Hope they resolve it soon.
Viren drew my attention to a set-up he has been back testing with volume profile charts.
Have a look at this chart :
.Let's focus on today's profile, the extreme right on the chart.
According to Viren's set-up, if in a trending day the point of control closes near the extreme in a volume profile chart, then there are good chances of a reversal the next day.
If you look at the profile from today, we had a strong uptrend day and the point of control is at the top end of the range.The point of control represents the best value for the day, or the level at which buyers and sellers agree on value. In a strong uptrend, this only means that there were heavy sellers in the Bank Nifty at the top today.
We'll put it to the test tomorrow.
As with all set-ups this one has also rules, and one of the rules is that the open the next day, should be within range.
So we wait for the open tomorrow and if we get an auction below 9556, then we short for 9458.
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7 comments:
@Rajeev,
Refer to your last comment in the previous post, I would humbly request you to refrain from commenting on other systems and trader tools on the blog.
I have in the past antagonised a lot of fellow traders and friends, through needless comparison and a game of one-upmanship.
I have matured to understand that success in trading is not though a system, but the belief of the person behind the system.
I have seen people use market profile charts and not know the differnce in an upmove and a downmove. It's not fair that market profile is labelled a failure because of that individual.
Shai,
Couple of days back we saw that Banknifty OI was down 17% in 5 trading sessions - while price was in a narrow range of 100-120 points. So that must have been short covering.
In yesterday's action 49859 contracts were traded but OI was reduced by only 5600 which is just 0.3% reduction. So I would guess some weak shorts like me were cleaned up.
Yes Girish,
I remember that discussion on the BN.
I don't follow the OI in BN, so request you to keep posting your analysis.
9439 was a level I was watching and a break above that gave the buyers an upper hand.
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New Post done.
the price shown for banknifty is future or spot pl confirm
thnks
kk
Shai,
RELIANCE in spot has gone below 1060 now trading at 1054. I would consider below 1045 has a breakdown and a signal for market to look for lower levels.
My analysis is based on mundane support resistance levels. What does MP analysis say about RELIANCE?
Thanks,
Girish
Girish,
I think buyers will step up near the level you mentioned, as in the profile there are good buying volumes there.
P.S-
Pls try to post your comment on the latest post.
Thanks a lot Shai.
Sorry, I didn't read the "New Post Done" :( and was wondering if the blog comment problem was resolved.
Crap, I missed the entire day's discussion.
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