Dear all,
There will be a lot of confusion amidst the traders especially the Intraday traders in which direction the market moves for the day.
However it is Million dollar question, we can somehow predict the direction through which we can avoid the wrong entries. It means in a bullish market we can avoid taking short positions and in a bearish market we can avoid taking the long positions for the intraday
The technique to predict the movement of the market for the day shall be in the following ways
Here you should take the two derivatives (NIFTY AND BANK NIFTY) together to predict the movements
1. If the first one hour candle is GREEN in both the NIFTY AND BANKNIFTY you should never take a short position unless the subsequent 1hr candels not able to breach the resistance lines (lines drawn based on the consolidation theory)
2. The market will take support whenever the price candles touches the 38.2% fibonacci support levels and or the consolidation support levels. Therefore we should not take wrong entries assuming that the market turns to the opposite direction, after getting the support the market will bounce back to the upward direction
3. In the same way if the first one hour candle is in RED you should never take long positions unless the subsequent one hour candles not able take or sustain in support lines (lines drawn based on the consolidation theory)
4. The market will break the support if it breaches the 38.2% Fibonacci levels or consolidation lines
5. The CONFUSION COMES ONLY IF THE FIRST ONE HOUR CANDLE OF NIFTY AND BANK NIFTY SHOWS DIFFERENT COLOURS. IT MEANS THE FIRST HOUR CANDLE OF NIFTY IS IN GREEN AND THE FIRST ONE HOUR CANDLE OF BANK NIFTY IS RED.
(YOU CAN TAKE THE EXAMPLE OF NIFTY CHART ON 28.01.2022 AND ON 19.01.2022 (FEBRUARY MONTH CONTRACT)
IN THIS SITUATION YOU NEED A DIFFERENT STRATEGY THAT TOO BASED ON THE CONSOLIDATION THEORY TO AVOID THE WRONG ENTRY AND TAKE A CORRECT ENTRY
HAPPY TRADING
M.RAMESH
There will be a lot of confusion amidst the traders especially the Intraday traders in which direction the market moves for the day.
However it is Million dollar question, we can somehow predict the direction through which we can avoid the wrong entries. It means in a bullish market we can avoid taking short positions and in a bearish market we can avoid taking the long positions for the intraday
The technique to predict the movement of the market for the day shall be in the following ways
Here you should take the two derivatives (NIFTY AND BANK NIFTY) together to predict the movements
1. If the first one hour candle is GREEN in both the NIFTY AND BANKNIFTY you should never take a short position unless the subsequent 1hr candels not able to breach the resistance lines (lines drawn based on the consolidation theory)
2. The market will take support whenever the price candles touches the 38.2% fibonacci support levels and or the consolidation support levels. Therefore we should not take wrong entries assuming that the market turns to the opposite direction, after getting the support the market will bounce back to the upward direction
3. In the same way if the first one hour candle is in RED you should never take long positions unless the subsequent one hour candles not able take or sustain in support lines (lines drawn based on the consolidation theory)
4. The market will break the support if it breaches the 38.2% Fibonacci levels or consolidation lines
5. The CONFUSION COMES ONLY IF THE FIRST ONE HOUR CANDLE OF NIFTY AND BANK NIFTY SHOWS DIFFERENT COLOURS. IT MEANS THE FIRST HOUR CANDLE OF NIFTY IS IN GREEN AND THE FIRST ONE HOUR CANDLE OF BANK NIFTY IS RED.
(YOU CAN TAKE THE EXAMPLE OF NIFTY CHART ON 28.01.2022 AND ON 19.01.2022 (FEBRUARY MONTH CONTRACT)
IN THIS SITUATION YOU NEED A DIFFERENT STRATEGY THAT TOO BASED ON THE CONSOLIDATION THEORY TO AVOID THE WRONG ENTRY AND TAKE A CORRECT ENTRY
HAPPY TRADING
M.RAMESH