Tuesday, April 28, 2009

Trend Line Shifting Continued......

Hi,
So trend line shifting is one of the nice concept seen at every exchange, be it Nifty or DJIA.
Shifting rules of trendlines are quite handy. You just have to take into consideration 2-3 broad parameters and you'll be done.
1st - You got to know which phase of the market we are in. Like talking about Dow its in the phase of accumulation and after a sustained bullish rally it is seen in the range of 78-7900 to 8000-8100 range. Now point to note here is that when an index or scrip rallies so much it needs to take a breather, so it continues to move upwards or stays in broad upward channel but shifts its bullish trendline to a bit on lower side. See the below chart:


2nd: Its strange but true when everything is going fine bad news eventually fades. Now once we are on bullish trend you'll hardly witness any major blows anywhere in the world. So Indices stays in profit booking sessions and its the best time to mint the market as you can easily make bucks simply by keeping up with the range created by market trading on either side until the major news or event occurs which might shift trendline upward or downwards.

3rd: Shifting trendline is easier and quite obvious through charts. Once the market corrects intraday let it reach its downside limit and once it makes two consicutive higher lows just draw a parallel line which got to be in sync with the previous upside trend line. Same thing holds true when we are in bearish market.

Minting is an Art:
As I said above if you know which phase of market we are its easier than ever to mint money. Here is the intraday chart of 27th April - part of the 5 day chart above. Once you know the range techinicls will help you in minting money. Only you need to be in frame of mind that market is not going anywhere and you know what is happening (easier said than done but its true!)

Note: same concepts can be applied in our loving Nifty too. :)


Hope You Loved Reading It.
Happy Trading.

Trendline Shifting - DJIA

Just a chart I drew in free time but real time. I call it trend line shifting :)

Friday, April 24, 2009

Perfect Reversal - Market Beating Expectations


Hi,
Yesterday was a day of strong trend reversal beating most of the technical charts and theories. Market has proved again that it indeed relies on sentiments than anything else. Market opened with selling pressure which was in line with global markets as usual and at one point it seemed that it may retest 3300 support. But as the good winds kept coming throughout the day market never looked back those lvls even for a minute. A good point to note that we didn't had gap down on the first case which gave the first bullish notes and as the market has done previously a thumb rule can be made - That when market is in bullish channel and having good winds any hint of good result can drastically change the direction of market. Same rule can be applied when market is in bearish channel (remembered sub 3100 lvls when anything which smells bad has beaten the market again n again).

Honestly speaking surprise results of companies were not a real surprise as we have seen in previous sessions that some I.T companies have beated the market expectations, and exactly same thing repeated in the morning too. Expectations of Nifty as well as non nifty companies kept the market cheering up and investors poured in money ahead of their Q4 results. HDFC bank and Reliance were the classic examples. Surprise was from Reliance's as their net profit was down but it has beated most of the forecast of greater declines. Reliance has always been promising on these crucial points and I can recall that last quarter bad results were expected and shorters and many research report have given sub 1000 targets for Reliance Industries. But despite all reasoning it held up firmly and people took it as an opportunity to value invest in their portfolio. So todays Reliance move was a delight to fundamentalist as well as an technical analyst who can correlate Reliance with Nifty. Do it either way and it gives you the same results.
Fundamentally Reliance showed that its Beta is indeed working. Lets see how:
Reliance has a beta of .85
Reliance gained in the day by 2.6%.
So Beta targets of Nifty comes to 2.6/.85=3%
and Nifty indeed gained 2.8%.

Isn't it amazing. So its clear that Reliance has got a perfect working Beta and the stock got to be looked on seriously as it has got a great weightage. So one can hedge its positions with Reliance considering its working Beta status. You can back test Beta resluts for the past Nifty movements and can apply it to coming days as well. So its clear that market is quite bullish on Reliance stock and it if Nifty has to go past 3500 reliance must breach its crucial 1800 mark in coming days. And I hope its not a big deal on assumption that corporates continue to surprise the market with their earnings (I really don't know how much books are cooked for giving surprising results ;) ) and short covering week ahead.

I would also like to give my fav fibs charts which once again came to rescue with its crucial 23.6% profit booking factor.





Phew!!! 23.6% you're spot on!!!

Hope you loved reading it.
Happy Trading.

