New Website in Stock Market for Tamilnadu

please try this site which was impressed by me

and may be available in tamil soon…

http://panguvaniham.thamizhnadu.in

Stocks made Positive Reversal, Negative Reversal and Inside Bar

Stocks which are made Positive Reversal, Negative Reversal and Inside Bar for the day

Positive Reversal Stocks, 

Negative Reversal Stocks

Inside Bar Stocks

Live Free Calls on Equity and Commodities

Stop Loss Tips & Tricks.

Stop Loss Tips & Tricks.
By The PitMaster

This summary of stop loss techniques are my adaptations of industry standard recommendations.  They work well for me, try them along with your own paper trading strategies then adapt and expand them to fit your own style. –The PitMaster
To understand the where’s and why’s of stop loss placement, we must first understand market movement.  A brief explanation of this is called Swing Movement. It’s been better popularized as the Fibonacci Retracements.
123botm.gif (2191 bytes)

A Swing is a movement from low to high, or high to low.For example, a 123 bottom consists of 4 swings. The move which ends at the #1 point low is a down swing. The rally up to the #2 point is an upward swing, while the swing down to the #3 point is a swing, and the rally which penetrates the #2 point is the 4th and final swing.

In other words each rally or break in a pattern is a swing.

123top.gif (2206 bytes)

Basically the definition of a Bull Market is a market which makes “higher highs” and “higher lows.” A Bear Market is a market which makes “lower highs” and “lower lows.”What is a 123 Bottom, but a market which makes higher lows (#3 point is higher than the #1 point)? When the #2 point is penetrated, the market is making higher highs. This pattern is the very definition of a Bear Market turning to a Bull Market, while the 123 Top is the very definition of a Bull Market turning to a Bear Market. Each extreme of a swing, should act as support or resistance.

When I examine charts, I look at the swings and look for markets which are making higher highs and higher lows to buy, while I look for markets which are making lower highs and lower lows to sell.

After the trend has been defined, one must figure out where the trend would change. For a Bull Market it would be the last swing low (point #1 on the above chart). For a Bear Market it would be the last swing high.

In other words, the basic rule is to trade in the direction of the trend and risk the trade to where the trend is no longer valid, as a maximum stop loss.

When the #2 point is penetrated, the market is making lower lows. This pattern is the very definition of a Bull Market turning to a Bear Market. Therefore, we place our stop order to enter the market on a break out or any penetration of the #2 point.  If the market then turns around and breaks back past the #3 point, it would have just broke the Bear Market rule. (The market would no longer be making lower highs.)

123stop.gif (4139 bytes)

Therefore, often times I recommend placing your stop loss order more conservatively, just behind the #3 point as opposed to waiting for the market to break the #1 point.
Each extreme of a swing, should act as support or resistance.
What’s good for a 123 Top formation, is also good for a 123 Bottom formation.

Narrow sideways channels are one of the easiest formations to identify and to profit from.  When the market breaks out of the channel one way or the other, we simply place our stop loss behind the channel’s resistance.channelstop.gif (3591 bytes)

Sometimes, when the channel is very wide, we may not want to risk that much money, therefore consider placing your stop loss at about the 50% level. Again, each extreme of a swing, should act as support or resistance.

This is one of my favorite formations. When the market starts forming a Triangle, I get all excited.trianglestop.gif (3611 bytes)

Basically, the same rules apply for this formation as for a narrow sideways channel. Watch for triangles, the break out is usually very dramatic.

wedgestop.gif (3320 bytes)

Notice on this formation how close behind the entry point I trail my stop.  Watch for Wedges, the break-outs are also usually very dramatic.

The PitMaster’s Stop Loss Rule-Of-Thumb.Where the chart formation is taking place within relationship to the short and long term trend is a very important consideration in how aggressive you might want to be when placing your stop loss orders.

Also, is the formation taking place within a Bear move, or a Bull move? It’s important to know this, because as you well know, “The Trend Is Your Friend.” Even though each indicator above may be an indication in reversal of direction, you also want to remember the old adage, “A body (market) in motion tends to stay in motion.”

nsc1.gif (1488 bytes)

The same rules apply when the markets are in reverse. Place stop loss at the entry point if the market breaks DOWN, and consider taking profits quickly.

Figure #1: If the market breaks DOWN, place your stop loss at the industry standard point or consider a more conservative 50% placement (Depending on the width of the channel or triangle.)Place stop loss at the entry point if the market breaks UP, and consider taking profits quickly.

Figure #2: Place stop loss at the industry standard or more conservative 50% retracement on break down OR up. (Depending on the width of the channel or triangle.)

Figure #3: If the market breaks UP, place your stop loss at the industry standard point or consider a more conservative 50% placement (Depending on the width of the channel or triangle.)

 

Hypothetical results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program.
One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program, in spite of trading losses, are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.

 

Fibonacci Pinball

The picture shows a type of pinball machine that you can build yourself. You will need 10 finishing nails, 5 small cups, a wooden board and a pinball (marble). Nail the nails part way into the board in the triangular pattern shown, with one nail in the top row, two in the second, three in the third and so on, and with enough space for the pinball to fit between the nails.

