Charts - 3 of n

The above chart of Nifty on 25 and 26 has the same formation as Charts 1 of n. The index should fall after this. A good strategy would have been to purchase on bottoms on 26th after seeing the cup formation on 25 Sep.

Charts - 2 of n

On Sep 18, the index was flat till 14.30. This was followed by a bullish end of day rally. This indicated a buy signal. On Sep 19, on back of good news which was unknown a day before, we see a gap up. The first 5 minutes form the range for the next 3 hours. This was followed by a bullish rally for the rest of the day. As the news lead to overbought levels, there is seen some cooling down in the last hour to 6100 levels.

Charts - 1 of n

The above chart has a cup formation on 17 and a handle formed on 18, followed by the stock moving upwards. The handle on 18 also consists of a smaller and flatter cup and a handle. The consolidation from 10.30 to 11.30 on the 18th is a buy signal.

Tutorial on Cup & handle:
http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns:cup_with_handle_cont

Learnings from trading

1. Do not hold position longer than a day. 
2. Make a prediction. If the prediction holds then put on a position. If the prediction doesn’t hold then, then do not take any position. 
3. Trade as small as possible. Trade often. 
4. As the position is held for a day only, any profit even marginal is good enough to be booked. 
5. Good time to trade is 9:30 to 11:00 am. 
6. If the stock has moved up one day by a large amount(3.00% or more), then it would move up the next day buy a large amount too. 
7. There is a higher chance the trend continues or slows down rather than a reversal.