On the trading day of 22/04/2016 Nifty consolidated in following range with intraday high of 7923 & intraday low of 7874. So in all trading range was 49 points with lots of due to confusion in bulls & bears.
Yesterday I have uploaded an article on my site to day trade only 10 nifty points & you can convert 2.5 lacs to 22 lacs in 293 trading sessions. In continuation to that please read following.
Normally I don’t day trade as I am not a full time trader but as I was having weekly off I traded today & placed many day trades in nifty as well as other instruments such as crude, silver , gold .
Today was good opportunity in nifty to place small trades based on Fibonacci, channeling & . So over all 49 points range can be converted into many points based on how confident & accurate you are to use , extensions, & channel. I am giving an example of this on nifty 1- minute chart. Even if we can take 50% of the total available trades with the will to achieve only 10 points every trade then also we can be in huge profit.
It was difficult to mark all the fibbo channel support on this 15 minute chart. as it requires 1- minute chart & same can be download from following site
Down load detail chart on ::: https://amgonifty.wordpress.com/2016/04/22/nifty-eod-22042016-example-of-day-trading-possibility-in-consolidating-markets/
On the trading day of 22/04/2016 Nifty consolidated in following range with intraday high of 7923 & intraday low of 7874. So in all trading range was 49 points with lots of volatility due to confusion in bulls & bears.
I am posting 4 charts today to analyse nifty. There are two cases here:
IF WE ASSUME WAVE E IS COMPLETE AT 7978 THEN NIFTY SHOULD NOT CROSS 7978. THEN STUCTURALLY WE WILL IF WE CONSIDER FALL FROM 7979 TO 7873 WILL HAVE A BOUNCE OF 61 TO 88.4 % & FROM WHERE WE SHOULD SEE FURTHER DOWN SIDE TILL THE GAP AREA SHOWN.
IF INDEX MANAGES TO CROSS 7979 BY ANY MEANS THEN IMMEDIATE RESISTANCE IS AROUND 8050 LEVELS.
Key point to understand but.
1. Low 7881 is broken & new low is formed 7873 in today’s session.
2. Orange rising channel is broken 2 days earlier
3. Index has had 2 days of bearishness
So lets us see what index does in next week
HOW TO PREPARE NEXT DAY TRADING SETUP:
BEING A TRADER I AM FOLLOWING FIBO & TREND LINES & CHANNEL AS A TREAD SETUP.
As the day closes for a trade when we do homework with calm mind, we find that earlier day trading range provides us important clues which we can use for next day trading. As we enter a next day if we have such charts in front of us then we will not be puzzled due to volatility of an instrument & use our setup to take proper trading decisions.
I am giving NIFTY day chart as an example
See the chart at this site as its on 1 minute time frame can not be displayed at tradingview.com
FOR REPORT WITH CHARTS VISIT
On the trading day of 25/04/2016 nifty opened 7894 & registered a day low of 7827. We have prepared ourselves with the end of the day trading setup & have said that if nifty brakes 7873 on then we will have to prepare fresh set up without considering long call.
Now please observe at the day opening nifty took the resistance of 7908 as 61% retracement of fibo drawn from 7923 to 7884 & then declined till 7891 & rose till 7905 which is 78.6% resistance level of this fall from 7908 to 7891. So we have got 2 bearish confirmations. Again nifty started declining & broke 7873 which was 3rd bearish confirmation. Practically speaking if we have good hold of this picture then we would have initiated our shorts from 2nd confirmation i.e. 7905 keeping stop loss of 7908 so it has got low risk trade potential. Breaking of 7873 has given us the confirmation that nifty has got further downside. Then nifty took first support around 7842 & which is important support level as far as our larger extension grid is concerned & which you can see in larger time frame in this same report. Then nifty nifty made low of 7827 & finally closed with the maximum retracement for the day. As the closing retracement is maximum there are again 2 cases.
1.> As the retracement from 7827 to 7855 is 88.7% of the fall from 7859 to 7827. We may call this retracement is over & expect further downside tomorrow till next 1st target of 7780 as per our extension grid.
2.> If tomorrow by any means nifty manages to cross 7859 then we can expect further upside till 61.8% to 88.4% levels of total fall from 7978 to 7827.
See report at : https://amgonifty.wordpress.com/2016/04/26/nifty-eod-26042016/
On the trading day of 26/04/2016 Nifty opened gap down & immediately made a new low of 7822. Which was just 4 points lower than yesterday low.
Then nifty started rising till 7868 without much of a retracement. That is where yesterday retracement high was broken & soon nifty rose in a rapidly to 7974 to register a day’s high.
We were expecting one up move for the nifty but not till the 7974 but till 61% to 78.6% of total fall from 7978 to 7822. But the velocity of rise just astonished me.
On larger time frame I was assuming wave “e” completed at 7978. But because of today’s rise I am adding to my wave count on larger time frame a 7 legged pattern observed in neo-wave diametric diamond shape “a,b,c,d,e,f,g”. You can google for this pattern.
So I hope this leg which was up rapidly is a “g” leg & should be the last leg of this entire rally.
On a minute chart I am observing a triangle formation & will be confirmed tomorrow as it needs to break on lower side. If by any means if it breaks on upper side, then I will be proven wrong in identifying the bearish triangle. Any ways if broken upper side then also I feel 8050 area will be a strong resistance.
DETAILED REPORT ON:
On the trading day of 28/04/2016 Nifty opened gap down & immediately made a new low of 7860. Then then again went up till 7991 & then after started declining to make intra-day low of 7835. Over all it was bearish session as per expectation.
Earlier day charts I have marked congestion zone around blue trend line shown in red ellipse on chart & nifty found hard to cross this barrier. Also on one-minute chart I have drawn other trend line which is also in blue colour & once it was broken yesterday nifty did not breach that also.
Apart from correct wave analysis which is very difficult task in present market conditions we need to use proper trend lines & channels to pot the movement of nifty in relation to our trade setup. So even if we are wrong in libelling, we will at list have correct stop loss. Precise stop loss is the key.
Today nifty achieved first target which was at 7892 & 2nd target was 7842 are achieved as shown in 20 minute charts by fibbo levels.
Also if you look closely on enlarged graph then green trend line support & 7842 levels are coinciding with each other.
So for tomorrow if you see one- minute chart then if nifty crosses 23% level of total fall from 7991 to 7835 then nifty may retrace to 61% to 88.4% fibbo level. Levels shown on chart.
Also if further negativity is there in the market on opening then our lower side targets will be 7780 & 7670.
Trade according to trade setup.