To operate the machine, tilt the board at a slight angle and release the pinball so that it hits the top nail dead center. If the machine is not tilted the pinball will be deflected either left or right with equal probability by the first nail. It will then continue falling and hit one of the nails in the second row and be deflected either left or right around that nail with equal probability.

The result is that the pinball follows a random path, deflecting off one pin in each of the four rows of pins, and ending up in one of the cups at the bottom. The various possible paths are shown by the gray lines and one particular path is shown by the red line.

How many random paths are there through your pinball machine, and what are they?

The answer is 16. The brief explanation is:

The first row has one pin. The number of possible paths through the first row = 2.

The second row has two pins. Since what happens in the second row is completely independent of what happened in the first row, the number of possible paths the pinball could travel from the top through the second row = 4 (2 x 2).

The third row has three pins. Since what happens in the third row is completely independent of what happened in the second row, the number of possible paths completed from the top through the third row = 8 (2 x 2 x 2).

The fourth row has four pins so the number of possible paths from the top through the fourth row = 16 (2 x 2 x 2 x 2).

If you drop 16 pinballs into the top of your machine and repeat that event one million times, what is the average number of pinballs per event that will fall into each cup at the bottom? The answer, from left to right, shown in our pinball machine image below is 1-4-6-4-1. The image to the right is known as Pascal’s Triangle. Pascal’s Triangle is very useful for analysing the pinball machine. Pascal’s Triangle also pops up in a variety of other seemingly unrelated areas. First we mention that the triangle continues on forever and we have only shown the first five rows. Can you see the pattern and guess what the next row of numbers is?

If we superimpose Pascal’s Triangle on top of the pinball machine then we see the connection between the two: Each number of Pascal’s Triangle represents the number of distinct paths that a pinball can take to arrive at that point in the pinball machine. Without knowing any more at this point it is still fair to say that Pascal’s Triangle is a logically ordered description of the outcome of a series of completely random events.

Although Pascal did not discover the sequence of numbers that bears his name, the origin is believed to be hundreds of years earlier in China, he did popularize the sequence in the 17th century from his research, of all things, on improving his betting odds at the gaming tables. If Blaise Pascal were around today he would probably be running some hundred billion dollar derivative heddge fund that kept the Fed Chairman up at nights.

Pascal’s Triangle is an oddity. The construction of the triangle is simple. The numbers on each new row are derived by adding the numbers immediately above and to the right and left. We use letters to make words, words to make sentences, and sentences to tell stories that inform us. Numbers are really no different. Clusters of numbers are scale. Sequences of numbers are a process. For us numbers are abstract symbols but to the Pythagoreans numbers had an actual form and a shape. The dots on the right side of the page are the number 34 – a triangle and a square. Sometimes it is useful to think of numbers, including stock and commodity prices, as shapes and forms. Shapes occupy space. They have scale. And they reside in time.

Here’s an image of Pascal’s Triangle filled out to ten rows.

It looks interesting. But so what? That would be the normal and expected reaction from a generation with hundreds of years of learning that numbers are only abstract symbols used as a convenience to measure something else that is tangible and real. But wait. Didn’t we say that Pascal’s Triangle is a logically ordered description of the outcome of a series of completely random events? Could there not also be a hidden order within the description itself?

It gets curiouser and curiouser but finally we arrive. Maybe even back to the beginning. When you add the diagonal rows of Pascal’s Triangle. Left to right and right to left. You derive the sequence of Fibonacci ratios.

The deeper you get into the heart of Pascal’s Triangle the closer you get to the Divine Proportion. What does it all mean? Who knows for sure. Perhaps it is enough to leave with the thought that the detritus of large numbers of simple binary decisions, like the left or right of the pinball, or the buy or sell in the pits, leave footprints in space and time that may be impossible to recognize while happening but become clear enough down the road if you know where to look.
_________________________


The pinball machine discussion and illustrations are from the math department at the British Columbia Institute of Technology.

