Get started

Search in ideas for "oscillator"

NIFTY-Weekly Outlook-Venkat's BlogThe past week saw a continuation of the positive sentiments except a struggle as it crossed the previous peak. As expected the Nifty posted a new ATH. The Index made a strongly bullish candle. on weekly chart which is a positive sign. The previous high would act as a support for some time. A few observations from the weekly charts are: The index moved in a range of 357 points viz. between 19890 and 20222 The oscillators of different time frames are showing positive signals Option open interest to drive the direction of the market Expected scenarios for the ensuing week The Index broke the top of the descending channel on daily chart which helped the strong move. It made another break of ascending minor channel In the normal course when the prices reach the earlier trend there are possibilities of rejection. However, the Index has re-entered the earlier trend which is likely to set the probability of continuation of the uptrend higher as seen from the other indicators Additional interesting observations The outlook appears to be positive with the break of crucial barrier zone of 19880 – 19960 Index may find supports at 20140, 20030, 19960 and the index could face resistances at multiple levels 20330,20440, 20540 There has been a few Gaps created in this bull run 18818-18908 (28th Jun 23) far off for now 18972-19079 (29th July 23) far off for now 19189-19246 (3rd July 23) far off for now 20063-20133- Newly created Final Note The Index has stayed well above the long-term trend line and the 200 DMA at 18449 and 55 DMA around 19560 In the weekly charts the Index has got get back to the original ascending channel after a struggle around 19850-880 which incidentally is the previous ATH The September series so far has proved to be positive with the Index recovering the entire losses made in August 23 and also posting a new ATH Expected to consolidate remain in the range of 19960-20440 and any close outside the range requires re-assessment of risk With continued momentum the Index has an opportunity to hit the Fib projection of 20535 in the near future. However, there are a few resistance zones around 20330-20440 After three consecutive weeks of positive candles, It is prudent to remain vigilant as drag can be on both sides #Stay Safe Disclaimer: The views expressed here are personal and not connected to SYFX Treasury Foundation. The views are for learning and reference purpose only.
NSE:NIFTY
by SYFXTF
Bank NIFTY-Weekly Outlook-Venkat's BlogThe Bank Nifty moved in range of 1176 points Viz. between 44207 & 45383. As expected the previous two weeks move to be treated as consolidation, the Bank Nifty finally broke its narrow range. It made a strongly bullish candle, With the change in sentiments, the declines are expected to be bought. The Index is moving in an ascending channel and expect the lower end of 44350 to hold and the next major resistance would be 45560 which is the top of the channel. The oscillators point towards a break higher. Expected range for Bank Nifty is 44300-45600. A daily close outside the broader range indicated above would require re-evaluation. Disclaimer: The views expressed here are personal and not connected to SYFX Treasury Foundation. The views are for learning and reference purpose only.
NSE:BANKNIFTY
by SYFXTF
NIFTY-Weekly Outlook-Venkat's BlogThe past week saw a return off positive sentiments as could be seen from the positive candles on all five sessions irrespective of the size of the move. The Index made a strongly bullish candle. on weekly chart which is a positive sign. The base around 19220-250 is proving to be a strong for a new wave. A few observations from the weekly charts are: The index moved in a range of 435 points viz. between 19432 and 19867 The oscillators of different time frames are showing positive signals Option open interest to drive the direction of the market Expected scenarios for the ensuing week The Index broke the top of the descending channel on daily chart which helped the strong move. It made another break of ascending minor channel Probability of continuation of the uptrend seems higher as seen from the other indicators The index is attempting to re-enter the long term trend channel which is around 19950-980 region Additional interesting observations The outlook appears to be turning positive with the break of crucial barrier zone of 19520 - 19640 The recovery suggests re-attempt of the earlier highs which matches with the lower end of the long-term trend channel Index may find supports at 19740, 19630, 19520 and the index could face resistances at multiple levels 19870 and 19980, 20080 There has been a few Gaps created in this bull run 18818-18908 (28th Jun 23) far off for now 18972-19079 (29th July 23) far off for now 19189-19246 (3rd July 23) * being attempted but held for now Final Note The Index has stayed well above the long-term trend line and the 200 DMA at 18407 After spending 5 weeks moving back and forth of 55 DMA around 19400-450 range, it finally broke higher which is positive In the weekly charts the Index is seen attempting to get back to the original ascending channel which is a normal scenario after a break lower In the daily charts the Index broke a descending channel and also a minor ascending channel which shows the momentum is stronger, the target os this could be 300 points from the break-out level of 19670 which in turn works out closer to ATH With break above 19570 the Bulls have regained the power and it needs to be seen whether they are able to hold on to the control Need to remain vigilant as drag can be on both sides August series Option exposure build up had kept the Index lower. The September series so far has proved to be positive with the Index recovering the entire losses made in August 23 Expected to consolidate remain in the range of 19620-20080 and any close outside the range requires re-assessment of risk With continued momentum the Index has an opportunity to hit the 20K milestone and a new ATH #Stay Safe Disclaimer: The views expressed here are personal and not connected to SYFX Treasury Foundation. The views are for learning and reference purpose only.
