This is my trading file to organise and jot down my take on the market .I do Technical Analysis. This blog is to keep track of my baby steps so that I can look back at my journey .Looking back tells me how far I have come from days when I knew nothing and can go further .It gives me motivation to keep going on even when I am tired. One has to back up trading with their own studies. The charts I post here are 99% inspired from Ilango sir.

Sunday, 11 March 2012


If we can study Elliott wave along with Momentum , it will help us identify the begining and ending of waves .

How to Gauge momentum ?  .

A very simple way to gauge momentum is to watch the price action against moving average .

Short term   moving average of period 5 / 10 /  20 .
Medium term Moving average of period 25 / 50 / 100 .
Long term Moving average of period more than 100 / 200 .

If prices are trading above , then strength and if they are trading below then weakness for that respective timeframe.

One can chose hour , day , week or month TimeFrame.

When 5 period ma is above 10 , which is above  20 , then there is strength in the upward direction and vise versa .

In other words whenever short term moving averages are above the long term moving averages the momentum is UP and vise versa .

Presently Hour chart shows the various moving averages as

Prices have closed above 5 20 and 50 period moving average ...indicating ST strength UP . Also see ,  5 period and 50 period moving average are almost at the same level . Now a crossover will be bullish and if 5 period ma starts to fall , it will result in Fast fall .

Day TF moving averages are presently as


5 period ma touched the 34 period ma and moved up . If this continues then a fast rise in day TF .

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