Which is the best momentum indicator for stock market trading?

Which is the best momentum indicator for stock market trading?

Here I am Gonna Revile you superb strategy to Trade using momentum Indicators in Stocks. Read it carefully and paper trade using strategy before actual trades.

There are many momentum Indicators used in Technical Analysis and you can not pin point any one to be performing or under performing. Before Using any momentum indicator you need to have a Strategy to Scan the market i.e you need to filter market using some parameters like:

1. Open=High
2. Open=Low
3. Bullish Engulfing on Daily Chart.
4. Bearish Engulfing on Daily Chart.
5. News in Stocks.
6. Volume Shockers Stocks
7. Gap Up Or Gap Down Stocks.

Personally I look for Gap up and Gap Down in stocks due to news and then Place them in the trading terminal. Then comes the use of momentum indicators.

Once you find some breakout or breakdown on higher time frame (weekly and Daily charts) Due to the news then you try to trade those stocks using momentum indicators like: Awesome oscillator , RSI, MACD, ADX, Exponential Moving Averages Etc.

Today: ZEEL and HDFCBANK was in news How you can have traded both Stocks using momentum indicators Awesome Oscillator and RSI


Example 1: HDFCBANK



In the the above HDFCBANK 5 mins Chart (07-Oct-2019) you can See that Stock broke the Support levels- Marked with Red Horizontal Line with All Momentum Indicator supporting the Stock i.e. AO was Trading below Zero, RSI was Crossing 40 Levels. So you can confidently take a trade in the script.

Example 2: ZEEL



In the the Above ZEEL 5 mins Chart (07-Oct-2019) you can See that Stock broke the Resistance levels of Rising Wedge Pattern- Marked with Red Lines with All Momentum Indicator supporting the Stock i.e. AO was Trading below Zero, RSI was Crossing 40 Levels. So you can confidently take a trade in the script.

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At the current price levels, is INDUSINDBK a good buy for the long term? Why or why not?

At the current price levels, is INDUSINDBK a good buy for the long term? Why or why not?

Market Outlook:

Markets seems be over valued at this point of time, Upside in the market is very limited and from here we can see correction in overall market and Bank nifty. Nifty since it made low in 2008 without any major correction at made Highs around 12k mark. There are business and market cycles and hence I personally suggest you to sit on cash and start picking good Mid Cap stocks rather the investing in front line. Indian Banking System seems to be suffering huge from Defaults and NPA'S.

TECHNICAL OUTLOOK:

IndusindBank has seen huge rally since Year 2010, Stock has seen No Major correction till Date in the Last 9 years, As there is pressure on Indian Banking Index, So we can see Fresh short coming below 1150 Levels. In the Chart Attached below We have shown, Stock has broken 240 Weeks Trend line Support and Trading near to Support zone, If stock does not hold support levels of 1150- 1180 then we may see Stock crashing from here.

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How do I enhance the accuracy of RSI while trading intraday?

How do I enhance the accuracy of RSI while trading intraday?

No indicator can enhance your accuracy for Trade.

Default setting for RSI is 80–20 i.e. Above 80 RSI is said to be overbought & below 20 mark RSI is said to be oversold.

But when you apply RSI to Nifty or Stock Chart you may see that there are many occasion where you get trapped, when RSI is above 80 Nifty Gets more momentum and head towards higher levels.

So I suggest you to Use following Setup to enhance your accuracy in Intraday:

Step 1: Change to RSI default settings to 60–40 (Buy Above 60 Levels and Sell below 40 Levels)

Step 2: Place Parabolic Sar (PSAR) to Chart.

Step 3: Place MACD Histrogram

Step 4: Chance Intraday Time to 15 Min

For BUY SIGNAL: RSI Should should be crossing 60 above Levels and Parabolic Sar (PSAR) Should be Green or below Current Price and MACD Histogram Should be Above zero line. If 3 Condition Fulfills then Buy.

For SELL SIGNAL: RSI Should should be crossing Below 40 above Levels and Parabolic Sar (PSAR) Should be Red or Above Current Price and MACD Histogram Should be below zero line. If 3 Condition Fulfills then Sell.

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How Can I Master Trading in Stocks and Commodities?

How Can I Master Trading in Stocks and Commodities?

Mastering Technical Analysis is not too easy and not too tough. You need to Train your eyes and master any one patter you love to trade. There are many techniques and methods to trade but I would suggest you to trade manually not via algo. Learn the basis of Technical Analysis and then follow the steps mentioed below:

First Step: Stock Scannig
You need to have a scanner to scan the market i.e. which stocks you want to trade Top Gainer and looser, Volume shockers, Intraday Recovery Stocks, Open Interest Gainer Looser etc.

Second Step: Time Frame and Charting Tool
You need to choose time frame on which you what to trade i.e. Hourly Chart, 15 Min Chart, 5 min Chart or 1 min Chart. This depends on your trading style. I personally Trade on multiple time frame i.e. looking at multiple time frame in one go or one screen. For this you need best charting tools and I would suggest you to use Sharekhan's Trade Tiger or Fyers securities i-dart both are desktop application with many in built scanner which are very helpful for beginners.

Third Step: Money Management, Position Sizing, Trade Management and Accuracy:
You need to master money management i.e. always have a stop-loss while trading and need to have a good risk to reward ratio. Then comes position Sizing where you need to decide how much quantity or lots to trade depending on your PROFIT AND LOSS or you risk capacity. Then comes Trade Management where you can have fixed targets or you may have Trailing stop-loss technique. Always start with half quantity and add quantity when you are winning the trade and keep trailing the Stop loss till your desired profit is reached. Then comes accuracy, be accurate in picking the right stock and right moves this will increase you chance to gaining and earning from Trading.

GOLD COMEX VIEW AUGUST 2019

GOLD COMEX seems to be heading towards 1600$ per ounce in the near term, Now Equity as an asset class seems to be under performing and Gold after a huge consolidation is best asset class to invest in.