Nifty Levels for Weekly, Monthly, Quarterly and Yearly

Intraday Trading Levels for the Day

Intraday Trading Levels for the day

Camarilla Levels for Nifty and Index Futures

Fibonacci Levels for Nifty and Index Futures

Pivot Levels for Nifty and Index Futures

Tags: Intraday Trading Levels for the day, Camarilla Levels for Nifty and Index Futures, Fibonacci Levels for Nifty and Index Futures, Pivot Levels for Nifty and Index Futures, Nifty Review, Nifty Today, BANKNIFTY, CNXIT, MINIFTY, NFTYMCAP50, NIFTY, ABAN, ABB, ABGSHIP, ABIRLANUVO, ACC, ADANIENT, ADANIPOWER, ALBK, AMBUJACEM, ANDHRABANK, APIL, APOLLOTYRE, AREVAT&D, ASHOKLEY, ASIANPAINT, AUROPHARMA, AXISBANK, BAJAJ-AUTO, BAJAJHIND, BALRAMCHIN, BANKBARODA, BANKINDIA, BEL, BEML, BGRENERGY, BHARATFORG BHARTIARTL, BHEL, BHUSANSTL, BIOCON, BOSCHLTD, BPCL, BRFL, CAIRN, CANBK, CENTURYTEX, CESC, CHAMBLFERT, CHENNPETRO, CIPLA, COLPAL, CONCOR, COREPROTEC, CROMPGREAV, CUMMINSIND, DABUR, DCHL, DENABANK, DISHTV, DIVISLAB, DLF, DRREDDY, EDUCOMP, EKC, ESSAROIL, EXIDEIND, FEDERALBNK, FINANTECH, FORTIS, FSL, GAIL, GESHIP, GLAXO, GMDCLTD, GMRINFRA, GODREJIND, GRASIM, GSPL, GTL, GTLINFRA, GTOFFSHORE, GVKPIL, HCC, HCLTECH, HDFC, HDFCBANK, HDIL, HEROHONDA, HEXAWARE, HINDALCO, HINDPETRO, HINDUNILVR, HINDZINC, HOTELEELA, IBREALEST, ICICIBANK, ICSA, IDBI, IDEA, IDFC, IFCI, INDHOTEL, INDIACEM, INDIAINFO, INDIANB, INFOSYSTCH, IOB, IOC, ISPATIND, ITC, IVRCLINFRA, JINDALSAW, JINDALSTEL, JINDALSWHL, JISLJALEQS, JPASSOCIAT, JPPOWER, JSWSTEEL, KFA, KOTAKBANK, KSOILS, LICHSGFIN, LITL, LT, LUPIN, M&M, MARUTI, MCDOWELL-N, MCLEODRUSS, MLL, MOSERBAER, MPHASIS, MRPL, MTNL, MUNDRAPORT, NAGARCONST, NAGARFERT, NATIONALUM, NEYVELILIG, NHPC, NMDC, NTPC, OFSS, ONGC, ONMOBILE, OPTOCIRCUI, ORBITCORP, ORCHIDCHEM, ORIENTBANK, PANTALOONR, PATELENG, PATNI, PETRONET, PFC, PIRHEALTH, PNB, POLARIS, POWERGRID, PRAJIND, PTC, PUNJLLOYD, RANBAXY, RCOM, RECLTD, RELCAPITAL, RELIANCE, RELINFRA, RELMEDIA, RENUKA, RNRL, ROLTA, RPOWER, RUCHISOYA, SAIL, SBIN, SCI, SESAGOA, SIEMENS, SINTEX, SOBHA, SRTRANSFIN, STER, STERLINBIO, SUNPHARMA, SUNTV, SUZLON, SYNDIBANK, TATACHEM, TATACOMM, TATAGLOBAL, TATAMOTORS, TATAPOWER, TATASTEEL, TCS, TECHM, TITAN, TRIVENI, TTML, TULIP, TV-18, UCOBANK, ULTRACEMCO, UNIONBANK, UNIPHOS, UNITECH, VIDEOIND, VIJAYABANK, VOLTAS, WELCORP, WIPRO, YESBANK, ZEEL.

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Camarilla Levels for the day 12-10-2010

