Yearly Archives: 2015

Elliott wave and Gann analysis: Cairn India reversal

Mixing the Gann and Elliott Wave analysis could be truly rewarding. Here is an example, just posted on my facebook page-


Cairn India

As Elliott Waves Cairn has completed 5th of the 5th on the downside. While , I posted about the reversal today around 11pm it was 4th wave where the stock was trading 129. Wave 1 and Wave 3 were clear impulse and hence 5th was coming. However, this 5th was to be on the small degree and after it the 3rd wave of a larger degree has to be followed. Since target mentioned could take more than a months time so the better strategy seemed to go long in cash. Also, wave 2 which will unfold in near future. The stop has been placed below the recent low of 121. Cairn India went to 134 after I posted my analysis.


CAIRN - Alternate 1 - Dec-21 1606 PM (6 hour)

CAIRN - Alternate 1 - Dec-21 1608 PM (1 hour)

Psycological Fixed Deposit and Gann’s Rule

Psychological Fixed Deposit. What is it? How to do it? and how it relates to one of Gann’s Rules.


There is a big number of traders who are swinging between successful and unsuccessful traders. Not that these traders don’t have the less knowledge. They have great knowledge and with the help of that knowledge they are able to earn good amount of money in Trading ,however with few loosing trades they sometimes loose their track. They sometimes don’t withdraw their profits from the market and instead they increase their position size. Even one loosing trade wipes out most of their previous profits and then face the dent in their confidence. They forget that they have won in the past and they start thinking that their is some flaw in the technical analysis and their methods. While, its just that is was a just a temporary bad time in which other big traders could have also lost the money.

“Money” here is where the issue comes. I am not talking about traditional money management that is required to manage the trading account. But I am trying to give a respective to handle the money from your  trading account to the bank account. How you can you make the money fixed for each month in advance for many years, such that it gets matured each month and could serve as your Backup Capital.

One of the Gann’s rules was that when ever he had a big win in trading he divided into 10 equal parts. Now each trade he made was 1/10th of the big profit he had earned. Now by referring to this he also mentions that even if there are consecutive losses he will not loose out all his profits at one go, but in 10 different trades. After this he mentions, when he analysis his losses he is unable to find any time when he lost money 10 trades in a row. What Gann actually demonstrated was that how he made it impossible for his profits to run out and how at smaller levels managed it.

When u earn some big money in market or even if you do a normal withdrawal of your money from trading account make it fixed deposit. The maturity could be different months. So if you made 1,00,000. Divide it into 10 or 20 parts. Minimum amount for FD is 5,000. What this will do each month when a FD gets matured it will trigger n make u remember about your past trade n make u feel great about it. It will also make you remember about the strategy followed at that time.

You can again reinvest the FD once it get matured. Also you will obviously have multiple wins during the month, so suppose a big amount win is dated 3 Dec then all the FD maturing on 3rd will make u remember this trade. Another FD maturing on 10th n like this u will be able to surround yourself in a winning Psychology.

All of the ideas mentioned above require a lot of thinking in a silent and quiet place. Do spend some time in it.

Also Read:

Find your trading edge in the market to improve your trading results

EW & Gann Analysis: SBI could test 228 and then may be 220

As per Gann and Elliott Wave Analysis on SBI , it may first reach 228, first , based on AB= CD pattern. lower it can reach 220. 221 is also the previous swing low of sept fall. Lets see, what happens.

Also, in the smaller AB=CD, if the pattern is actually AB= Wave 1 or A, BC=Wave2 or B, then we may see a Impulsive 3 or C, in the form of CD.

The AB if you see has fallen in 5 waves , which on larger scale is wave 1 or A, and the upside of bigger BC= Wave 2 or B , then bigger C or 3 Could also unfold which could take it to below 200 levels. But I am not considering this case unless there is a close below 220 levels.

There is also a bigger AB = CD , that can take it below 200. However, right now expecting it to hold the 220 levels.

As per Gann Analysis, SBI will also be in downtrend till mid December. Also, the fall might have got triggered coz of Sun Saturn conjunction. Last time Sun Saturn Square in August brought the fall in the market.

SBIN - Alternate 2 - Dec-03 2128 PM (1 day)

Also Read :

EW & Gann Analysis: Reliance Power about to complete its 5th of 5th of 5th and merged with Gann Cycles

EW & Gann Analysis: Reliance Power about to complete its 5th of 5th of 5th and merged with Gann Cycles 1

As per Elliott Wave Reliance Power is about to complete or may have already completed its final phase of the impulse and as Per Gann the down Cycle unfold and stock may be ready to join the fall with the all others.

