RUSH TO GRAB YOUR COPY FRIENDS..!

AN INTRADAY SUCCESS UPDATE (DEC 26)

A SWIFT TRADE WITHIN 15 MINUTES 

IN NATURAL GAS 

USING 'MID TECHNIQUE' JUST NOW....

A Net Profit of Rs 5500 [6500-1000(Brokerage + Tax)] 

CONTACT 9788563656 TO LEARN THE SECRET 

& WIN IN MARKET

HAVE AN ENCHANTING WEEKEND

ANALYZING CHART PATTERNS: DOUBLE BOTTOM

Double Bottom

This is the opposite chart pattern of the double top as it signals a reversal of the downtrend into an uptrend. This pattern will closely resemble the shape of a "W".

Double-bottom pattern

The double bottom is formed when a downtrend sets a new low in the price movement. This downward move will find support, which prevents the security from moving lower. Upon finding support, the security will rally to a new high, which forms the security's resistance point. The next stage of this pattern is another sell-off that takes the security down to the previous low. These two support tests form the two bottoms in the chart pattern. But again, the security finds support and heads back up. The pattern is confirmed when the price moves above the resistance the security faced on the prior move up.

Remember that the security needs to break through the support line to signal a reversal in the downward trend and should be done on higher volume. As in the double top, do not be surprised if the price returns to the breakout point to test the new support level in the upward trend.

Price Objective and Adjustments

It's important to get an idea as to the size of the resulting move once the signal has been formed. In both the double top and double bottom, the initial price objective can be measured by taking the price distance between the support and resistance levels or the range that chart pattern trades.

Often in technical analysis and chart patterns, we're presented with an ideal chart setup; but in reality the pattern doesn't always look as perfect as it's supposed to. In double tops and double bottoms one thing to remember is that the price on the second test does not always need to reach the same distance as the first test.

Another problem that can occur is the second testing point, where the top or bottom actually breaks the level that the first top or bottom test created. If this occurs, it can give a signal that the previous trend will continue - instead of reverse - as the pattern suggests. However, don't be too quick to abandon the pattern as it could still materialize.

If the price does, in fact, move above the prior test, look to see if the move was accompanied by large volume, suggesting a trend continuation. For example, if on the second test of a double bottom the price falls below the support line on heavy volume, it is a good sign the downward trend will continue and not reverse. If the volume is very weak, it could just be a last attempt to continue the downward trend, but the trend will ultimately reverse.

The double tops and double bottoms are strong reversal patterns that can provide trading opportunities. But it is important to be careful with these patterns as the price can often move either way. Consequently, it's important that the trade is implemented once the support/resistance line is broken.

NIFTY FUTURES UPDATE (DEC 26)

On Wednesday, as perfectly predicted early market hours

Nifty Futures after having traded below our mentioned level of 8272 for 30 minutes, within few minutes reached the downside target of 8224 and even more to fill the (first downside) 

GAP @ 8180

BEWARE of three more gaps pending below the current levels

One @ 8060; Second @ 7947 and the third @ 7818)

Each & every day we have been warning this..! 

(Day before) yesterday one GAP was filled.

Below all these there exists another gap @ 7612

Today if opened & trades above 8184 for 30 minutes

It would hit 8213

And above 8217 it should sustain atleast for 30 minutes

to have an hike upto 8237-44

Otherwise in a normal opening if opens & trades below

8193 for 30 minutes and cuts 8183 see a slide upto 8165 - 48

INTRADAY RESISTANCES @ 8218 – 8238-45

INTRADAY SUPPORTS   @ 8165 – 47

Trade very carefully with the above mentioned time and levels.

ALL THE VERY BEST

(By the time this post was updated 

S&P CNX Nifty Futures was trading @ 8292 )

DISCLAIMER 

THE RECOMMENDATIONS MADE HERE DO NOT CONSTITUTE AND OFFER TO SELL OF A SOLICITATION TO BUY ANY OF THE SECURITIES/COMMODITIES OF ANY OTHER INSTRUMENTS WHATSOEVER MENTIONED. NO REPRESENTATIONS CAN BE MADE THAT THE RECOMMENDATIONS CONTAINED WILL BE PROFITABLE OF THAT THEY WILL NOT RESULT IN LOSSES. READERS USING THE INFORMATION CONTAINED HEREIN ARE SOLELY RESPONSIBLE FOR THEIR ACTIONS. SURFING OR USING ‘tradersharmony.blogspot.com' DEEMS THAT THE SURFER ACCEPTS AND ACKNOWLEDGES THE DISCLAIMERS AND DISCLOSURES.THE INFORMATION PUBLISHED ARE FOR EDUCATIONAL AND INFORMATIVE PURPOSE ONLY AND THE USER/READERS SHOULD TAKE ADVICE OF HIS/HER ADVISER BEFORE TAKING ANY DECISION FOR BUYING, SELLING OR OTHERWISE DEALING WITH SECURITIES/COMMODITIES OR ANY OTHER INSTRUMENT WHATSOEVER.