NSE:NIFTY
by SYFXTF
NIFTY-Weekly Outlook-Venkat's BlogThe past week saw a narrow range and every attempt was punished with sell-off during the first four sessions. The Friday’s market action appeared a stand-out and saw a strong bull candle and helped in closing near the high of the week. The Index finally made a bullish candle after five bearish candles on weekly chart which is a positive sign. The base around 19220-250 is holding for now. A few observations from the weekly charts are: The index moved in a range of 223 points viz. between 19223 and 19458 The oscillators of different time frames are showing positive signals Option open interest to drive the direction of the market Expected scenarios for the ensuing week The Index closing close to the top of the descending channel on daily chart Probability of breach seems higher as seen from the other indicators The index breached the lower end of the channel and going forward the channel trendline would be a barrier which is around 19810 Additional interesting observations The outlook appears to be turning positive with the crucial support at 19200 is holding for now The support around 19200-250 range is gaining importance as this level is tested four times during the last few weeks. Index may find supports at 19330, 19220, 19120 and the index could face resistances at multiple levels 19570 and 19670, 19780 There has been a few Gaps created in this bull run 18818-18908 (28th Jun 23) far off for now 18972-19079 (29th July 23) far off for now 19189-19246 (3rd July 23) * being attempted but held for now Final Note The Index has stayed well above the long-term trend line and the 200 DMA at 18374, however, the Index moving back and forth of 55 DMA at 19370 is a matter of concern In the weekly charts the Index has broken the lower end ascending channel Whereas, in the daily charts we observe a descending channel with 400 points range with range from 19070-19470 The line of control has shifted down to 19570 for the Bulls to regain the power and it needs to be in a quick with sharp move else we may see second bout of sell-off The is scenario currently tilted in favor of Bulls as the crucial support zone of 19250 held well for the past three months including the current month till now. The significance of 19180-250 zone comes from the Fib retracements of the move viz. 16870 to 19990. And also, the Lows of July 23 and High of June 23 A close above 19420 suggest that the Index is likely see higher levels towards 19770 Need to remain vigilant as drag can be on both sides and increased volatility due to Monthly closing candle. A monthly close below 19200 would signify a bearish engulfing pattern and the next thing to look for would be 18800. Expected to consolidate remain in the range of 19130-19630 and any close outside the range requires re-assessment of risk August series Option exposure build up has kept the Index lower. It remains to be seen the bets for new Sept series Apparently there appears two distinct fault lines-the lower one at 19170 and the top one at 19570. There are chances of 200 points move if either of this is breached on a daily closing basis. #Stay Safe Disclaimer: The views expressed here are personal and not connected to SYFX Treasury Foundation. The views are for learning and reference purpose only.
NSE:NIFTY
by SYFXTF
NIFTY-Weekly Outlook-Venkat's BlogThe past week saw a muted action during the first four sessions. The euphoria of soft landing on the moon triggered a spike past 19460 hurdle and saw a high of 19584, but only to be sold-off back towards the lows of the week. The selling pressure is expected to continue till we see a spike above 19520-640 range on a closing basis. The Index made fifth bearish candle on weekly chart which is longer than usual. A few observations from the weekly charts are: The index moved in a range of 335 points viz. between 19584 and 19229 The oscillators of different time frames are showing negative signals Monthly candle closing and Option open interest to drive the direction of the market Expected scenarios for the ensuing week The Index closing below the crucial 19520 is a sign of weakness The index breached the lower end of the channel and going forward the channel trendline would be a barrier which is around 19620 Additional interesting observations Presently, the outlook appears negative. However, the crucial support at 19200 is holding for now The support around 19200-250 range is gaining importance as this level is tested thrice during the last few weeks of weeks. Index may find supports at 19175, 19040, 19920 and the index could face resistances at multiple levels19330,19460, 19580 and 19670 There has been a few Gaps created in this bull run 18818-18908 (28th Jun 23) far off for now 18972-19079 (29th July 23) far off for now 19189-19246 (3rd July 23) * being attempted Final Note The Index has stayed well above the long-term trend line and the 200 DMA at 18345, however, the Index moving back and forth of 55 DMA at 19310 is a matter of concern In the weekly charts the Index has broken the lower end ascending channel Whereas, in the daily charts we observe a descending channel with 400 points range with range from 18970-19370 Ensuing week is crucial for a favorable monthly closing candle The line of control has shifted down to 19570 for the Bulls to regain the power and it needs to be in a quick with sharp move else we may see second bout of sell-off Index made fifth bearish weekly candle The is scenario currently tilted in favor of Bears and is attempting to break the crucial support zone of 19250 for taking the Index below 19K. The significance of 19180-250 zone comes from the Fib retracements of the move viz. 16870 to 19990. And also, the Lows of July 23 and High of June 23 A close below 19420 suggest that the Index would Index drift towards 19030 Need to remain vigilant as drag can be on both sides and increased volatility due to Monthly closing candle. A monthly close below 19200 would signify a bearish engulfing pattern and the next thing to look for would be 18800. Expected to consolidate remain in the range of 19030-19630 and any close outside the range requires re-assessment of risk August series Option exposure build up has kept the Index lower. It remains to be seen the bets for new Sept series Apparently there appears two distinct fault lines-the lower one at 19170 and the top one at 19470. There are chances of 200 points move if either of this is breached on a daily closing basis. #Stay Safe Disclaimer: The views expressed here are personal and not connected to SYFX Treasury Foundation. The views are for learning and reference purpose only.
