Friday, September 30, 2011

NIFTY IN OCTOBER SERIES


Friday's close will set the trend for the October series.The gap between 5060 to 5110 will act provide resistance to the up move.Targets for spot Nifty in October series look ominous if this move clears the 5180 levels and carries further.The pattern ABCD looks convincing with ABC formation in place.The earlier move also was resisted twice before it could cross the resistance of 5600 and gave a move of 345 points upto 5945.The move will be fast if it comes and will mark huge short covering.The move below 5169.25 to 4911.25 was 258 points and next move was 5168.40-4758.85= 409.55 points.If the level of 5169.25 is crossed then we get two targets 5169.25+258=5427 and other target can be 5168.40+409.25=5577.65.(throw over above the channel as witnessed on 6-7 July and 21-22 July).The movement needs to be monitored as and when it happens.This is just an observation and patterns do fail in market.
Happy Trading !

Thursday, September 29, 2011

NIFTY VIEW FOR 30.09.2011


Todays expiry was very eventful with a small down move first and then huge move on the upside.Bulls have defended the level of 4900 successfully and spot Nifty today closed at 5015.45.Spot Nifty has closed above the 50% level of the move and currently trading with positive bias.This move needs to be sustained further to keep the momentum upside.In the second chart spot nifty should break above the first circle to build up the momentum and close above it. The levels of 5060 and 5113 are to be watched on the upside.Fridays closing on the spot Nifty above 4950 will be positive as we may expect some profit booking.
LEVELS SPOT NIFTY FOR 30.09.2011
No trading zone between 4998 to 5033 to avoid whipsaws.
Buy above 5033 with SL of 5018 for targets of 5051 - 5069 - 5087- 5104
Sell  below 4998 with SL of 5013 for targets of 4980 - 4962 - 4945- 4927
Happy Trading ! 
 

Wednesday, September 28, 2011

NIFTY VIEW FOR 29.09.2011

Today Nifty open higher at 5005.50 and went down steady to make a low of  4918.45 and closed the shop at 4945.90.Today bulls were trapped by yesterdays momentum and where kept guessing by the Nifty.Today on the downside we achieved two targets out of four given.Now tomorrow is expiry of September series an important day for traders.Many like to predict the expiry price and act accordingly.Lets see the September range of Nifty till today was between 5169.25 to 4758.85 i.e.410.40 points.the 50% of this range comes to 4964.05 and todays close is 4945.90.So we are still at midway neither up nor down of the range.This is what happens when a huge range is established in earlier month by Nifty.So the ideal range for tomorrow looks between 5018 and 4900 which can be breached if volatility increases on the last day.If I have to stick my neck out for this expiry then probably its between this range and option holders of 5000CE and 4900PE will be kept on their toes tomorrow.
Now on the chart I have marked Fibonacci Fan from top of 5651 on 08.07.2011.We can observe how those fibanacci levels have been adhered to by the Nifty swings.Nifty has spent the whole month of September between 38.2% and 61.8% levels and incidentally closed today near exactly at 50% level.The breakout on the Nifty will be above 61.8% level on the upside and below 38.2% level on the downside.until then we need to watch Nifty moves in this trading range.
LEVELS SPOT NIFTY FOR 29.09.2011
No trading zone between 4928 to 4963 to avoid whipsaws.
Buy above 4963 with SL of 4948 for targets of 4981 - 4999 - 5016- 5034
Sell below 4928 w
ith SL of 4943 for targets of 4911 - 4893 - 4876- 4858
Happy Trading !
 

Tuesday, September 27, 2011

NIFTY VIEW FOR 28.09.2011



Today Nifty opened with a huge gap up.The levels given for today were achieved at open.So levels were updated intraday at 11.00 am.We nearly achieved the third target 0f 4988.The bias has turned positive for the short term.The level of 5060 is the trend decider for expiry.With two days left the expiry looks to be very eventful as always.
 LEVELS SPOT NIFTY FOR 28.09.2011
No trading zone between 4954 to 4989 to avoid whipsaws.
Buy above 4989 with SL of 4974 for targets of 5007 - 5024 - 5042- 5060
Sell below 4954 with SL of 4969 for targets of 4936 - 4919 - 4901- 4884
Happy Trading !

INTRADAY UPDATE FOR 27.09.2011

REVISED LEVELS SPOT NIFTY FOR 27.09.2011 AT 10.55 AM
No trading zone between 4900 to 4936 to avoid whipsaws.
Buy above 4936 with SL of 4921 for targets of 4953 - 4971 - 4988- 5006
Sell below 4900 with SL of 4915 for targets of 4883 - 4866 - 4848- 4831
Happy Trading ! 

NIFTY INTRDAY UPDATE 29.09.2011

Watch these lines for support and resistance as and when they come.Spot Nifty is positive above 4933 with a sl of 4888 for positional traders.

Happy Trading!

NIFTY VIEW FOR SHORT TERM

Watch the blue lines of Gann Angles on Daily Nifty.The boundaries are marked mainly from the top of Novemeber 2010 of Gann Angles 2x1(resistance) and 1x1(support).Also from top of Jan 2008 of 4x1 forming support.Also we seem to be taking support along the Gann Angle 4x1 from Nov 2001.This may trigger short covering for the time being.

Monday, September 26, 2011

NIFTY VIEW FOR 27.09.2011

Today spot Nifty made a low at 4758.85 and then recovered to close at 4835.40 with a loss of 32.35 points.Today on the downside all level were achieved.The trend is down yet as spot Nifty is trading below 4888.Above 4888 the break out level is 4933 if it comes we may go up to 4993 and 5060 for positional traders.The 20 dma is at 5008 which can be the resistance if short covering or profit booking as you call it for this expiry happens.
Levels to watch for intraday on Spot Nifty :
No trading zone between 4818 to 4853 to avoid whipsaws.
Buy above 4853 with SL of 4838 for targets of 4870 - 4888 - 4905- 4923
Sell below 4818 with SL of 4835 for targets of 4801 - 4783 - 4766- 4749
Happy Trading !

NIFTY INTRADAY VIEW

Nifty still below the 45 degree line.It should come above that line to give some relief!
Happy Trading!

