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.



Always keep this in mind

Know the Trend , Trend is UP when Prices make HH and HL , Trend is Down when prices make LH and LLs. Know the trend for the day and use hour to enter and exit .
keep a watch on 30 min charts or 5 mins charts ...Along with OB OS , Ema crossovers , Divergence These will help as confirmation .


Jot down the important levels for the day ..before the day begines like

5Dema , 5Hema , 5Lema , Day pivot , 21 hr MA , 34 Hr Ma , 10 Ema In the Day TF
Know strength above pivot and weakness below pivot.

Keep a watch on 5Hema , 5HLema 5HHema in Hour time frame during the trading hours .

Keep a watch on prices as they move above or below these important levels during the trading hour .

prices tend to osscilate between +/-20 points of high and low ema s of respective time frames during a side way move .

Do part booking at above mentioned important lvls.
Keep Stop loss and target ready for every trade you enter .

If prices continue the move further than +/- 20 of High or Low ema then understand the developing strength/weakness  in that direction.

Develop the habbit of counting 5's and 3's in day chart of different TFs if you can ....If it is not clear then stay out

I am still working on entry and exits
On 4th April 2012 Sir says

Part booking & re-entering comes only with experience.

There are few methods to follow to reach there:

1. Observing the price cluster points in an hour chart of 30 to 50 trading days would guide you on the likely price points such as the recent one being "5382".
2. Understanding the maturity of an upmove/ downmove and the different T/F technicals would guide you to hold back on profit booking if the trend is still young. Hour TA with +ve or -ve div are good points to part book. 75 to 120 points away from the recent top/ bottom is a good place to re-enter. Re-entry should be avoided if a threat of reversal looms.
3.Knowledge of EW helps to understand various kinds of wves/ retracement possibilities for part booking & re-entries.

Below contents are Copy and pasted from Ilango sirs Blog ...

Reader's Query:
I have a request, if time permits, can you guide on one of your postings, as to how to develop "patience" with respect to trading. I mean, when we have a right position, we are supposed to ride it strong to extract the maximum. It is possible with only patience.
Whereas the new traders, take profit at prematured levels but stay tight on a wrong position for the turn around, end up huge losses.
In this aspect, I would be very thankful if you can shed some light on developing this patience "to ride profit long and cut losses short".
Suggestions:
1. Always take minimum 2 lots so that part booking makes holding easier.
2. Your studies, whatever may be they are, will have parameters or conditions for holding, exiting & even target prices. You need to believe in them with an objective approach. People will call you a "patient trader" when you steadfastly follow your studies.
3. Never take a position and then look for justification to hold. This is "subjectivity".
4. "Objectivity" is something which you can recommend to the "die-hard critic" and stand by your observations.
5. When your number flashes on the screen, act.
For eg: The Tech.Table has certain basic criteria to holding positions, trading positions, likely targets or trailing a position. If you are a believer of the "Tech.Table" (which is nothing but just prices & its manifestations), then you take a position for a trading purpose initially and if the prices graduate to a "close above CEma", you make it positional. "Part booking" along the way is what will make you confident of "Holding".
Most traders' dilemma of holding a wrong position emerges mainly because of the "
conflict with time frames". It has been my early experience that as you get closer to the market, the "intraday prices" swing so much in corrective phases that your "day trend gets overshadowed by the Hour trend" and you end the day with a position created from intraday,but wrong based on Day trend. Hence, it is very important to "play the intraday trading with pivot points" and close them intraday only unless on those reversal days when the prices affect the day TA.
It is a matter of conditioning your mind to the numbers that are relevant & it is also called discipline.
Ask yourself..
"Would you enjoy losing all the money in disbelieving your studies or
risk small money believing in your studies and gain all the wealth".
After so much of studying & back testing, my critic said, " Isn't it very simple to make money in the market by just following 5 day average".
In the final analysis, it comes down to "how much you want to extract from the market... some or most of it or all of it". Tortoise still wins despite all the technical advancements.

Some pointers for a REentry ...
When the day TA is uptrending, till it reaches overbought zone & starts to turn down, look at the price behaviour:

How much pull back it does during the upmove. Use this information to re-enter.

For eg:(on 3rd April 2012)

5136 to the current high, Nifty has pulled back to a maximum of 31-32 points only.

Let Day trend gets exhausted with a close below DHEma. Now the correction would be more than 33 points and we would call it correction if weekly trend is in "uptrend".

75 to 110 points correction would emerge once day trend becomes overbought.
What would be the parameters to monitor overbought conditions within a day trend???
9-Day rsi is a good indicator for overbought & oversold in a normal market.
In strong trend, these tend to stay above 80 mark.

Slow stochastics(14,3,3) also helps.

Divergences (except during strong trends where prices move in leaps and bounds)help.

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