HAVE A FANTABULOUS WEDNESDAY

ANALYZING CHART PATTERNS: DOUBLE TOP

The double top and double bottom are another pair of well-known chart patterns whose names don't leave much to the imagination. These two reversal patterns illustrate a security's attempt to continue an existing trend. Upon several attempts to move higher, the trend is reversed and a new trend begins. These chart patterns formed will often resemble what looks like a "W" (for a double bottom) or an "M" (double top).

Double Top

The double-top pattern is found at the peaks of an upward trend and is a clear signal that the preceding upward trend is weakening and that buyers are losing interest. Upon completion of this pattern, the trend is considered to be reversed and the security is expected to move lower.

The first stage of this pattern is the creation of a new high during the upward trend, which, after peaking, faces resistance and sells off to a level of support. The next stage of this pattern will see the price start to move back towards the level of resistance found in the previous run-up, which again sells off back to the support level. The pattern is completed when the security falls below (or breaks down) the support level that had backstopped each move the security made, thus marking the beginnings of a downward trend.

Figure : Double-top pattern

It's important to note that the price does not need to touch the level of resistance but should be close to the prior peak. Also, when using this chart pattern one should wait for the price to break below the key level of support before entering. Trading before the signal is formed can yield disastrous results, as the pattern is only setting up the possibility for the trend reversal and could trade within this banded range for some time without falling through.

This pattern is a clear illustration of a battle between buyers and sellers. The buyers are attempting to push the security but are facing resistance, which prevents the continuation of the upward trend. After this goes on a couple of times, the buyers in the market start to give up or dry up, and the sellers start to take a stranglehold of the security, sending it down into a new downtrend.

Again, volume should be an important focus as one should look for an increase in volume when the security falls below the support level. Also, as in other chart patterns, do not be alarmed if there is a return to the previous support level that has now become a resistance level in the newly established trend.

NIFTY FUTURES UPDATE (DEC 24)

Yesterday, as predicted early market hours

Nifty Futures after having traded above our mentioned levels almost reached the upper side target and even below the levels it has reached the downside targets exactly.

Now BEWARE of four more gaps pending 

below the current levels

One @ 8180; Second @ 8060; Third @ 7947 

and the fourth @ 7814)

Today if opened & trades above 8274 for 30 minutes

No problem to hit 8295

And above 8299 it should sustain atleast for 30 minutes

to have an hike upto 8315-25

Otherwise in a normal opening if opens & trades below

8272 for 30 minutes see a slide upto 8243 - 24

And see even more slide after that!

INTRADAY RESISTANCES @ 8299 – 8326

INTRADAY SUPPORTS   @ 8242 – 22

Trade very carefully with the above mentioned time and levels.

ALL THE VERY BEST

(By the time this post was updated 

S&P CNX  Nifty Futures was trading @ 8346)

DISCLAIMER 

THE RECOMMENDATIONS MADE HERE DO NOT CONSTITUTE AND OFFER TO SELL OF A SOLICITATION TO BUY ANY OF THE SECURITIES/COMMODITIES OF ANY OTHER INSTRUMENTS WHATSOEVER MENTIONED. NO REPRESENTATIONS CAN BE MADE THAT THE RECOMMENDATIONS CONTAINED WILL BE PROFITABLE OF THAT THEY WILL NOT RESULT IN LOSSES. READERS USING THE INFORMATION CONTAINED HEREIN ARE SOLELY RESPONSIBLE FOR THEIR ACTIONS. SURFING OR USING ‘tradersharmony.blogspot.com' DEEMS THAT THE SURFER ACCEPTS AND ACKNOWLEDGES THE DISCLAIMERS AND DISCLOSURES.THE INFORMATION PUBLISHED ARE FOR EDUCATIONAL AND INFORMATIVE PURPOSE ONLY AND THE USER/READERS SHOULD TAKE ADVICE OF HIS/HER ADVISER BEFORE TAKING ANY DECISION FOR BUYING, SELLING OR OTHERWISE DEALING WITH SECURITIES/COMMODITIES OR ANY OTHER INSTRUMENT WHATSOEVER.