Price structure at the top looks shows Ending Diagonal Pattern unfolding with the Resistance already existing. I have merged the EW with the Gann Cycle. The Gann Cycle of the Reliance Power may do the rest at present 47 and 45 levels look probable targets. @ 38% and 50% retracements. they will shift a bit depending on if the swing top is marked a bit higher.

RPOWER - Alternate 1 - Dec-03 1609 PM (6 hour)


But I will tell you how could have Gann traded in the same move without using any Elliott waves. Gann had his own device known as “Mechanical Trend Indicator”. How he used it was he used to record the average of all the ups and average of all the downs. And as you know in Elliott waves the Pattern Ends with the Ending Diagonals, where the the moves become smaller. These smaller moves could have given Gann an idea that there is change in the sentiments. and obviously he had his price calculators such as square of 9 and planet lines which gave the targets without using any fibonacci ratios , while he was actully using retracements like 33% and 50%, 75% etc. And obviously he knew which cycle in the stock is functional, so he got the idea of the direction. And above all his money management and trading rules were at first place to save him from any adverse trade.


Before the tops in Jan Expect some lows in Nifty and Bank Nifty.

I updated the post of 8500 , two days back based on Gann, EW, Gartely etc. Here is the link –

However while evaluating the study I found that there should a correction which  will mark some lows in Nifty and bank nifty in Dec Mid. Tentatively from 17-19 Dec. ALso, 5th Dec is a Gann date so, that might be the trigger for the start of correction.


Now sharing any Chart.

EW & Gann Analysis: Is Nifty moving towards the 8500? 2

Going by EW Analysis Nifty refused to break below 7500 and now the upside could be termed as a C wave or 3rd Wave. While, Pitchfork’s Mid line is placed near 8500. Gartley Pattern also gives the range o 8414- 8504. Above all Gann uncle also have the similar views and Time wise the top should be expected 30 Dec to First half of January 2016.

NIFTY - Alternate 1 - Dec-01 2121 PM (1 day)

If the top is delayed and is made in January mid to second half then we could also see the levels of 8700.  8700 levels also lies a Gann planetary line. If I shift the Gartley pattern to the lower top then it also gives 8700 levels. But If 8700 comes then I want you to send me a smiley on my mail

Strategy and Money Management for Increased Lot Size in NSE


The lot sizes have been revised and the small traders who were able to earn by shorting the market will face lack of capital, while bigger players will not get affected by the lot size increase. Now small traders are left with two options-

1. Intraday- Either they will to do intraday in stocks and close positions each day.

2. Positional- For Positional trade they are again left two options.

A. They will only be able to go long or take buy only and not take positional shorts. They will only have one direction to trade, which only Buying. What could be the consequences when Market is going down?

B. They will try to trade the Options , where again the chances of loss have increased coz higher lot size has decreased the liquidity.The Lot size of 8000 in a stock while its options buyer standing @ Rs0.60 and Seller @Rs 0.90 brings in the spread of 30 Paisa and 30 Paisa for 8000 lot size is Rs2,400.


Trading could still be done but you need to keep few things in mind which may help you.


1. Choose Liquid options, these could be of the stocks like INFY, SBI, Reliance Ind, TCS, or other Large Cap Companies and Nifty and Bank Nifty Options.

2. Choose the Stocks, Indexes that have lower trading margin, obviously there should be some reversal because of which you trade. otherwise lower margin of no use.

3. Lower margin stocks will also help you some times to average.

4. You can also move towards Currency Trading if you are a Technical and Chart trader. (Currency could be Traded in the same NSE trading account). You can also move towards Commodity Futures and even Mini Commodity Futures which require margins less than 10,000.


Why you should avoid Tea and Coffee during trading hours

Never take Tea/ Coffee while your trading or before trading. Yes you are right no tea no coffee in trading hours. why?

Every thing I am telling you has a scientific reason. Taking these beverages increases your heart beat rate. Your increased heart beat rate requires more oxygen to burn for its increased rate, as a reason the oxygen which was supposed to go towards your brain (mainly frontal lobe, used for decision making) ,gets disrupted.

This low oxygen supply to brain results in the state of doubtfulness and indecisive state of mind and hence results in entering in wrong trade or not able to think properly, while you are in the trade.

Hope you are able to able to link it some of your past experiences. Our Broker Friends don’t know this and they serve clients with 2 or 3 times tea or coffee while trading hours. You can replace tea with some other healthy thing like nuts, peanuts, Jamun, or other small time pass healthy fruits that don’t affect the trading decisions adversely