iCharts Discussions

[rameshraja]

The Power of Number 44

When I was trading in Nifty Options, I always stumbled upon certain figures which have resisted on several occasions and I missed to book profits at higher levels and finally got out of trades with nominal profits. I was continuously facing this problem for more than couple of years, and mind kept telling me there is something a miss in my trading.

I started to put my head into all my past trades and in hindsight I should have made big gains in most of my trades but ledger showed dismal performance. I was breaking my head, why I was not able to pull the trigger at right time and at right price. Albeit, its impossible to catch the tops and bottoms of market.

While I was looking back at my trades along with Real time chart, I found on many occasions market came to a particular figure and got reversed from thereon. That’s where, I started my research on the behaviour of market.

I started working on Gann teachings of Dividing the Circle by 16 which gives the angle of 22 ½ degrees. Then dividing the Circle by 32 and get the angles and time periods of 11 ¼ degrees and their multiples. Again dividing the Circle by 64 which gives 5 5/8 degrees and their multiples.

I took the lead from the above, and developed my own system of trading based on the above, along with charting analysis.

Look at the worksheet I have attached herewith and see the multiples of Number 44 which are given in Green Colour. When Nifty or any stock closes above any of the multiples of 44 number, then previous multiple of number of 44 becomes Stop on closing basis for going long in market. Reverse is true for short. I have walked through the methodology which I have developed, and its upto you to finetune and see if its workable proposition for you. This is on price front and look at the Time using above numbers and see what happens to market when 44th bar (or any of the numbers given in worksheet) comes into force from swing low or high.

If you are able to find anything unique from this methodology, then you can share with other Forum members.

The only regret I have today, I am able to find many good methodologies after my Donkey’s years of being in market, and of late not able to concentrate more on working methodologies due to poor health and age factor. Had all these are known to me when I was 25 years old, then I would have benefited more from market.

Good Luck !!

[mayurnsk]

Dear Rameshraja sir!!!

Splendid and awesome

So simple yet so power full, you pulled it once again after fib table now Gann. I just got feel of its power.


Hats off to you sir


Regards
_________
mayurnsk

[prasenjit]

EXCELLENT SIR......

[jyothi2011]

sir ur generosity will surely be rewarded by God. visit zerotherapy.com for your health problems

[phoneix]

SPOT ON.

[sethu45]

Rameshraja sir,

Wonderful work. The only job which we can do till we are bedridden due to age and health is work in this market. But very pathetic to note that some of us not able to make money because the market is cruel.

Regds

[rameshraja]

Mr Sethu

I am always grateful to market and it has blessed me with all Luxurious in life. To get this luxurious life, market forced me to sacrifice my personal life as it kept me on my toes to find the workable methodologies. I have understood the writing on wall .. " Market is Dynamic .. so also methodologies". What works in a particular phase of market be it BULL / BEAR run, it doesn't repeat the same in next phase of run. The patterns of behavioural trading keeps changing from time to time.

The Pattern of trading in earlier bull markets of 1986 -87 didn't repeat in 1992 bull market and so also pattern of Tech Boom didn't lay its footprint in last Bull market of 2003. So also, this time, it will be a different one.

We have to be alert all the time in market and must be able to clearly read the Price action.

The solution to the success in trading is only one mantra " Hard Work" and always one should remember " Knowledge is Power".

[rk_a2003]

"The Pattern of trading in earlier bull markets of 1986 -87 didn't repeat in 1992 bull market and so also pattern of Tech Boom didn't lay its footprint in last Bull market of 2003. So also, this time, it will be a different one."

Mr.RR

May I request you to elaborate above general observation a little further? Not immediately. May be at your convenient time.I would like to understand the above in a concrete way that what does it mean in actual terms?

[shekharinvest]

RR Sir,

Thanks for posting the Power of 44.

Since you have started a thread on Gann numbers. I have a query.