NIFTY VIEW FOR 26.09.2011

Nifty had a negative week with sentiments being bad all over the world and across all the assets.The up trend below 4888 on spot Nifty is over.For any reversal of minor degree will need spot Nifty to trade at least above 4888 and then 4933.For today breakout on the upside will occur above 4888 and break  down will occur below 4845.If 4933 is achieved we have target of 4990.On achievement of 4990 we have 5046.On the downside if we break below 4845 first target is 4804.If 4804 comes then next target is 4746 and if 4746 is achieved then 4692.Now we have four days for expiry.Personally I feel Monday and Wednesday positive and Tuesday and Thursday negative.
Levels to watch for intraday on Spot Nifty :
No trading zone between 4850 to 4885 to avoid whipsaws.
Buy above 4885 with SL of 4870 for targets of 4903 - 4920 - 4938- 4955
Sell below 4850 with SL of 4865 for targets of 4833 - 4816 - 4798- 4781
Happy Trading !

Friday, September 23, 2011

NIFTY TRADING 23.09.2011

The above chart is one minute chart of Nifty from the high on 21.09.201.I have been advocating the use of 45 degree angle for judging the trend.The angles marked show its utility on the chart which automatically gives the supports and resistances.So for Monday the first level to be watched is 4931 as Nifty is trying to form a base around the 4863 level.If Nifty opens with a gap up or  stays above 4931 it will set the short term trend.If this happens then the levels as per chart are 4986-5039-5080-5112.The 20 day simple moving average comes to 5006 so this will be the ideal resistance above 4986.As Nifty has closed near the bottom end of the range formed the recovery will be painful and definitely a wild one.We still have four days for the expiry so there will be some drama.Lets not forget we had a huge downside earlier month in August.Normally after such downtrend we see a sideways move of lesser range of 200-300 points.Also Nifty has recovered in the past near the expiry .Use of proper hedging will save the day for traders.Keeping day to day view with intraday trades will be ideal as the swings will be vicious.
Happy Trading !

NIFTY ELLIPSE


Thursday, September 22, 2011

NIFTY VIEW FOR 23.09.2011

Todays fall on the nifty must have shaken bulls in the markets.For the reasons of fall can be many and can be analysed again and again with N no of justifications.But the key to sustain in such markets is to use of principle of money management and take your losses as quickly as possible.Instead of watching and bleeding your pockets by just staring at the screen and doing nothing with a false hope that it will recover soon.It may recover but will it recover all the losses made is the question to be asked.Always work on levels as "Price is God". 
Levels to watch for intraday on Spot Nifty :
No trading zone between 4906 to 4941 to avoid whipsaws.
Buy above 4941 with SL of 4926 for targets of 4959 - 4976 - 4994- 5012

Sell below 4906 with SL of 4921 for targets of 4889 - 4871 - 4854- 4836
Happy Trading !

NIFTY CURRENT SCENARIO

The above chart shows Nifty taking support at levels of 9% fall from the recent tops.The bottom 5195 on 20.06.2011 looks as the centre of the fall.A fall of 9% from this level has taken Nifty to 4720 on 26.08.2011.If nifty breaks the second circle on the downside at 4888 levels then it should end this up move.The tangents to this circle shows important dates for change in trend.As per this 9% fall if we break 4720 we get a target of 4300 level.Also watch the move on the break of the second circle on the upside it was vicious.Will it be vicious same way on the downside.This area seems to be the area of faster retracement so let be cautious.This is just an observation we need to watch the actual move.Also tommorow seems to be an important date as per Seasons on Nifty(as given in my earlier article) which states 
7) September 23rd is 93 days from June 22nd, but the Earth or Sun have only travelled 90 degrees.The Sun crosses the Equator at this time and is 180 degrees or opposite the point where it crossed the Equator on March 21st. Fall begins at this date and stocks make important change of trend.
Happy Trading!

INTRADAY UPDATE NIFTY

Target if the blue line from botom holds.

INTRDAY UPDATE 22.09.2011 AT 12.40 PM

We need to cross both the blue lines to reach 5030-5060.Below 4888 short with SL of 4900 and cover at the end of the day.
Happy Trading

HOW TO FIND TREND OF NIFTY



  The use of 45 degree angle or 1 X 1(price and time are equal) angle gives us the trend of any stock.I have marked the angle on the chart from the top of  November 2010 and the result is seen.Use the point where it intercepts the price to mark another 45 degree angle.Currently we are under the shadow of 45 degrees.We need to cross the level of 5182 and close above it. Happy Trading!

Wednesday, September 21, 2011

NIFTY VIEW FOR 22.09.2011

 
On Wednesday Nifty moved again in narrow range of 60 odd points closed at 5133.25.The close is above 45 degree level of 5133.The Bollinger Bands are trying to expand and the slope has turned upwards.If Nifty gathers further momentum this should push the upper band higher which is currently at 5207 from yesterday's 5201.Nifty has hit the earlier resistance zone.It has to built some momentum now and take out  itself out of this zone decisively to attain this months targets.Spot Nifty is still under the Ichimoku Cloud with resistance at 5256 and 5340.
Levels to watch for intraday on Spot Nifty :
No trading zone between 5115 to 5151 to avoid whipsaws.
Buy above 5151 with SL of 5136 for targets of 5169 - 5187 - 5205- 5223
Sell below 5115 with SL of 5130 for targets of 5097 - 5080 - 5062- 5044
Happy Trading !

HARMONICS ON NIFTY


    Harmonic numbers are the "Davinci Code" of most liquid financial markets. The numbers are derived from the Fibonacci summation series which starts with 0 and adds 1. Each succeeding number in the series adds the previous two numbers thus we have 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89 to infinity. If you divide 55 by 89 you have the golden mean - .618. If you divide 89 by 55 you have 1.618.

.382 is the difference of 1.00 - .618 = .382
.618 is the golden mean (phi) and the square root of .382
.786 is the square root of .618
1.27 is the square root of 1.618 - it is also the hypotenuse of a right triangle
1.618 is difference of the square root of 4 minus .382 (2 - .382 = 1.618)
This ratios give some clues for guessing the extent of the moves.Chart shows the ratios on Nifty.
Happy Trading !

STANDARD DEVIATION ON NIFTY


A normal distribution is a very important statistical data distribution pattern occurring in many natural phenomena, such as height, blood pressure, lengths of objects produced by machines, etc. Certain data, when graphed as a histogram (data on the horizontal axis, amount of data on the vertical axis), creates a bell-shaped curve known as a normal curve, or normal distribution.

Normal distributions are symmetrical with a single central peak at the mean (average) of the data. The shape of the curve is described as bell-shaped with the graph falling off evenly on either side of the mean. Fifty percent of the distribution lies to the left of the mean and fifty percent lies to the right of the mean.

The spread of a normal distribution is controlled by the standard deviation,The smaller the standard deviation the more concentrated the data.

