Mitigating Risk - Sep 2015

Mitigating RiskCoping with UncertaintySeptember 2015

Risk Advisory Servicesriskadvisory@outlook.com

Striking similarity between Shanghai Composite – SSEC Weekly Candlestick Charts and Silver Daily Candlestick charts

Week Ended August 27, 2015Shanghai Composite Weekly Candles

Daily Chart ended May 11, 2011Silver Daily Candles

Shanghai Composite Daily Line Graph with Bands

Silver Daily Line Graph with Bands at Peak (Apr 2011)

Silver Multi-Period Candles – Last 4 years since peak

Shanghai Composite (SSEC) v/s Silver• The momentum on the Shanghai Composite

Daily Charts was higher than that on the Silver Daily Charts

• Does Silver Multi-Period Candlestick Chart give any indication of what is about to happen to the Chinese Economy?

August 31, 2015USD/Euro Multi-Period

CandlesThree reversal patterns

August 31, 2015₹/$ Parity

Bearish Signal

Weakness in INR against USD on account of:1. Sudden and

unexpected devaluation of Yuan

2. Speculation and short covering (USD gains on low volumes and open interest)

3. Weakening of USD against Euro

Squeeze: Indicates directional change/ change in trend or continuation of the trend

₹/$ ParityHigh probability of beginning of correction in this zone itself

August 31, 2015

August 31, 2015

Intermediate Reversal

Bullish Reversal Patterns

Crude Oil - WTI

Crude Oil - WTI

Indicates directional change/ change in trend or continuation of the trend

August 31, 2015

Crude Oil - WTI

NIFTYAugust 31,

2015

Bearish Signals

NIFTY

Bearish Bollinger Bands

August 31, 2015

NIFTY

August 31, 2015 Bearish

ConfirmationDow – US 30

August 31, 2015

DAX Bearish Confirmati

on

Disclaimer: These extracts from my trading books are for educational purposes only. Any advice contained therein is provided for the general information of readers and does not have regard to any particular person's investment objectives, financial situation or needs and must not be construed as advice to buy, sell, hold or otherwise deal with any commodities, currencies, securities or other investments. Accordingly, no reader should act on the basis of any information contained therein without first having consulted a suitably qualified financial advisor.