Crown Bhai,
How to identify technically if Nifty will move in sideways for some times during intraday ?
Suggest me some good technical indicators in this regard.
Also suggest me how to trade this period.
Thanks in advance.
Best Regards,
JK
Jagan Bhai
Identifying the sideways movement is simple. It depends upon the time frame you are using. For example, a script may appear making sideways movement in 5 minutes chart, but in 30 minute chart it may be moving towards some specific direction. Best way of doing it using parallel lines on the chart, and a simple glimpse will tell you if the script is moving sideways or not.
I use CCI indicator; and usually when the CCI momentum is between -50 to + 50, the script can be in sideways movement. The angle of movement in CCI is also helpful, flat movements in CCI also denotes sideways movement.
Regarding trading such sideways movement, I am still to learn that. Today, I did 13 trades on Nifty for this purpose. Though, I had some loss, but that was very very minor. It was my last two trades that gave me loss which ate all my profit for the day. But, I am okay wid it; because my purpose was to understand and learn and practice trading during sideways movement of Nifty.
Example of sideways movement:
below is the weekly chart of Jindal Steel and Power
As you can see, from the past one year [from Oct 2009 onwards], the script is trading between a range which is being shown wid the help of parallel lines (red color).
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