BSE to auction investment limits for Rs 4,046-crore govt bonds

Leading stock exchange BSE will auction on Monday investment limits for overseas investors for the purchase of government debt securities worth Rs 4,046 crore.

The auction will be conducted on BSE’s e—bidxchange platform from 1530 hrs to 1730 hrs, after the close of market hours.

The debt auction quota gives overseas investors the right to invest in the debt, up to the limit purchased.

“Live bidding session for allocation of debt investment limits for FII/FPI/sub accounts shall be conducted on Monday, June 6, 2016, on exchange’s ‘ebidxchange’ platform,” BSE said in a circular.

A mock bidding session was conducted on Friday in this regard.

Last month, the government debt securities witnessed lukewarm response in an online auction after months of over-subscription. It had attracted bids worth Rs 2,957 crore from foreign investors as against securities to the tune of Rs 3,340 crore put on offer.

To boost inflows of foreign funds, the limit for overseas investors in central government was hiked to Rs 1.4 lakh crore from April 4, and it will be further increase to Rs 1.44 lakh crore from July 5. Earlier, the limit was Rs 1,35,400 crore.

How To Trade Divergences

How To Trade Divergences

Now it’s time to put those Jedi divergence mind tricks to work and force the markets to give you some pips!

Here we’ll show you some examples of when there was divergence between price and oscillator movements.

First up, let’s take a look at regular divergence. Below is a daily chart of USD/CHF.

We can see from the falling trend line that USD/CHF has been in a downtrend. However, there are signs that the downtrend will be coming to an end.

While price has registered lower lows, the stochastic (our indicator of choice) is showing a higher low.

Something smells fishy here. Is the reversal coming to an end? Is it time to buy this sucker?

If you had answered yes to that last question, then you would have found yourself in the middle of the Caribbean, soaking up margaritas, as you would have been knee deep in your pip winnings!

It turns out that the divergence between the stochastic and price action was a good signal to buy. Price broke through the falling trend line and formed a new uptrend. If you had bought near the bottom, you could have made more than a thousand pips, as the pair continued to shoot even higher in the following months.

Now can you see why it rocks to get in on the trend early?!

Before we move on, did you notice the tweezer bottoms that formed on the second low?

Keep an eye out for other clues that a reversal is in place. This will give you more confirmation that a trend is coming to an end, giving you even more reason to believe in the power of divergences!

Next, let’s take a look at an example of some hidden divergence. Once again, let’s hop on to the daily chart of USD/CHF.

Here we see that the pair has been in a downtrend. Notice how price has formed a lower high but the stochastic is printing higher highs.

According to our notes, this is hidden bearish divergence! Hmmm, what should we do? Time to get back in the trend?

Well, if you ain’t sure, you can sit back and watch on the sidelines first.

If you decided to sit that one out, you might be as bald as Professor Xavier because you pulled out all your hair.

Why?

Well the trend continued!

Price bounced from the trend line and eventually dropped almost 2,000 pips!

Imagine if you had spotted the divergence and seen that as a potential signal for a continuation of the trend?

Not only would you be sipping those margaritas in the Caribbean, you’d have your own pimpin’ yacht to boot!

Intraday Sell Amaraja Bat

SELL Amaraja bat CMP Stoploss 843 Target 830

Building a Trading Plan

Building a Trading Plan

The key to becoming a successful forex trader is developing a sound forex trading plan and using it on a daily basis. One must remember that a trading strategy that may be working well for one person might not do the same for you. This is because everybody has a different style of thinking, risk tolerance levels and market experience. It is always better to develop one’s own personalized trading plan and modify it as your experience grows.

So, a trading plan should define a few things;

what trading strategies you are usingwhat pairs/instruments you are tradingwhat are your risk tolerance levels

The first thing it should mention is what strategies you are using. So if you are trading pin bars or engulfing bars off key support and resistance levels, then it should state this in your plan. If you find yourself trading something else like inside bars, then you know you are deviating from your plan.

The next thing it should state is what instruments you are trading. For example, you may be only focusing on the EUR/USD, or perhaps the EUR/USD and GBP/USD. Make sure to state this in your plan.

Lastly, you want to have your risk tolerance levels clearly stated. This is not just % risk per trade, but also per session and per month. This way if you ever go over these parameters, you stop trading for the month and take a break as something is clearly not working.