The mean and the median are the same in a normal distribution.
If you add percentages, you will see that approximately:
• 68% of the distribution lies within one standard deviation of the mean.
• 95% of the distribution lies within two standard deviations of the mean.
• 99.7% of the distribution lies within three standard deviations of the mean.
These percentages are known as the "empirical rule".

Now on Nifty watch earlier moves when breakout has happened. The price is between second deviation and third deviation. Also the move happens along the second deviation. Currently we are above the first deviation suggesting positive move(68% bulls).Targets as per second deviation is 5220 and third deviation shows 5325 currently. Lets watch how it develops on Nifty.
Happy Trading!

NIFTY DAILY CURRENT MOVE

Earlier fall on Nifty took 34 days to complete the move.I have marked the same on chart.Now in this counter trend move we have crossed 13 days.So the next fibo no comes to 21 on 26.09.2011.Also watch the channel marked where we are in the lower half of it currently.Expect momentum as and when we cross in to the upper half.Also we had a move of 400 points in wave A and wave B retraced 61.8% aprox.For wave a = wave c scenario we have 4900 + 400 = 5300 approx.If this move develops as a triangle then we may see more drama.!
Happy Trading!

Tuesday, September 20, 2011

NIFTY VIEW FOR 21.09.2011



On Tuesday Nifty moved from the open to close in one direction i.e. upside with  normal volumes.It was the lull before the storm on Monday.Nifty has crossed 5114 and also gathered the momentum on upside.The put of 5200 today lost 94.80 points as observed yesterday.Also all intraday targets were achieved for the day on the upside.Now Nifty needs to keep the momentum going further and take out 5170-5200  soon.The Bollinger Bands are trying to expand and the slope has turned upwards.If Nifty gathers further momentum this should push the upper band higher which is currently at 5201.The MFI(14d) Money Flow Index shows continous rise and how the smart money was flowing in the markets.
Levels to watch for intraday on Spot Nifty :
No trading zone between 5122 to 5158 to avoid whipsaws.
Buy above 5158 with SL of 5143 for targets of 5176 - 5194 - 5212- 5230
Sell below 5122 with SL of 5137 for targets of 5104 - 5087 - 5069- 5051
Happy Trading !

Monday, September 19, 2011

NIFTY VIEW FOR 20.09.2011

On Monday Nifty was dull with trading range of 50 odd points with lower volumes.Is this the lull before the storm.Nifty needs to cross 5114 soon to gather the momentum on upside or break 4888 on the downside to gather momentum on the downside.An observation at the end of the day in puts of nifty for the 5200 strike
Strike  Bid Qty Bid Price Offer Price    Offer  Qty Vol     Net Chng  LTP        Chng in OI         OI 
5200     300     182.85     184.95        400     33,123       28.55     182.85      -531,850      1,749,400 
It has lost open interest of 5,31,850 i.e. 531850/1749400(29.83 %).Is the market expecting to break this level is to be observed. 
Levels to watch for intraday on Spot Nifty :
No trading zone between 5014 to 5050 to avoid whipsaws.
Buy above 5050 with SL of 5035 for targets of 5067 - 5085 - 5103- 5121
Sell below 5014 with SL of 5029 for targets of 4997 - 4979 - 4961- 4944
Happy Trading !

DEGREES OF NIFTY AS PER SEASONS

In continuation of previous article I would like to add further on Nifty.The important dates are marked on chart.I have connected the top with 180 degrees to price on 6th May.It has given the bottom of 4720 as shown in chart.The degrees and corressponding prices are as follows:
45 = 6147,90 = 5944,135 = 5754,135 = 5554,225 = 5340(My target for September series),
270 = 5130(Current Resistance if broken can achieve the Targets),315 = 4927(multiple supports observed around this level.Ideally stop loss level for all longs.) and 360 = 4720 (our major low for the year.)
So lets watch how it develops on Nifty.
Happy Trading !

SEASONAL CHANGES ON NIFTY

Seasonal changes occur in nature and we have four seasons Spring,Summer,Autumn and Winter.We can compare this to full circle of 360 degrees with each season being 90 degrees.The important dates to watch for seasonal changes are :
1) The winter quarter begins December 22 & 15 days from from this date is January 5th or 6th , which are always important dates to watch at the begining of the year as stocks after make extreme high or extreme low around this dates.When stocks make low in December just before or after the 22nd, a January rise usually follows.
2) February 5th is 45 days from December 22 and minor changes takes place around this date and sometimes, very important tops and bottoms are formed.
3) March 21 is 90 days from December 22nd. This is the date when the Sun crosses the Equator & Spring begins.The Spring rally in the stock market often starts around this date or culminates,if stocks have been advancing previous to this date.
4)May 6 is 46 days from March 21st ,and equals 135 days from December 22nd.Watch for important changes in trend around this date.
5) June 22nd is 93 days from 21st March, which equals 90 degree and of course, it is opposite December 22nd & is important for seasonal changes, as Summer begins at this date.
July 7 th is 17 days from June 22nd & 6 months or 180 days from January 7th.July being a dividend month advances or declines often culminate around this date an important change in trend takes place.It is the next important date to watch after June 22nd.
6) August 8th is 47 days from June 22nd but the Sun has moved only 45 degrees angle.This is very important date for change in trend & you should watch stocks that make tops and bottoms around this date.
7)September 23rd is 93 days from June 22nd, but the Earth or Sun have only travelled 90 degrees.The Sun crosses the Equator at this time and is 180 degrees or opposite the point where it crossed the Equator on March 21st.Fall begins at this date and stocks make important change of trend.
8)November 8th is 46 days from September 23rd and equals 45 degree.You will find by checking over the records that most important tops and bottoms & changes in trend occur around this date.
9)December 22nd is 91 days from September 23rd & 6 months or 180 days from June 22nd.This is where Winter begins & it is important to watch for important changes in trends.
This completes the seasonal change for the year.Now in the context of Nifty I believe we completed one circle of 360 degrees on November 8th 2010.,so this will be our zero degree point start of the fall.In the diagram I have marked the 360 degress for Nifty.So it it imperative to watch this dates and degrees.Currently we are approaching 315 degrees on Nifty on September 23rd.Naturally this becomes an important date to watch for change in trend.

Saturday, September 17, 2011

NIFTY POLL RESULTS

First I thanks all the vistors who are visiting this site for the information on Nifty.I thank again those who took the time to vote for the polls.The poll was for Nifty Close for September Series.We had 22 votes polled and  the poll results are :
1) 5320    8 votes(42%).
2) 4500    6 votes(31%)
3) 4300    5 votes(26%)
4) 5180    3 votes(15%).
Lets watch what is the actual close on Nifty at the end of September series.
Happy Trading !