CAMARILLA LEVELS FOR THE DAY 12-10-2010 (Values based on the FUTURES CONTRACT)
Stock Name R5 R4 R3 R2 R1 S1 S2 S3 S4 S5
BANKNIFTY 12745.09 12723.26 12659.27 12648.28 12637.74 12616.26 12605.72 12594.73 12562.47 12508.91
CNXIT 6860.96 6824.24 6802.12 6794.59 6787.36 6772.64 6765.41 6757.88 6735.76 6699.04
MINIFTY 6243.97 6219.49 6204.74 6199.72 6194.91 6185.09 6180.28 6175.26 6160.51 6136.03
NFTYMCAP50 3084.85 3084.85 3084.85 3084.85 3084.85 3084.85 3084.85 3084.85 3084.85 3084.85
NIFTY 6248.86 6223.30 6207.90 6202.65 6197.62 6187.38 6182.35 6177.10 6161.70 6136.14
ABAN 909.68 901.84 897.12 895.51 893.97 890.83 889.29 887.68 882.96 875.12
ABB 952.31 944.46 939.73 938.12 936.57 933.43 931.88 930.27 925.54 917.69
ABGSHIP 321.20 316.07 312.99 311.94 310.93 308.87 307.86 306.81 303.73 298.60
ABIRLANUVO 912.65 904.51 899.61 897.93 896.33 893.07 891.47 889.79 884.89 876.75
ACC 1037.17 1031.20 1027.60 1026.37 1025.20 1022.80 1021.63 1020.40 1016.80 1010.83
ADANIENT 735.67 725.61 719.56 717.49 715.52 711.48 709.51 707.44 701.39 691.33
ADANIPOWER 144.47 143.03 142.17 141.87 141.59 141.01 140.73 140.43 139.57 138.13
ALBK 249.13 247.14 245.95 245.54 245.15 244.35 243.96 243.55 242.36 240.37
AMBUJACEM 145.47 143.99 143.09 142.79 142.50 141.90 141.61 141.31 140.41 138.93
ANDHRABANK 170.74 169.61 168.93 168.70 168.48 168.02 167.80 167.57 166.89 165.76
APIL 875.21 870.67 867.94 867.00 866.11 864.29 863.40 862.46 859.73 855.19
APOLLOTYRE 84.32 83.72 83.36 83.24 83.12 82.88 82.76 82.64 82.28 81.68
AREVAT&D 341.45 337.28 334.76 333.91 333.09 331.41 330.59 329.74 327.22 323.05
ASHOKLEY 80.69 79.45 78.70 78.44 78.20 77.70 77.46 77.20 76.45 75.21
ASIANPAINT 2756.03 2738.67 2728.21 2724.65 2721.23 2714.27 2710.85 2707.29 2696.83 2679.47
AUROPHARMA 1171.33 1158.03 1150.01 1147.29 1144.67 1139.33 1136.71 1133.99 1125.97 1112.67
AXISBANK 1672.40 1644.26 1627.30 1621.53 1615.99 1604.71 1599.17 1593.40 1576.44 1548.30
BAJAJ-AUTO 1608.19 1595.41 1587.70 1585.08 1582.56 1577.44 1574.92 1572.30 1564.59 1551.81
BAJAJHIND 138.74 137.66 137.00 136.78 136.57 136.13 135.92 135.70 135.04 133.96
BALRAMCHIN 97.90 96.86 96.23 96.02 95.81 95.39 95.18 94.97 94.34 93.30
BANKBARODA 991.39 977.56 969.23 966.39 963.67 958.13 955.41 952.57 944.24 930.41
BANKINDIA 581.19 576.43 573.57 572.59 571.65 569.75 568.81 567.83 564.97 560.21
BEL 1944.34 1931.03 1923.02 1920.29 1917.67 1912.33 1909.71 1906.98 1898.97 1885.66
BEML 1176.99 1172.43 1169.69 1168.76 1167.86 1166.04 1165.14 1164.21 1161.47 1156.91
BGRENERGY 818.71 811.45 807.08 805.59 804.16 801.24 799.81 798.32 793.95 786.69
BHARATFORG 406.45 399.65 395.55 394.15 392.81 390.09 388.75 387.35 383.25 376.45
BHARTIARTL 373.84 366.84 362.62 361.18 359.80 357.00 355.62 354.18 349.96 342.96
BHEL 2676.82 2655.58 2642.79 2638.44 2634.26 2625.74 2621.56 2617.21 2604.42 2583.18
BHUSANSTL 538.42 530.84 526.27 524.71 523.22 520.18 518.69 517.13 512.56 504.98
BIOCON 431.87 425.76 422.08 420.83 419.62 417.18 415.97 414.72 411.04 404.93
BOSCHLTD 6319.81 6271.36 6242.18 6232.24 6222.71 6203.29 6193.76 6183.82 6154.64 6106.19
BPCL 772.64 766.45 762.73 761.46 760.24 757.76 756.54 755.27 751.55 745.36
BRFL 265.23 263.13 261.87 261.43 261.02 260.18 259.77 259.33 258.07 255.97
CAIRN 369.15 362.67 358.76 357.43 356.15 353.55 352.27 350.94 347.03 340.55
CANBK 696.63 666.87 648.93 642.83 636.97 625.03 619.17 613.07 595.13 565.37
CENTURYTEX 544.68 540.20 537.50 536.58 535.70 533.90 533.02 532.10 529.40 524.92
CESC 407.44 405.54 404.40 404.01 403.63 402.87 402.49 402.10 400.96 399.06
CHAMBLFERT 92.02 87.84 85.32 84.46 83.64 81.96 81.14 80.28 77.76 73.58
CHENNPETRO 264.65 262.97 261.96 261.62 261.29 260.61 260.28 259.94 258.93 257.25
CIPLA 350.74 347.55 345.62 344.97 344.34 343.06 342.43 341.78 339.85 336.66
COLPAL 911.85 899.22 891.61 889.02 886.53 881.47 878.98 876.39 868.78 856.15
CONCOR 1386.57 1372.25 1363.63 1360.69 1357.87 1352.13 1349.31 1346.37 1337.75 1323.43
COREPROTEC 310.89 305.59 302.39 301.31 300.26 298.14 297.09 296.01 292.81 287.51
CROMPGREAV 340.05 335.90 333.40 332.55 331.73 330.07 329.25 328.40 325.90 321.75
