Tuesday, February 10, 2009

After a big move, a narrow range day ?

Two days of back to back gains in the Nifty should probably give way to a narrow range day today. This is possible because global markets are not exactly cheering.

How wll you recognize a range ? If the market repeatedly comes inside the area defined by the highs and lows set in the first 15 minutes of trading, you start getting the idea that big traders are not having a view on the market today, so they are probably out of the market. In such days, your momentum oscillators are of use. Sell when the RSI / Stochastics / CCI is 'overbought', buy when they are in the 'oversold' area.

Swing Traders can take profits on any intra day rally, or simply hold on to existing long positions.
Should you go short ? Not in my trading rules. A trading range breakout is a reason to buy. Market may or may not reward us, that is a different issue.
Have Fun!

2 comments:

chandu said...

Thank you very much for your suggestion,iam not going to trade today,if u can share more rules it will be very helpful,from a long time iam following 15 minute rule and yesterday u share a thought about 5 minute rule,if u can clarify detailed it will be helpful.

gurvi said...

Hello Sudarshan ji,
I'm wondering which tool you use for trading. I'm a small investor cum trader use ICICI Direct for this which is known to be more sophisticated than it's peers in India but is not very user friendly, slow, bulky and even using Stop loss is a challenge.
I have seen other trading accounts of US like Stocktrade, Share builder which are easy to use and can handles some complex trading rules.
So based on your experience can you please suggest some trading tools, softwares that you use or have come across not only for real time trading but for analysis as well.

Thanks !!!
Gurvinder

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