We had a normal variation day today.
Such days are generally difficult to predict, as things can change a lot in the C, and D and E,F periods.
But I found something interesting on the charts. Have a look :
Today's day was exactly similar to the day on Thursday.
An open above value, a move lower in the middle phase and a rip-off higher into the close...and a "b" shape again.
Those Open interest figures which I posted near the close testify to the "b" shape. Call writers were unwinding and most of it was flowing into put writing.
But there is another thing which I had mentioned on the weekend about such days.
Such days have generally a gap-up the next day and the highs of the day are made in the first ninety minutes of trade.
Again it is a general observation, not a rule written in stone, but we will put it to the test again tomorrow, like we did on friday.
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6 comments:
Sir,
Please explain C,D,E,F period mentioned the post...
hello shai,
i wish to present an observation before u
please react to this
RNRL has risen with volumes less than the volumes it has generated while falling on the judgement day. but managred to close above the avg. with which it has fallen on the judgement day
what i meant to say is
on judgement day the avg. with which it has traded on nse cash was 59.72, vol. 263167900
today, it traded with an avg. of 58, vol.65016390
since, it has managed to overcome that panic avg. with which it has fallen , is it an enuf bullish signal to taken a LONG only entry
OR
since, while overcoming that earlier panic avg. volumes are not with RNRL, it wud be too early to take it as a bullish sign
since, u r a maestro to take a shot at a trade on the basis of price and volumes, i thought u r a perfect person to handle this
and then
kindly suggest the sl if u r suggestive to take a long trade ( and please also suggest a proper reasoning for ur decision to decide a stop loss)
also
if u r not suggestive to take a long entry, kindly suggest a reasoning with details to do so
i hope u get my query properly
thanks answering
u r so nice as ever to reply such a demanding query
regards
"Such days have generally a gap-up the next day and the highs of the day are made in the first ninety minutes of trade."
if this turns out to be true, is this gap up meant for tuesday or wednesday
thanks answering such a stupid question
regards
Shai,
Your observation is very accurate about next day highs made in first 90-min.
There are several resistances between 5203 to 5220. Expecting a reversal in that range.
Sara,
The opening 30 mins are the 'A' period, the next 30 the 'B' and so on.
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Rochak,
I will look at the profile chart of RNRL and come back to you. What is your Timeframe for the trade?
The analysis yesterday is for today's trading session.
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New post done.
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