Intrady Tips for the Day 27.02.2014

SYMBOL BUY ABOVE TARGET 1 TARGET 2 TARGET3
ITI 16.5 17.3 17.9 19.2
OPTOCIRCUI 26.5 26.9 27.6 28.6
PAPERPROD 91.1 94.8 98.4 105.7
ITC 327.0 331.6 334.4 341.7
CESC 466.6 475.2 482.4 498.1

CURRENCY TRADING – TRADE WITH TECHNICAL CHART –NO LOSS ONLY GAIN - click the chart to enlarge

USDINR

HOW TO TRADE WITHOUT LOSS AND MAKE PROFIT IN NSE - BSE - MCX COMMODITY MARKET

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NIFTY CHART (as on 02.11.2010) - Click here to view full image
In this Chart Technique Buy when Black Line cross Blue Line (in up direction) and sell Black line cross Blue Line ( in down direction) and put STOP LOSS AT RED AND GREEN LINE.
In the above chart Buy signal comes on 11.6.2010 at 5119.35 points and still buy signal is continuing. As per this technique if you buy NIFTY Future on 11.6.2010 you will get the profit of Rs. 50,000/-( 1000 points) as on 2.11.2010. You can apply this technique to all stocks under F&O and Commodity market.

THREE LINE BREAK CHART TECHNIQUIES


Three Line Break charts originate from Japan and were introduced to the western world by Steve Nison (a well-known authority on the Candlestick charting method). The Three Line Break charting method gets its name from the default number of line blocks typically used.

Using the closing price, a new white block is added in a new column if the previous high price is exceeded. A new black block is drawn if the close makes a new low. If there is neither a new high or low, nothing is drawn.

With a default Three Line Break, if a rally is powerful enough to form three consecutive white blocks, then the low of the last three white blocks must be exceeded before a black block is drawn. If a sell-off is powerful enough to form three consecutive black blocks, then the high of the last three black blocks must be exceeded before a white block is drawn.

To draw line break blocks, today's close is compared to the high and low of the previous block. A block is drawn only when today's close exceeds the high or low of the previous block. If today's close is higher than the top of the previous block, a new white block is drawn in the next column from the prior high to the new high price. If today's close is lower than the bottom of the previous block, a new black block is drawn in the next column from the prior low to the new low price. If the close fails to move outside the range of the previous blocks high or low, then nothing is drawn.

With the default Three Line Break chart, a downside reversal (i.e., white blocks change to black blocks) occurs when the price moves under the lowest price of the last three consecutive white blocks. A black reversal block is drawn from the bottom of the highest white block to the new price. An upside reversal (i.e., black blocks change to white blocks) occurs when the price moves above the highest price of the last three consecutive black blocks. A white reversal block is drawn from the top of the lowest black block to the new high price.

Point and Figure (P&F) Charts


Point & figure (P&F) charts differ from "normal" price charts in that they completely disregard the passage of time and only chart changes in prices. Rather than having price on the y-axis and time on the x-axis, P&F charts display price changes on both axes.

P&F charts display an "X" when prices rise by the "box size" and display an "O" when prices fall by the box size. Note that no Xs or Os are drawn if prices rise or fall by an amount that is less than the box size.

Each column can contain either Xs or Os, but never both. In order to change columns (e.g., from an X column to an O column), prices must reverse by the "reversal amount" multiplied by the box size. For example, if the box size is 3 points and the reversal amount is 2 boxes, then prices must reverse direction 6 points (3 times 2) in order to change columns. If you are in a column of Xs, the price must fall 6 points in order to change to a column of Os. If you are in a column of Os, the price must rise 6 points in order to change to a column of Xs. The changing of columns signifies a change in the trend of prices. Because prices must reverse direction by the reversal amount, each column in a P&F chart will have at least "reversal amount" boxes.

How trade with Fibonacci Retracements Pattern


Stocks will often pull back or retrace a percentage of the previous move before reversing. These Fibonacci retracements often occur at three levels – 38.2%, 50%, and 61.8%. Actually, the 50% level really does not have anything to do with Fibonacci, but traders use this level because of the tendency of stocks to reverse after retracing half of the previous move. Here is an example using a graphic explaining the retracement pattern…

fibonacci graphic
This picture shows a graphical representation of the reversal points for stocks in an uptrend. The pattern is reversed for stocks that are in downtrends.
After a stock makes a move to the upside (A), it can then retrace a part of that move (B), before moving on again in the desired direction (C). These retracements or pullbacks are what you as a swing trader want to watch for when initiating long or short positions.
Once the stock begins to pull back (retrace), then you can plot these retracement levels on a chart to look for signs of a reversal. You do not automatically buy the stock just because it is at a common retracement level! Wait, and look for candlestick patterns to develop at the 38.2% area. If you do not see any signs of a reversal, then it may go down to the 50% area. Look for a reversal there. You do not know if or when the stock will reverse at a Fibonacci level! You just mark these areas on a chart and wait for signal to go long or short.

