March 4, 2015

Hot stocks and charts

LAST updated: 04-MAR-2015 
  • These charts are for educational purposes only.
  • This is not a recommendation to buy or sell
  • Follow the trend... if stock is at 20 days high, trend is up and vice versa.
  • Golden stoploss: min 10% or 20 days low (long position).
  • Never risk more than 1% of your capital on any trade.
  • All charts are provided by icharts.in
BEML
BEML chart

Market outlook

- huge selloff in nifty as markets form a large outside bar
- selloff happens on 'good news' - surprise RBI rate cut
- last 3 days hanging man hinting at correction
- difficulty seen in holding above 9000
- broader trend is still up and will reverse on close below 8660 spot
- expect trendline support around 8800 levels
- highest open interest is at 9200-9000 call (almost same) followed by 8500-8800 put
- drop inVIX indicating no fear... note that VIX has lost more than 20-25% after the budget

March 3, 2015

Market outlook

- trend is up and will reverse on close below 8660
- current close is highest closing for nifty
- formation of higher high higher low is maintained
- open interest highest at 9000 call though there was some reduction today

March 2, 2015

Hot stocks and charts

LAST updated: 02-MAR-2015 
  • These charts are for educational purposes only.
  • This is not a recommendation to buy or sell
  • Follow the trend... if stock is at 20 days high, trend is up and vice versa.
  • Golden stoploss: min 10% or 20 days low (long position).
  • Never risk more than 1% of your capital on any trade.
  • All charts are provided by icharts.in
ACC LIMITED
ACC LIMITED chart

L&T breakout

Stock closes at lifetime high. Support 1740 - 1500.


Market outlook

- trend is up with reversal level at 8660 spot
- markets form second hanging man
- third day of higher high higher low
- advance decline mildly positive
- option writing pointing to resistance at 9000/ 9200 and support at 8500.

March 1, 2015

Some simple trading strategies


The 80 - 20 rule of stock markets

The Pareto principle states that, for many events, 80% of the effects come from 20% of the causes.

This rule applies to a lot of things in life. For eg., 80% of the wealth is owned by 20% people, 80% of your business comes from 20% of your clients or is generated by 20% of your employees and so on.

You can extrapolate this to stock markets and generally assume that 80% of your profits will come from 20% of your trades (metaphorically speaking).

My trading strategy explained in one chart

- Draw lines indicating areas of support and resistance.
- Then buy on close above resistance with SL below support.  And vice versa.
- Works in any time frame - 5 min, hourly, daily, weekly.
Risk management takes care of losses - profits are whatever the markets give.

So simple... no indicators, wave counts etc.


Same chart with kplswing indicator...


February 28, 2015

INDUSIND breakout

Stock at new lifetime high.... so what if stock has doubled in past one year?

Your SL - 840.

Risk management will take care of losses...