CUMMINSIND 759.50 754.65 751.72 750.73 749.77 747.83 746.87 745.88 742.95 738.10
DABUR 111.08 110.21 109.68 109.50 109.33 108.97 108.80 108.62 108.09 107.22
DCHL 144.56 141.77 140.08 139.51 138.96 137.84 137.29 136.72 135.03 132.24
DENABANK 120.13 119.26 118.73 118.55 118.38 118.02 117.85 117.67 117.14 116.27
DISHTV 57.88 57.26 56.88 56.75 56.63 56.37 56.25 56.12 55.74 55.12
DIVISLAB 749.25 743.72 740.38 739.25 738.16 735.94 734.85 733.72 730.38 724.85
DLF 402.12 397.87 395.31 394.44 393.60 391.90 391.06 390.19 387.63 383.38
DRREDDY 1610.95 1598.73 1591.36 1588.86 1586.45 1581.55 1579.14 1576.64 1569.27 1557.05
EDUCOMP 648.29 642.04 638.27 636.99 635.75 633.25 632.01 630.73 626.96 620.71
EKC 129.96 128.66 127.88 127.62 127.36 126.84 126.58 126.32 125.54 124.24
ESSAROIL 147.57 146.09 145.19 144.89 144.60 144.00 143.71 143.41 142.51 141.03
EXIDEIND 190.46 185.99 183.29 182.38 181.50 179.70 178.82 177.91 175.21 170.74
FEDERALBNK 447.34 440.61 436.56 435.17 433.85 431.15 429.83 428.44 424.39 417.66
FINANTECH 1205.79 1199.90 1196.35 1195.14 1193.98 1191.62 1190.46 1189.25 1185.70 1179.81
FORTIS 181.13 179.39 178.35 177.99 177.65 176.95 176.61 176.25 175.21 173.47
FSL 31.24 30.72 30.41 30.31 30.20 30.00 29.89 29.79 29.48 28.96
GAIL 511.79 507.31 504.60 503.68 502.80 501.00 500.12 499.20 496.49 492.01
GESHIP 335.65 333.72 332.56 332.17 331.79 331.01 330.63 330.24 329.08 327.15
GLAXO 2400.04 2377.35 2363.67 2359.02 2354.55 2345.45 2340.98 2336.33 2322.65 2299.96
GMDCLTD 146.09 144.46 143.48 143.15 142.83 142.17 141.85 141.52 140.54 138.91
GMRINFRA 60.56 60.22 60.01 59.94 59.87 59.73 59.66 59.59 59.38 59.04
GODREJIND 245.99 241.01 238.00 236.98 236.00 234.00 233.02 232.00 228.99 224.01
GRASIM 2452.46 2431.64 2419.09 2414.82 2410.72 2402.38 2398.28 2394.01 2381.46 2360.64
GSPL 120.43 119.56 119.03 118.85 118.68 118.32 118.15 117.97 117.44 116.57
GTL 428.78 427.22 426.29 425.97 425.66 425.04 424.73 424.41 423.48 421.92
GTLINFRA 45.70 45.52 45.41 45.37 45.34 45.26 45.23 45.19 45.08 44.90
GTOFFSHORE 425.47 417.27 412.34 410.66 409.04 405.76 404.14 402.46 397.53 389.33
GVKPIL 48.18 47.64 47.32 47.21 47.11 46.89 46.79 46.68 46.36 45.82
HCC 70.00 69.18 68.69 68.52 68.36 68.04 67.88 67.71 67.22 66.40
HCLTECH 447.67 443.21 440.53 439.62 438.74 436.96 436.08 435.17 432.49 428.03
HDFC 747.14 739.93 735.59 734.11 732.69 729.81 728.39 726.91 722.57 715.36
HDFCBANK 2513.25 2484.02 2466.41 2460.41 2454.66 2442.94 2437.19 2431.19 2413.58 2384.35
HDIL 289.49 285.36 282.88 282.04 281.23 279.57 278.76 277.92 275.44 271.31
HEROHONDA 1862.51 1849.94 1842.37 1839.79 1837.32 1832.28 1829.81 1827.23 1819.66 1807.09
HEXAWARE 88.26 87.19 86.55 86.33 86.11 85.69 85.47 85.25 84.61 83.54
HINDALCO 224.79 222.73 221.49 221.07 220.66 219.84 219.43 219.01 217.77 215.71
HINDPETRO 530.65 526.63 524.22 523.39 522.60 521.00 520.21 519.38 516.97 512.95
HINDUNILVR 306.79 304.35 302.87 302.37 301.89 300.91 300.43 299.93 298.45 296.01
HINDZINC 1290.64 1268.53 1255.22 1250.68 1246.33 1237.47 1233.12 1228.58 1215.27 1193.16
HOTELEELA 60.95 60.16 59.68 59.52 59.36 59.04 58.88 58.72 58.24 57.45
IBREALEST 200.34 197.55 195.88 195.31 194.76 193.64 193.09 192.52 190.85 188.06
ICICIBANK 1174.35 1164.47 1158.51 1156.48 1154.53 1150.57 1148.62 1146.59 1140.63 1130.75
ICSA 137.08 135.57 134.66 134.35 134.05 133.45 133.15 132.84 131.93 130.42
IDBI 164.09 162.35 161.30 160.94 160.60 159.90 159.56 159.20 158.15 156.41
IDEA 73.93 73.28 72.89 72.76 72.63 72.37 72.24 72.11 71.72 71.07
IDFC 215.80 213.69 212.42 211.99 211.57 210.73 210.31 209.88 208.61 206.50
IFCI 76.93 76.24 75.82 75.68 75.54 75.26 75.12 74.98 74.56 73.87
INDHOTEL 106.28 105.47 104.99 104.82 104.66 104.34 104.18 104.01 103.53 102.72
INDIACEM 125.19 123.70 122.80 122.49 122.20 121.60 121.31 121.00 120.10 118.61
INDIAINFO 127.57 126.24 125.45 125.18 124.92 124.38 124.12 123.85 123.06 121.73
INDIANB 317.68 312.68 309.66 308.64 307.65 305.65 304.66 303.64 300.62 295.62
INFOSYSTCH 3143.47 3126.02 3115.51 3111.93 3108.50 3101.50 3098.07 3094.49 3083.98 3066.53
IOB 154.68 153.78 153.24 153.06 152.88 152.52 152.34 152.16 151.62 150.72