HAVE A GREAT TUESDAY

INVERSE HEAD AND SHOULDERS (HEAD-AND-SHOULDERS BOTTOM)

The inverse head-and-shoulders pattern is the exact opposite of the head-and-shoulders top, as it signals that the security is set to make an upward move. Often coming at the end of a downtrend, the inverse head and shoulders is considered to be a reversal pattern, as the security typically heads higher after the completion of the pattern.

Again, there are four steps to this pattern, starting with the formation of the left shoulder, which occurs when the price falls to a new low and rallies to a high. The formation of the head, which is the second step, occurs when the price moves to a low that is below the previous low, followed by a return to the previous high. This move back to the previous high creates the neckline for this chart pattern. The third step is the formation of the right shoulder, which sees a sell-off, but to a low that is higher than the previous one, followed by a return to the neckline. The pattern is complete when the price breaks above the neckline.

The Breaking of the Neckline and the Potential Return Move

As seen from the above, the head-and-shoulders pattern is complete when the neckline is broken; the trend is then considered reversed, and the security should be heading in a new direction. The point of breakout is when most traders following the pattern would enter the security.

However, the security will not always just continue in the direction suggested by the pattern after the breakout. For this reason it's important to be aware of what is known as a "throwback" move. This situation occurs when the price breaks through the neckline, setting a new high or low (depending on the pattern), followed by a retreat back to the neckline.

This move back to the neckline is considered to be a test of the pattern and the newly reversed support or resistance. Remember that when a trend shifts (or a reversal pattern is confirmed), what was once support now become resistance, and vice versa. In the case of an inverse head-and-shoulders pattern (as shown in the chart above), the neckline represented a level of resistance for the security before it broke out. Upon the security moving above the neckline to confirm the pattern, the restrictive neckline becomes support for any move back up.

While it can be alarming to see a security move in the opposite direction of the trend suggested by the pattern, it isn't all that bad. The reason being that the successful test of this new level of support or resistance helps to strengthen the pattern and its suggested new direction. So, it's important to wait for the pattern to test out and not sell out too quickly - before the pattern makes its bigger moves.

Volume

In technical analysis and chart-pattern analysis, volume plays an important role as it is used as a secondary indicator. Volume indicates activity and money movement. When volume is high, there is a lot of activity and money changing hands - making it an important indicator to follow.

For the head-and-shoulders pattern, volume is used mainly at the point of breakout to help confirm the pattern. At this point, it's important that the breakout happens on a large-volume move. For a head-and-shoulders top, when the price breaks below the neckline (in a downward direction), it's best when this occurs during a large volume increase, which signals heavy selling. This strongly indicates that the underlying supply and demand in the market is moving in the same direction the chart pattern is predicting.

Volume can also be used as a secondary indicator during the formation of the pattern, well before the breakout, to gain an idea of the pattern's strength.

For a head-and-shoulders top, the left shoulder should show heavy volume as it hits its new peak. Low volume should take the left shoulder down to the neckline. The run towards the peak in the head should be on lighter volume compared to the peak formed in the left shoulder.

This should be a warning, as volume should move with trends - not against them. The peak formed in the right shoulder should be seen with even lighter volume than in either the head or the left shoulder. And again, the volume should be high when the neckline is broken, which is by far the most important area to watch in terms of volume. If the volume is lighter on the neckline break, the chances of the price moving back to the neckline after breaking is greater than if the neckline break was accompanied by large volume.

This interaction of volume and price movement in forming the reversal signal is not set in stone. However, it is the general tendency in the chart pattern.

Slope of the Neckline

Another key factor in the head-and-shoulders pattern is the formation of the neckline. The reason being that the neckline acts as support or resistance during the formation of the pattern, along with being the entry point at which the pattern confirms itself.

In most of the above examples, the neckline is flat, but this need not be the case for the pattern to provide a potential trade. In most cases, the neckline will in fact be slanted either up or down. In general, a technically strong head-and-shoulders top should have a flat or slightly upward-trending neckline. For a head-and-shoulders bottom, it should be flat or slightly downward

Price Objective

An important, but often overlooked, factor in technical analysis and chart patterns is the calculation of price objectives. This is a measure of where the price is considered to be headed, based on a confirmed pattern.

