Nifty
Closing Price 10305
In morning it was recommended to Short Nifty when it was a 10534 levels.
Now if you have been following me and seen my earlier posts, this is nothing new....
For those who are new, here is a recap for you all
On 12th June when Nifty was falling and was trading at 9698 we recommended a reversal is on the cards and we positioned ourselves accordingly
On 15th June when Nifty was at 9798, we recommended a Long position for a target of 10551 / 11000 (again it's time stamped proven)
Yesterday again, when Nifty was at 10434, we again reiterated resistance is at 10551 and suggested a trading a strategy which got activated today morning.
So you see it is all about studying and preparing that has helped us capture the movements of Nifty and make the most of it...
No one can time the market, but when time comes you can surely make the most of it...!!!
We identified the levels well beforehand and when those levels come it's just execution of plans
Okay, you might be wondering what's so special about 10551...???
It is 61.8% Fibonacci number retracement of the entire fall from 12430 to 7511.
Now what the heck is Fibonacci theory???...
Just google it and you would be amazed at how Fibonacci numbers play an important role in our life, in our nature...
Fibonacci series is basically 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55......
If you divide any 2 consecutive numbers (leave the first few numbers) like for eg 21 /34 or 34 / 55 you would get the answer closer to 0.618
This ratio plays a very important role in our nature. If you observe your hand, it has got 5 finger (Fibo number). Each finger has 3 parts (again a Fibo number) the ratio of your hand (arms to shoulder) is again in the proportion closer to 61.8 :: 38.2
You look at flowers ( many flowers would have a 3 petals, 5 petals, 8 petals) you would see Fibonacci numbers. Sunflower again there are many Fibonacci co-relations...just google it and enlighten yourselves and comment below about the knowledge you get...
This has some how managed to find its way in markets also... Many times we have observed Charts respecting Fibonacci numbers when it comes to retracement...
I would add a few more charts to showcase how Fibonacci has played an important role in analysis and spotting good trades with excellent risk::reward ratios.
Remember, don't look at Technical Analysis as being right or wrong, works or doesn't work. Rather, I suggest and encourage you to look at it as a tool to identify levels from where risk is low and reward potential is high
- Technical Analysis is not about being right or wrong but about identifying levels with good risk::reward ratios..
- for e.g we can never know whether it will retrace from 38.2% or 61.8% or 76.3%
- that can be known only with hindsight...
- but these studies and analysis would certainly help you manage your risk when things don't work and ensure that you make it large when you get it right...
By the way high for today is 10553 (just 2 points above 10551) Beauty of Technical Analysis.
Trust you find the lesson helpful.
You can follow for more such trade opportunities & more learning...!!!
Closing Price 10305
In morning it was recommended to Short Nifty when it was a 10534 levels.
Now if you have been following me and seen my earlier posts, this is nothing new....
For those who are new, here is a recap for you all
On 12th June when Nifty was falling and was trading at 9698 we recommended a reversal is on the cards and we positioned ourselves accordingly
On 15th June when Nifty was at 9798, we recommended a Long position for a target of 10551 / 11000 (again it's time stamped proven)
Yesterday again, when Nifty was at 10434, we again reiterated resistance is at 10551 and suggested a trading a strategy which got activated today morning.
So you see it is all about studying and preparing that has helped us capture the movements of Nifty and make the most of it...
No one can time the market, but when time comes you can surely make the most of it...!!!
We identified the levels well beforehand and when those levels come it's just execution of plans
Okay, you might be wondering what's so special about 10551...???
It is 61.8% Fibonacci number retracement of the entire fall from 12430 to 7511.
Now what the heck is Fibonacci theory???...
Just google it and you would be amazed at how Fibonacci numbers play an important role in our life, in our nature...
Fibonacci series is basically 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55......
If you divide any 2 consecutive numbers (leave the first few numbers) like for eg 21 /34 or 34 / 55 you would get the answer closer to 0.618
This ratio plays a very important role in our nature. If you observe your hand, it has got 5 finger (Fibo number). Each finger has 3 parts (again a Fibo number) the ratio of your hand (arms to shoulder) is again in the proportion closer to 61.8 :: 38.2
You look at flowers ( many flowers would have a 3 petals, 5 petals, 8 petals) you would see Fibonacci numbers. Sunflower again there are many Fibonacci co-relations...just google it and enlighten yourselves and comment below about the knowledge you get...
This has some how managed to find its way in markets also... Many times we have observed Charts respecting Fibonacci numbers when it comes to retracement...
I would add a few more charts to showcase how Fibonacci has played an important role in analysis and spotting good trades with excellent risk::reward ratios.
Remember, don't look at Technical Analysis as being right or wrong, works or doesn't work. Rather, I suggest and encourage you to look at it as a tool to identify levels from where risk is low and reward potential is high
- Technical Analysis is not about being right or wrong but about identifying levels with good risk::reward ratios..
- for e.g we can never know whether it will retrace from 38.2% or 61.8% or 76.3%
- that can be known only with hindsight...
- but these studies and analysis would certainly help you manage your risk when things don't work and ensure that you make it large when you get it right...
By the way high for today is 10553 (just 2 points above 10551) Beauty of Technical Analysis.
Trust you find the lesson helpful.
You can follow for more such trade opportunities & more learning...!!!
