From my study file:
Dated 5th August 2013.
Open int.,Coc,Volume,Opening, Low, Atp, Dma, Sma, Wma, RSI all are basics for Analyst, and it is open for all. FII or Other Finacial institution also take reading for those parameters. When mkt. is high maximum parameters show positive and when mkt. is lower state maximum parameters show negative. So why mkt. fall or rise from that level ? You can not give any explanation. A Milkman knows with which quality and volume of milk produce 5 kg. cream and 2 kg curd.But you can not tell that. Why?
Because Milkman have readings of milk substances and its byproduct. So he use readings and put that in mathematics format for derive results. Lets explain NSE gives data of its product, suppose Nifty Future. If you take all readings and by crushing all, get some hidden byproduct parameters, as per your innovation capability. Try to find out more negative parameters in positive mkt. and positive parameters in negative mkt. More you collect that your successive rate will be more higher. For obtaining those parameters you have need concentration and lots of home work.But all are for Analyst not for generals . Why nothing sure in the market ?
1) We all are taking previous data, not of future.
2) What happens past may not happens in future. Because the forces and factors are not as previous.
3) FII or Financial institution are when buyer definitely they are buying for upside. But you can not know when they are turn seller before they start selling and when again turn buyer?
But you never get future data. So all are work from previous data which are available and work with the mkt. with help of stop loss . It is only true.
Example :-
As of Nifty Future closing 19th August 2015.
Take readings 5/8/13/21/34/55/89/144 DMA.
Average 5/8/13 DMA = (D3) Average 5/8/13/21/34 DMA = (D5) Average 5/8/13/21/34/55/89/144 DMA = (D8)
You will get 3 pivot levels, align them in ascending order .
As per above mentioned closing D3 8490/ D5 8497 / D8 8471 and closed was 8505.40 until above 8497 it was bullish and by break 8497 chance to come to 8490/8471 and closed below 8471 highly bearish. On 20th August closed @ 8380.05 indicated highly bearish. Results in front of you done 7632.20. Although there also possibility to consolidation around the trigger price 3 days to week need to watch carefully. As per closing of 4th September 2015 value of those 3 parameters are given below.
D3 7883/D5 8026/D8 8156
You can use this as short term indicators.