Wednesday, April 22, 2009

Bourses Outlook

Hi,
So yesterday was much awaited day for our market as Rate cuts hopes keep market speculating.
We had a nice gap down in the morning which was in sync with U.S indices almost falling more than 3% each. So a gap down was obvious in sync. Interestingly whenever market falls analyst give different reasons for it to make it look quite obvious to their logics, like I came to read an article of ET here link. I would like to quote an extract for those who don't want to go by link -

"Accounting norms have been tweaked to permit zombie banks to pretend they are alive and solvent. The hope is that the public will swallow this fiction, animal spirits will revive the economy, and the consequent growth of bank profits will eventually suffice to write of the toxic assets. Very optimistic!"
btw article is very interesting to read do check it out.

So here we go, for every fall reasons like these and many in the articles can be taken for reference. Now its a matter of time how market give its own verdict on the policies and rescue measures. Interestingly dow recovered today closing at above 7900 keeping hopes alive.



On our Nifty front too a sort of same thing is going on. People haven't abandoned the hopes as market did rallied after rate cut news, but results were mixed as RBI cuts rates on repo and reverse repo but CRR one of the major rates was unchanged. We had a gap down opening and the gap was nicely filled up in the day as I discussed at iCharts shoutbox. Amid mixed reactions we peaked 3400 and managed to close down at 3365. Now an important suppord did held today which was 3300 (multiple support I must say - trend line, open interest and fib suuport of 38.2%). So as my last blog goes Nifty retraced more than 23% but candle still shows that its not in a hurry to move either downwards. Upper channel of Nifty is still intact but Open interest which is built up for the first time on 3400 and 3500 calls are giving clear signal that we might end up in 3200-3500 range as nothing major is happening. Q4 earnings are a bit of mixed bag as Infosys gave the indication that I.T front will be gloomy but TCS and some other software companies defied it amazingly reason may be their hedging policies, but yes they beated the market expectations. Hero Honda declared its results post closing and was in line with expectations. So on Automobile front we can be damn sure that they will post good results and same things can be expected from our Oil majors like Reliance and ONGC. Now its highly debated whether crude is breaking out or not but still these companies are performing better and expected to post decent results atleast better than their last quarter. Remember last time market didn't broke out on Reliance results and now this time its all good winds so a decent profit figures could cheer up the market as it is for the look out of anything good. So retesting of 3500 can't be denied at the month end and ofcourse yes we have our monthend fest named "Short Covering" which will be interesting to see. Till then lets see how volatile can market go.

Hope you loved reading it.
Happy Trading.

Sunday, April 19, 2009

Breakouts Everywhere - DJIA, SNP, NIFTY & Major Stocks


Hi,
Last week was crucial for me with respect to catching market movements.
One for the reason that 3500 was my last calculated lvls for the nifty this month(can verify with SB archive at icharts :) my official record book and my earlier post http://niftyswings.blogspot.com/2009/04/so-whatz-next.html). Well not claiming anything big but yes by all my logical reasoning and retracements theory I reached on that lvls and was anticipating correction on the wake of Q4 earnings. And yes we've corrected twice from that lvls and I was also looking further downside retracement but the first correction caught my eye and its a complete brainwasher for me. Honestly speaking last week gave me a new insight regarding market and I'm sharing the same.


Nifty Retracements - Can it Do again.


Fibs retracements are amazing and the key to master them is tweaking lows and highs. So earlier when nifty retraced for the first time by 23.6% I dared to say that that was just a profit booking retracement and not a trend reversal, how I concluded that??? Just past observations and my fib experience which I really love by heart. Now Same thing happened at the end of this week. Nifty corrected by 23.6%. So if the saying goes true by this time that History Repeats Itself, we can see upmove from here. And ofcourse the next day we indeed got the bounce from 23.6% retracement lvls but failed to sustain (coz of profit booking, nobody wants to loose profits at the end of the week -another nifty trivia). And closed above yesterdays days low. So I'm still eyeing opportunity for the next week and yes reasons are many, not only fibs but also hopes of RBI rate cuts, Global news flow which is expected to be positive, and still some time left for Q4 earnings, atleast till then we can see some swift movements upward.



Check this graph and see if we can make out similarities out of these moves.

