POSITIVE MACD DIVERGENCE ON DAILY CHART

IF u watch the daily chart given below u can see that (1) on 23/6/11 there is BULLISH ENGULFING PATTERN  , the candle is marked with pink arrow. (2) there is POSITIVE DIVERGENCE OF MACD INDICATOR , (3) on 24/6 the candle is closed above upper resisting trend line, as well as above 20 SMA. The candle has been marked with purple arrow. (4) And finally today MACD also given buy signal, which is marked brown arrow.

 So it looks like this upmove will continue upto upper boilinger band which is right now at 5660, For daily close should not be below trend line which is acting as resistance up till now, now it will act support.

CLOSED TRADE NO.8

Today at 1:00 pm closed trade no 8 with profit of 130.35 points.

Actually i have not updated closing of trade 6, details of trade no. 7, and initiation of trade no. 8 on blog due to time problem, but if u are checking performance sheet from time to time u must have known the details of trades.

NOTE: LINK FOR PERFORMANCE SHEET IS AT  RIGHT HAND  SIDE OF BLOG.

FOLLOW UP MAGIC OF PREDICTION

As expected today nifty gone to 5330, and if any technical expert is monitoring constantly he/she must have understood that once 5330 is taken out the next support is at 5200 only if u can check following 5 min chart u can once again realize magic of charts.

  To view bigger size chart click on chart.

MAGIC OF PREDICTION WITH HELP OF TECHNICAL ANALYSIS

This is nothing but follow up of MAKING OF INVERTED HEAD AND SHOULDER IN HOURLY AND DAILY CHARTS under TRADING PATTERNS posted on last Sunday12/6/2011.http://kolhapuritrader.blogspot.com/2011/06/trading-patterns.html

If u have noticed carefully, it has been mentioned that to view the effect of inverted head and shoulder nifty should not close below 5440, otherwise it will test at least recent lows around 5330. If u have followed this u may have noticed that on 16/6/2011 at 10am hourly close is below 5440 ( exactly at 5415.9) and daily close is also below 5440 (5396.75) next day it headed towards 5330 already gone up to 5355 on 17/6/2011. Do u think this is just co-incidence ? The honest answer is NO , this is power of technical analysis and reading of charts with help of which u can predict future price movement and can get benefit from it.

INTERESTING INFORMATION

ET NOW is starting a new program called “Technical Trends” which will broadcast interviews with Technical Traders. The First epsode features Sudarshan Sukhani.


This show will be aired over the weekend, starting June 11th. The timings are :

SATURDAY :

10:00 a.m.

09:30 p.m. (Repeat)

SUNDAY, REPEAT TELECAST :

07:00 a.m.

12:30 p.m.

08:30 p.m.

A must watch show for all technical analysts and traders. This is for the first time that business channel is giving due credit to technical trading community (SOURCE: SUDARSHAN SUKHANI SIR'S BLOG)

TRADING PATTERNS

NIFTY

Bearish flag :- daily nifty chart showing formation of bearish flag from 4/5/11 to 11/5/11 which broken down on 12/5/11, giving target of 5250 which yet to be achieved even after 21 trading days so showing possibility of BEAR TRAP.
NOTE:- if nifty  closes above 5600 nifty reaching target of 5250 becomes remote.

NIFTY BEARISH FLAG

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BULLISH FLAG IN NIFTY :- If closes above approximately  5550 i.e. if breaks upper trend line shown in blue color nifty will target 5800 in coming days since AB=250 POINTS=CD, Hence 5550 + 250 =5800 

MAKING OF INVERTED HEAD & SHOULDER IN HOURLY CHART


The following chart shows making of inverted head and shoulder in hourly chart

MAKING OF INVERTED HEAD AND SHOULDER ON DAILY CHART

Following chart shows making of inverted head & shoulder on daily chart

 So the above two charts shows that if nifty closes above 5620 it will head towards 5800. CAUTION:- For this nifty should not close below 5440 otherwise it will test at least recent lows around 5330.

HEAD AND SHOULDER OF CNX IT ON DAILY AND WEEKLY CHART 

CNXIT-1M DAILY

The above two charts shows head and shoulder pattern formation in cnx it index on daily as well as weekly chart. If u observe daily charts it shows that on 25/5/11 it has broken down neckline on closing basis so it should target 5600, but if u observe weekly chart u will find that it has not broken below neckline on closing basis on weekly chart, also on 31/5/11 it closed above neckline on daily closing basis so it may be false breakdown or BEAR TRAP !!

BEARISH FLAG IN SBI REACHED TARGET

 The above chart shows formation of bearish flag in sbi chart from 4/5/11 to 16/5/11, which broken down on 17/5/11, giving target of AB= 400 POINTS = CD = 2600 -400 =2200 which achieved on 25/5/11.

These are some of the trading patterns happened in Indian market in recent days, hope this will b helpful to new bees who r trying to learn. Hoping for some feedback and comments from readers. 

CLOSED TRADE NO.5, INITIATED TRADE NO.6

Today at 3:30 pm cosed trade no.5 and initiated trade no. 6 i.e. sell @5553.75