In this Post let me describe how this strategy works
Concept: Efficient Market Hypothesis, Auction Market theory and Capitalized weightage assignment.
BankNifty is an Capitalized weighted Indice, so we need to understand how the capitalized weightage has been distributed.
Around the World, Indice Derivatives are the highest traded contracts.
Understanding the Indice's formation is more important to trade them.
90% of the Global Indices are Capitalized weighted and to understand their formation, we need to go deep in to the mathematics to reconstruct the Indice based on allocated weightage of the stocks.
The Primary advantage of...
There is a great saying that when Event/News takes charge Technicals fail - Because technicals are overrun by Fundamental Fear and Greed.
Nifty is Oversold at 11600 on 23-AUG-2018 and I made a post stating that Internals(Composite stocks of Nifty Volume and Weightage ) are giving a sign of reversals - Yes after that a huge reversal came in to game and Nifty is...
Nifty Internals are gaining the positive momentum, A good sign to determine the direction.
Underlying Free float Capitalized Weightage and Underlying Weightage Distributed Volume are suggesting to stay long on every dip.
In case of No bad news/event - NIFTY will stay positive in the near future
Please be aware that I am not providing any targets here, because...
Bank Nifty India's most favorite and volatile Indice, but at the same time it brought miseries to so many Day traders.
Why only hedgefunds/High Frequency Trading Systems/Professionals are successful in Trading BankNifty.
Do you think they use the same set of OLD Price action based indicators?
Then show me an Indicator which does not uses the Price action?
As we all know BankNifty is a Sector Indice formed in combination of 12 Different Private and Public Sector banks.
The underlying allocation of BankNifty is based on the daily FREE FLOAT MARKET CAP of the banks that are key constituents of BankNifty.
So are you ignoring the above key concept? Just by running behind the price action of BankNifty and age old...
Trading is a lifetime skillset, achieve it by gaining the right experience.
Depending on Multiple indicators are just like learning shortcuts without understanding the right concept.
Price action is a subset of the volume and Demand for interest for buying/selling
Market Internals/Breadth tools help you to see the truth behind the price moves. They give you a...
I have few questions to short term technical traders, can you answer it?
With just numbers how are you predicting the future price?
Chart Patterns reflect the mindset of buyers vs sellers. Are you able to read it correctly?
By just Drawing lines how are you predicting that support and resistance?
Resistance or support can be defined only based on the Auction...
Are you guessing that Price will move up or down? Did you ask your heart that you are 100% correct? how?
Most of the technical analysis indicators that we are using today are designed in 1960's. In the age of super computers are these indicators proven to be successful?
Did you ever think why Nifty/Bank Nifty is moving up/down? Then whats the underlying...
IFCI at HVN Support, Close Above 17.5, can buy for a target of 21.5
Volumes greater than 5 Day SMA Volume
*** Don't just depend of price action, its always good add a fundamental angle to trading :). Volume Profile gets you that.
WPM going down with very low volumes - Keep a watch on it. Active buying coming at 18.
Not sure if it is forming a 'b' on volume profile, in search of NEW VALUE AREA. But good to keep on Watch List
*** Volume Profile a better way to analyse the stocks, rather than some chart drawings/Guess work.
Indiacem Formed Lower Low - Can it form Higher High?
Its in High Volume Node and Increased volumes are pretty juicy. So a good bet for long term traders.
Note: Always don't depend on just price action. Apply Volume Profile, it gives you a great insight in to how price is moving to find a new value area