Trade, Live and Thrive

Monday, January 16, 2012

CNX Nifty: Tri-star Doji anyone?

Nifty - End of Day Chart - 13 Jan 2012 - Candles

Looks almost like three Dojis - that evokes memories of a Tri-star Doji - Here are the write ups from a free resource on the internet - Read the examples also :) Your call....

http://thepatternsite.com/TriStarBull.html
http://thepatternsite.com/TriStarBear.html

Sunday, January 15, 2012

S&P 500 - End of Week Analysis - between the lines

S&P 500 - EOW Analysis - Week 02-13 Jan 2012.

The last post on this topic anticipated correctly, that the space around the weekly channel top is where the action would be centered - See arrow. We have a green candle hedged by two lines, the week's channel top and the month's channel bottom. Resolution would invoke one of them giving way. The S&P is in an oversold and Bullish state right now. The month targets remain relevant.

CNX Nifty: Week ending 13 Jan 2012.

Recap: We had a week where the EOD charts saw the Price touch an important Fibonacci level plus a Channel top line rather EXACTLY . The EOW charts had the price closing above the 200 DMA after some time. The Nifty is in a good place now for the Bulls. What next....

Nifty - End of Day Chart - 13 Jan 2012

Nifty End of Day Chart: As already noted we have the price nudging against a rather strong resistance cluster. a daily close above this with good volumes is what Bulls look for.

Nifty - End of Week Chart - 13 Jan 2012

Nifty End of Week Chart: A close above the 200 DMA after so long is good for the Bulls as is the indicator showing above the green resistance/support line, if the indicator can now peek above the 20 mark - one sees the Bulls in serious business.

Nifty - End of Month Chart - 13 Jan 2012

Nifty End of Month Chart: A Bullish Harami is what the last two candles indicate at the present moment ... but the point to notice is the up tick in the indicators and the green candle for the month.

Looking Forward: A strong move above the resistances mentioned in the EOD is what one needs to start the week on a Bullish note. The same resistance is important enough to act as the nemesis of the Bulls. Current picture is green for Nifty - so long as its above 4800 it remains green for the next couple of days at-least ... intra week updates shall be up.

Friday, January 13, 2012

Update - End of Day : 13 Jan 2012 - stand off !

Nifty - End of Day Chart - 13 01 2012

The Fib61x was mentioned - couple of posts ago - as being @4868 ... Nifty closes this week at 4866 :)

See also the precision with which the Price line touches the confluence of our red channel top and Fib61x .. Bulls and Bears face off - even!

So why is Fib61x so critical .. why indeed is Fib - Fibonacci revered by Technical analysts? Well it comes naturally (pun intended) or so it seems ... here is some weekend reading..

http://www.maths.surrey.ac.uk/hosted-sites/R.Knott/Fibonacci/fibnat.html

Thursday, January 12, 2012

Update - End of Day : 12 Jan 2012

Nifty - End of Day Chart - 12 01 2012

Our last update (here) mentions that 'The red channel top and the Fib 61x are key resistances to Nifty' From today's EOD chart one sees that the Price bounced off the Fib 61x. Staying above these resistances remains all important for Bulls. Meanwhile on the EOW chart, the price close is still above the 200 DMA - with one day left for the week to end - touch wood say the Bulls, Amen :)

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Welcome Read

The Trading methods used here are suitable for those who (like me) are always Learners in the World Market (never presuming Mastery).

One learns with 'Technical Analysis' using Moving Averages, Channels, Time frames, Pattern & Candlestick Analysis, Fibonacci, Ichimoku Cloud, Oscillators & other Technical Indicators.

To comprehend the Dynamics of any Market, Peer Wisdom suggests, that we show plenty of Patience, keep it real Simple and adopt tons of Discipline.

We therefore use the same framework 'Patiently' every week - 'Simple' Technical Analysis Tools are repeated - The 'Discipline' of keeping a Neutral view is maintained.

So welcome to my notes - posted here for my Friends and Family.

Some Quotes..