NIFTY VIEW FOR 19.09.2011

On Friday Nifty made a high of 5143.60 but could not sustain it due to profit booking for the week.Spot nifty closed at 5080.25 which is positive.Now the major levels to watch on spot Nifty are 5113(Fixed Cross,45 degrees), 5149( Cardinal Cross,90 degrees),5185(Fixed Cross,135 degrees),5221(Cardinal crosss,180 degrees) and 5257(Fixed Cross,225 degrees) for positional traders.The target for spot Nifty  marked on charts is as per symmetry if we close above 5195 within 2 days.We were resisted at 5149(Cardinal Cross, 90 degrees) on Friday which becomes the ideal resistance for Nifty on Monday. Supports for positional traders can be at 5077(Cardinal cross, 0 degrees),5041(Fixed Cross,315 degrees) ,5006(Cardinal Cross,270 degrees) and 4971(Fixed Cross,225 degrees).
Levels to watch for intraday on Spot Nifty :
No trading zone between 5066 to 5102 to avoid whipsaws.
Buy above 5102 with SL of 5087 for targets of 5120 - 5138 - 5156- 5181
Sell below 5066 with  SL of 5081 for targets of 5049 - 5031 - 5013- 4996
Happy Trading !

Wednesday, September 14, 2011

NIFTY VIEW FOR 15.09.2011

Nifty today closed in the positive zone above 4950 with a psychological figure above 5000 at 5012.55.The level of 4900 acted as a good support with Nifty taking support around that level thrice.The swings have been wild from top to bottom catching traders with their stop losses.At such times keep the trades light with small targets and only intraday view rather than positional view.The range remains the same between 4880 to 5180 of 300 points.The move between 5180 and 4720 was 430 points with 4950 as centre.A move above 4950 was the level to be looking for long and Nifty has moved above it.Now Nifty should try the close the small gap of 20 odd points.Now Nifty should catch momentum in the up direction without dipping below the low of  4911.The levels to be watched on spot Nifty is 5080 and 5114.
Levels to watch on Spot Nifty :
No trading zone between 4995 to 5030 to avoid whipsaws.
Buy above 5030 with SL of 5015 for targets of 5048 - 5066 - 5084- 5109
Sell below 4995 with
SL of 5010 for targets of 4977 - 4960 - 4942- 4924
Happy Trading ! 

BOLLINGER BANDS ON NIFTY

Bollinger bands on Nifty shows the picture of fall till date.These bands are ideal for the positional traders who like to know their risk level and the expected range.It normally consists of 20 day simple moving average at the centre and has 2 bands showing  standard deviations of price , one above the average and other below the average.The bands can be used both for timing and targets with any oscillator you are comfortable with.Once you put bands on the chart your trading canvas is ready and most the picture formed by the price will be within the bands.Prices move from band to band halting at average line sometimes.The strength of the move can be judged by the bands when they start expanding.Normally the price pushes the band higher in the direction of trend.Whenever you catch such a move ride it till it drops to inside of the band or breaks the average line.Before such a move the bands normally contract and then expand with the move.Watch moves marked A-B on chart. Next observation is market after giving such big moves tends to go sideways for a while and has given a sizable reaction on the upside This positions have been marked by rectangles on the chart.So we need to be cautious for the up move if it materializes like last three times.The market may go sideways keeping us guessing all the time.
Happy Trading!

Tuesday, September 13, 2011

NIFTY VIEW FOR 14/09/2011

Today Nifty moved within the gap created earlier and nearly closed it.A positive for sign but close is at nearly the same level.So no gain or loss status quo maintained.The isolation gap of two days was filled by price forming a bridge which creates a possibility to walk over it.Whenever a gap closes fully it creates a hope.So lets hope that this gap gets closed fully and we get a close above 5060 to think about up move.Today intraday stop losses may have been  hit for many traders.Its part of game to take small losses and be ready to enter the same levels again to catch the trend for the intraday.The levels given are valid for the whole day so can be entered again.Whenever stop loss is hit one should be ready to reverse the trade.Few days it will happen twice or thrice it will hit our stop losses.So when in doubt !Stay out !We are at the same level again so I would call it a inside day if we consider the range of two days which shows indecision in markets.4950 is the level above it which we are positive for the day.In such markets a strangle option strategy can be executed by selling 4900pe and 4900ce with buying of  5100ce and 4700pe and hold till expiry or exit in profit as per risk profile!This strategy works when the volatility is high and at the money options are quoting at unconvincingly high premiums!
Levels to watch on Spot Nifty :
No trading zone between 4959 to 4923 to avoid whipsaws.
Buy above 4959 with SL of 4944 for targets of 4976 - 4994 - 5011- 5036
Sell below 4923 with SL of 4938 for targets of 4906 - 4888 - 4871 - 4847
Happy Trading !

Monday, September 12, 2011

NIFTY VIEW FOR 13/09/2011

Today Nifty did 1-2-4 with gap down jumping down from direct 2 to 4.On the way it broke the important level of 4933 on intraday basis.Only small consolation is close above 4933.Nifty move is very steep as it has covered 7 days territory in 2 days which is very alarming.Traders need to be very cautious keeping a hourly vigil on Nifty levels for their intraday trades.Safe traders need to be out of markets for a while till some stability is restored.The trend is clearly down till Nifty does not close above 5060.Now the gap down will act as resistance like the one between 5200-5319.Whenever such gaps are formed they set the direction of the trend.Also closing below 4933 will accelerate the downward momentum.For any hope for the up move to continue Nifty should consolidate between 4933 and 5060 for 2-3 days atleast.
Monthly action for Nifty has been in a channel of 460 points between 5180 to 4720.The battle line between bulls and bears can be seen at 4950 level at centre of channel.Earlier this battle line was 5180 levels which was broken down convincingly.So breaking of 4720 can give us a down move of 230 points at 4490 levels.Be cautious!
Levels to watch on Spot Nifty :
No trading zone between 4964 to 4929 to avoid whipsaws.
Buy above 4964 with SL of 4949 for targets of 4982 - 5000 - 5017- 5042
Sell below 4929 with SL of 4944 for targets of 4912 - 4894 - 4877 - 4852

Happy Trading !

