ATMASphere_July_2014

Rajat Dutta is a system designer and a fundmanager for Moneyrizing Wealth ManagementCompany. He is a trader since 2000. Hisspeciality is trading micro trends with a focuson analyzing and trading Stocks, Option andcommodities. He can be reached atrajat@moneyrizing.comOne thing that one should keep in mind is that these are intraday patternsbut the accuracy and targets are dependent on the longer term trend, Inthe first chart we see that bank nifty consolidated in a cup formation andthen gave a buy call above previous day’s high, the target for that movewas achieved but the next signal which was a sell signal, gave a sell butwasn’t able to achieved the target fully because the trend was up..Becauseof that we have to see if the pattern break is towards the trend or againstit, that very thing plays a crucial role in the accuracy of the pattern. Traderswith lower risk appetite should trade the pattern only when it is with thetrend, trading against the trend is usually more riskier but sometimes verybeneficialJULY 2014 ATMASPHERE | 10