Reading of the Indicator
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8/7/2019 Reading of the Indicator
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For Any comments feedback please contact on [email protected] or Call : Maharashtra / India Cell No. +91 9822791541
Reading of the Indicator: Sharing a Leading Indicator found (!!!).Accidently for the information of all traders. Can be applied to any Stock / Index / Commodities.
1. The Data required to plot the indicator is the values of OPEN / HIGHS / LOWS / CLOSE for last 200 Days minimum. 400-500 Days Data is preferred. The enables us toget the historical behavior of the indicator.
2. Once the OPEN / HIGH / LOW / CLOSE Data is imported in EXCEL File apply the Algorithm to plot the chart on separate/Same sheet.3. This indicator is a LEADING Indicator Means whenever the price of the stock/index under observation is about to change the direction the indicator turns its
direction before stock moves and changes its direction. NIFTY CLOSEING CHART Till 30/3/2011
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For Any comments feedback please contact on [email protected] or Call : Maharashtra / India Cell No. +91 9822791541
4. To read the indicator use following rules;a. When Indicator goes in positive direction (UP) is a BEARISH Sign for the Stock / Index.b. When Indicator goes in negative direction (DOWN) is a BULLISH Sign for the Stock / Index.
c. The Indicator is to be used in conjunction with Simple Trend Line of the Stock/Index.d. For profitable trade Always take position very next day when the indicator turns the direction and The Trend Line gets Broken.e. The indicator gives Overbought and Over Sold indication at extreme levels.
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For Any comments feedback please contact on [email protected] or Call : Maharashtra / India Cell No. +91 9822791541
f. During Overbought and Oversold conditions at extreme ends the opposite direction trade can be initiated with stop loss of recent high ONLY when the indicatorturns its direction and the Trend line is broken.
g. The indicator also gives maximum value stock/index can move. Its the difference between the Highs and lows of the PEAKS (HIGHS) and TROUGHS (LOWS).h. The Triangular patterns are very difficult to trade but using this indicator we can get advance information about where the stock is going to breakout. USE the
UP ward Direction movement of the indicator to SHORT the STOCK/INDEX and vice-a-versa.
i. The Corrective patterns are evitable from this indicator if it fluctuates above or below Zero Line (X Axis). This requires continuous profit booking for every shorttime period whenever the indicator turns its direction.
Pls see the Triangle on next page chart and LAST Page for detailed Chart
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For Any comments feedback please contact on [email protected] or Call : Maharashtra / India Cell No. +91 9822791541
j. The directional patterns are represented by a very smooth continuous directional move of the indicator. Hence its very easy to ride any direction of theSTOCK/INDEX movement with maximum profit possibilities.
k. The indicator also givesve divergences when the trend is about to change i.e. the Indicator will turn its direction but it will not move smoothly (There will beups and downs in the changed trend direction) But the price will continue to move in previous directions. This is the reason always take the opposite direction
trade position ONLY When the larger previous trend line is broken.
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For Any comments feedback please contact on [email protected] or Call : Maharashtra / India Cell No. +91 9822791541
5. In addition there are two confirmatory indicators which are smoothened (The volatility minimized) to give the confirmation of the trend change. (Bullish Indicatorand Bearish Indicator)
a. The Bullish Indicator and Bearish Indicators can also be used to confirm the Trendb. For Safe and Conservative Trade always initiate the trade by shorting when Bear Indicator Turns below Zero Line / X Axis and by going long when Bull Indicator
going above Zero Line / X Axis.
c. If you compare the Lead Indicator always reverse before BULLISH / BEARISH Indicator change the direction. Hence we can take a confirmation from theseindicators for SURE PROFITS.
NEXT PAGE : Indicators performance with NIFTY from 01/07/2010 till 30/03/2011
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For Any comments feedback please contact on [email protected] or Call : Maharashtra / India Cell No. +91 9822791541
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For Any comments feedback please contact on [email protected] or Call : Maharashtra / India Cell No. +91 9822791541
P.s. If anybody want to know the next course of action of any stock / Index (FROM Any Country !!!). Pls do not hesitate
to contact me with Data as explained on page 1. I will freely give the indicators chart with explanation.
