Nifty Live Chart


MARKET SPEAKS...TRY TO LISTEN

Forget about HEAD AND SHOULDER, DOUBLE TOPS, TRIANGULAR PATTERNS and all other complex studies

Two simple studies, Moving Average (MA) and stochastic are required to discuss initially.

MOVING AVERAGES (MA) STUDY:

This is one of the best analysis tools used to predict the market direction. Though there are many Moving Averages, 5 and 10 min moving averages are proved to be the best for intraday.

These are just basic signals of 5-10 MA for buy/sell. Note that all signals are not sure. For identifying sure signals, profit booking and stop losses, continue reading...

STOCHASTIC STUDY:

This mainly deals with over bought and over sold regions. If Stochastic is around 20(over sold zone), it means that, it may tend to bounce back and touch 80 (over bought zone). As well, if Stochastic is around 80(over bought zone), it means that, it may tend to bounce back and touch 20 (over sold zone)

There are two types of stochastic studies:

Slow stochastic - Moves over a period of time

Fast stochastic - Moves with tick to tick market movement

Note 1: Slow stochastic is used in this method as it is more effective than fast stochastic

Note 2: In the stochastic study, crossover (%k above %D for buy (or) %D above %K for sell) should be done completely as in many cases they will tend to cut but will not. So, we advice you to make sure that the crossover took completely

These are just basic signals of slow stochastic for buy/sell. Note that all signals are not sure. For identifying sure signals, profit booking and stop losses, continue reading...


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HOW TO FIND THE SURE SIGNAL

It is practically proved that, in a whole day, markets give 1-2 sure signals to buy/sell. All that what a perfect trader must have is only and only patience

IF BOTH MOVING AVERAGE STUDY AND SLOW STOCHASTIC STUDY GIVES BUY OR SELL SIGNAL AT SAME TIME, BUY OR SELL NIFTY RESPECTIVELY (MAKE SURE THAT THE SLOW STOCHASTIC IS AROUND 20 FOR BUYING AND AROUND 80 FOR SELLING)

Note: It was found that the above method (MA and slow Stochastic) delivers around85% - 90% accuracy

In the above chart, 3 sure signals generated during the whole day. We have shown only how to identify the sure signals using MA and Slow Stochastic. For profit booking and stoplosses continue reading...



HOW TO FIND OUT THE PROFIT BOOKING AND STOPLOSS SIGNALS

There are 2 methods to find the Stop Loss for your trade

Fixed SL Method

The above chart shows where to book the profit for those who are safe traders. 2 sure signals generated with 50 points profit

Trailing SL Method

The above chart shows how to book the maximum profit for those who want to catch some big moves with small stop loss (Make sure that both the indicators show reverse signals for exiting/profit booking). 3 sure calls generated with 70 points profit

Note that, Fixed SL method is best suitable when are markets are in the range bound/less volatility whereas Trailing SL method delivers huge profits in high volatility sessions.

IMP NOTE: THE ABOVE METHOD CAN ALSO BE APPLIED FOR 'SLOW STOCHASTIC AND FAST STOCHASTIC' INSTEAD OF 'MA AND SLOW STOCHASTIC'.


CHARTS NEVER FAIL BUT CHARTISTS MAY...

WE HAVE UPLOADED NEARLY 200 STOCK CHARTS INCLUDING NIFTY INDEX CHART WITH CRUCIAL SUPPORT AND RESISTANCE LEVELS. PICK UP ANY CHART AS PER YOUR WISH AND START TRADING WITH THE ABOVE SIMPLE METHODS


Nifty Positional :

Monthly 2-3 sure calls can be predicted with this method.


HOW TO FIND OUT THE PROFIT BOOKING AND STOPLOSS SIGNALS

Stop Loss methods are same as explained above for Intraday. Keep target 100-200 points (2% for index and 5% for stocks)as well stop loss


Happy Trading...



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DISCLAIMER: The theories made herein are for informational purposes and are not recommendations to any person to buy or sell any securities. The information is deemed to be reliable but its accuracy and completeness are not guaranteed. The above methods are based on the theory of technical analysis. The author does not accept any liability for the use of this column. Readers of this column who buy or sell securities based on the information in this column are solely responsible for their actions. Investors/traders are advised to satisfy themselves before making any investment. Nothing published on this site/ article should be considered as an investment advice. It's not an offer to buy or sell any security. Readers are solely responsible for their profits or losses.