Global Indices

Interestingly its a time for breakout everywhere. Oops did I make an offensive comment which defies all logics given by big guns all over. Whatever be the case analyst are divided most of the time. I've read ET articles and its the same story everytime, half will say boom and half will say bust. But neither of them can be true and one has to win despite of all pros and cons. So my sixth sense or understanding supports what is going on currently and I got to overrule the logic that recovery can't be so fast despite of poor performance. As market has a tendency to discount all news in advance say some 6-7 month ahead or even larger. So possibly things will improve with a period of time, but best rational thing is to go by charts and watch for breakouts.





Now coming to Dow Jones, see the charts it has successfully managed to stay above 8000 mark, atleast the last two candles says so. In my earlier post I've thought of it as Accumulation period of say some intermedciate period and it seems it going nicely. So who am I to frecast ahead of trend that its all fake or bearish, let them break key levels downside and then make the fuss. Till then we can safely move with market isn't it. So clearly dow holding nicely its upper levels which is supported by the profits by its banks. In my earlier post I've talked about Wells Fargo bank which posted profit a bit early than expected (first it was hard for me to believe coz of Fair value concept which gives freedom to banks to value its toxic assets as per their wish) and other two major banks Morgan stanley and Citi group declared profit. Now not going deep into the citis type of earnings and all the concepts the fact is that American Banks have joined the spree of declaring profit and that's holding the market, atleast for a time, and the charts will tell how prudent their earnings are. Some major stocks like Google is also doing well so all n all its a boom boom thing for the american bourses.

SNP Outlook
Just Check this out
http://blogs.stockcharts.com/chartwatchers/2009/04/daily-ema-combo-turns-positive.html
Now this is the stuff to ponder, I read John Murf's blog in which he advocated SNPs breakout. Now I don't need to tell how good he is at charting than anyone else, but surely with his experience and explanations it can be concluded that SNP is set to breakout and if it does it is expected that Dow Jones and Nifty will follow suit. So to sum up its party time all over and if not we know what we got to do, right......
:)

Hope you loved reading it.
Happy Trading.

Monday, April 13, 2009

Closing Bell - Nifty

Hi,
So market behaved as expected and formed a doji pattern. On EOD its double doji. Profit taking can be clearly seen on the graph and considering the Q4 results it got to correct more from here.
So whatz special in todays post. Well nothing new but would like to point the punching of Nifty values on NSE site. See the graph - It shows todays open at 3342 which it assumes from the previous days close. Now for statistics its ok for recording purpose but from T.A perspective its a big blunder. Why? 1st It ignores the gap up and down opening which is very very important to every techincal analyst. 2nd If you draw EOD candles by taking NSE values it will give altogether different picture. Like today if we go by NSE we will see a star pattern but actually its a doji candle and everybody knows how important on charts a doji is.


Here an Ideal Chart got to look like : thnx to iCharts.



So point here is Nifty has not gained 1.21 % today and from the analysis purpose its a flat closing indicating some correction coming up ahead. Its interesting to see how 3300 breaks in coming days.

But they also adjust there data Post EOD and this is how the charts look on daily:



So I had discussions with ST(icharts moderator) about this and he said that they had to readjust the data as per NSE. I asked him about the first punched figure of Nifty's Opening and He gave a figure of something like 3378. So for analysis purpose market hasn't moved anywhere it started and ended flat. Same things are witnessed at Yahoo charts too. But a clear and non biased way to catch this is to just look for 5 or 10 minutes time frame on yahoo or iCharts and you'll notice a clear gap up there.

Hope you loved reading this.
Happy Trading.


So Whatz Next???

Hi,
Its been three days of sitting idle and fiddling with charts to guess whats next. I bet market has kept everyone guessing on which direction the market will move. I've seen 'n' no of trade setups by different analysts giving examples and targets on both side. Its quite surprising when market itself is undecided how can any setup will define the market direction. Ofcourse one setup in either of two direction will hold true and the winner will say as usual - "Look I said you naa that market will move like this coz of ........". Funny isn't it. When our market was at 2550 lvls shorters gave every excuse they can to give sub 2000 tgts like fundamentals of economy, elliot waves, fractals and so on. Its even more surprising that they are the same people who didn't earned much on this 900 points upside rally. Reason being that they were so used to shorting that they couldn't enjoy this rally which is totally news and events driven, or in harsh word I must say it hurt their ego when market moved against their forecast.






So right now we are again on an interesting point and again I read many setups. Surprisingly I read the same setups and excuses for the upside too like fundamentals, elliot(a complete change in setup-they call it wave recount) and numerous logics. You'll be surprised that I don't take any of the views of upside and downside and I can explain how. As per me its the classic situation of a glass which is half filled. So different people see it differently. Some say its half full and some will claim that its half empty and the fun is that both are predicting that it will be full or empty in the coming days. So what am I doing here?? :) I'm just watching on sidelines to see whether its getting filled up or getting dried up. Simple.

