISTANCE : 5210 - 5227


TADING WAVE TRENDLINE RESISTANCE

TRADING RESISTANCE : 5150 -5177.



HORIZONTAL LINE SUPPORT AND RESISTANCE BASE

TRADING SUPPORT : 5047 -5040



FIBO RETRACEMENT [ 61.8 % ]

TREND SUPPORT : 5024-5016


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NIFTY FUTURE INTRADAY TRADING LEVELS



NIFTY FUTURE BUY ABOVE : 5125

TARGETS : 5187 - 5225 - 5287.STOP LOSS 5102



NIFTY FUTURE SELL BELOW 5102

TARGETS : 5040 -5002 -4940.STOP LOSS : 5125

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NIFTY FUTURE POSITIONAL VIEW

NIFTY FACING STRONG RESISTANCE AT OUR TREND RESISTANCE AREA,ONCE IF TRADE AND CLOSE ABOVE THAT LEVEL THEN ONLY POSITIONAL LONG MOVEMENTS POSSIBLE.

WHO ONE HOLD NIFTY FUTURE SHORT POSITIONS CAN USE OUR TRADING RESISTANCE AS STOP LOSS .

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Support and Resistance


Support and resistance is one of the most widely used concepts in trading. Strangely enough, everyone seems to have their own idea on how you should measure.



Look at the diagram above. As you can see, this zigzag pattern is making its way up (bull market). When the market moves up and then pulls back, the highest point reached before it pulled back is now resistance.

As the market continues up again, the lowest point reached before it started back is now support. In this way resistance and support are continually formed as the market oscillates over time. The reverse is true for the downtrend.

One thing to remember is that support and resistance levels are not exact numbers***.

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[mahson]

Two Bar Reversal (Bearish)

A Two Bar Reversal (Bearish) indicates a possible reversal of the current uptrend to a new downtrend. This pattern is an indication of a financial instrument's SHORT-TERM outlook. One and two-bar patterns reflect changes in investor psychology that have a very short-term influence on future prices - typically less than 10 bars. Often the immediate effect is trend reversal. For traders looking for clear entry and exit points, these patterns serve well. They are normally not suitable as signals for long-term investors unless viewed as monthly bars.

Description

A Two Bar Reversal is a classic signal of trend exhaustion. When these patterns occur after a pronounced advance or decline, the first bar should exhibit a dramatic continuation of the inbound trend, closing close to the bar's extreme end. The second bar completely negates the first bar, with the open price on the second bar being close to the close of the first bar and the close of the second bar being close to the open of the first bar. Wider trading ranges on both bars denote a more climactic reversal in psychology.




Trading Considerations

Two Bar Reversals can be either Bullish or Bearish depending on the direction of the inbound price trend. If the inbound trend is up, then upon identification of a Two Bar Reversal, taking a short position or selling a long position is recommended. Conversely, if the inbound price trend is down, then upon identification of a Two Bar Reversal, taking a long position or closing a short position is recommended.

The degree that the price bars and volume characteristics match this description will likely have a bearing on the strength of the post pattern price movement. Good trading practice dictates that these signals should not be used in isolation: fundamental data, sector and market indications and other technicals such as support/resistance and momentum studies should be used to support your trading decisions.

Criteria that Support

A persistent upward inbound trend is required; the longer and sharper, the better.

Both bars should have exceptionally wide trading ranges relative to the previous bars formed during the inbound trend.
For both bars, the opening and closing prices should be as close to the extreme points of the bars as possible.

Volume, if available, should be higher on both bars to accentuate the sentiment reversal. The greater the expansion of volume, the better the signal.

Underlying Behavior

Two Bar Reversals signal the dashing of hopes for those traders and investors that had been riding the trend or had jumped on board the especially wide trading of the pattern's first bar. The second bar, by completely reversing the ground made on the first bar, turns the tide of inbound sentiment and replaces it with an equal and opposite sentiment view. Look for an outbound trend period that reverses any gains made in the lead up to the Two Bar Reversal.

[mahson]

NIFTY FUTURE IMPORTANT LEVELS 17 NOV 2011

HOURLY CHART MA BAND

TREND RESISTANCE : 5186 - 5202



BREAK DOWN TRENDLINE

TRADING RESISTANCE : 5131 -5145.