Sunday, September 11, 2011

How to make back losses on a small amount of capital


You are down and out after making some big losses, you have knowledge because you made money in the past, but not all the knowledge because you broke the rules, gave it all back and some. Learn from this lesson. W.D.Gann is the Methodalyes that I follow to a tee, using no other indicators to support his methods. If you have to use other indicators to support W. D. Gann methods then you haven’t studied Gann in depth.
Having made big losses you are going to be stressed, maybe sick, your relationship could be in trouble because you have lost all your capital except $5,000.00 US.
Before we get to trading strategies there’s going to be quite a number of issues to address –
W. D. Gann’s most important thing is good health.
HEALTH  A person can not make great success in any business unless health is good and more so in the business of trading stocks and commodities. A brilliant mind cannot work successfully with a weak body. In bad health you do not have the patience to wait or the nerve to act. If your health is bad you become despondent, you lose hope, you have fear, and you will be unable to act at the right time.
I have tried to trade when I was sick in bed and I had forgotten that I had placed twice as many orders in coffee market than I thought and lost $10,000 in a few days. I now try to do a couple of hours exercise 5 days a week and eat healthy food. If your health gives way, the most important thing to work on is to get your health back in perfect shape for HEALH is WEALTH.
KNOWLEDGE  When you have paid in advance with time and study, and gained knowledge, then you will find it easy to make money. The more time you put into gaining knowledge the more money you will be able to make later.
CAPITAL   Capital is important because without capital you can’t trade. You have a small amount of $5,000 U.S. and you can make large profits, providing you use a stop-loss order, and take small losses and don’t over trade.
WHAT TO TRADE You only have $5000.00 U.S so you can’t afford to lose it. W. D. Gann preferred to trade in commodities than stocks.
The pitfalls of stocks are:-
• Stocks are issued to the public to get interest free money
• Staff and management get bonuses when the company makes large profits instead of going to the shareholders.
• Staff and management travel first class or business class, stay in the best hotels, have credit cards and company cars
• The company can go bankrupt – like Enron, World Com. Etc. It’s amazing the C.E.O.’s get paid millions in salaries each year and the company goes broke.
• The insiders sell before the public becomes aware
THE ADVANTAGES OF COMMODITIES:
• They are the necessities of life. • They do not become worthless, they can only fall in value (you make money shorting them). • They generally follow a natural seasonal cycle • They have high volatity in drought, floods etc. than stocks. • Most commodity markets have greater liquidity to trade options and futures contracts. • W. D. Gann said “it’s easier to predict commodities than stocks.
SET UP THE TRADE!  I don’t use a computer for charts – it is not the W. D. Gann method. Hand draw up a less 10 monthly charts on different commodities, currencies, metals or bonds that are trending. By trending markets that have broken highs or lows from tops or bottoms over the last 5 years or more. Make sure you have at least 20 years of data but 30 years is better when you can get it.
Next draw up your weekly chart going back 3 to 5 years from the last major high or low.
Look at the market that looks the strongest to buy and the weakest market to sell out you 10 monthly charts you have drawn. For the market to be in a Bull market it has to make higher tops and higher bottoms (at least 3 of each)
Draw all your geometric angles (Gann angles) from all highs, lows and zero line on monthly chart to determine whether the market is a strong or weak position.
FORM READING.  Eighty-five percent of what any of us learn is from what we see. It has been well said, "One picture is worth a thousand words." That is why FORM READING or the reading of various formations at different periods of time is so valuable. The future is but a repetition of the past. The same formation at tops or bottoms or intermediate points at different times indicates the trend of the market.
Therefore, when you see the same picture or formation in the market the second and third time, you know what it means and can determine the trend.
You do not have to accept my word that the rules I give you will work in the future as they have in the past but you owe it to yourself to prove by past records that these rules work; then you will have the faith to follow them and make money.
FORMATION AT BOTTOMS AND TOPS  By studying stock formulations of the past you will be able to determine what is going to happen when similar formations occur in the future, just as you know that there is going to be rainstorm when you see a heavy dark cloud form. After accumulation or distribution at bottom or top has been completed, there is a BREAKAWAY POINT. When you buy or sell stocks at this point, you make money very quickly.
Study the volume/open interest, seasonal patterns, the space and price movements and the last and most important time period. Similar action of the market occurs around the same month years apart.
Study the different types of bottom formations - sharp, double, triple, flat and ascending bottoms.
LAST STAGE OF BULL OR BEAR MARKET In fast, advancing markets in the last stage of the campaign reactions get smaller as stocks work to higher levels, until the final section or run has ended. Then comes a sharp, quick reaction and a reversal in trend.
In the last stage of a Bear Market, after all old bottoms and resistance levels have been broken, rallies get less or smaller as prices work lower. Therefore, people who buy have no chance to sell on rallies until the final bottom has been reached and the first rally takes place. This is why it never pays to buck the trend in the last stage of a Bull Market or the last stage of a Bear Market.
RANGE OF BOTTOMS  Never consider that a major or a minor trend has reversed or changed until the bottoms or previous weeks have been broken or the tops of previous weeks have been crossed. The number of points that a stock or the averages should decline below a bottom to indicate a change in trend to lower levels, varies according to the price at which the averages or the stock is selling.
We consider a range within 1% to 3% points a double or triple bottom or a double or triple top. In a strong market a stock will break only 1 point under a bottom and then rally and, in extreme cases, not more than 2 points. As a rule when bottoms are broken by 3 full points it is an indication for lower prices before any rally of importance.
SINGLE "V" OR SHARP BOTTOM  This formation can be a sharp, fast decline followed by a fast advance, or even a slow decline followed by a quick rally from the bottom with secondary reactions until it advances to higher levels.
"U" BOTTOM OR A FLAT BOTTOM This “U” bottom is a formation where a stock remains for 3 to 10 weeks or more in a narrow trading range, making about the same top and bottom levels several times; then when it crosses the intermediate tops, it has formed a "U" or a flat bottom and is at the breakaway point....a safe place to buy.
“W” BOTTOM OR DOUBLE BOTTOM When a stock declines and makes bottom; then rallies for 2 to 3 weeks or more; declines and makes a bottom around the same level the second time; then advances and crosses the previous top, it has formed a "W" or double bottom. It is safe to buy when it crosses the top or middle of the "W".... Which is the BREAKAWAY POINT.
"WV" BOTTOM OR TRIPLE BOTTOM This is a third higher bottom after a double bottom or three bottoms near the same level. It is safe to buy when a stock has formed a "W" and a "V" on the side and crosses the second top of the "W".
"W W" BOTTOM OR A 4-BOTTOM FORMATIONS This formation shows first, second, third and fourth, bottoms. The safest point to buy is at the BREAKAWAY POINT or when a commodity crosses the middle point of the second "W".
RESISTANT SUPPORT LEVELS Divide the highs, lows, and ranges into 1/8th and 1/3rd. This will give 12.5 %, 25%, 33.3%, 37.5%, 50%, 62.5%, 66.6%, 75%, 87.5% and 100%.
W. D. Gann was the first trader to do this and all traders since then say they don’t use Gann are misleading you because they all use these support and resistance levels.
Look to buy and sell on these levels providing the market is conforming to the previous condition set out in this article.
STRATEGY With W. D. Gann’s method you should divide your capital into 10 equal parts (Rules to Follow) therefore this would equal $500 U.S. There might only be 3 trending markets therefore you would only use $1500U.S. You wouldn’t be able to trade futures, you would only be able to trade options. The cheapest way is to do Bull call spreads and Bear put spreads. This will keep your costs down. If you get a strong trending market then you can buy out of the money calls or puts.
Example is December cotton chart enclosed. If you bought a call 5 cents out of the money at the double bottom for $900 and sold a call 10 cents out of the money for $400 (actual costs) you would have a net cost of $500.00.
When the market went up to 25% retracetment for $1520 U.S (minus costs $500) give you net profit of $1000.
Do that 10 times in different markets you have doubled your money.
Now you have a $10,000 account and you apply the same rules by dividing into 10 equal parts or when the market broke the 50% level at 62 cents you brought a call out of the money strike of 10 cents (72 cent strike) for $400, it would have been worth $6,000 U.S. The top 84.80 minus strike of 72 – cost of option.
Now that you have made money you now need to keep it.
GANNS 28 RULES TO BE READ EVERY DAY:
TWENTY-EIGHT VALUABLE RULES In order to make a success trading in the commodity market, the trader must have definite rules and follow them. The rules given below are based upon my personal experience and anyone who follows them will make a success.
1. Amount of capital to use: Divide your capital into 10 equal parts and never risk more than one-tenth of your capital on any one trade.
2. Use stop loss orders. Always protect a trade when you make it with a stop loss order 1 to 3 cents, never more than 5 cents away, cotton 20 to 40, never more than 60 points away.
3. Never overtrade. This would be violating your capital rules.
4. Never let a profit run into a loss. After you once have a profit of 3 cents or more, raise your stop loss order so that you will have no loss of capital. For cotton when the profits are 60 points or more place stop where there will be no loss.
5. Do not buck the trend. Never buy or sell if you are not sure of the trend according to your charts and rules.
6. When in doubt, get out, and don't get in when in doubt.
7. Trade only in active markets. Keep out of slow, dead ones.
8. Equal distribution of risk. Trade in 2 or 3 different commodities, if possible. Avoid tying up all your capital in any one commodity.
9. Never limit your orders or fix a buying or selling price. Trade at the market.
10. Don't close your trades without a good reason. Follow up with a stop loss order to protect your profits.
11. Accumulate a surplus. After you have made a series of successful trades, put some money into a surplus account to be used only in emergency or in times of panic.
12. Never buy or sell just to get a scalping profit.
13. Never average a loss. This is one of the worst mistakes a trader can make.
14. Never get out of the market just because you have lost patience or get into the market because you are anxious from waiting.
15. Avoid taking small profits and big losses.
16. Never cancel a stop loss order after you have placed it at the time you make a trade.
17. Avoid getting in and out of the market too often.
18. Be just as willing to sell short as you are to buy. Let your object be to keep with the trend and make money.
19. Never buy just because the price of a commodity is low or sell short just because the price is high.
20. Be careful about pyramiding at the wrong time. Wait until the commodity is very active and has crossed Resistance Levels before buying more and until it has broken out of the zone of distribution before selling more.
21. Select the commodities that show strong uptrend to pyramid on the buying side and the ones that show definite downtrend to sell short.
22. Never hedge. If you are long of one commodity and it starts to go down, do not sell another commodity short to hedge it. Get out at the market; take your loss and wait for another opportunity.
23. Never change your position in the market without a good reason. When you make a trade, let it be for some good reason or according to some definite rule; then do not get out without a definite indication of a change in trend.
24. Avoid increasing your trading after a long period of success or a period of profitable trades.
25. Don't guess when the market is top. Let the market prove it is top. Don't guess when the market is bottom. Let the market prove it is bottom. By following definite rules, you can do this.
26. Do not follow another man's advice unless you know that he knows more than you do.
27. Reduce trading after first loss; never increase.
28. Avoid getting in wrong and out wrong; getting in right and out wrong; this is making double mistakes.
When you decide to make a trade be sure that you are not violating any of these 28 rules which are vital and important to your success. When you close a trade with a loss, go over these rules and see which rule you have violated; then do not make the same mistake the second time. Experience and investigation will convince you of the value of these rules, and observation and study will lead you to a correct and practical theory for successful Trading in Commodities.
Happy Trading!

