Below is the daily chart of Nifty, a slow and steady rise, betraying no signs of any sluggishness so far? A lot of positives already factored in and a whole lot of negatives already ignored! That’s what the markets are - Irrational! Correction though much anticipated can come any moment now, and on the other hand maybe we just go on making a cpl of more new highs. Speaking of corrections I would really sit up and take notice once we break the 4750/4700. As from the chart below you can see that is the triple tops (now resistances acting as supports funda) and the rising TL meet there!
The hourly chart below shows a small bull flag tryin2make yet another attempt at new highs! On the hourly chart Nifty has always been eagerly bought when it has retraced to the 20/50 periods MA’s! Good intraday support at 4930 odd levels, failing to hold on to these would result in a retest of 4880!
I would like to wrap up this post by quoting David Blair “In trading write your rules in INK and your opinions in Chalk!!!
Hi..Manoj,
ReplyDeleteWell said:
“In trading write your rules in INK and your opinions in Chalk!!!
I only hope traders spend some time to write down some rules for their trading in the first place. The way they are frantic to find a fool proof method, many trades are wasted...
Once "lack of self-confidence" sets in, the trader should take himself off the trading floor/ screen and rebuild his confidence before committing his money.
I don't want to miss your next post on the "diverging indices"(Intermarket relationship) to spot the reversal..
Best regards.
ilango
Ilango Hi
ReplyDeleteWhat you said above is a TRUTH and an Experience we all go through when we set out for this journey called Trading.
Sadly only a few learn learn the lessons and transcend to the other side while most still wander aimlessly for that elusive system; a software, a maths equation or a indicator!
Infact your post
http://tradeinniftyonly.blogspot.com/2009/09/thinking-trader.html
sums it up beautifully! In the end it all boils down to your beliefs in your system and discipline to follow it and back it up with solid money management!
Cheers!