Market Internals suggest WEAKNESSCNX500 Relative Strength
Attached: Nifty 500/ Nifty 50 Daily Chart as of 21st March 2023
- I am watching this Ratio Chart to turn down after Retesting a Confluence Zone
- Its looking Bearish currently post a Rising Wedge breakdown and Three Black Crows candlestick pattern
- It signals Weakness in the Broad Market relative to the Index.
- This Chart had Topped out in Sept 2022 and since then there has been Under the Hood Selling in the Market.
This is a Leading Indicator of the Broad Market Strength/ Weakness
And comes under the Study of Intermarket Analysis
Marketbreadth
Nifty - History Has The Answer- Careful Above 11050!
*** History Has the Answer - In my past ideas I have discussed the importance of 11035-11100 zone -specifically the idea- "Demand & Destiny Zone"
As suggested in last video idea - we shall buy above 11000 - trade got executed & time has come that you should be careful for following reasons next -
RBI policy decision on 7th Feb 2019
Market Breadth is not good at all. New comers you can google "market breadth" & get answered.
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Trading Strategy
Safe Traders
They can sell if nifty moves below 10985 post falling below 11000 level- take care no sell trade to be taken if nifty holds above 11000 mark/level. Holding below 11000 - Downside Targets- 10800-10800 / Below 10800 -10550-10585
Risky Traders
Careful at current levels 11050-11060 - Consider all risk at your end & check the factors before trading or executing. Kindly do not blame the author -if you cannot manage the risk- In that case, you should learn more about risk management before even you start trading.
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Do take good care of yourself.
Thanks for watching the video / precious time.
MARKET CLOSED. LEARNING NEVER DOES. Before the article, i would like to mention something.
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Let us start with the article now,
Breadth analysis is one of the most valuable aspects in technical analysis. It introduces a new dimension to analysis, where it reveals the true strength or weakness of the targeted market. Such dimension is not attainable from the standard price and volume chart.
Breadth Analysis can be applied to any sector in the market or to a specific industry group as long as there is a way to determine their constituents and the components.
In the last few decades analysts have managed to develop some very sophisticated technical indicators based on market breadth. Some of which form a part of this article.
Market breadth indicators are sometimes referred to as broad market indicators, since they do not refer to individual stocks.
Did you know?
In 1901, Charles H.Dow commented in his June 23,1900, editorial in the wall street journal about the number of advancing and declining issues-”Of these 174 stocks, 107 advanced, 47 declined, and 20 stood still.''
This gives us an idea that Market breadth analysis had been paid attention to long before the studies around such analysis came out.
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