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.



Wednesday 29 August 2012

30 august 2012

Close at 5287.8

Day TF trending down with a close below DLema
and so is Hour TF  .
With todays close week trend turns down as well .

I see +ve divergence in hour charts with Hour TF indicators OS....

 
But sir says ,
"Look for +ve divergence when one cycle higher time frame is in the "Oversold region".

For eg: Day is near the oversold region; Look for +ve div in Hour .Caution here is that the week TA is at Overbought region and threatening to "reverse to downtrend".
Remember to pay attention to the higher T/F being oversold to see the lower t/f for +ve div. 9 period rsi is a fairly good indicator.

In the background, keep key support & resistances numbers.

When a major support is broken, such div. may become traps too"
So lets see the 9 rsi day chart ,
RSI is yet to reach the OS region , so probably more downside to be seen .

 

We are in downtrending channel ,


Longs if and when

 Break of yellow TL upside probably happens along with day 9 rsi in OS region ( less than 20) and good +ve divergence in hour charts .

Untill then shorts .


  FIBO. RETRACEMENT TABLE              
From To Fall/ Rise 0.00236 0.38 0.5 0.00618 0.00736 0.008
5033 5448 -415 5350.06 5290.3 5240.5 5191.447 5142.56 5116
5165 5448 -283 5381.212 5340.46 5306.5 5273.049 5239.712 5221.6