iCharts Discussions

[RKM]

Hi SH,

Thanks a lot for your reply. It helps when your doubts keep getting cleared. Will probably come back with more later!

Thanks again! Now, who can explain to me why Nifty opening levels are always almost the same as the previous day's closing levels even when we know that there has been a massive gap opening like today or on Monday 6.04.09? And how reliable are the pivot calculations based on such obviously incorrect values?

Cheers,
Makhijani

[saikat]

hi Makhijani,

1. NS opening is compromised level.... Don't pay attention to that.
2. Does Pivot calculation takes into account Opening?? NO - so no question of incorrect levels. Neither does CAM formulas have anything to do with Opening.
Instead of NS You can also use H/L/C of NF to calculate pivot /R/S values....


Reagrds,

Saikat

[RKM]

Hi Saikat,

Thanks for your comments. I have still a lot to learn before I stop losing in trades. I am also trying to figure out what certain abbreviations mean (eg. 60 min T.F.). Regarding my pivot level question I should really have asked about Fib. retracement levels starting from a bull day.

I do calculate the pivot levels for NF also, but I find that usually the NF does not go beyond the high or low of NS, even if it is trading at a premium and that is why I have been relying more on the NS levels.

Thanks again! More views are welcome!

Best wishes,
Makhijani

[amitkbaid1008]

The abbreviations you are talking is not much difficult to understand. 60 min T.F. is just mean 60 Minutes Time Frame used for charting purposes.

Regarding Futures and Spot of NIFTY, I too prefer NIFTY SPOT or CASH rather than NIFTY Futures as per my simple logic:- Whatever premium or discount NIFTY Futures fetches is immaterial as it derives values from underlying NIFTY SPOT.

Open Levels of NIFTY SPOT are compromised and so are Close Levels and that too not only for NIFTY SPOT but all SPOT or CM Quotes and NIFTY. When one can use Close Levels for calculation purposes what is harm in using so called compromised Open Levels. Also remember that Close Levels are used for EOD (End of Day) Charts inspite of these being adjusted or compromised levels.

Regarding calculation of Pivot Points everyone use different formulas. You must note that Woodies Formula for calculation of Pivot Points used Opening Values too.

[RKM]

Hi Amit,

Thanks for your clarification about 60 min T.F. - now it seems so obvious! Thanks also for your other comments.

Cheers,
Makhijani

[caprimannu]

Dear SH,

Although your strategy looked good but i mapped it back to the charts for the Year 2007 and sorry to say that the strategy would have made good amount of losses if followed.

Still useful though.

-Maneesh.

[Stockhunter]

[RKM]

Hi SH,

Long time no interaction! I was going through your topic once again and now I am back with more queries -

1. Am I right in understanding that on days when the price gaps away from the 3 EMA in your favour, one can /should book profits but NOT reverse? Reversal should only be done when the and 15 EMAs crossover each other?

2. For pyramiding do you advise a larger position on initial entry into say longs or shorts, and adding a smaller number on each add - eg. initially 4, and the 3 and then 2? Or is it OK to add the same number as done initially?

Hope to get some light on this.

Best wishes,
Makhijani

[Stockhunter]

[RKM]

Hi SH,

Thanks again. Reducing the number of positions with each add sounds very logical as you manage your risk by keeping your average price on the lower side. This must be particularly helpful because you lose a good number of points when the market trend changes but the moving averages take more time to cross over.

Incidentally, what is your position now?

Best wishes,
Makhijani

[Stockhunter]

Makhijani - yes that one of the reason..the second reason is that an add means a price retracement to 15 EMA which means one leg of the trend is over...similarly the second add happens when the second leg on trend is over... and same with third.

My belief is that the newbies ignore the first leg, may or may not join the second leg.. but they definitely jump into the third leg.. thats when the reversals are most likely to come to trap newbies.. hence with each leg completion the probability of a reversal goes up ... hence no point increasing the risk when we know theprobabilities of reversal are higher.

Positionally I am bullish as per this strategy right now.. however keep playing the down swings in between (right like now I am bearish since 3450-3500 levels).

Cheers
SH

[RKM]

Thanks, SH, for your explanation. That tells me what I wanted to know all along - how you protect your profits at the turning points. I have been trying to follow your strategy for the past couple of weeks, although perhaps not as systematically as you would like and I too have been feeling a little shaky since 3500 levels. So to begin with I hedged a few positions, and today exited my last long position. Not much in the way of profit but with time, practice and the discipline to follow it exactly how you would advise, I expect that will also come.

Right now the retracement I have been expecting has not reached my level so I don't know whether I've got it right and at the same time I am worried whether the "retracement" may not actually turn out to be a reversal so am scared to go long right now even though the right time (when the candle touches the 15 EMA) may come within a couple of days. Any advice?

Just by the way, if I want to work out the Fibo retracement levels don't you think I should consider only the last portion of the upmove , ie. from around 2960 instead of all the way from around 2500 levels?

Best wishes,
Makhijani

[Stockhunter]

You are welcome Makhijani, I am happy to see you are trying to absorb a lot of knowlege through various posts in forum..

I wont be worried to go long at 15 EMA as per this strategy until 3 EMA is above 15 EMA..

On Fibo.. I am not an expert... we have some good fibo experts in SB .. check with them.

Cheers
SH

[RKM]

Hi SH,

Thanks for your latest post. At present the 3 EMA is almost touching the 8 EMA line. Unless the market pulls a fast one on us and reverses, in a day or two the candle may touch the 15EMA which is now at 3264. Let us see what tomorrow has in store for us.

At present, I am using normal charts along with pivot /intraday levels to pinpoint my entries/exits. When you say wait for the candle to touch the 15EMA line, would you normally expect a part of the candle to go below as well?

Best wishes,
Makhijani

[rahulskr]

hi SH

rsex n 315 r both used for positional tradin, not for intrade, rite..... also is it possible to trade these strategies alongside a job..... or they require full time monitoring...... hopin to hear frm u........

cheers