Posted by: Babu Suresh | February 13, 2012

HMA-Bollinger Bands Trading System-2

The session of today, the 13th instant, was perhaps one of the best I had seen in the recent past. I am presenting the activities of 2 instruments – JSW Steel, and SBIN and how the HMA-Bollinger Bands combination along with our other indicators help us identify not only entry points but also anticipate the price action and the mood swings of the market participants.

First the SBIN – Pit bull 1:  Today being the big day for SBIN – release of 3rd quarter results, the mood of the market was full of anxiety and expectations while the long bulls and short bulls trying to show their might. I had mentioned below my messages to my friend regarding my analysis on SBIN. The main purpose and objective of displaying these messages is to help us understand the system, the market, the timings and to enhance our trading. Frankly, I don’t give any trading calls to anyone here nor do I take any trading calls from others. In 2007 I burnt my fingers heavily first for taking just one call, that too from one of the renowned traders and second in the same year and the year followed,  ended up having my pants down by the people who made enormous money especially during the tough periods of the market, by my calls at a crucial time of my life.

Ravi T (13/02/2012 8:46:31 AM): good mrng
S Babu (13/02/2012 9:00:27 AM): very goodmorn. ravi.
Ravi T (13/02/2012 9:46:44 AM): SBI-cash-S1-2060, S2-2004; R1-2138, 2173
Ravi T (13/02/2012 1:22:50 PM): SBIN-CASH- has chances to test 2065, if it breaks 2140 firmly.
Ravi T (13/02/2012 1:24:41 PM): CORRECTION: sorry, once sbi breaks 2140 firmly, it has chances to test 2160

SBIN –  Pit Bull 1:

SBIN_130212

The highlighted part of the chart clearly demonstrates not only to me, but to you as well, even if you are not familiar with very basic functionalities of the indicators present and just understand how to read and co-relate them, why there was a clear buy signal at that hour.

Next, JSWSTEEL – Pit Bull 2:

JSW Steel1_130212

Yet another stock whose 3rd quarter results were released last Friday. There were two clear entries, one short in the first hour and one long, which is highlighted in the chart. There are various aspects in this system that one would notice, if one were to monitor for few sessions closely to understand the nuances of the system. I don’t wish to go on writing everything so far I know about this system just because I have time to write, without being asked. The core idea behind sharing the system, the principle that I learned from the Americans traders, is to let others learn, use and benefit as well as to further enhance our understanding by exchanging views and ideas.

Nifty index also gave 2 clear entries, one short and one long.

Rest in my next post.

Healthy And Wealthy Trading

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