IOC 439.09 433.97 430.88 429.83 428.83 426.77 425.77 424.72 421.63 416.51
ISPATIND 23.81 23.56 23.40 23.35 23.30 23.20 23.15 23.10 22.94 22.69
ITC 178.90 177.50 176.65 176.36 176.08 175.52 175.24 174.95 174.10 172.70
IVRCLINFRA 169.07 167.52 166.58 166.27 165.96 165.34 165.03 164.72 163.78 162.23
JINDALSAW 222.28 220.34 219.17 218.77 218.39 217.61 217.23 216.83 215.66 213.72
JINDALSTEL 750.69 746.09 743.32 742.38 741.47 739.63 738.72 737.78 735.01 730.41
JINDALSWHL 2259.97 2215.94 2189.42 2180.39 2171.72 2154.08 2145.41 2136.38 2109.86 2065.83
JISLJALEQS 1208.28 1199.99 1194.99 1193.29 1191.66 1188.34 1186.71 1185.01 1180.01 1171.72
JPASSOCIAT 138.17 136.78 135.94 135.65 135.38 134.82 134.55 134.26 133.42 132.03
JPPOWER 69.23 68.58 68.19 68.06 67.93 67.67 67.54 67.41 67.02 66.37
JSWSTEEL 1449.78 1426.75 1412.87 1408.15 1403.62 1394.38 1389.85 1385.13 1371.25 1348.22
KFA 86.34 85.05 84.28 84.01 83.76 83.24 82.99 82.72 81.95 80.66
KOTAKBANK 543.02 535.03 530.21 528.58 527.00 523.80 522.22 520.59 515.77 507.78
KSOILS 59.76 58.37 57.54 57.25 56.98 56.42 56.15 55.86 55.03 53.64
LICHSGFIN 1469.08 1459.07 1453.03 1450.98 1449.01 1444.99 1443.02 1440.97 1434.93 1424.92
LITL 73.75 72.91 72.40 72.23 72.07 71.73 71.57 71.40 70.89 70.05
LT 2118.13 2100.25 2089.47 2085.81 2082.28 2075.12 2071.59 2067.93 2057.15 2039.27
LUPIN 423.15 421.09 419.84 419.42 419.01 418.19 417.78 417.36 416.11 414.05
M&M 733.21 724.47 719.21 717.42 715.70 712.20 710.48 708.69 703.43 694.69
MARUTI 1566.80 1552.90 1544.52 1541.67 1538.94 1533.36 1530.63 1527.78 1519.40 1505.50
MCDOWELL-N 1635.02 1623.13 1615.96 1613.52 1611.18 1606.42 1604.08 1601.64 1594.47 1582.58
MCLEODRUSS 259.15 256.29 254.57 253.99 253.42 252.28 251.71 251.13 249.41 246.55
MLL 71.25 70.39 69.87 69.69 69.52 69.18 69.01 68.83 68.31 67.45
MOSERBAER 78.43 76.49 75.32 74.92 74.54 73.76 73.38 72.98 71.81 69.87
MPHASIS 695.81 684.10 677.05 674.65 672.35 667.65 665.35 662.95 655.90 644.19
MRPL 84.26 83.78 83.49 83.39 83.30 83.10 83.01 82.91 82.62 82.14
MTNL 68.64 67.92 67.48 67.34 67.19 66.91 66.76 66.62 66.18 65.46
MUNDRAPORT 186.23 185.08 184.39 184.16 183.93 183.47 183.24 183.01 182.32 181.17
NAGARCONST 158.13 156.51 155.53 155.20 154.88 154.22 153.90 153.57 152.59 150.97
NAGARFERT 37.78 36.31 35.43 35.13 34.84 34.26 33.97 33.67 32.79 31.32
NATIONALUM 424.57 422.05 420.52 420.00 419.51 418.49 418.00 417.48 415.95 413.43
NEYVELILIG 176.66 175.14 174.22 173.91 173.61 172.99 172.69 172.38 171.46 169.94
NHPC 34.46 34.14 33.95 33.88 33.81 33.69 33.62 33.55 33.36 33.04
NMDC 298.67 296.64 295.42 295.00 294.61 293.79 293.40 292.98 291.76 289.73
NTPC 222.46 220.25 218.93 218.47 218.04 217.16 216.73 216.27 214.95 212.74
OFSS 2412.11 2379.38 2359.67 2352.95 2346.51 2333.39 2326.95 2320.23 2300.52 2267.79
ONGC 1425.71 1411.33 1402.66 1399.71 1396.88 1391.12 1388.29 1385.34 1376.67 1362.29
ONMOBILE 387.18 383.38 381.09 380.31 379.56 378.04 377.29 376.51 374.22 370.42
OPTOCIRCUI 325.42 321.56 319.23 318.44 317.67 316.13 315.36 314.57 312.24 308.38
ORBITCORP 133.74 132.68 132.04 131.82 131.61 131.19 130.98 130.76 130.12 129.06
ORCHIDCHEM 299.76 295.74 293.32 292.50 291.71 290.09 289.30 288.48 286.06 282.04
ORIENTBANK 507.21 502.58 499.79 498.84 497.93 496.07 495.16 494.21 491.42 486.79
PANTALOONR 525.25 520.62 517.84 516.89 515.98 514.12 513.21 512.26 509.48 504.85
PATELENG 415.84 411.29 408.54 407.61 406.71 404.89 403.99 403.06 400.31 395.76
PATNI 477.04 469.13 464.36 462.74 461.19 458.01 456.46 454.84 450.07 442.16
PETRONET 117.13 116.30 115.80 115.63 115.47 115.13 114.97 114.80 114.30 113.47
PFC 405.20 396.56 391.35 389.58 387.88 384.42 382.72 380.95 375.74 367.10
PIRHEALTH 533.84 529.88 527.49 526.68 525.89 524.31 523.52 522.71 520.32 516.36
PNB 1353.04 1344.81 1339.86 1338.17 1336.55 1333.25 1331.63 1329.94 1324.99 1316.76
POLARIS 182.00 180.09 178.95 178.56 178.18 177.42 177.04 176.65 175.51 173.60
POWERGRID 114.29 113.36 112.81 112.62 112.44 112.06 111.88 111.69 111.14 110.21
PRAJIND 88.52 85.75 84.07 83.50 82.96 81.84 81.30 80.73 79.05 76.28
PTC 129.83 128.41 127.55 127.26 126.98 126.42 126.14 125.85 124.99 123.57
