My New Article -Ichimoku Exclusive – My analysis of 4 majors – EUR/USD,GBP/USD,AUD/USD and USD/CHF ”

Please read my new article ” Ichimoku Exclusive – My analysis of 4 majors – EUR/USD,GBP/USD,AUD/USD and USD/CHF ” on Dukascopy Article contest.

Ichimoku is one of the wonderfull tools developed by Japanese and released in 1968 for the public. Still today It is one of the best and popular techniques to gauge the support and resistance of any instrument.

Also I have combined multiple Time frames to make the analysis more meaningful.

 

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Nifty Technicals for 11th Jan 2012

Nifty is temporarily bullish

Nifty technicals say that, this rally is not yet over and we may expect further upside temporarily. As a day trader or swing trader…. When to buy? Wait till stoch reaches point “E” marked in the chart and look for it to come out of OS zone and buy. Hold it until either _ve divergence or till it breaks recent swing low on your time frames.

This does not mean the trend is reversed. The downtrend is intact. Unless we break the downtrend line and major swing low, we continue to be on the shorter side.

As a day trader or as a swing trader we are less bothered about long-term trend. We go short when our technicals say to short and we go long when our technicals signals long… that’s it. We leave everything else to the experts!!! LOL….

My article on Dukascopy Article contest “Trend Gap – The Tool To Accelerate The Leverage”

Please read my new article ” Trend Gap – The Tool To Accelerate The Leverage ” on Dukascopy Article contest.

It is one of the best techniques to identify the strength of the trend and to accelerate the leverage by increasing the position size substantially.

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Nifty Technicals for 9th January 2012

We have ended the first week of January. This week was full of paradox. There was absolutely nothing for either a Swing Trader or a Day Trader.

Now based on what we have lets start our analysis for the coming week.

Weekly chart.

On weekly chart stoch has a slight +ve divergence which is an indication that bulls are desperate to holding on to their strength. The area between 2 vertical yellow lines show the divergence. However we remain with the current downtrend and at 4800 we have a rock solid resistance.

Rule: Unless until proved otherwise we remain with the current dominant trend and we always take the trades in the direction of the dominant trend.

Nifty weekly has a slight +ve divergence

Daily chart

On daily, stoch stayed in OS for extended period twice (At point A and B) signalling heavy bearish sentiments before reaching point C yesterday. Hence daily continues to be in bearish mode.

Nifty daily has to prove that it wants to break last swing high

60 Min chart

On 60 Min chart at point A stoch stays in OB for extended zone indicating bulls are trying their best to do something for the new year!! However next 2 days they fail to capitalise on their good work like Sachin and then yesterday we had a downside breakout out of consolidation. The last session belonged to bulls. Still the day ends with no results as the close was still below last 3 days high. Hence no trade to be taken until we get better clues.

Nifty 60 Min is in neutral zone

30 Min chart

On 30 Minutes we have a version of _ve divergence. The bar I have marked has good volume meaning the low and high of that bar will decide the outcome of coming week.

Nifty 30 Min has a version of _ve divergence

Conclusion: Since we have conflicting signals on multi-time frames, we have to be in a watching mode and once the engine heats up we shall sit behind the steering.

Nifty Technicals for 6th January 2012

Yesterday we had a false breakout coupled with narrow range (Marked as no 1 in the chart) and today was one more day of narrow range (Marked as no 1 in the chart).
That means we have now 2 consecutive pressure cookers.
Rule: After 2 or more narrow range days, expect a huge range. That is either tomorrow or Monday.

Now which side will it move?… Answer is simple… In the direction of the main trend…. At the same time you can see the stoch reaching overbought zone just with the help of 2 bullish bars meaning that bears are heavily dominant.

However the logical entry would be taking a short entry on break of today’s low (No 2) and keeping the S/L just above the high of yesterday’s high as well as false breakout (No 1). That’s how a technical trader has to think.

Nifty daily has 2 pressure cookers

Nifty Technicals for 5th January 2012

The chart says it all.

A false breakout of yesterday’s high means we are over with “New year hype” and ready for resuming our original direction…… The risk is maximum of 50 pips even if you have taken a short positions at the last session. The stop is at the high of today i.e: just above the breakout failure bar.

Nifty false breakout on daily

My Article for Dukascopy Article Contest January 2012

Please read my article for Dukascopy Article Contest January 2012.

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Nifty Technicals for 2nd Jan 2012

Lets start with weekly. Blue line depicts the high of last week and the price breaks that level initially but was pushed back by bears to close at substantial low levels. Hence it is a kind of false breakout on weekly.

Nifty weekly is a false breakout

The daily also is in bearish mode. I have marked a box in stoch column. The green line touches the red line and goes down indicating bearish sentiments. We do not have any kind of reversal signals so far. Hence we remain with current downtrend unless until proven otherwise.

Daily also is bearish as well

Seriously… One can just trade this false breakouts…. As I said several times earlier, “price first and stoch next”… Here, though the stoch remains in OB>5 bars… while it was coming out of OB price makes false breakout and gives a handsome trade…. Hence always FOLLOW RULES ….. BUT be adaptable…..

Again a false breakout

Overall technically, we continue to have bearish action prevailing….. In the name of “new year”, there may be a circus of “shakeouts”… However it is “sustaining” levels which is key for any kind of reversal…