SLA approach for NIFTY50 Index

[dbphoenix]

Are you trading the index or futures?

 

[Insursi]

Are you trading the index or futures?

Futures. But I posted charts of index for broader view.

 

[dbphoenix]

But your trading chart will be incorrect.

 

[dbphoenix]

FWIW, these are the lines, channels, and ranges drawn according to the SLA which I wrote. You are of course welcome to draw whatever lines, etc, you please that you believe may help you reach your objectives, perhaps better than what I have provided.

 

[Insursi]

But your trading chart will be incorrect.

yes. For learning purpose I posted index where I can get many years data but for future I cannot get more than three to 4 months data.

 

[Insursi]

FWIW, these are the lines, channels, and ranges drawn according to the SLA which I wrote. You are of course welcome to draw whatever lines, etc, you please that you believe may help you reach your objectives, perhaps better than what I have provided.

The reason to redrawn the trend line is that recent weeks price is spending quite a bit of time here on lower TC and according to SLA pdf -- its better to relook the TL alternatively as well. The following paragraph is the motive to reconsidering to draw TL.

BTW, I am here to apply proper SLA method not the other way round.

 

[dbphoenix]

Review posts 23 and 24. Even if you use the index charts, you should be oversold in February. If you aren't, then your decisions will be faulty.

 

[Gring0]

Try not to fudge with lines too much. There's a danger of starting to fit the lines to match our perceptions of the market.

1) Is this a mean reverting instrument?
2) If Yes, then is there a clearly defined trend?
3) If Yes, then based on the trend is the price extended towards the upper limit of TC or the lower limit?
4) Mean reverting instruments have price generally heading towards the median/mean. Which way is that? Does price have to go up or down to get there?
5) Zooming in to daily or hourly, are there signs of demand or supply suddenly showing their hand? Which side showed up recently to thwart the designs of the other?
6) Where are the lines?
7) Are there any breaches in SL/DL lines?
8) Is there a retracement?
9) Is there a horizontal TR around here on smaller intervals to watch out for?
10) What would have to happen to make an entry?
11) Which way is price expected to go? Which way is the median of the trend?
12) Where's the danger point?

That's what I could think of in a short time.

Gringo

 

[Insursi]

Try not to fudge with lines too much. There's a danger of starting to fit the lines to match our perceptions of the market.

1) Is this a mean reverting instrument?
2) If Yes, then is there a clearly defined trend?
3) If Yes, then based on the trend is the price extended towards the upper limit of TC or the lower limit?
4) Mean reverting instruments have price generally heading towards the median/mean. Which way is that? Does price have to go up or down to get there?
5) Zooming in to daily or hourly, are there signs of demand or supply suddenly showing their hand? Which side showed up recently to thwart the designs of the other?
6) Where are the lines?
7) Are there any breaches in SL/DL lines?
8) Is there a retracement?
9) Is there a horizontal TR around here on smaller intervals to watch out for?
10) What would have to happen to make an entry?
11) Which way is price expected to go? Which way is the median of the trend?
12) Where's the danger point?

That's what I could think of in a short time.

Gringo

Thanks Gringo, for pointing out what to focus as a trader in a fine note.

 

[Insursi]

update on Nifty50 1st March 2016

Nifty50
Daily: Double bottom in place. price is trending towards supply level of 7250 range
Hourly: yesterday price reached TL and RET (provided opportunity for long though I am not on trade). Today, Nifty opened gap up followed by one way run up (BO of trend line) and currently at the supply zone.

 

[dbphoenix]

.

 

[Insursi]

Nifty update on 2nd March

Daily: opened gap up... price was in the range . Next supply level is at 7500
Hourly- price didn't RET much from today's opening and holds 7300 firmly. Due to narrow range in hourly bar intervals, I attempted one scalp on 5mins bar intervals which I marked on the chart.

 

[Insursi]

Forgot to ask in the earlier post. How to play the gaps according to Wyckoff? Since day trader need not worry about this gap up and gap down but as a swing trader, I need to be careful on this since I do carry position overnight.

In general, people do hedging but I am bit curious about Wyckoff Stuff.

 

[Insursi]

I am posting weekly chart of Goldbees (ETF). Heres chart

Since middle of 2013, its in down trend and from August 2015 onwards price is on upper TC which in principle (SLA) we consider as over bought level. From here on, the price didn't come into TC at all. Shall we consider this as an end of the channel?From January 2016, the price gave nice breakout from the upper TC line to higher level where it took out couple of swing highs on weekly. Shall we name this as new uptrend? I believe that we should not call this as counter trend since the price came out of the channel completely and now its forming new channel (HH, HL).
I would like to know, if something wrong here.

 

[dbphoenix]

Forgot to ask in the earlier post. How to play the gaps according to Wyckoff? Since day trader need not worry about this gap up and gap down but as a swing trader, I need to be careful on this since I do carry position overnight.

In general, people do hedging but I am bit curious about Wyckoff Stuff.

Gaps were not a special issue, particularly as he would have entered long before you did. The SLA would have put you in where I placed the green dot in my chart. If the trader doesn't enter where he should, any subsequent entry is not likely to be as satisfactory, or it may not be satisfactory at all. This is especially true with the third entry, if any.

Db

 

[dbphoenix]

Shall we name this as new uptrend?

How do you define "uptrend"?

 

[Insursi]

How do you define "uptrend"?

uptrend-sequential formation of higher high and higher low

If you look at one year chart of Goldbees - recent months its forming higher high and higher low.

 

[dbphoenix]

And what is the soonest higher high?

 

[Insursi]

And what is the soonest higher high?

The one which is Near to 2650

 

[dbphoenix]

When is the supply line broken?