PUNJLLOYD 141.40 139.68 138.64 138.29 137.95 137.25 136.91 136.56 135.52 133.80
RANBAXY 623.45 615.85 611.28 609.72 608.22 605.18 603.68 602.12 597.55 589.95
RCOM 194.20 190.75 188.68 187.97 187.29 185.91 185.23 184.52 182.45 179.00
RECLTD 430.98 421.19 415.30 413.29 411.36 407.44 405.51 403.50 397.61 387.82
RELCAPITAL 877.88 872.95 869.97 868.96 867.99 866.01 865.04 864.03 861.05 856.12
RELIANCE 1089.88 1083.52 1079.68 1078.38 1077.13 1074.57 1073.32 1072.02 1068.18 1061.82
RELINFRA 1140.70 1127.45 1119.48 1116.76 1114.15 1108.85 1106.24 1103.52 1095.55 1082.30
RELMEDIA 327.96 314.82 306.91 304.22 301.63 296.37 293.78 291.09 283.18 270.04
RENUKA 89.06 88.03 87.42 87.21 87.01 86.59 86.39 86.18 85.57 84.54
RNRL 42.16 41.84 41.64 41.58 41.51 41.39 41.32 41.26 41.06 40.74
ROLTA 176.25 174.87 174.03 173.75 173.48 172.92 172.65 172.37 171.53 170.15
RPOWER 171.41 169.98 169.11 168.82 168.54 167.96 167.68 167.39 166.52 165.09
RUCHISOYA 144.36 142.20 140.90 140.46 140.03 139.17 138.74 138.30 137.00 134.84
SAIL 237.52 234.22 232.24 231.56 230.91 229.59 228.94 228.26 226.28 222.98
SBIN 3291.72 3279.60 3272.30 3269.81 3267.43 3262.57 3260.19 3257.70 3250.40 3238.28
SCI 193.40 191.40 190.20 189.79 189.40 188.60 188.21 187.80 186.60 184.60
SESAGOA 368.35 364.99 362.97 362.28 361.62 360.28 359.62 358.93 356.91 353.55
SIEMENS 842.31 838.02 835.43 834.55 833.71 831.99 831.15 830.27 827.68 823.39
SINTEX 451.03 445.48 442.14 441.00 439.91 437.69 436.60 435.46 432.12 426.57
SOBHA 393.59 388.74 385.82 384.83 383.87 381.93 380.97 379.98 377.06 372.21
SRTRANSFIN 821.65 813.94 809.30 807.71 806.20 803.10 801.59 800.00 795.36 787.65
STER 187.30 184.55 182.90 182.34 181.80 180.70 180.16 179.60 177.95 175.20
STERLINBIO 121.22 120.51 120.08 119.93 119.79 119.51 119.37 119.22 118.79 118.08
SUNPHARMA 2149.46 2132.42 2122.16 2118.67 2115.31 2108.49 2105.13 2101.64 2091.38 2074.34
SUNTV 547.01 542.79 540.24 539.38 538.55 536.85 536.02 535.16 532.61 528.39
SUZLON 60.98 60.33 59.94 59.81 59.68 59.42 59.29 59.16 58.77 58.12
SYNDIBANK 133.82 133.00 132.50 132.33 132.17 131.83 131.67 131.50 131.00 130.18
TATACHEM 440.11 434.03 430.36 429.12 427.92 425.48 424.28 423.04 419.37 413.29
TATACOMM 347.01 343.65 341.62 340.93 340.27 338.93 338.27 337.58 335.55 332.19
TATAGLOBAL 139.15 137.95 137.22 136.98 136.74 136.26 136.02 135.78 135.05 133.85
TATAMOTORS 1197.01 1177.73 1166.11 1162.16 1158.36 1150.64 1146.84 1142.89 1131.27 1111.99
TATAPOWER 1470.15 1457.84 1450.42 1447.89 1445.47 1440.53 1438.11 1435.58 1428.16 1415.85
TATASTEEL 659.92 654.47 651.18 650.07 648.99 646.81 645.73 644.62 641.33 635.88
TCS 983.10 972.10 965.48 963.22 961.05 956.65 954.48 952.22 945.60 934.60
TECHM 788.21 783.97 781.41 780.54 779.70 778.00 777.16 776.29 773.73 769.49
TITAN 3463.57 3443.36 3431.18 3427.03 3423.05 3414.95 3410.97 3406.82 3394.64 3374.43
TRIVENI 129.89 128.31 127.35 127.03 126.72 126.08 125.77 125.45 124.49 122.91
TTML 24.52 24.24 24.07 24.01 23.96 23.84 23.79 23.73 23.56 23.28
TULIP 193.60 190.13 188.04 187.33 186.65 185.25 184.57 183.86 181.77 178.30
TV-18 94.47 93.85 93.47 93.35 93.22 92.98 92.85 92.73 92.35 91.73
UCOBANK 127.28 126.43 125.91 125.74 125.57 125.23 125.06 124.89 124.37 123.52
ULTRACEMCO 1131.37 1122.13 1116.56 1114.67 1112.85 1109.15 1107.33 1105.44 1099.87 1090.63
UNIONBANK 404.37 400.62 398.36 397.59 396.85 395.35 394.61 393.84 391.58 387.83
UNIPHOS 191.80 189.83 188.64 188.23 187.85 187.05 186.67 186.26 185.07 183.10
UNITECH 98.64 97.76 97.23 97.05 96.88 96.52 96.35 96.17 95.64 94.76
VIDEOIND 293.35 289.88 287.79 287.08 286.40 285.00 284.32 283.61 281.52 278.05
VIJAYABANK 99.05 97.28 96.22 95.85 95.50 94.80 94.45 94.08 93.02 91.25
VOLTAS 250.57 248.61 247.43 247.03 246.64 245.86 245.47 245.07 243.89 241.93
WELCORP 279.77 276.61 274.71 274.06 273.43 272.17 271.54 270.89 268.99 265.83
WIPRO 477.02 473.65 471.63 470.94 470.27 468.93 468.26 467.57 465.55 462.18
YESBANK 367.46 364.03 361.96 361.26 360.59 359.21 358.54 357.84 355.77 352.34
ZEEL 304.58 301.77 300.09 299.51 298.96 297.84 297.29 296.71 295.03 292.22