There are times when playing the stock market that your money should be inactive - waiting on the sidelines in cash - waiting to come into play. In the stockmarket - time is not money - time is time and money is money. Often money that is just sitting can later be moved into the right situation at the right time and make a vast fortune – patience – patience. Patience is the key to success not speed.

Jesse Livermore.

That's been one of my mantras - focus and simplicity. Simple can be harder than complex: You have to work hard to get your thinking clean to make it simple. But it's worth it in the end because once you get there, you can move mountains.

Steve Jobs.

Discipline is the bridge between goals and accomplishment.

Jim Rohn.

Favorite Quote

"Why do we trade?

To be sure, trading allows us independence, the opportunity to work for ourselves. Trading also offers the prospects of a lifestyle in which evenings and weekends need not be consumed by work. Some of us crave the competitive aspect of trading, doing fresh battle each day. Others approach trading as a puzzle to be solved, deriving a sense of intellectual achievement. Finally, there is income. A successful trader can make seven figures in a year—and many of the traders I work with are living proof of that.

So why do they trade? Once you have the money, all of trading’s lifestyle advantages could easily be yours. Needs for competition and intellectual stimulation could be met in so many other ways. Why do traders remain traders long after they’ve won the game?

The great professions are those that serve as personal playing fields. They are the arenas we choose to express and develop ourselves. In mastering a discipline, we cultivate self-mastery. In writing a poem or placing a large trade, we capture—in a single act—our vision of how we see the world at that moment.

The great occupations are great precisely because they are such meaningful playing fields. Long after we’ve earned fame and fortune, the calling remains to be more than we are, to return to the arena and do battle with our limitations. The profound urge to extend the human grasp is common to all the great callings. To run faster, to capture more beauty, to predict ever better: in no small measure, our work is our pursuit of the godlike, however fleeting.

Maybe it is our different images of the godlike that animate our career choices.In work we find something divine within ourselves. Whether as scientists, monks, or traders, we strive for those moments when we are just a little closer to perfection, a little nearer to immortality. That is why we trade"

.... Brett N. Steenbarger

Inspiration

The Parable of Talents...

14 For the kingdom of heaven is as a man travelling into a far country, who called his own servants, and delivered unto them his goods. 15 And unto one he gave five talents, to another two, and to another one; to every man according to his several ability; and straightway took his journey. 16 Then he that had received the five talents went and traded with the same, and made them other five talents. 17 And likewise he that had received two, he also gained other two. 18 But he that had received one went and digged in the earth, and hid his lord's money. 19 After a long time the lord of those servants cometh, and reckoneth with them. 20 And so he that had received five talents came and brought other five talents, saying, Lord, thou deliveredst unto me five talents: behold, I have gained beside them five talents more. 21 His lord said unto him, Well done, thou good and faithful servant: thou hast been faithful over a few things, I will make thee ruler over many things: enter thou into the joy of thy lord. 22 He also that had received two talents came and said, Lord, thou deliveredst unto me two talents: behold, I have gained two other talents beside them. 23 His lord said unto him, Well done, good and faithful servant; thou hast been faithful over a few things, I will make thee ruler over many things: enter thou into the joy of thy lord. 24 Then he which had received the one talent came and said, Lord, I knew thee that thou art an hard man, reaping where thou hast not sown, and gathering where thou hast not strawed: 25 And I was afraid, and went and hid thy talent in the earth: lo, there thou hast that is thine. 26 His lord answered and said unto him, Thou wicked and slothful servant, thou knewest that I reap where I sowed not, and gather where I have not strawed: 27 Thou oughtest therefore to have put my money to the exchangers, and then at my coming I should have received mine own with usury. 28 Take therefore the talent from him, and give it unto him which hath ten talents. 29 For unto every one that hath shall be given, and he shall have abundance: but from him that hath not shall be taken away even that which he hath. 30 And cast ye the unprofitable servant into outer darkness: there shall be weeping and gnashing of teeth.

The Holy Bible: Matthew - Chapter 25.