RIL Futures A Good Trade In The Morning!!!

The chart below is of RIL Futures 25 minutes, before I proceed let me be very clear that this chart is purely for illustrative purpose. What I want to show here is that if followed carefully, momentum (you can use any of your favorites) can signal some good trades. The chart is self explanatory and gave a good trade. RIL Future can reverse from here and might give us a good CNH formation; a valid breakout will only come if we trade above 1190 with volumes. Remember technical analysis is more of an art than science! If you are a serious student of TA then I suggest you read the book by Martin J Pring titled Martin Pring – On Market Momentum. Hopefully in one of future posts I would summarize some of the important points on how Pring would like us to see and interpret Momentum, still it will be a good idea if you buy and go through the book.

"To be a great champion you must believe you are the best. If you're not, pretend you are."

Muhammad Ali

Nifty Recap For The Day!!!

Wow! What a pullback! For the first time we believed in the SUPPORTS and wished the RESISTANCES away. I learnt an important lesson; one never underestimate a down on luck bull and two, never draw a big bear next to him and that also in RED! (Yeah I am talking about my last post and the oversized bear I drew there). Like I had mentioned in my previous post that if intraday trading is not your cup of tea then better stay on the Trend lines (ok I mean sidelines) till you get a breakout to trade. Yesterday was also a big chop chop day, today a good trade set up emerged.

A look at the daily chart above shows that yet again we are at the 20 periods MA. Next resistance is 2830/35, if we break this one with volumes we are again going to the higher ground 3030. As for the supports it isn’t hard to guess how about starting with 2720/2670 and 2585!!!

"No one knows what he can do until he tries."

Publilius Syrus

Just A Trade! RIL !!!

Below are the three charts of RIL FUT (25 minutes) as the trade set up during the day and how it played it self. The charts are marked from 1 to 3.

The First:

Yeah I got the entry right

The Second:

I chickened out here and sold out!

The Third:

I was happy that I read the movement well, so just need to practice my exits or at least trail my positions well.

"You will become as small as your controlling desire; as great as your dominant aspiration." James Allen

The Bear Just Got Bigger! Nifty Recap For The Day!!!

The daily chart is closed with what one would call a hammer! What’s more important is that it jabbed the lower line of the triangle and now is sitting on the edge. I guess the bear just got bigger or is it just a false break to the down side? The 20 period MA is at approx 2810 level and upper trend line resistance is at our much tested and held 2860/70! Supports? There are none only illusions of supports (anyway they don’t even hold like the resistances are doing). At the risk of being repetitive I am once again quoting a saying that there are no resistances in a bull market and no supports in a bear market.

Coming to the hourly chart, we can see that the triangle (drawn in dashed red and blue lines) is wasted. The price is right at the apex, with both the 20 and 50 periods MA’s nesting at 2700/2710. This might prove a resistance for tomorrow.

All in all a bit confused state of things, if you are good at intraday scalping you are in the game, but if you are the positional types, its better to wait for clear signals to emerge. The broader levels discussed earlier on the weekend post still hold ground. How about practicin patience? Three important P’s to trading are PATIENCE, PATIENCE and a whole lotta PATIENCE!!!

"You cannot escape the responsibility of tomorrow by evading it today."

Abraham Lincoln

KISS....Any Takers????

The picture given below consisting of nine charts (read from 1 to 9 in that order) is from one of my scalping trades I did last week. The idea here to show is that if we keep things simple like trend lines and good old Dow Theory of HH’s and HL’s and vice versa we can have good trading set ups. The biggest drawback to this system; is believing in the system itself. Who the hell wants a simple set up like this when we have a wide gamut of indicators to choose from! KISS …any takers????