Decennial Cycle and Bull and Bear Calendar Years


Gann discovered the 10-year cycle, or decennial pattern. A lot of people now write about it in books and claim it to be theirs, but I believe it came from W.D.Gann’s 1935 forecasting course. By studying the yearly high and low chart and going back over a long period of time, you will see the years in which bull markets culminate and the years in which bear markets begin and end.

Each decade or 10-year cycle, which is 1/10th of 100 years, marks an important campaign. The digits from 1-9 are important. All you have to learn is to count the digits on your fingers in order to ascertain what kind of a year the market is in.

No. 1 in a new decade is a year in which a bear market ends and a bull market begins. Look up 1901, 1911, 1921, 1931, 1941, 1951, 1961, 1971, 1981, 1991, 2001, and watch for 2011, and 2021.  So far this year we are in a bearish trend. It’s important to note that yearly cycles within the overall scheme of Gann cycles are not a big factor, and you need to do further analysis. You don’t want to buy into October if major Gann angles or supports have been broken, and I stress the importance of considering many factors in making your decisions.  

No. 2 or the second year is a year of a minor bull market, or a year in which a rally in a bear market will start at some time. See 1902, 1912, 1922, 1932, 1942, 1952, 1962, 1972, 1982, 1992, 2002, and watch for 2012, and 2022

No. 3 starts a bear year, but the rally from the second year may run to March or April before culmination, or a decline from the second year may run down and make bottom in February or March, like 1933. Look up 1903, 1913, 1923, 1933, 1943, 1953, 1963, 1973, 1983, 1993, 2003, and watch for 2013, and 2023.

No. 4 or the fourth year, is a bear year, but ends the bear cycle and lays the foundation for a bull market. Compare 1904, 1914, 1924, 1934, 1944, 1954, 1964, 1974, 1984, 1994, 2004, and watch for 2014, and 2024.

