WANT TO INVEST SMART AND BECOME RICH? HERE'S HELP!!!

NICE ARTICLE FROM REDIFF BUSSINESS. HERE IS A LINKhttp://www.rediff.com/business/report/perfin-want-to-invest-smart-and-be-rich-heres-help/20111013.htm

INVERTED HEAD AND SHOULDER / CUP AND HANDLE PATTERN IN HOURLY CHART

As shown in above chart nifty formed INVERTED HEAD AND SHOULDER PATTERN in hourly chart with neck line at 5050 and broken above this neck line yesterday. The target will be equal to height of head i.e. 5050-4750=300 points above neckline, therefore it should target 5050+300 =5350.

In above chart it looks like it had formed CUP AND HANDLE PATTERN from which it is broken out, overall it looks like it will target 5350.

To reach this target of 5350 it should negotiate 2 main hurdles (resistances) on daily chart as shown in third chart. If u observe carefully, u can note that today it get resisted at resistance 1. If tomorrow (FRIDAY - SO WEEKLY CLOSE) it closes above resistance2 approximately above 5180 possibility of it reaching 5350 increases. Right now it is trading above 20sma & 50sma on daily charts, till it closes above 20 & 50sma it will favor uptrend.
       But at the same time it is near the upper border of trading range of 4700-5200, so take care it may go down also. These are testing times of trader's patience. If u have good trading system follow it u will be on right side. REMEMBER LONG TERM TREND IS STILL DOWN.

DISCLAIMER: This Blog is meant for sharing my trading ideas only and no calls to be taken as trading recommendation. Visitors please do your own research or consult your advisers for safe trading.

LINK OF ONE GOOD ARTICLE FROM YAHOO

http://in.finance.yahoo.com/news/Tips-invest-turbulent-times-yahoofinancein-4124772823.html

IS INTERMEDIATE BOTTOM FORMED?

As mentioned here http://kolhapuritrader.blogspot.com/2011/10/range-bound-consolidating-nifty-fifty.html and here http://kolhapuritrader.blogspot.com/2011/10/follow-up-rangebound-consolidating.html our dear nifty fifty is consolidating between 4720 and 5230.

In above weekly chart shows that it is consolidating in above mentioned range since last 9 weeks, the ongoing one is 10th week. The longer it stays within this range, the more valid will be breakout from this range which will give trading opportunity for target of 500 points.
         Most of the times consolidation or range breaks in the direction of prior trend which is down trend. So possibility of breaking down is more. Is this consolidation is preparation for bigger fall?  But remember trading is game of probability so think of other possibility i.e. breaking on upside also. REASONS--- 1) Even after so many negative news locally as well as globally it is holding 4720-4750 level, in fact it is bounced thrice from this level, is it tripple bottom formation? 2) As mentioned here http://kolhapuritrader.blogspot.com/2011/08/follow-up-nifty-in-triangle-and.html, even after breaking the descending triangle nifty is not fallen much and it is consolidating will it lead to false breakout? The triangle patterns are most of the times successful but 20-25% of times there are chances of failure.

So keep both the possibilities open upside  break out should be associated with good volume ( otherwise it will be false one), for break down there will not be need of good volume support, most probably without volume support also market may fall.

NOTE- RIGHT NOW OUR SYSTEM IS IN BUY MODE.

DISCLAIMER: This Blog is meant for sharing my trading ideas only and no calls to be taken as trading recommendation. Visitors please do your own research or consult your advisers for safe trading.

FOLLOW UP HOW WE MAKE MISTAKES WHILE TRADING

On 23 Sept written about how we make mistakes while trading here http://kolhapuritrader.blogspot.com/2011/09/how-we-make-mistakes-while-trading.html.After analyzing decided to exclude the added new indicator.