Namaste - My Learning of Trading in Nifty
- Thread starter crown
- Start date
Put Call Open Interest analysis
Strong Support at 6000 levels
weak resistance at 6100 levels
Close above 6100 levels is very much possible today.
Technical support is at 6060. During initial hours, longs can be initiated in Nifty for a target of 6100-6120 with stoploss of 6060. Further support can only be decided on the basis of market movement.
Strong Support at 6000 levels
weak resistance at 6100 levels
Close above 6100 levels is very much possible today.
Technical support is at 6060. During initial hours, longs can be initiated in Nifty for a target of 6100-6120 with stoploss of 6060. Further support can only be decided on the basis of market movement.
Berger is sinking . Now at 99.45
from the last two days, facing lot of trouble from internet connection which is getting DC very frequently, not allowing to even watch the market.
Exited my additional position in berger yesterday itself, on no profit no loss including brokerage.
The idea was to reduce the loss as much as possible. On the basis of 18th Oct movement in berger, I was expecting a temporary rise in the script towards the levels of 104-107 on 19th Oct. but it did not happen. Though the script did have some sharp and temporary rise during the initial hour on 19th Oct, but because the overall market trend was negative, it just could not pass 103.
Therefore, I exited from my additional position. Overall, the structure of the script is still positive; therefore, still holding the base position.
Jagan Bhai
Identifying the sideways movement is simple. It depends upon the time frame you are using. For example, a script may appear making sideways movement in 5 minutes chart, but in 30 minute chart it may be moving towards some specific direction. Best way of doing it using parallel lines on the chart, and a simple glimpse will tell you if the script is moving sideways or not.
I use CCI indicator; and usually when the CCI momentum is between -50 to + 50, the script can be in sideways movement. The angle of movement in CCI is also helpful, flat movements in CCI also denotes sideways movement.
Regarding trading such sideways movement, I am still to learn that. Today, I did 13 trades on Nifty for this purpose. Though, I had some loss, but that was very very minor. It was my last two trades that gave me loss which ate all my profit for the day. But, I am okay wid it; because my purpose was to understand and learn and practice trading during sideways movement of Nifty.
Example of sideways movement:
below is the weekly chart of Jindal Steel and Power
As you can see, from the past one year [from Oct 2009 onwards], the script is trading between a range which is being shown wid the help of parallel lines (red color).
Uploaded with ImageShack.us
Identifying the sideways movement is simple. It depends upon the time frame you are using. For example, a script may appear making sideways movement in 5 minutes chart, but in 30 minute chart it may be moving towards some specific direction. Best way of doing it using parallel lines on the chart, and a simple glimpse will tell you if the script is moving sideways or not.
I use CCI indicator; and usually when the CCI momentum is between -50 to + 50, the script can be in sideways movement. The angle of movement in CCI is also helpful, flat movements in CCI also denotes sideways movement.
Regarding trading such sideways movement, I am still to learn that. Today, I did 13 trades on Nifty for this purpose. Though, I had some loss, but that was very very minor. It was my last two trades that gave me loss which ate all my profit for the day. But, I am okay wid it; because my purpose was to understand and learn and practice trading during sideways movement of Nifty.
Example of sideways movement:
below is the weekly chart of Jindal Steel and Power
As you can see, from the past one year [from Oct 2009 onwards], the script is trading between a range which is being shown wid the help of parallel lines (red color).
Uploaded with ImageShack.us
Jagan bhai
I use multiple time frames to suit my trades. I start from 5 minute chart and then if the trade is successful, i transfer it to 15 minutes or higher time frame. I also choose different time frame for different scripts. For example, I prefer to use 5,8, 15, 60 minutes charts in Nifty; while for some scripts like berger paints, I prefer 15 minutes and 30 minutes charts. The criteria for choosing different time frame is just to find some understanding. Sometimes, a chart is more understood in some time frame than the other time frame.
Regarding Nifty forming a double bottom near 6000 in 30 minutes chart, I fail to find that. To me it appears as if the bottom has been broken [ image below ] and that Nifty may touch/test the level of 5940 in tomorrow's session.
Uploaded with ImageShack.us
I use multiple time frames to suit my trades. I start from 5 minute chart and then if the trade is successful, i transfer it to 15 minutes or higher time frame. I also choose different time frame for different scripts. For example, I prefer to use 5,8, 15, 60 minutes charts in Nifty; while for some scripts like berger paints, I prefer 15 minutes and 30 minutes charts. The criteria for choosing different time frame is just to find some understanding. Sometimes, a chart is more understood in some time frame than the other time frame.
Regarding Nifty forming a double bottom near 6000 in 30 minutes chart, I fail to find that. To me it appears as if the bottom has been broken [ image below ] and that Nifty may touch/test the level of 5940 in tomorrow's session.
Uploaded with ImageShack.us
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