While the price's direction is already known, based on the signal, what needs to be calculated is the projected price movement. This is done so that targets can be set, protective stops can be instituted and the worth of a trade can be evaluated.

This is measured based on the height of the chart pattern, which is essentially the distance in price between the peak of the head and the neckline.

This price objective is not an absolute and is used as a guideline to the attractiveness of a trade. The larger the difference between the objective and the price at the neckline, the more worth the trade has, as it will yield greater returns.

NIFTY FUTURES UPDATES & TODAY'S FUNDAMENTALS (DEC 23)

Yesterday, perfectly as predicted early market hours

Nifty Futures made a GAP UP opening and after having traded above our mentioned level of 8249 for 30 minutes it perfectly reached our target of 8270-90 and went even beyond

that to have a close @ 8340

Now BEWARE of  four more gaps pending 

below the current levels

One @ 8179; Second @ 8060; Third @ 7947 and the

fourth @ 7814)

If opened & trades above 8337 for 15 minutes

No problem to hit 8350

And above 8351 it should sustain atleast for 30 minutes

to have an hike upto 8379-89

Otherwise in a normal opening if opens & trades below

8331 for 30 minutes see a slide upto 8305

And below 8304 for 30 more minutes leads Nifty Futures

to 8280 – 60

INTRADAY RESISTANCES @ 8350 – 85 – 95   

INTRADAY SUPPORTS   @ 8303 – 8278 – 58

Trade very carefully with the above mentioned time and levels.

ALL THE VERY BEST

(By the time this post was updated S&P CNX 

Nifty Futures was trading @ 8425)

இன்றைய சந்தை அடிப்படை (DEC 23)

இந்தியநேரப்படி இன்று பிற்பகல் 3:00 மணிக்கு வெளியாகும் காலாண்டு மற்றும் வருடாந்திர GDP தகவல்கள் டாலருக்கு எதிரான கிரேட் பிரிட்டன் பவுண்டை நேரடி பாதிப்புக்குள்ளாக்கும்.

மாலை 7:00 மணிக்கு வெளியாகும் மாதாந்திர Core Durable Goods Orders மற்றும் கனடிய GDP (MoM) தகவல்கள் முறையே அமெரிக்க டாலர் குறியீட்டையும் கனடிய டாலரையும் நேரடியாக பாதிக்கவல்லது!

இரவு 8:30 க்கு வெளியாகும் அமெரிக்க நாட்டின் மாதாந்திர புதிய வீட்டு விற்பனை மற்றும் தனிநபர் செலவுகள் குறித்த தகவல்களும் டாலர் நகர்வில் குறிப்பிடத்தகுந்த பாதிப்புகளைக் கொண்டு 

வருமெனத் தெரிகிறது!  

ஆக இன்று கச்சா எண்ணெய், தங்கம், வெள்ளி, காப்பர், 

நிக்கல் மற்றும் இயற்கை எரிவாயு (Natural Gas) 

போன்ற கமாடிட்டிகளில் கவனமாக இருக்க வேண்டிய நேரம்...

2:55 – 3:30 PM; 7:00 – 7:30 PM; 8:25 – 9:00 PM

வெல்க அன்பு நெஞ்சங்களே! 

DISCLAIMER 

THE RECOMMENDATIONS MADE HERE DO NOT CONSTITUTE AND OFFER TO SELL OF A SOLICITATION TO BUY ANY OF THE SECURITIES/COMMODITIES OF ANY OTHER INSTRUMENTS WHATSOEVER MENTIONED. NO REPRESENTATIONS CAN BE MADE THAT THE RECOMMENDATIONS CONTAINED WILL BE PROFITABLE OF THAT THEY WILL NOT RESULT IN LOSSES. READERS USING THE INFORMATION CONTAINED HEREIN ARE SOLELY RESPONSIBLE FOR THEIR ACTIONS. SURFING OR USING ‘tradersharmony.blogspot.com' DEEMS THAT THE SURFER ACCEPTS AND ACKNOWLEDGES THE DISCLAIMERS AND DISCLOSURES.THE INFORMATION PUBLISHED ARE FOR EDUCATIONAL AND INFORMATIVE PURPOSE ONLY AND THE USER/READERS SHOULD TAKE ADVICE OF HIS/HER ADVISER BEFORE TAKING ANY DECISION FOR BUYING, SELLING OR OTHERWISE DEALING WITH SECURITIES/COMMODITIES OR ANY OTHER INSTRUMENT WHATSOEVER.

