If anybody had started trading in Nifty with an investment of 20000 in 1/4/2005 as per this strategy, and using all the profits to continuously trading under the same strategy , due to compound effect it would have become 60 crores by now. This is nothing new. one of the oldest strategies (is it a strategy first???)
In EOD chart 1. Buy above 34 EMA. Sell when price cuts 8EMA from above. Again buy when price crosses above 8EMA (provided it is above 34ema) and sell when again it comes down 8EMA 2. Short sell below 34 EMA. Buy back when price goes above 8EMA. again short sell when price goes below 8ema (provided it is still below 34 ema) open icharts (EOD) for nifty . set 5 years period. select 8ema and 34 ema. and see the charts. you will find it. i have conservatively considered 20% margin for nifty , and 10points per lot per trade as expenses towards brokerage etc. it is a plan which will work both the times. bull or bear. attached an xcel file for calculation too we may say that it wont be possible for nifty to move again like this past 5 years. if we see the chart for last 2 years it is visible that nifty will keep on moving either side. it is upto the traders to make use of it
Saturday, January 30, 2010
Monday, January 11, 2010
EXIT LONGS , IF NOT! HEDGE WITH PUTS
MARKET HVE BEEN HOWERING AROUND 5300 WHICH IS ACTING AS A STRONG RESISTANCE. THERE IS EVERY POSSIBILITY OF TAKING A DIP BEFORE GEARING UP TO 5500. SO, LIGHTEN UR POSITIONS AND BOOK PROFITS IF U HOLD ANY LONGS.
DONT STAY LONG IN NIFTY..SHORT NIFTY FUTURE WITH SL 5320AND TGT OF 5160 POSITIONAL OR HEDGE WTH BUYING PUTS..
DONT STAY LONG IN NIFTY..SHORT NIFTY FUTURE WITH SL 5320AND TGT OF 5160 POSITIONAL OR HEDGE WTH BUYING PUTS..
Sunday, January 3, 2010
MARKETS AND NIFTY NEXT WEEK
Nifty short term trend is DOWN only if Nifty trades BLW 5180 levels. For Daily Purpose, Trend deciding level is 5188 If Nifty shows strength above 5188 levels then a rally up to 5210-5234 may be seen.
If Nifty does not show strength above 5188 then selling pressure till 5143-5169 may be seen. Breakdown below 5150 levels may lead severE selling to 50100.
WATCH THESSE LEVLES YOU HAVE SEEN YESTERDAY BANKNIFTY TOOK RES AT 9080 AND SUP AT 8998NOW FOR NEXT SESSEION BANK NIFTY RES AT 9060 BANK NIFTY SUPORT AY 8940 UPSIDE IF IT GOES ABV 9030, AND SUSTAIN RALLY UPTO 9080-9120 BLW 9000 FALL UPTO 8920-87880- LEVLE CAN BE SEEN NIFTY FUTR PIVT PONT IS 5196 ABV THAT STRONG BLW WEAK
If Nifty does not show strength above 5188 then selling pressure till 5143-5169 may be seen. Breakdown below 5150 levels may lead severE selling to 50100.
WATCH THESSE LEVLES YOU HAVE SEEN YESTERDAY BANKNIFTY TOOK RES AT 9080 AND SUP AT 8998NOW FOR NEXT SESSEION BANK NIFTY RES AT 9060 BANK NIFTY SUPORT AY 8940 UPSIDE IF IT GOES ABV 9030, AND SUSTAIN RALLY UPTO 9080-9120 BLW 9000 FALL UPTO 8920-87880- LEVLE CAN BE SEEN NIFTY FUTR PIVT PONT IS 5196 ABV THAT STRONG BLW WEAK
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