These are my personal musings. These are not in any way meant to be trading advise. To view the full chart, right click and open in a new window.
Is the Nifty my slave? No ... only subject to common sense, and a little maths.
The condition suggested yesterday that the Nifty goes above 3890, and does not violate today’s low of 3840 was fulfilled today. So short term speculators could be long.
The Bank Nifty must have surprised traders, while the CNXIT was expected to show strength.
I have received some queries as to how to decide the direction. Here is a simple method. When we anticipate a change in direction for the positive, look for a rising top and bottom formation. Similarly, if we expect a downward change, look for a falling top and bottom formation. This simple thumb rule allows traders to enter long or short trades with greater confidence, and eliminates false triggers of stop losses.
Here is a chart to illustrate what I mean.
This thumb rule would remain true in whatever time frame we trade, whether intraday, daily or weekly.
5 comments:
With a heart of gold, you still must be getting marriage proposals !! haha ! Keep it up sirji !! Lovely nature, lovely mind and a versatile genius shd be dating angelina jolie or claudia schiffer !
thanks a pile !
reg
ketan
This trading method is Very simple but very effective .Thank you for the illustrative example.
I am in trading from a couple of years but not a full time trader. I was very confused with the fundamentals ,pe etc etc to pick a stock . REad articles vistied many forums and all says PE high , valuatiions high etc ect and i am unable to buy a single share for almost 6 months .
At that moment I attended an investormeet organiged by one of yahoo group friend .Some well known fundamentalists from yahoo group attened that meet. After a discussion of around 1 hour , i am exhausted and just getting idea of leaving this stock market and deposit all my savings in bank and relax.
I see a person sitting quite but showing some disagreement to the proceedings and comments on technical analysts. we are about to conclude and some one asked that gentle man to speak something about stock market and technical analysis. His speech is very short just for 10 mins but so effective that I saw a whole new stock market infront of me . No PE ,No tensions in waiting for results and most importantly NO panic. He answered all questions/cricticism of fundamentalists .
From that day , tried to learn TA but as I dont have much time, just sticked to a trading plan .This is the same plan using by me . I dont say it gives 100% success but , it will catch the trend effectively and give very good returns.
I am very thankful to that Gentle , soft and very inspiring technical analyst who changed my whole perspective of stock market .And He is none other than Mr.Dusant.
Thank you Dusant ji .
WOW NARESH ! YOu couldnt have said it better !! I fully agree !
I have been interacting with Mr Dusant since abt 5 months, and he has changed me a lot too ! (i was extremely bearish, and now atleast i have stopped losing money. Some more time and i wll start making some for myself!).
I also plan to take mr dusant and a few gud friends on an European tour with my profits ! Keep it coming sirji !!
reg
ketan
dear sir.,
if u can post u r views daily and that too by late night the same day
will be good for checking the movements .
I many times dont get u r TA
BEFORE WICH CAN BE TRACKED.
Hello Anonymous
I always try and update my blog before I sleep, which should be available to readers before the next trading day.
Dusant
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