HAVE A SPECTACULAR MONDAY

ANALYZING CHART PATTERNS: HEAD AND SHOULDERS

The head-and-shoulders pattern is one of the most popular and reliable chart patterns in technical analysis. And as one might imagine from the name, the pattern looks like a head with two shoulders.

Head and shoulders is a reversal pattern that, when formed, signals the security is likely to move against the previous trend. There are two versions of the head-and-shoulders pattern. The head-and-shoulders top is a signal that a security's price is set to fall, once the pattern is complete, and is usually formed at the peak of an upward trend. The second version, the head-and-shoulders bottom (also known as inverse head and shoulders), signals that a security's price is set to rise and usually forms during a downward trend.

Both of these head and shoulders have a similar construction in that there are four main parts to the head-and-shoulder chart pattern: two shoulders, a head and a neckline. The patterns are confirmed when the neckline is broken, after the formation of the second shoulder.

The head and shoulders are sets of peaks and troughs. The neckline is a level of support or resistance. The head and shoulders pattern is based on Dow Theory's peak-and-trough analysis. An upward trend, for example, is seen as a period of successive rising peaks and rising troughs. A downward trend, on the other hand, is a period of falling peaks and troughs. The head-and-shoulders pattern illustrates a weakening in a trend where there is deterioration in the peaks and troughs.

Head and Shoulders Top

Again, the head-and-shoulders top signals to chart users that a security's price is likely to make a downward move, especially after it breaks below the neckline of the pattern. Due to this pattern forming mostly at the peaks of upward trends, it is considered to be a trend-reversal pattern, as the security heads down after the pattern's completion.

This pattern has four main steps for it to complete itself and signal the reversal. The first step is the formation of the left shoulder, which is formed when the security reaches a new high and retraces to a new low. The second step is the formation of the head, which occurs when the security reaches a higher high, then retraces back near the low formed in the left shoulder. The third step is the formation of the right shoulder, which is formed with a high that is lower than the high formed in the head but is again followed by a retracement back to the low of the left shoulder. The pattern is complete once the price falls below the neckline, which is a support line formed at the level of the lows reached at each of the three retracements mentioned above.

NIFTY FUTURES UPDATES TODAY (DEC 22)

On Friday, perfectly as predicted early market hours

Nifty Futures made a GAP UP opening,

thereby reaching our final target,

also filled the GAP @ 8270

Now four more gaps pending below the current levels

One @ 8179; Second @ 8054; Third @ 7947 and the

fourth @ 7814)

If opened & trades above 8249 for 30 minutes

Chance to hit 8270 - 90

Suppose in a normal opening if opens & trades below

8242 for 30 minutes see a slide upto 8212 – 8190

INTRADAY RESISTANCES @ 8250 – 70 – 90 

INTRADAY SUPPORTS   @ 8210 – 8188

Trade very carefully with the above mentioned time and levels.

ALL THE VERY BEST

(By the time this post was updated S&P CNX 

Nifty Futures was trading @ 8340 )

DISCLAIMER 

THE RECOMMENDATIONS MADE HERE DO NOT CONSTITUTE AND OFFER TO SELL OF A SOLICITATION TO BUY ANY OF THE SECURITIES/COMMODITIES OF ANY OTHER INSTRUMENTS WHATSOEVER MENTIONED. NO REPRESENTATIONS CAN BE MADE THAT THE RECOMMENDATIONS CONTAINED WILL BE PROFITABLE OF THAT THEY WILL NOT RESULT IN LOSSES. READERS USING THE INFORMATION CONTAINED HEREIN ARE SOLELY RESPONSIBLE FOR THEIR ACTIONS. SURFING OR USING ‘tradersharmony.blogspot.com' DEEMS THAT THE SURFER ACCEPTS AND ACKNOWLEDGES THE DISCLAIMERS AND DISCLOSURES.THE INFORMATION PUBLISHED ARE FOR EDUCATIONAL AND INFORMATIVE PURPOSE ONLY AND THE USER/READERS SHOULD TAKE ADVICE OF HIS/HER ADVISER BEFORE TAKING ANY DECISION FOR BUYING, SELLING OR OTHERWISE DEALING WITH SECURITIES/COMMODITIES OR ANY OTHER INSTRUMENT WHATSOEVER.