As per my observation I have seen Gann numbers working quite well for the price ranges of say 4000 to 6000. The risk reward ratio's are good. The intraday calculators as is available on the net everywhere, too works very nicely in these ranges.

As we move to the lower ranges take for example stock quoted at Rs. 90 EOD

As per your sheet we should go long with SL of 44 Here SL is almost 50%. Even if we take SL as 77 (one level just below 88 ) is still 15%.

Where as nifty trading at less than 5632 one can short with SL 5676 Here SL is about 1%

Similary as we move to higher ranges SL becomes shorter and shorter. It becomes almost meaningless in case of BankNifty.

How have you been able to resolve this predicament.

Similar is the case with Intraday calculators. They are good for trading Nifty option in the lower price ranges.

Option trading at 101

Buy at/above 102.52 Targets: 105.01 107.59 110.19 112.83 115.5: SL 100

OR Nifty at 5620

Sell at/below: 5606.27 Targets: 5590.36 5571.68 5553.03 5534.41 5515.82 SL: 5625

LITL at 22

Sell at/below: 21.39 Targets: 20.26 19.15 18.07 17.02 16.01 SL: 22.56


But are useless for stocks trading in lower ranges, like LITL at 22, Renuka at 39 etc. etc, simply we do not; see 2% to 5% price move in intra day as a rule for Tgt1 and SL of 5%


Your invaluable insight will be highly appreciated.

SHEKHAR

[rameshraja]

Mr Shekar

I would first like to congratulate you for your interesting thread in Forum "Running with Wolves" and I am a regular reader of your posts.

Regarding your query about Number 44, the problem you have pointedout can be addressed if you closely look at OHLC datas of any stocks which are falling near Rs.88. I was expecting this question from members of this forum but none bothered to ask excepting you. If you draw Gann angle of 45 or 90 degrees for a smaller range number, you tend to have big percentage.. like for number 10, you have 45 degrees as 12 and 90 degrees as 14 which are 20 and 40 percent from 10.

I suggest you look at this way.. when a stock closes above 88 and triggers a BUY, you can fill the order when a stock pullsback by 50% between 88 and 77. You can keep 77 as SL on closing basis or alternatively you can look for smaller Stops if you follow Gann swings along with it.

For a slightly bigger range, you can also keep Stop based on geometric 45 degrees from multiples of 44.

BNF is high beta movement Index and Stop for this, I will give you hint.. you just think over. why not vertical numbers just below 44 multiples .. and when trade moves in our favour, you can keep trailing based on same strategy.

How much ever I talk about this number, it may not give comfort for you. But my sincere advise to you, backtest with EOD datas and see in Real time also.

You can check any Global Indices like S&P 500 / FTSE / DAX / CAC also.

Best Wishes

[sambhaji_t]

Rameshraja Sir,

MANY MANY THANKS TO YOU. YOUR SINCERE EFFORTS ARE HIGHLY APPRECIATED.

[bharatpatel]

in reference with these numbers RELCAPITAL is the best example. RCAP failed to cross 484 and came down up to 438.5 and closed 443.4

i think this will work in any and every scripts. Good NARRATION Mr. Ramesh Raja, pls keep it up. we are having fruits of all your hard work of sleepless nights.

Thanks for sharing the knowledge

Bharat Patel

Ahmedabad. Gujarat.

[vinay28]

Interesting Rameshraja. I have a few queries

1. In what way is 44 related to your mention of on dividing circle in various parts?
2. If the emphasis is on 44, why take base number as 11?
3. I would like to believe that this theory could apply better with number 7 and 9, the only two contrarian numbers in maths, which are also found everywhere as building blocks of nature.

[rameshraja]

Mr Bharat Patel

The number 44 and its multiples to be used on Closing basis.. Not on crossing in intraday. Basically this is meant for Swing trading.

[stejasmehta]

Respected Sir ,


Thank You Very Much for the numbers i really have no words for your efforts. I have query sir The Numbers Coloured With Green Color what does it state ?

Please reply