But the key is to have these clearly defined ahead of time.

Make sure that you maintain a trading journal which has logs of all your trades. This is important because it allows you to analyze your trades and the success of the plan adopted by you. It should include the entry date, entry price, exit price, stop, limit, total profit/loss, and final notes which are your personal notes on each trade.I also suggest taking screenshots of every single trade you take, and color coding them based on it being a win or a loss. Then at the end of the trading week, reviewing your trades to see how you did, what mistakes you made, and what you can improve/focus on for next week.The plan can have a checklist of what you are looking for in the market before you decide to enter a trade. A list of such prerequisites helps to keep you trading with discipline and avoid any careless moves.

The creation of a trading plan is highly useful as it reduces the possibility of bad or irrational decisions based on emotions. The outlining of a plan for every potential market action will help you minimize such decisions and thus your losses. The key to disciplined and objective forex trading is to establish a trading plan and stick to it.

SBIN Sell Setup

Here I got  3 Confluence to sell Sbin below  196:-

 1) Main TrendLine Rejection
 2)Head& Shoulder on H1 TF
 3)Right Shoulder gives confirmation of Head and Shoulder setup

Know the 3 Main Groups of Chart Patterns

That’s a whole lot of chart patterns we just taught you right there. We’re pretty tired so it’s time for us to take off and leave it to you from here…

Just playin’! We ain’t leaving you till you’re ready!

In this section, we’ll discuss a bit more how to use these chart patterns to your advantage.

It’s not enough to just know how the tools work, we’ve got to learn how to use them. And with all these new weapons in your arsenal, we’d better get those profits fired up!

Let’s summarize the chart patterns we just learned and categorize them according to the signals they give.

Reversal Chart Patterns

Reversal patterns are those chart formations that signal that the ongoing trend is about to change course.

If a reversal chart pattern forms during an uptrend, it hints that the trend will reverse and that the price will head down soon. Conversely, if a reversal chart pattern is seen during a downtrend, it suggests that the price will move up later on.

In this lesson, we covered six chart patterns that give reversal signals. Can you name all six of them?

1. Double Top
2. Double Bottom
3. Head and Shoulders
4. Inverse Head and Shoulders
5. Rising Wedge
6. Falling Wedge

If you got all six right, brownie points for you!

To trade these chart patterns, simply place an order beyond the neckline and in the direction of the new trend. Then go for a target that’s almost the same as the height of the formation.

For instance, if you see a double bottom, place a long order at the top of the formation’s neckline and go for a target that’s just as high as the distance from the bottoms to the neckline.

In the interest of proper risk management, don’t forget to place your stops! A reasonable stop loss can be set around the middle of the chart formation.

For example, you can measure the distance of the double bottoms from the neckline, divide that by two, and use that as the size of your stop.

Continuation Chart Patterns

Continuation chart patterns are those chart formations that signal that the ongoing trend will resume.

Usually, these are also known as consolidation patterns because they show how buyers or sellers take a quick break before moving further in the same direction as the prior trend.

We’ve covered several continuation chart patterns, namely the wedges, rectangles, and pennants. Note that wedges can be considered either reversal or continuation patterns depending on the trend on which they form.

To trade these patterns, simply place an order above or below the formation (following the direction of the ongoing trend, of course). Then go for a target that’s at least the size of the chart pattern for wedges and rectangles.

For pennants, you can aim higher and target the height of the pennant’s mast.

For continuation patterns, stops are usually placed above or below the actual chart formation.

For example, when trading a bearish rectangle, place your stop a few pips above the top or resistance of the rectangle.

Bilateral Chart Patterns

Bilateral chart patterns are a bit more tricky because these signal that the price can move either way.

Huh, what kind of a signal is that?!

This is where triangle formations fall in. Remember when we discussed that the price could break either to the topside or downside with triangles?

To play these chart patterns, you should consider both scenarios (upside or downside breakout) and place one order on top of the formation and another at the bottom of the formation.

If one order gets triggered, you can cancel the other one. Either way, you’d be part of the action.

Double the possibilities, double the fun!

The only problem is that you could catch a false break if you set your entry orders too close to the top or bottom of the formation