Sudarshan Sukhani is president of the Association of Technical Analysts, India. He is an Honours Graduate in Business from St Xavier’s College, Kolkata. He is a Chartered Financial Technician (CFTe). Sudarshan commenced in technical analysis by keeping charts manually. In 1989, he ventured in the area of computer based trading, working with indicators and trading strategies. In 1993, he changed careers to become a full time trader. Since 1999, when business TV broadcasts started with CNBC, he has been a regular guest.
Trends make money. The classical methods of defining a trend with breakouts/breakdowns often results in numerous whipsaws. This presentation will explain how trends can be identified using zero lag indicators. It is possible to identify end of trend with momentum divergences which allows traders to exit much earlier than the actual trend change. Entries and exits are implemented when volatility cycles are reaching a trough. All of these concepts are implemented for short term trading. Examples are given with Indian Nifty Futures and different stocks, but the concepts are valid for all freely traded markets.