Now coming to the point and its a very important one. Everybody has seen views of every market expert be it on T.V or here on blogs and beleive me nobody is perfect. So as a trader you got to trade with a neutral mind and don't jump to be in a league to be an perfect forecaster as there are no rewards in guessing complete market direction because nobody can. So it makes perfect sense to see how things are changing and how market is reacting with news and to make money. Even the legends like Warren Buffet have confessed that they went wrong at many points and made huge mistakes.

How I See the Market- You must be cursing me that I havent spoken a word about the market but pardon me for that as I got to explain all this to make my point. About market in general, I mean global as well as Nifty, we have seen doji once again. Last time we have seen it on hourly charts I guess, and market turned upward. Now its on Daily charts so its quite important. It shows the state on indecision so market can move either way. In my last post I said I was expecting a short session of profit booking and indeed it happened but sadly it was from brokers side so we couldn't see that much downfall as I was expecting. I still hope that profit booking can happen again at current levels or 100-200 points above i.e 3500.

Now the reason why I'm expecting a halt in this rally. Market has moved 900 points in a stretch i.e something around 25-30% on mostly global cues. Now global cues which is most of the times Dow Jones is bullish coz their banks have started performing. Surprisingly Wells Fargo bank declared its 3 billion dollars of profit before the due date. They said that they felt like declaring this news a bit early because they felt like it can improve things. So Americans are now desperately pushy. Market indeed rallied on this but 8000 is the mark which will testify their claims if they are really profitable or not. Catch is here is that U.S government has allowed them to drop the accounting rule of M2M(Mark to Market) and use Fair Value method to record their toxic assets. Which means that If an Asset of $2000 worth $1000 now due to market valuation, now banks are free to value on their own will to mark it at 1500 or 2000 or even 2100(it can be, who knows). So definitely U.S banks will start posting profits on monthly basis, and the truth is that they will make profit if these toxic assets regain their original valuation in the coming times which nobody can guarantee it. So the same profit will turn in loss as its accounting policy to write off losses from profit, and that will happen at future date i.e when they become due. So that's how U.S institutions are trying to save their asses. But market is now so sacrosant all the time and it may react (or may not react). So don't get carried away if other banks will join the league of declaring monthly or quarterly profit.

Now coming to Nifty its been moving in a stretch, quite good thing, but even if we do believe that we will be the first economies to recover, it doesn't make sense that we will move in a straight line in unidirectional move. After all our favorite T.A has explained that it got to move from the phase of accumulation and I do believe that coz accumulation gives the time to market to rethink that are things really improving, and if they really are then we can move ahead. But thing is that I can't trap the market in theories, it has moved up straight in a line recently but to reclaim 4000-5000 levels it has to follow the basic path or else we can claim that our markets are exceptional. Thatz all from my side.

Hope you loved reading it.
Happy Trading.
Note: Please feel free to share your ideas and comments.

Wednesday, April 8, 2009

A Walk to Remember - Nifty Leading Global Indices

Hi friends,
For the first time, (btw its the second time) nifty has moved ahead of global indices.
Well first was the time when nifty booked profit ahead of dow. But today was special
as the rally was well ahead the U.S and other European indices. I've never seen such a rally intraday where nifty has given 200 points infront of your eyes. Seems like days are on for intraday players. Upside was well anticipated given the current scenario but what's interesting is that it broke the trend and moved ahead by the rest of the world. Now people like me are speculating whether Nifty is decoupled from Dow or not. What can I say Yes n No. Reason is the accumulation phase of Dow is well anticipated and Nifty suddenly jumping the can is a bit dicy but can't be ruled out, afterall we are emerging economy. So if things are really developing then we are definitely not the last one to join as the crux of growth lies in our market and not theirs. It will be interesting to see if Dow to join and breaks out from this acculumation phase a bit earlier. But still I think a bit more time should be given at current levels before moving up but you can never guess markets moves as it seems eager to climb every postive news contrary to what it was doing earlier. On fundamental side things will be same Q4 would be paltry and by going through the current sentiments market is most unlikely to give more weight on these results. But it can have some potential to bring some 100-200 points down, but over and all the ball is in the hands of bulls and it will be interesting how we close this month.



btw technicals are working amazingly, the gap and earlier so caller 3150 resistance hold so well today. Add to that 3350 Fibs resistance also hold or rather I say avoided to be broken if bulls had some extra time. I'm hoping for atleast some profit booking in coming days. But times are definitely not good for shorters. Be careful.

