Nifty Futures Trading

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Sunil

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Vineet,

Since u r well-conversed with the theory & practical usage, u would have noticed that such divergence usually leads to failed breakdown in 1min charts...
The new low does not go much below prev. low, and then goes above prev. low....
(this results in new low in price, but not in RSI - leading to divergence)...
Main trigger is crossing of prev. low...

Next...
if nifty comes down now at or near the new low, does not make a new low, and again crosses prev. low, it will go far above the prev. pullback...
the result is shown in higher timeframe - 5min....

hope we het to see this now...
 

myvineet

Well-Known Member
Vineet,

Since u r well-conversed with the theory & practical usage, u would have noticed that such divergence usually leads to failed breakdown in 1min charts...
The new low does not go much below prev. low, and then goes above prev. low....
(this results in new low in price, but not in RSI - leading to divergence)...
Main trigger is crossing of prev. low...

Next...
if nifty comes down now at or near the new low, does not make a new low, and again crosses prev. low, it will go far above the prev. pullback...
the result is shown in higher timeframe - 5min....

hope we het to see this now...
agreed sunil bhai...but what happens sometimes that rsi av out by sideways movement & primary trends continue..so, it is not reliable everytime..but yes it gives warning signal in advance...
 

metushar

Well-Known Member
Off the topic: For quite a few times, it is happening that market make a big up/down move and then trade in 10 points range till the european markets open and suddenly a mini break out kind of a thing happen in the direction of european markets.....is there any sanity in this or just a chancy affair....??
 
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