J10 SAR 1st Jan 2010 Level for Nifty,Bank Nifty and CNXIT

28DEC NIFTY :LONG 6032
28DEC BANK NIFTY : LONG 11573  
28DEC CNX IT : LONG 7453

J10 Levels for 28DEC2010

28DEC NIFTY :LONG 5967
28DEC BANK NIFTY : SHORT 11500  
28DEC CNX IT : LONG 7221

Nifty and Bank Nifty 27 Dec,2010

27DEC NIFTY :LONG 5950
27 DEC BANK NIFTY : SHORT 11500  

Nifty and Bank Nifty 24DEC

24DEC NIFTY :LONG 5950
24 DEC BANK NIFTY : SHORT 11500  

Nifty and Bank Nifty 23DEC ,2010

23DEC NIFTY :LONG 5925
23 DEC BANK NIFTY : SHORT 11500  

Nifty and Bank Nifty 22nd DEC,2010

22DEC NIFTY :LONG 5935
22 DEC BANK NIFTY : LONG 11500 

Nifty and Bank Nifty 21st Dec,2010

21DEC NIFTY :LONG 5900 
21 DEC BANK NIFTY : SHORT 11500  

Nifty and Bank Nifty 20th Dec,2010

20DEC NIFTY LONG 5888
20DEC BANK NIFTY SHORT 11600

Nifty and Bank Nifty 13th Dec,2010

  13DEC NIFTY SAR 5900

  13 DEC BANK NIFTY SAR 11750 (BOOK PROFIT ARND 11600)

10 DEC  NIFTY J10 SAR 5900
10 DEC BANK NIFTY J10 SAR 11800

Nifty and Bank Nifty 9th Dec

9DEC NIFTY SAR 5950 ,BANK NIFTY 11972

Nifty and Bank Nifty 7th Dec

RSI Divergence

The Relative Strength Indicator (RSI) tries to anticipate a change in the trend. This is a leading indicator of a trend change. The results are used to deliver messages about the strength of the market. It is called an oscillator because the indicator readings are converted into percentage results which range from 0% to 100%. The position of each day’s indicator reading gives the trader an indication of the strength, or weakness, of the existing price trend.

80% and above Over bought

20% and below Over sold

The over-bought and over-sold signals are the same as any oscillator, although with an RSI they are traditionally set at 80% and 20%.

In a trending market, Signals can remain above 80% and below 20% for longer period of time.

When the RSI line slopes differently from the price chart line, a divergence occurs. 

Divergence signals give the trader an advantage by confirming an entry into a downtrend as it weakens and just before it turns into an up trend. It is also used to get out of an up trend as it weakens, and before it collapses into a downtrend. The divergence signal does not occur every time a trend changes, but when it does, it delivers a strong confirmation signal that a trend break is likely.

RSI divergence signals often appear in advance of a trend change, but they are not very good at suggesting the time of a trend change.

Total Points Summary

J10 SAR METHOD

J10 SAR METHOD

(Courtesy :tradeinniftyonly.blogspot.com)

I have made some changes to the original J10 concept.If you r interested in original please visit "tradeinniftyonly.blogspot.com".

1.  SAR is a number based on market's strength and weakness as well as the balance of demand and supply. Whatever the number may be, a choppy market could whipsaw the number occasionally to shake off your confidence in them. However, staying with one method brings you consistent winnings.

LONG: WHEN PRICE MOVE ABOVE SAR

SHORT: WHEN PRICE MOVE BELOW SAR   

2. If after triggering a reversal trade @ 5850 and markets fall again, you do not change the trade on the same day as SAR is done only once a day but do so only the next day based on next day's SAR. (Risk averse could have a Stop loss in extreme choppiness but the essence of SAR is to keep the trade once triggered and manage it the next day only. If and when such extremes take place, I'll be around to alert you. This has not happened in the last 3 years).

3. Once a new trade is taken in a minimum 2 lots, you book on one lot with a profit of 50, 100+ points and keep the 2nd lot till a reverse trade is triggered based on each subsequent day's SAR. (Risk Management).

4. Once a new trade is taken in minimum 1 lot, when this trade gets into profit, then BUY second lot.(2 lots)  (Risk Management). Never buy 2lot at one point whenever SAR is hit.

5. After booking out on the 1st lot, if Nifty climbs back substantially and start to fall again, take a new trade again. For Eg: After triggering a sell @ 5483 on 25.08.10, Nifty fell to 5392 on 27.08.10 and the 1st lot was booked @ 5397 and on Monday, it rebounded to 5469 and started to fall breaking day's low @ 5441, another sell could have been taken and another profit booking would have been done. This step is optional and suited for the experienced.

6. You may use the filter of 0.2% to 0.3% on SAR for 2 days once SAR new trade is taken to give the new trade a fighting chance & survive. For eg: For the new long trade taken @ 5468 yesterday, the SAR of today @ 5457 may be altered to minus 0.3% to 5441.

7. Close your Position using 

     a. Trailing Stoploss       b. Divergence   c. Profit Booking 

J10 SAR FOR NIFTY AND BANKNIFTY 6DEC

2nd Dec Nifty and BankNifty

NIFTY SAR LONG 5880

BANK NIFTY SAR LONG 12000 

1st Dec J10 for Nifty and Bank Nifty

30Nov Nifty and BankNifty

Nifty SAR down 5911
Bank Nifty SAR down 12072

29 Nov Bank Nifty

Bank Nifty sar DOWN 12127

29Nov Nifty

Nifty SAR for 29Nov :5930