Monday, May 12, 2008

The Beauty of the Hourly 200 MA - Abhijit Phatak


Every low and high for the Nifty or for that matter any stock has some significance. Traders must be wondering what was the signifiance of today's low on Nifty - i.e. 4914.8. The low today was bang on the hourly 200 MA - yes!

The 200 DMA is quite well known even to those who do not follow charts, thanks to our TV channels. However, it is quite interesting to note that the hourly 200 MA (200 HMA) too plays a role in giving support and acting as resistance. For a trader, the thumb rule to be followed is simple - look for shorts just below the 200 HMA and look for longs just above the 200 HMA. Stop loss levels are very tight in such situations. Some hints for trading tomorrow - IDBI, RCOM, Reliance Industries and many more on the long side.

Happy trading.

Posted by AP at 8:11 PM

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4 Comments:

naresh nambisan said...

mr.bob,your blog is indeed worth a visit atleast once a day for serious traders.you get to know what various TAs think about the same issue.also to be mentioned is the fact that as of now atleast u have quality guys posting her and expect the same from you in the coming days...gr8 job bob..keep it going...

May 12, 2008 at 9:15 PM  
Unknown said...

Interesting article ! Sure get to know that hourly levels too have a nice effect on trading patterns. 200 sure is an interesting level.

Nice blog with the cooperative you have now Mr. B !

Keep it up !

May 12, 2008 at 10:48 PM  
Unknown said...

a very well articulated , mr. bob. keep it up....do mention few picks , so the annalysts present can get justification for their work.

May 13, 2008 at 3:49 PM  
Bhoomi Trader said...

The author of this post is Abhijit Phatak and he deserves the credit.

May 13, 2008 at 4:38 PM  

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