INTRADAY BUY SELL TRADING NIFTY SYSTEM 14 AUG

TRADE EXIT STARTEGY IN DAY TRADING

My Exit Beliefs In part one of this article, we considered a few questions: Should we use a tight stop loss to cut any losses quickly, or a wide stop loss to allow some room to move? How quickly should we move the stop loss to breakeven ? Should we take profits at a target, or should we let the profits run, perhaps trailing a stop behind the price? In attempting to answer these questions we looked at a number of charts, we chose entry criteria, and then looked at possible options for the exit. And this is what we discovered: Firstly, in each case, the profit or loss taken out of the trade was more a result of our chosen stop and exit method, not our entry. For the same entry, there were numerous possible exits, some profitable, some breakeven and some at a loss. And secondly, we cannot know, except with hindsight, what will be the most profitable exit strategy for that particular trade. In other words - the exit is more important than the entry. The exit has more bearing on w...

TECHNICAL ANALYSIS

Indian indices closed higher at 5336.70, up by 54.15 points or 1.03%. Nifty extended its buying spree for second consecutive session in a row, and never looked out of breathe in whole trading session on continued hopes over Chidambaram’s statements about addressing the widening fiscal deficit and tax concerns of overseas investors. Nifty has formed a big Bull candle with little shadow on both sides and with a new high, confirming higher top bottom formation and subsequently holding of opening gap is a bullish indication and Nifty is expected to move up further to form a new higher top in ensuing days . If the index man-ages to cross and sustain above the 5,350-5,360 level it is likely to witness a buying rally which might drive it on the way to 5,390-5,400 level. On the downside, Nifty has good support at 5,300 followed by 5,250 levels .Trading strategy would be to Sell if market resist at 5,370 and Buy if sup-port at 5,310. First resistance for the Nifty is 5,364 and next resistan...

SUPPORT AND RESISTENCE IN STOCK MARKET

In stock market , support and Resistance symbolizes key junctures where the forces of supply and demand meet. Prices are driven by excessive supply (down) and demand (up). Thus technical analysis is very much important in the wake of knowing buy/sell signal . Supply is synonymous with bearish, bears and selling. Demand is synonymous with bullish, bulls and buying. These terms are used interchangeably throughout this and other articles. As demand increase, prices advance and as supply increases, prices decline. When supply and demand are equal, prices move sideways as bulls and bears slug it out for control. SUPPORT ? Support is the price level at which demand is thought to be strong enough to prevent the price from decline further. The logic dictates that as the price declines towards support and gets cheaper, buyers become more inclined be it intraday or delivery. The intraday trading software can make out a p...

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