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Bollinger Bands

Bollinger Bands is a versatile tool combining moving averages and standard deviations and is one of the most popular technical analysis tools available for traders. There are three components to the Bollinger Band indicator:

  1. Moving Average: By default, a 20-period simple moving average is used.
  2. Upper Band: The upper band is usually 2 standard deviations (calculated from 20-periods of closing data) above the moving average.
  3. Lower Band: The lower band is usually 2 standard deviations below the moving average.

Bollinger Bands (in blue) are shown below in the chart of the E-mini S&P 500 Futures contract:

There are three main methodologies for using Bollinger Bands, discussed in the following sections:

  1. Playing the Bands
  2. Bollinger Band Breakouts
  3. Option Volatility Strategies

Playing the Bollinger Bands

Playing the bands is based on the premise that the vast majority of all closing prices should be between the Bollinger Bands. That stated, then a stock’s price going outside the Bollinger Bands, which occurs very rarely, should not last and should “revert back to the mean”, which generally means the 20-period simple moving average. A version of this strategy is discussed in the book Trade Like a Hedge Fund by James Altucher.

Buy Signal

In the example shown in the chart below of the E-mini S&P 500 Future, a trader buys or buys to cover when the price has fallen below the lower Bollinger Band.

Sell Signal

The sell or buy to cover exit is initiated when the stock, future, or currency price pierces outside the upper Bollinger Band.

These buy and sell signals are graphically represented in the chart of the E-mini S&P 500 Futures contract shown below:

More Conservative Playing the Bands

Rather than buying or selling exactly when the price hits the Bollinger Band, the more aggressive approach, a trader could wait and see if the price moves above or below the Bollinger Band and when the price closes back inside the Bollinger Band, then the trigger to buy or sell short occurs. This helps to reduce losses when prices breakout of the Bollinger Bands for a while. However, many profitable opportunities would be lost. To illustrate, the chart of the E-mini S&P 500 Future above shows many missed opportunities. However, in the chart on the next page, the more conservative approach would have prevented many painful losses.

Also, some traders exit their long or short entries when price touches the 20-day moving average. This was the methodology used for going long in the book Trade Like a Hedge Fund.

A different, and quite polar opposite way to use Bollinger Bands is described on the next page, Playing Bollinger Band Breakouts.

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