No. 5 or the fifth year is the year of Ascension, and a very strong year for a bull market. It can be a new bull market or a big correction in an existing uptrend. See 1905, 1915, 1925, 1935, 1945, 1955, 1965, 1975, 1985, 1995, 2005, and watch for 2015, and 2025. 

 No. 6 or the sixth year is a bull year, in which a bull campaign which started in the 4th year ends in the fall of the year and a fast decline starts. See 1896, 1906, 1916, 1926, 1936, 1946, 1956, 1966, 1976, 1986, 1996, and watch for 2006, 2016, and 2026.. 

No. 7 or the seventh year is a bear number, and the seventh year is a bear year because 84 months or 84 degrees is 7/8 of 90. See 1897, 1907, 1917, but note 1927 was the end of a 60-year cycle, so there was not much decline. Also see 1937, 1947, 1957, 1967, 1977, 1987, 1997, and watch for 2007, 2017, and 2027.

No. 8 or the eigth year is a bull year. Prices start advancing in the seventh year and reach the 90th month in the eighth year. This is very strong and a big advance usually takes place. Review 1898, 1908, 1918, 1928, 1938, 1948, 1958, 1968, 1978, 1988, 1998, and watch for 2008, 2018, 2028.

No. 9 the highest digit and the ninth year, is the strongest of all for bull markets. Final bull campaigns culminate in this year after extreme advances and prices start to decline. Bear markets usually start in September or November at the end of the ninth year and a sharp decline takes place. See 1869, 1879, 1889, 1899, 1909, 1919, and 1929 – the year of the greatest advances, culminating in the fall of the year, followed by a sharp decline. Also see 1939, 1949, 1959, 1969, 1979, 1989, 1999, and watch for 2009, and 2019.

No. 10 the tenth year, is a bear year. A rally often runs until March and April; then a severe decline runs to November and December, when a new cycle begins and another rally starts. See 1910, 1920, 1930, 1940, 1950, 1960, 1970, 1980, 1990, 2000, and watch for 2010, 2020, and 2030.

In referring to these numbers and years, we mean the calendar years. To understand this, study 1891 to 1900, 1901 to 1910, 1911 to 1920, 1921 to 1930, 1931 to 1940, 1941 to 1950, 1951 to 1960, 1961 to 1970, 1971 to 1980, 1981 to 1990, 1991 to 2000, 2001 to 2010, 2011 to 2020.

The 10-year cycle continues to repeat over and over, but the greatest advances and declines occur at the end of the 20-year and 30-year cycles, and again at the end of the 50-year and 60-year cycles, which are stronger than the others.

THIS ARTICLE UPDATED FROM W.D. GANN’S 1935 FORECASTING COURSE
Taken from http://www.schoolofgann.com/ 
Happy Trading! 

Saturday, September 10, 2011

GANN LEVELS ON NIFTY

On the Nifty daily charts I have marked some levels as Gann said to be important.The same were researched by Murray and became known as Murray Maths.These levels(Gann angles) are 0.125(1X8),0.250(1X4 or 2/8),0.333(1X3),0.375(3X8),0.500(1X2),0.666(2X3), 0.625(5/8),0.750(3X4 or 6/8) and 0.875(7/8).Watch the price action at these levels they act as a magnet. Price is supported and resisted at these levels very often.The total fall on nifty come to 1618.50 points from the top of 6338.50 to bottom of 4720.Dividing this by eight we get 202.31.After achieving this you can add this to the bottom to get the respective levels.Now for time take square root of 202.31 we get 14 days interval.I have marked this on chart of Nifty.You can see the price comes to the marked levels at the interval of 14 days.This is my observation only on Nifty.Feel free to experiment it with other stocks to achieve the results.
Happy Trading!

NIFTY VIEW FOR 12.09.2011

 Nifty traders were caught unawares by Fridays fall.If we take 4720 as zero degrees then we completed one rotation of 360 degrees at 4999 and one and half rotation(360 + 180 degrees) at 5141 but we had only one close above it.The 45 degree level on Nifty comes at 5034 and that is intact yet.If the prices fall below the 45 degree level then the fall may continue further to 4999(360 or 0 degrees), 4929(270 degrees), 4904(240 degrees) and 4897(225 degrees) where it should find support ideally for the short term. 
Levels to watch on Spot Nifty :
No trading zone between 5042 to 5077 to avoid whipsaws.
Buy above 5077 with SL of 5062 for targets of 5095 - 5113 - 5131- 5156
Sell below 5042 with SL of 5057 for targets of 5024 - 5003 - 4989 - 4964
Happy Trading !

NIFTY WEEKLY VIEW

On weekly chart we are still making a higher top and higher bottom, so the weekly trend is up.The bottom of last week was at 4942.90.If it breaks then the weekly trend is in danger.So traders should watch for 4940 as the level for stop loss on closing basis.Be ready to enter again on close above 4940 if it violated.Another level to watch will be 4806.05 below this level will confirm the up move has ended.
Happy Trading!

NIFTY TREND IN DOUBT!

Nifty has created doubts in the minds of the traders with the Friday close at 5059.45.In one trading day it has moved in the third day's territory which is alarming!The ideal close would have been above 5064 but it closed below.  On the daily chart I have drawn 45 degree trendlines from important tops and bottoms on Nifty.These lines give us important targets both up and down.(Inspiration from one of my friend, Shri Ramanand Baiga whose mail I received in the morning.).Generally , 45 degree line divides the chart into two zones viz. bullish and bearish.Above 45 degree is bullish and below 45 degree is bearish.The 45 degree line from bottom of 4720 is still in contention as Nifty is above it(second blue line). If the down move continues its targets will be to break the two blue lines.For the up move to continue Nifty should cross the first red line soon and keep the momentum going.
Happy Trading! 

Thursday, September 8, 2011

NIFTY VIEW FOR 09.09.2011


Nifty was resisted today at 5169.25.Now we have resistance at 5185(135 degrees).Its important that we closed above 5141(90 degrees).We need to take out 5185 up to  Monday 12/09/2011 to keep the momentum going. A weekly close above 5185 will send strong signals about the move. Positional traders who entered in the correction from 5113 to 4943 can book profits at 5185 levels. Why is 5185 important? Its important because we tried to go above for 5 days from 03/08/2011 gap down but failed to cross it. This resistance will take some time to cross it. To make it easy for nifty to cross this resistance we need a gap up opening and nifty has provided some examples in past. Also Friday being last trading day positional traders may book their weekly profits and play safe. Now it is imperative for the bulls to see a strong weekly close on nifty.
Levels to watch on Spot Nifty :
No trading zone between 5187 to 5151 to avoid whipsaws.
Buy above 5187 with SL of 5172 for targets of 5205 - 5223 - 5241- 5267
Sell below  5151 with SL of 5166 for targets of 5133 - 5115 - 5098 - 5073
Happy Trading !

