Nifty Bank IndexUpdated nifty analysis
3rd in the Line of Tutorials.
LEARN TO DRAW CHANNELS
1. A channel is drawn by joining at least 2 point on the Lower side ( representing the LOWER TREND LINE OF THE CHANNEL) and at least 2 points on the UPPER side( representing the UPPER TREND LINE).
3. The dotted Blue Line becomes the midway@ MID MEAN LINE.
4. A channel cannot be CONTINOUS in Nature and will MOST CERTAINLY change as per the movement of Price. This means you CANNOT draw a single channel and adhere strictly to movement in price . It also means that as Price changes so will the Channel.
5. It is one of the safest and easiest ways of keeping your Trades safe and secure whether to the upside or downside.
6. You have to have a SHARP EYE to identify such a channel drawing. Once you identify it, draw it by using the parallel line tool.
LEARN TO DRAW CHANNELS
1. A channel is drawn by joining at least 2 point on the Lower side ( representing the LOWER TREND LINE OF THE CHANNEL) and at least 2 points on the UPPER side( representing the UPPER TREND LINE).
3. The dotted Blue Line becomes the midway@ MID MEAN LINE.
4. A channel cannot be CONTINOUS in Nature and will MOST CERTAINLY change as per the movement of Price. This means you CANNOT draw a single channel and adhere strictly to movement in price . It also means that as Price changes so will the Channel.
5. It is one of the safest and easiest ways of keeping your Trades safe and secure whether to the upside or downside.
6. You have to have a SHARP EYE to identify such a channel drawing. Once you identify it, draw it by using the parallel line tool.
Note
A channel will Help you identify the TREND . However the TREND will have some amount of COMPLEX DIRECTION. For example, if you have caught the trend correctly in an UPMOVE/DOWNMOVE, always Remember, that this TREND will playout in the LONGER TIME FRAME, but will WHIPSAW in smaller and smallest time periods. BY WHIPSAW is meant volatility within that LARGER TREND, which means up...down..,sideways...up....down etc. So if you have identified the Trend, you stick to your conviction on a Longer Time Basis
Disclaimer
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