DOWN CHANNEL PATTERN

TRADING SUPPORT : 4961 -4948



HORIZONTAL LINE SUPPORT AND RESISTANCE BASE

TREND SUPPORT : 4891-4875

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NIFTY FUTURE INTRADAY TRADING LEVELS



NIFTY FUTURE BUY ABOVE : 5048

TARGETS : 5099 - 5131 - 5182.STOP LOSS 5028



NIFTY FUTURE SELL BELOW 5028

TARGETS : 4977 -4945 -4894.STOP LOSS : 5048

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NIFTY FUTURE POSITIONAL VIEW

NIFTY FUTURE IF TRADE AND HOLD ABOVE OUR BUY TRIGGER POINT THEN BOOK 50 % SHORT POSITIONS HERE BALANCE HOLD WITH YOUR SHORT PRICE AS STOP LOSS.

WHO ONE BOOKED POSITIONAL SHORTS CAN TAKE FRESH SHORT POSITION ONLY BELOW OUR INTRA SELL TRIGGER POINT.

NIFTY FUTURE TRADE AND HOLD BELOW OUR TRADING SUPPORT LEVEL THEN FRESH BREAK DOWN TARGET 4602.

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Breakdown


What Does Breakdown Mean?

A price movement through an identified level of support, which is usually followed by heavy volume and sharp declines. Technical traders will short sell the underlying asset when the price of the security breaks below a support level because it is a clear indication that the bears are in control and that additional selling pressure is likely to follow.


Investopedia explains BreakdownTechnical tools such as moving averages, trendlines and chart patterns are the most common methods for technical traders to identify strong areas of support. The chart above shows that a trader will enter into a short position when the price breaks below an area of support (the thick dark line), which has been identified by using a head and shoulders chart pattern.


A breakdown is the bearish counterpart of a breakout

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[lambuhere1]

Love the educational analysis sirji

[mahson]

Gaps To Capture

[mahson]

The Formation of Bearish Pennant Pattern



Bearish Pennant pattern is usually preceded by a very steep (almost vertical) decrease in price on heavy volume. This steep price decrease makes the “Flagpole” of the pattern.
The sharp decline in price may occur due to negative market sentiments toward unfavorable events / developments, such as negative earning surprises, downward guidance, fraud / court cases, etc.

After the sharp decrease, the price movement is then contained within two converging lines (wide in the beginning and narrowing as the pattern develops), forming a small symmetric triangle / “Pennant” shape, on decreasing volume.
The slope of the Pennant is usually neutral.
This pennant represents a brief pause / consolidation in the midst of a downtrend before resuming its downward movement.

The completion of the pattern occurs when prices break to the downside through the support level (i.e. lower ascending line) of the Pennant with a spike in volume. This would mark the resumption of the original downtrend.

The Psychology Behind Bearish Pennant Pattern
A Bearish Pennant pattern takes place because prices seldom decline sharply in a straight line for an extended period. Hence, during a sharp price movement, prices will typically take brief pause periods to "catch their breath" before continuing their move.

During the 1st stage of the Bearish Pennant pattern (Flagpole part), as a result of negative market reactions toward some unfavorable events / developments (e.g. negative earnings surprises, downward guidance, etc.), prices keep on dropping sharply as nervous sellers and new short sellers who were caught-up in the euphoria at that moment, are willing to sell at even lower prices.

As the prices drop, some early sellers who have sold short the stock at higher levels would begin to cover their short position. In addition, some investors might also start bargain-hunting. At this point, the 2nd stage of the Bearish Pennant pattern begins (i.e. the Pennant part).
At first, most of the stocks bought by the early sellers were easily absorbed by nervous new sellers, since the news and market sentiments are still very negative. Nevertheless, as time passes, the selling pressures subside and prices begin to consolidate on a decreasing volume.

After some time, new negative news come out. As a result, the price begin to collapse again and break out through the lower line of the Pennant with a surge in volume, as new sellers now overwhelm those bargain hunting.
In the following days, there might be some more unfavorable news / comments or less optimistic earnings forecast coming, leading the prices to drop even lower.

[vinay28]

Ready for a fall, final one, I hope, for the month

[vinay28]

Waiting for 4948 to enter long

[lambuhere1]

Beautifully explained. Liked it.

[satishkadam]