Hope you'll always love reading it.
Happy Trading.
Bye.

Tuesday, April 7, 2009

Dow Jones - In sync with Dow theory

Hi Friends,
Its truncated week for Indian markets so I thought to post some thing about Dow Jones movements. Right now everybody is looking at dow, and its my delight that its working perfectly fine as I thought(after all crystal ball gazing is my passion) and posted earlier.

So it is right now perfectly in sync with Sir Dows theory of Accumulation and Distribution. People who are pulling out their hair on Dows movements I will advice them to reopen dow theory and go through it and then laugh out at the market. In my last post I have given range of 8000-7500 points movement for Dow. I forget to mention how I arrived at this range, so today I'll be explaining it. I hope it will move in this range. So far its in Accumulation Zone and its 500 points zone. Interesting thing is that so much is happening all over the world so fastly that it has sticked near 8000 lvls and to cross this it must go through perfect Accumulation phase so that its upward rally should not be questioned. But market has its own moves and so is our Nifty's as it has also moved so quickly without any accumulation. So keeping my fingers crossed it will be an event to see Dow how it takes up this current accumulation zone.


A brief introduction about Accumulation/Distribution for those who are curious about what are its implication. See the chart I've market in rectangle, Distribution is the phase in which an Index moves in a range before falling further. There got to be some hits on the length of the rectangle which qualifies it for a perfect distribution/accumulation phase. When Index moves out of the rectangle we call it a breakout. So we've seen a distribution zone earlier and now as per me we are in accumulation zone. So far in current move we have seen fair hits on this accumulation zone and I think it will stretch a bit for some more days. I'm hoping for a breakout above 8000 probably by this month end till then there are some interesting data from the U.S which are about to come. A failure from this zone will mean we are not going anywhere and we can put the same thing for our Nifty as well. So who do believe in coupling or decoupling theory of American-Indian market watch out for this range 7500-8000.

Hope you loved reading it.
bye.

Friday, April 3, 2009

Dow Jones - Testing will be on for some time @ 8000

Hi friends,

So its Friday evening and dow has opened with a slight dip. Now If you see the graph it has taken up nicely and seems to hang around 7500-8000 zone for a while coz this rally needs some time to form a base or atleast some time to breath. A little correction should not be taken as a sign of slipping its heights. Why? Well its quite obivious that U.S market has discounted the historical news of all time high of U.S jobless data positively. Now it may sound unusual but as this market is already bitten down so badly that they are looking a slight positive hope as a sign to buy and climb up the heights. Don't believe me then just take relook how the market took the second month City earnings as an opportunity to move ahead. Now as I mentioned in my earlier blog that market has taken a very positive notes as their manufacturing index performed positively. So no matter how bad the conditions of their companies may be they are discounting every positive news and in this hope they will sustain 8000 lvls for a while. U.S seemed to be assured for a month now and it will be interesting to see how their manufacturing index will be for the next month. Till now they can afford their good night sleep. Also major happenings like G-20 summit shelling close to around 1 trillion ( 750+250) will keep things busy for the world bourses.




Thursday, April 2, 2009

Morning Note - Continuation of Events Driven Market

Hi friends,
If you are wondering why our markets are moving insanely, or if you are a typical technical analyst who hang only n only charts with strict and inflexible rules like if Nifty is returning from its historical resistance or above 3100 lvls can in no way pull back and retest them again, or who are quite rigid on their all sorts of DMA and moving averages etc. After all our Nifty Daily Charts speaks so. Or if you are a hardcore fundamental analyst who bank on all PEs and ratios and Quarterly and Yearly Reports will in no way expecting any kind of bounce and have gone short on Sectors like Infra whose balance sheet are pathetic and cash striven.
So whats my point??
As saying goes past performance - Historical Performance are not indicative of Future Performance.
So you need to have open mind. Whats missing in this game is that we are seriously ignoring Events and one of the most important and hevy weight decider in Stock Markets "Sentiments". Earlier I've explained that inspite of poor performance only and only events and hopes are driving market. Well I'm no expert in guessing events but yes you can atleast anticipate it. For example U.S news of bankruptcy of their auto majors like General Motors and Chryslar are one of the major news. Now earlier bankruptcy of financial institutions like Lehman, AIG and other has created havoc so why no such havoc this time. Its probably(as per me it is) coz people have taken a systematic bankruptcy plans of Obama positively. So you got to interpretate things in right perspective and use it with Technical Analysis tools.

