Rectangular Box can be used as prices shaping like a rectangle...Important lesson.. If RSI is above 70 which is overbought level ...that doesn't mean that you will take short...Momentum Indicators can remain in overbought zone & price will keep extending...India Nifty since 26th May opening has been moving into consolidation... copy the rectangle shape above its breakout level which is 7985 to get the target as per old school chart pattern which comes at 8015-conservative target & you get more if goes above 8020... Having said that one should not give high importance to these patterns & work on risk management as well which helps traders to stay in the trade until your weak point is hit. These many days -you must have realize that I always keep searching for the ruin point -where I can go wrong..& I have done fairly well. Regards, Abhishek H.Singh,CMT
Trade closed: target reached
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Close all long positions 8020.....Bang on....Regards, Abhishek
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27th May 2016---Index is in positive..do not try to short....break of 8020 Intraday & daily close below 7950 will indicate that this up leg is done & Index has taken you-turn. Till then, buy every dip & possibly we will see consolidation as well because of 2 super days & back to back 130--150 points movement.
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Above 8100...Index can touch 8150--8175 Intraday...
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Close your long positions...at 8125...or Book half & hold half with cost stop loss...
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If Nifty falls sharply ...assuming it goes to 8095--8100 from 8122 current rate--That will be our first clue that market is looking for a top ...& when it pulls back we will try to take short. Till then no shorts & book your half long positions with rest half at cost stoploss
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2nd scenario...if nifty doesn't fall as expected & goes beyond 8130 ....Add long positions back....
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Apologies...Take fresh long above 8136 only....
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If there is a thrust downside, risky traders should close long positions & safe traders avoid taking any positions.
Hi Praveen.....I am an elliottcian & those points I derive from ruin points of wave strategy...& some with earlier support & resistance.....one can only learn these things with experience...
WaveTalks
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Sorry...for the typo...."Thrust Downside"
WaveTalks
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Momentum is not building ....if there is a trust downside then risky traders should close longs & safe traders avoid taking any positions. Regards,
WaveTalks
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Momentum not building on upside...so kindly leverage less ...Risky Traders only hold long with stop below 8114....or close all longs again ...& let us buy above 8160 only...There is a resistance coming on top...& we are very close to that resistance
Praveen
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Hi Abhishek,
Thanks for your ideas... Could you also share the basis on which you come up with the numbers? Why 8136, 8095, etc... That would help your followers be more confident about implementing your ideas.