If you do not buy my book earlier then I give you a short summery of this formula
1. This formula is not given here for day trading it is useful for 7-30 days delivery base trading and future and option positions.
2. If last close- last open = negative figure and last close-today open is also a negative figure than you may make short positions because the stock is bearish.
3. If last close- last open = positive figure and last close-today open is also a positive figure than you may make long positions because the stock is bullish.
One of my book buyer not understand this formula and mail me that I give some explanation about this formula.
Ok we take price of First source solution at 07.08.13 where last close-last open is 12.18-12.15=0.03 (positive) and 07.08.13 close -08.08.13 open is 12.31-12.28=0.03 (positive) that means stock is strong bullish in coming 7-30 days and you find that after 7 day at 19.08.13 price of firstsource is 12.77 and after 27 day price is 14.13 .
My reader again ask that how we assume 7-30 days move in basis of single day close open ? OK, I am never claim that this formula is 100 % sure trading formula. This formula use 2 continuous day open close and give us a significant success rate (more than 50 % cases.)
Hello Sir,
ReplyDeleteHow Lanco Infra will look like for next 5 to 10 yars on SIP basis ?
Not so good due to year high/ low is above 2 so i think stock is not stable for buying and promoters dilute their holding and downtrend in net revenue. I suggest infra bees for long term.
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