NIFTY VIEW FOR 08/09/2011

Nifty was earlier resisted at 5113(45 degrees).Yesterday we made a high of 5154.50 but closed below 5141(90 degrees).Now we have resistance at 5185(135 degrees), 5221(180 degrees),5257(225 degrees),5293(270 degrees),5321(315 degrees) and 5366(360 or 0 degreees).Its important that we closed above 5113(45 degrees).We need to take out 5185 upto Monday 12/09/2011 to keep the momentum going.Incidentally 5185 is an important target for this series where we could end our rise if we fail to close above it .Positional traders who entered in the correction from 5113 to 4943 can book profits between 5143 to 5185 levels as and when it comes to enter again above 5185 if sustained.
Levels to watch on Spot Nifty :
No trading zone between 5107 to 5143 to avoid whipsaws.
Buy above 5143 with SL of 5128 for targets of 5161 - 5178 - 5196- 5222
Sell below 5107 with SL of 5122 for targets of 5089 - 5071 - 5053 - 5028

Happy Trading !

Wednesday, September 7, 2011

ZONE OF RESISTANCE ON NIFTY

Bulls on nifty need to be alert from now on as we are entering turbulent zone.Here the movements may not easy to apprehend and lead to losses if we are in wrong side or caught unawares.Its imperative now to take out the 5113.70 high as quickly as possible.Bears will waiting to get proactive from now .Be cautious!
Happy Trading

Tuesday, September 6, 2011

NIFTY VIEW FOR 07.09.2011


 
Today nifty swayed both ends and ultimately closed in positive zone with the closing above 5060 which is good for the momentum on the upside.The two charts show the picture from the bottom till date.Fibo retracements show retracements upto 5098(38.2%), 5215(50%) and 5320(61.8%) .The chart shows targets possible of 5336 in the wave c as and when it unfolds(considered it as zigzag).
 Levels to watch on Spot Nifty :
No trading zone between 5046 to 5082 to avoid whipsaws.
Buy above 5082 with SL of 5067 for targets of 5100 - 5118 - 5136- 5161
Sell below 5046 with SL of 5061 for targets of 5023 - 5011 - 4993 - 4969
Happy Trading !

  


Monday, September 5, 2011

NIFTY VIEW FOR 06.09.2011

Nifty closed today above the psychological mark of 5000 which is positive.We were supported by highs made on 23/08 and 24/08 on nifty at 4965 level. Nifty's dip below this level up to 4872 if it comes can be used to buy with stop loss of 4833 by positional traders.Above 5060 nifty is positive with targets of 5178.
Levels to watch on Spot Nifty :
No trading zone between 5035 to 4999 to avoid whipsaws.
Buy above 5035 with SL of 5020 for targets of 5052 - 5070 - 5088- 5113
Sell below 4999 with SL of 5014 for targets of 4982 - 4964 - 4946 - 4922 

Happy Trading !

Sunday, September 4, 2011

CENTRE OF GRAVITY FOR NIFTY



 Does symmetry work in markets?.This chart has some points to prove it.Watch how the supports become resistances and resistances becoming supports.Every move on the Nifty looks as if as per symmetry.Now lets come to the current move.As per symmetry we may have targets of 5155-5293-5413-5576 as the move unfolds.We have supports at 4993-4933.Below 4933 the picture looks dim for the up move.If Nifty breaks below 4933 then it has to come up again quickly to keep the momentum alive.Also as per symmetry we look to have one or two down targets pending.in this pattern.Is it not price squared with time?Your comments please!
Happy Trading !

NIFTY VIEW FOR 05.09.2011

We are nearing the exhaustion of the move from the bottom of 4720.Nifty needs to maintain above 5060 to keep the momentum up.On Friday we closed below 5060.On the downside the next level to watch is 4933.
Levels to watch on Spot Nifty :
No trading zone between 5058 to 5022 to avoid whipsaws.
Buy above 5058 with SL of 5042 for targets of 5076 - 5093 - 5111 - 5136
Sell  below 5022 with SL of 5038 for targets of 5005 - 4987 - 4969 - 4945 

Happy Trading !

Friday, September 2, 2011

Thursday, September 1, 2011

NIFTY ART

Nifty Symmetry! Some Clues!

NIFTY VIEW FOR 02.09.2011

We have had a good run on Nifty from the bottom of 4720 odd.Expect profit booking to come at higher levels and be ready for intraday shorts to develop in system.
Levels to watch on Spot Nifty :
No trading zone between 5019 to 4983 to avoid whipsaws.
Buy above 5019 with SL of 4999 for targets of  5036 - 5054 - 5072 - 5097
Sell below 4983 with SL of 5003  for targets of  4966- 4948 - 4931 - 4906 
Happy Trading ! 

GANN ANGLES ON NIFTY


                                                                                                    I am trying to use GANN angles on weekly chart of nifty to guess whats in store for us from here. The chart(16 August 2011), shows all angles measured that are important to use in determining the position of the stock. Those angles are 3.75,7.5,15,18.75,26.25,30,33.5,37.5,45,52.5,56.25,60,63.75,71.25,75,82.5,86.25 and 90 degrees taken from W D Gann Angle Course.pdf (Google! to find it).In the chart I have taken one angle trendline (22.7 deg) which is not a gann angle between 5 and 6 but it looks logical as per technicals.If it is broken then we fall to the 6 line (18.75 degree) and any bounce from here may be resisted by the 26.25 deg trendline .
Happy Trading !

FIBO RATIOS ON NIFTY

Above weekly chart shows the picture from Jan 2008 till date.Looking at it the level 5284(0.785 percentage of the upmove) and 4786(0.618 percentage of the up move) has been the trading zone for Nifty.Above 5284 the bulls have been in control.The level of 4786 has been successfully defended by bulls with a minor blip of 4720.The fall of Nifty from Nov 2010 is still in a channel where a bottom has been made and ideally we should retrace up to the top of channel i.e.5284.(try to close the gap).This is the  area of natural resistance above which the scenario can turn bullish if sustained further.Presently Nifty is the trading zone for positional traders giving us hope to rise to the 5284 level where shorts may get developed in system.Below 4786(0.618) we have major support at 4300(0.500) level where buying with good volumes is expected to come.
Happy Trading ! 
 

NIFTY WAVE COUNT

Nifty wave count for wave 3 (internal 4) in progress with projected minimum and maximum targets.
Happy Trading ! 

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