This I call a Proactive approach. Yesterday when market closed one of the major 3050 resistance levels i went long coz its of significance that market has something which holded it from slipping from last hours. I mean there has to be something which let traders to not book profit on this day like earlier. So here you get your first clue that something big is cooking, or in plain words there is some news which is discounted by smart traders. So I kept my postitions open for the days which is a worth taking risk and it may reward as the day opens up.

So Early Morning News which are driving today are Japanese Index rising 3% in early morning trade. To quote an extract from ET how sentiments make or break the market -

"The US market opened sharply lower on Wednesday after a payrolls firm reported higher than expected job losses in the US private sector in March amid the prolonged recession.

But US stocks raced higher as the manufacturing index for March turned out to be largely in line with expectations and up from February."

So enjoy this ride and Now as U.S has entered in a safe zone for a while now which is the biggest issue for the world my analysis tells that the range for the month will get shifted to 3000 - 3250 levels unless and untill some major shaky events rocks the market. Also about Q4 earnings will be grim but I hope market will take it normally in sync with stabelising U.S market conditions.

Hope you loved reading it.
And if you are tracking world markets please please and please do share your thoughts as it will help me a lot.

Wednesday, April 1, 2009

Flags March Continue - Best April Fool Today!

Hi frns,
So yesterdays history repeated again. Nifty surprised everyone by giving a gap down, even surprised me coz SGX was trading @ 3040. So I waited waited waited till the so called bearish rally end(remember no trend lasts for ever). Trading Insight- Don't jump in rally and have patience till support and resistance are reached. Don't enter the trade for the sake of trading at every minute of the Nifty trading day. Take example of Sachin, How he plays....
He waits initially to read the pitch, the pace of the ball and when things go fine Bang!!!!



So how to read the stock markets pitch???
As I mentioned earlier its game of support n resistance. 2964 was Nifty support, chk iCharts ShoutBox archive I have shouted(i mean spoke) that 2994 and 2964 were support and 2950 being the major support. So today I waited for the nifty to give signs of reversal. Notice here that 2964 support doesnt mean that trend will reverse from 2964 only. It may reverse in the range of around 5-10 points plus or minus. So it made days low @ 2965.70 and reversed.
And yesterdays history got repeated.

A new concept- so todays graph went fine till 3040 but we got a catch in the middle.
Now this is a classical example of a falling wedge. But to trade this in advance u need to have some trading psychology and guts. I mean to say if you are long from morning and your concept are clear that this uptrend will continue u can take some chance. Even you don't take chance you can alwayz trade this wedge. Falling Wedge is highlited by the two red lines joining top and bottoms. In upmoves these wedge are most common and they are lovely to trade.
When to enter Wedge - Just when the candle breakout this wedge. And today Nifty gave us a Perfect wedge to trade. It broke out of that wedge and gave us the moves to 3060 so even if you enter at wedge breakout it will give you a hefty 35 points. Now this is serious money 35 pips!!!
Please understand stock market is a serious game where you are against many smart people.
Ask any broker Nifty in a normal day gives a 50-60 points range for traders. So if you are at beginners level try to catch 20-30 points first and be happy for the day that u make money. 20-30 points means 2-3 thousand in a day. So who doesnt want to make this money consistently and regularly. Ok so my idea of telling all this is that normal days will give you 50-60 points move so you can estimate broadly what will be your target. For example today suppose (don't suppose it really was) it was in my mind that trend will be bullish so from reversal I got a target of anything above 30 points unless there is some major bad news which could turn the market.
So once you join the rally keep trailing the stop loss. Now in trailing stop loss i'm not that perfect but you can trail stop loss flag by flag(remember my two flag rule) or if you are good at spotting support and resistance you can place sl once the resistance is cleared for e.g 3000 was a resistance and so on. Stop loss ensures that the profit you made in a day does not get wiped out if trend turns agains you and you'll still get your decent return on money as well as time.

Hope you loved reading it.
One more thing do share your experience and strategies.
Happy Trading.


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