Spotting divergences and then trading them can make you tons of money. Here we look at yesterdays set up on a 3 minute chart. The market opened and sold off early but the down move was quickly arrested. In the mean time the Stoch showed a nice positive divergence and a signal to go long. Market continued higher but the momentum was dropping - watch the macd. A failed breakout and a shooting star gave early warning of a fall. Price confirmed this by closing below the breakout point and that was a signal to go short.
6 comments:
OK..ur view....we should be hitting 5275 in Nifty Futures...and then only start UP move right ....contracting triangle in Nifty and Bank Nifty ...what do u think...
I have no specific view on the market. My aim is to trade one day as it comes and then close shop by 3:30
Then I play some chess, read good books, drink some whiskey in the evening, have dinner and go to sleep! hahaha :)
Thank you, good day,
Hello Sunil,
Need to have your views on which Time frame should we use to get a good reading of MCAD and stock. I see you have used 3 min in todays chart but there has also been places where you have used 15 min and hourly also in the past to get the right result. Now do you keep shifting from 1 time frame to another or is there a particular time frame you mostly look into.
Thanks in advance.
Rgds
Rahul Goel
Hi Rahul,
Time frames are not important. You must trade the levels - I would suggest you to go through Smart Trader's blog - Nifty Nirvana (a link is given on the side bar)
I use 15 minute as my main window and then I enter on the 3 minute.
good day,
Hi Proff SS:
Your views are really good. I fully subscribe to it. Cheers :)
Regards
Vinod
Thank you Vinod, :)
Good day,
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