Price action - Nifty - 23-01-2017

Today Nifty gave an opportunity to go long at the opening as shown by the green arrow.
An opportunity to short as shown by the red arrow.
Again an opportunity to go long as shown by the second green arrow.

Some questions to consider as you review your last years trading results and plan for the upcoming year

I fond the following questions posted by YTC are very helpful while reviewing.

Nifty 22-11-2016 EOD analysis

Nifty opened above the resistance zone 7960 and moved swiftly towards the next resistance zone 8020  -(1). There it found selling pressure and reversed downwards - (2). It moved through the support zone 7860 and moved to 7948 where there is another support zone -(3). Moved up to the support turned resistance zone 7960 -(4) and again moved down. Again found support near 7940 and moved up. - (5)

All the (no.) are the possible trade signals. I could make use of only (1) , (3) & (5). However due to poor trade management (3) & (5) resulted in scrapping of the trades. Slightly better than yesterday!

Nifty 3 min chart:

Golden rule for trading

Golden rule for trading is:
Feed the stop loss order into the system immediately when the initial trade is made. This help to take away the emotionally driven subjectivity in analysis.

This will prevent any major capital erosion from the losses. As far as I have seen this is one of the best money management aspect in any trading. Before entering the trading itself one will know the maximum loss from that trade. If you are not comfortable with  such a loss either reduce the quantity or skip that trade.

Nifty 22-11-2016 Intra day

Nifty opened above the resistance levels created in yesterdays trade. There were no other reliable resistance levels until 8020, hence it gave a comfortable long entry at the opening.

Nifty 1 min chart:

Watch out for the resistance near 8020 zone. It may retrace back to 7980 again. That is a support zone, if supports then again it will go up at least towards 8020.

Nifty 21-11-2016 EOD

Nifty opened at the Big Round Number 8100 and swiftly moved down giving an opportunity to short. This found a minor support near the 8040 and moved up till 8060.Enter the long but the entry method was not right (will elaborate this later on in a different note). This was finding new short entry at the resistance zone and again an opportunity to short at the bearish engulfing candle (in the 1 min chart). Could not take this entry.

Further on all Swing Low and Swing High where actually the trade initiating opportunities but were not taken. So this is a clear indication for me to fine tune my entry strategy!

Nifty 3 min chart:

Nifty 1 min chart:

Nifty 21-11-2016 Intra day

Nifty seems to have given an opportunity to enter long at the bottom of the day. It tried to break the support zone marked in green color. However market swiftly reversed from this level and shown a breakout failure. It is currently heading towards the next resistance level. Let us see how it plays out.

Nifty 1 min chart: