Saturday, February 21, 2009

Saturday musings

I have some thoughts on "Trend or Counter Trend". You can read it here
The Nifty is now pushing against support which comes in at 2740. Below 2740, there may well be a decline down to 2600.
The Index fell on last Tuesday, creating a gap. This gap is filled if and when the Nifty moves above 2850. Therefore, a long position is jsutified only after a gap is filled. Later, if the Nifty does decline, new patterns will form and these patterns are likely to give different buy signals. Now, if the Nifty crosses 2850, then it has to travel from current 2740 to 2850. I will not like to trade this up move, since at this time, we have no way of saying that the gap will be filled.
All of this creates some confusion. That's what the market is doing now, so we have to accept what the market is giving us.

1 comments:

angel said...

SWAPNIL KARWANDE-
THIS IS WITH REFERENCE WITH WHAT A GUY SAID FEW DAYS BACK ABOUT ANALYST

SIR I HAVE BEEN WITH U FROM 3-4 YRS.I AM SUBCRIBER OF UR S/W FROM EI 2000 AND NOW TREND MECHANIC.

IT IS NOT IMPORTANT WHAT ANALYST SAY IT IS VERY IMPORTANT THAT U SHOULD HAVE A TRADING PLAN FOR ALL THE SITUATIONS.
AS PER HIS COMMENT WHEN UR WERE SAYING IT WILL GO UP..
U SHOULD HAVE A TRADING PLAN FOR IF IT MOVES DOWN..LIKE IF NIFTY MOVES BELOW 2875 I AM GOING TO CLOSE MY LONG POSTIONS..BCOZ THAT WAS THE LAST INTERMEDIATE TOP.
ALSO ONE CAN USE THE INDIVIDUAL STOCK CHARTS FOR EXITS.
WHAT I FEEL IS THAT WE DONT HAVE THE PLAN IF THE POSITION MOVES AGAINST US AND THATS WHY WE MAKE LOSSES.
APART FROM THIS U ALWAYS SAY THAT THIS IS LIKELY SENARIO WHICH MEANS THE MARKET MAY GO THIS WAY..AND U ALSO WRITE IF IT DOES NOT WHAT WE SHOULD DO...

I ALSO FEEL THAT EVEN ONE HAS A NEGATIVE BIAS ON THE MARKET..
FIRSTLY WE SHOULD OBSERVE WHAT THE MARKET DOES AT THE OPENING AT THE SUPPORT LEVELS AND MOST IMPORTANT THAT WHAT IS THE MARKET BREADTH.

SIR IF U REMEBER ME WE HAVE MET IN ANGEL BROKING INVESTOR CAMP IN PUNE..
WE HAD FEW WORDS AFTER U HAD A LUNCH.
AT AHMEDNAGAR I M RUNNING A BROKING FIRM OF ANGEL..

MOST IMPORTANT SIR CAN U PLEASE WRITE FEW THINGS ON TRADING PLAN..

A SAMPLE TRADING PLAN..

THANKS

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