Candlestick Chart Technique with top 10 patterns:


  • Candlesticks are usually composed of the body (black or white), and an upper and a lower shadow: The area between the open and the close is called the real body, price excursions above and below the real body are called shadows.
  • If the security closed higher than it opened, the body is white with the opening price at the bottom of the body and the closing price at the top.
  • If the security closed lower than it opened, the body is black with the opening price at the top and the closing price at the bottom.
  • The wick illustrates the highest and lowest traded prices of a security during the time interval represented.
  • A candlestick need not have either a body or a wick.
  • Modern candlestick charts (especially those displayed digitally) often replace the black or white of the candlestick body with colors such as red (for a lower closing) and blue or green (for a higher closing).
BULLISH PATTERNS
Note: Some softwares uses Black color instead of Red color 
ENGULFING
It consists of a small red body that is contained within the followed large white candlestick. When it appears at bottom it is interpreted as a major reversal signal.  
HAMMER
A red or a white candlestick that consists of a small body near the high with a little or no upper shadow and a long lower tail. It is considered as a bullish pattern during a downtrend.  
HARAMI
It consists of an unusually large red body followed by a small white body (contained within large red body). It is considered as a bullish pattern when preceded by an uptrend.  
PIERCING
It consists of a red candlestick followed by a white candlestick that opens lower than the low of preceding but closes more than halfway into red body candlestick. It is considered as reversal signal when it appears at bottom. 
DOJI
It is formed when opening and closing prices are virtually the same..  . It is considered as a bullish reversal signal during  downtrend.  

BEARISH PATTERNS
Note: Some softwares uses Black color instead of Red color
ENGULFING
It consists of a small while body that is contained within the followed large red candlestick. When it appears at top it is considered as a major reversal signal.  
SHOOTING STAR
A red or a white candlestick is formed that has a small body, a long upper shadow and a little or no lower tail. It is considered as a bearish pattern in an uptrend.
HARAMI
It consists of an unusually large white body followed by a small red body (contained within large white body). It is considered as a bearish pattern when preceded by an uptrend.  
DARK CLOUD COVER
It consists of a long white candlestick followed by a red   candlestick that opens above the high of the white candlestick and closes well into the body of the white candlestick. It is considered as a bearish reversal signal during an uptrend.  
DOJI
It is formed when opening and closing prices are virtually the same. It is considered as a bearish reversal signal during an uptrend

Gap Up and Gap Down


Gap is a change in price levels between the close and open of two consecutive days. For trading purposes, the  four basic types of gaps are as follows:
Full Gap Down occurs when the opening  price is less than yesterday's low
Full Gap Up occurs when the opening price is greater than yesterday's high price.
Partial Gap Up occurs when today's opening price is higher than yesterday's close, but not higher than yesterday's high.
Partial Gap Down occurs when the opening  price is below yesterday's close, but not below yesterday's low.

MACD - Moving Average Convergence/Divergence


This indicator uses three exponential moving averages, a short or fast average, a long or slow average and an exponential average of their difference, the last being used as a signal or trigger line. To fully understand the basics of MACD you must first understand simple moving averages. The Moving Average Convergence/Divergence indicator measures the intensity of public sentiment and is considered by Gerald Appel, its developer, to be a very good indicator signaling market entry points after a sharp decline. This indicator reveal overbought and oversold conditions and generates signals that predict trend or price reversals. It provides a sensitive measurement of the intensity of public sentiment and can be applied to the stock market, to individual stocks or to mutual funds. In some instances, it can provide advance warning of reversals allowing you to buy into weakness and sell into strength.

The Moving Average Convergence/Divergence indicator (MACD) is calculated by subtracting the value of 26-day exponential moving average from a 12-day exponential moving average. A 9-day exponential moving average (the "signal line") is automatically displayed on top of the MACD indicator line.
The basic MACD trading rule is to sell when the MACD falls below its 9-day signal line. Similarly, a buy signal occurs when the MACD rises above its signal line.

Stochastic Oscillator


Stochastic is an oscillator that measures the position of a stock or security compared with its recent trading range indicating overbought or oversold conditions.

It displays current day price at a percentage relative to the security’s trading range (high/low) over the specified period of time.
Fast Stoc =%K =[(todays close) - (low price in period n)]/[(high price in period n)-(low price in period n)]
In a Slow Stochastic, the highs and lows are averaged over a slowing period. The default is usually 3 for slow and 1 (no slowing) for fast. The line can then be smoothed using an exponential moving average, Weighted, or simple moving average %D. Confirming Buy/sell signals can be read at intersections of the %D with the %K as well.
The Stochastic Oscillator always ranges between 0% and 100%. A reading of 0% shows that the security's close was the lowest price that the security has traded during the preceding x-time periods. A reading of 100% shows that the security's close was the highest price that the security has traded during the preceding x-time periods. When the closing price is near the top of the recent trading range (above 80%), the security is in an overbought condition and may signal for a possible correction. Oversold condition exists at a point below %20. Prices close near the top of the range during uptrends and near the bottom of the range during downtrends.