NIFTY 50 future TRENDS
- Thread starter sudoku1
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Chart to support my Observation
Watch RSI 14 Support at around 55 crosses 70.. 80 to 90 possible ..now at 62
Watch RSI 14 Support at around 55 crosses 70.. 80 to 90 possible ..now at 62
But it gives a feeling that market will eventually go up. Yesterday market is held very strongly by Bulls even though lot selling pressure exists on most front line stocks.
I watch 20 WMA and most nift stocks touched the 20 WMA and then there is a sudden sell off around 1:45 in afternoon. At least I felt so. Experienced members can give more insights.
I think on total bear market day that would have taken nifty down by another 100.
Confusion over Rsi ..Macd or any moving indicators bound to differ as per the settings charting analytic tells us to get the best combinations .... but there is nothing to give 100% guarantied Forecast
I strongly Believe one thing First i as a trader have to decide whether i have to trade for the Day.. a week.. a month ..a year..so on .. then to decide my entry and exit as per the Price moment that is Res/Sup.. Levels.. Stop loss and booking profits..if I am firm in my thoughts probably Chart study can help me to some extent..
If one is not sure of what kind of trade he/she is going to take be 100% sure Nothing can stop you loosing .. and that will be the end result
Read the discussions In TJ about TA..
http://www.traderji.com/technical-analysis/11298-does-technical-analysis-really-work.html
I read this bit of valuable info felt of sharing with you all A copy paste message..hope you all enjoy reading and understanding it on a week end..
Technical analysis is very complex and as with anything takes years of practice before being able properly utilize it. Even then, most investors will be wrong much of the time. Technical analysis does not have a set of infallible rules.. Patterns can easily be confusing ..In examples for explanation, patterns are clearly visible. In real markets however, stock price patterns do not necessarily fit perfectly into cookie-cutter patterns. In a bullish trend for example, an investor may think a rising wedge is a symmetrical triangle. Thus, he would buy shares and lose money as they decline in value when the pattern ends and turns out to be a reversal wedge and not a continuation triangle.
A technical analyst will typically create his/her own system of rules for predicting stock patterns. This arises after the analyst experiences success, either by merit or chance. An analyst with a good system will sometimes not have enough confidence and hence override his/her own rules and end up losing money as a result. More likely however, is the case of analytical hubris where an investor has too much confidence in his/her system and ignores evidence that contradicts the predictions of his/her technical analysis.
Finally, no system can account for all variables. The biggest risk in technical analysis is that of the black swan. A black swan is an extremely rare and unlikely event with a heavy impact on the world; it was first proposed by Nassim Taleb in The Black Swan. Technical analysis completely ignores the possibility of a crisis such as the one we are (hopefully) exiting. Focusing on technical analysis also can distract investors from nascent signs of a major fundamental change in the economy, something that may have been a contributing cause of the crisis.
This article is not meant to discourage you from using technical analysis. It can be a useful supplement to other analysis of securities. Moving averages and trend lines are actually somewhat reliable. Overall, it is most important to be careful and use common sense when investing.
I strongly Believe one thing First i as a trader have to decide whether i have to trade for the Day.. a week.. a month ..a year..so on .. then to decide my entry and exit as per the Price moment that is Res/Sup.. Levels.. Stop loss and booking profits..if I am firm in my thoughts probably Chart study can help me to some extent..
If one is not sure of what kind of trade he/she is going to take be 100% sure Nothing can stop you loosing .. and that will be the end result
Read the discussions In TJ about TA..
http://www.traderji.com/technical-analysis/11298-does-technical-analysis-really-work.html
I read this bit of valuable info felt of sharing with you all A copy paste message..hope you all enjoy reading and understanding it on a week end..
Technical analysis is very complex and as with anything takes years of practice before being able properly utilize it. Even then, most investors will be wrong much of the time. Technical analysis does not have a set of infallible rules.. Patterns can easily be confusing ..In examples for explanation, patterns are clearly visible. In real markets however, stock price patterns do not necessarily fit perfectly into cookie-cutter patterns. In a bullish trend for example, an investor may think a rising wedge is a symmetrical triangle. Thus, he would buy shares and lose money as they decline in value when the pattern ends and turns out to be a reversal wedge and not a continuation triangle.
A technical analyst will typically create his/her own system of rules for predicting stock patterns. This arises after the analyst experiences success, either by merit or chance. An analyst with a good system will sometimes not have enough confidence and hence override his/her own rules and end up losing money as a result. More likely however, is the case of analytical hubris where an investor has too much confidence in his/her system and ignores evidence that contradicts the predictions of his/her technical analysis.
Finally, no system can account for all variables. The biggest risk in technical analysis is that of the black swan. A black swan is an extremely rare and unlikely event with a heavy impact on the world; it was first proposed by Nassim Taleb in The Black Swan. Technical analysis completely ignores the possibility of a crisis such as the one we are (hopefully) exiting. Focusing on technical analysis also can distract investors from nascent signs of a major fundamental change in the economy, something that may have been a contributing cause of the crisis.
This article is not meant to discourage you from using technical analysis. It can be a useful supplement to other analysis of securities. Moving averages and trend lines are actually somewhat reliable. Overall, it is most important to be careful and use common sense when investing.
Last edited:
Nifty (5,227.2)
The Nifty too recorded the peak of 5,348.5 last week. But it reversed thereafter to end the week 89 points lower. The short-term trend in the index continues to be up. This trend will reverse down only if the index goes on to close below 5,192.
Reversal higher from these levels will mean that the index can move on to 5,373 or 5,470 in the upcoming sessions. It needs to be remembered that the Nifty faces key short-term resistance at 5,300 and the near-term view will turn overtly positive only on an emphatic close above this level.
The medium-term trend in the index also continues to be positive. Supports in this time-frame will be at 5,030 and 4,991. The presence of both the 50 and 200-day moving averages in the band between 5,050 and 5,100 means that the index will receive support in this zone, should there be a strong decline.
If we consider the long-term picture, the index appears to be in the third leg of the correction that commenced from the low of 4,531. This leg has the targets of 5,450 and then 5,870. The index also has significant Fibonacci resistance at 5,660.
http://www.thehindubusinessline.com/features/investment-world/article3639975.ece?homepage=true
In Line with My Levels Posted Yesterday
The Nifty too recorded the peak of 5,348.5 last week. But it reversed thereafter to end the week 89 points lower. The short-term trend in the index continues to be up. This trend will reverse down only if the index goes on to close below 5,192.
Reversal higher from these levels will mean that the index can move on to 5,373 or 5,470 in the upcoming sessions. It needs to be remembered that the Nifty faces key short-term resistance at 5,300 and the near-term view will turn overtly positive only on an emphatic close above this level.
The medium-term trend in the index also continues to be positive. Supports in this time-frame will be at 5,030 and 4,991. The presence of both the 50 and 200-day moving averages in the band between 5,050 and 5,100 means that the index will receive support in this zone, should there be a strong decline.
If we consider the long-term picture, the index appears to be in the third leg of the correction that commenced from the low of 4,531. This leg has the targets of 5,450 and then 5,870. The index also has significant Fibonacci resistance at 5,660.
http://www.thehindubusinessline.com/features/investment-world/article3639975.ece?homepage=true
In Line with My Levels Posted Yesterday
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