Tuesday, April 3, 2012

Wise words from Illango 001

When the day TA is uptrending, till it reaches overbought zone & starts to turn down, look at the price behaviour:

How much pull back it does during the upmove. Use this information to re-enter.

For eg:

5136 to the current high, Nifty has pulled back to a maximum of 31-32 points only.

Let Day trend gets exhausted with a close below DHEma. Now the correction would be more than 33 points and we would call it correction if weekly trend is in "uptrend".

75 to 110 points correction would emerge once day trend becomes overbought.

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