support and resistance

[margin_gamble]

Being able to PROVE an equation is not the same thing as coming up with an answer to an equation.

I also have a mathematical equation that cannot be proven, regarding base math. As opposed to your trigonometry question. You are not all that, dude.

Its real but is a joke, clown. Relax

 

[Overnight]

Its real but is a joke, clown. Relax

A real joke. OIC.

 

[margin_gamble]

A real joke. OIC.

His question here is currently being attempted to be solved by IIT Bombay - the same gang who tried calculating the corona virus wavelengths. Mixed results thus far

 

[easymon1]

Hey, more power to you.
Why not kick it around with somebody who works that beat?
Invesco has some experience with it, maybe you and their guy can do lunch.
They have presence all over the place.

bro I trade lot of stuff like stocks, indices F&O and currencies. i have read a lot about central banks controlling the directions of currency like JP Morgan who basically make the market in currencies so I generally avoid large positions in currencies. but the main thing I am concerned about is indices. You can justify TA in stocks but in indices it puzzles me. Basically I trade indian indices nifty and banknifty and tried to understand S&R in them. I observe that whenever nifty50 is near to a major support in 5 min TF, a major weightage stock is also near its support or a number of less weightage stocks are near their support. Howz that possible? its only possible only when indices and stocks are systematically managed by some institutional or exchange algos. or maybe institutions defend the level by some algos so as make people go in a particular direction they want them to go. or may be due to market makers hedging index f&o with etf and hence arbs make the constituents to change. Its very puzzling. I know general people don't bother about these, but these questions puzzle me a lot. All these concepts can enhance our interpretation of markets and better allow us to anticipate future moves

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[easymon1]

I observe that whenever nifty50 is near to a major support in 5 min TF, a major weightage stock is also near its support or a number of less weightage stocks are near their support.

Draw a chart of the two products you speak of. One pair where it works as you say and one pair of the same two products where it doesn't work on 5minute charts.
Some stats guru analysis would be a hella better but for a quick and dirty example of what you are talking about, it would be fun to look at.
Here is a daily pair from SP500 and a 5m pair.
ABMD not a major component, it rhymes but nothing special.
Your's prob looks much more correlated.
Post em up!

 

[easymon1]

All these concepts can enhance our interpretation of markets and better allow us to anticipate future moves

In case there's not a stats guru handy, here's a pair of 5minute charts with pivots and moving averages.

 

[Aisone]

i didn't get you exactly. for example I observe that when an index comes to support then at the same time constituent stock or number of constituent stocks also reach at support and then the support is defended in the index. this stuff blows my mind. also sectoral indexes support and resistance are also respected. how is this possible?

Wouldn't that be pretty standard arbitrage (and manipulation), syncing of price movement over time. It's everywhere. Some track more than others at certain times and are going to rotate in and out of tight or less tight tracking, but seems pretty common play between both.

 

[Aisone]

bro I trade lot of stuff like stocks, indices F&O and currencies. i have read a lot about central banks controlling the directions of currency like JP Morgan who basically make the market in currencies so I generally avoid large positions in currencies. but the main thing I am concerned about is indices. You can justify TA in stocks but in indices it puzzles me. Basically I trade indian indices nifty and banknifty and tried to understand S&R in them. I observe that whenever nifty50 is near to a major support in 5 min TF, a major weightage stock is also near its support or a number of less weightage stocks are near their support. Howz that possible? its only possible only when indices and stocks are systematically managed by some institutional or exchange algos. or maybe institutions defend the level by some algos so as make people go in a particular direction they want them to go. or may be due to market makers hedging index f&o with etf and hence arbs make the constituents to change. Its very puzzling. I know general people don't bother about these, but these questions puzzle me a lot. All these concepts can enhance our interpretation of markets and better allow us to anticipate future moves

Can you upload some data so one could take a look at how it trades and compare with indexes here? If I could see a year or two of 1-minute data that would suffice for short and long term analysis, and I might be able to tell if certain footprints in how the indexes trade here compare with the footprints of the indexes there.

 

[Girija]

why should i think that they trade independently? the indices value like nifty50 comes from its constituent 50 stocks. so how are resistance and support working on the index?

Everything eventually moves (price changes) from adequate supply and demand. Since index constituents move the index itself your observation may be true on a summarized time-frame at times but it can't be generalized. When index is going up, the leading stock in the index can really be going down on a specific news.
It is not right to assume support on a index equates to support on underlyings.

 

[SunTrader]

Everything eventually moves (price changes) from adequate supply and demand. Since index constituents move the index itself your observation may be true on a summarized time-frame at times but it can't be generalized. When index is going up, the leading stock in the index can really be going down on a specific news.
It is not right to assume support on a index equates to support on underlyings.

Agree an individual stock or two (leading or not) can be counter to index but not the vast majority.