NSE:NIFTY
by SYFXTF
USDINR-Weekly Outlook-Venkat's BlogPast week saw the break of 83 and went on to hit the high of 83.42 and closed at 83.12. The buying interest continues as the market fears breach of 83.50. It is evident from the market action that the declines are used as opportunity to hedge the Imports. Now that the markets would be trying to grab anything below 83.00. As expected the potential breach on the upside happened and the spike towards 83.30 and beyond was achieved. Expect the range of 82.80-83.50 to hold for the week and there could be choppy moves within this range. A close outside this range requires re-assessment of risk/direction and target. A few more observations: As noted in the previous blog, continue to keep the following input for quick reference. The 82.75-83.25(with error adjustments) zone is the Fib projection of July 2011 to July 2013. Alternatively, the Fib projection of the move from Jan 22(Low) to Oct 22(High) and Nov 22 low also suggest the projection as 82.92. Hence, the importance. If breached, we may see another spike towards 85.70. This range seem to have been broken and expect the pair to see buying interest on every decline. There is only a marginal hope that still weekly closing is not seen above 83.25. Neither the moves in Dollar Index-DXY nor the equity have direct correlation A decisive week ahead. Already we are witnessing the levels above the Top of the Triangle/Rectangle and the Oscillators in the weekly charts show indications of higher levels Disclaimer: The views expressed here are personal and not connected to SYFX Treasury Foundation. The views are for learning and reference purpose only.
by SYFXTF
NIFTY-Weekly Outlook-Venkat's BlogThe past week saw a repeated attempt of 19460-480 range and got sold-off. The selling pressure is expected to continue till we see a spike above 19520-640 range on a closing basis. The Index made fourth bearish candle on weekly chart. It remains to be seen if this fall is account of profit booking or a reversal. A few observations from the weekly charts are: The index moved in a range of 229 points viz. between 19482 and 19253 The oscillators of different time frames are showing mixed signals Monthly Option open interest to drive the direction of the market Expected scenarios for the ensuing week The Index closing below the crucial 19520 is a sign of weakness The index breached the lower end of the channel and going forward the channel trendline would be a barrier which is around 19530 Additional interesting observations Presently, the outlook appears negative. However, the pace of selling seems to have reduced as we see the index moving in a range of 230-250 points for the past 2 weeks The support around 19250 is gaining importance as this level is tested twice during the last couple of weeks. Index may find supports at 19250, 19140, 19040 and the index could face resistances at multiple levels19420,19530 and 19640 There has been a few Gaps created in this bull run 18818-18908 (28th Jun 23) far off for now 18972-19079 (29th July 23) far off for now 19189-19246 (3rd July 23) * at risk Final Note The Index has stayed well above the long-term trend line and the 200 DMA at 18315 and 55 DMA at 19237 Index has broken the lower end ascending channel at 19440 Whereas, in the daily charts we observe a descending channel with 300 points range with range from 19140-19440 Ensuing week is crucial for a tuff fight between the Bulls and Bears for control The line of control is 19620 for the Bulls to regain the power and it needs to be in a quick with sharp move else we may see second bout of sell-off Index made a Doji and fourth bearish weekly candle The is scenario currently tilted in favour of Bears and is attempting to break the crucial support zone of 19250 for taking the Index below 19K A close below 19420 suggest that the Index would Index drift towards 19030 Need to remain vigilant as drag can be on both sides and increased volatility due to Monthly option expiry Expected to consolidate remain in the range of 19030-19630 and any close outside the range requires re-assessment of risk Apparently there appears two distinct fault lines-the lower one at 19140 and the top one at 19620. There are chances of 200 points move if either of this is breached on a daily closing basis. #Stay Safe Disclaimer: The views expressed here are personal and not connected to SYFX Treasury Foundation. The views are for learning and reference purpose only.
NSE:NIFTY
by SYFXTF
Gail Breakout and retest Level around 113 has been an important resistance zone, (purple shaded area) On 25th july there was a breakout through this level accompanied with higher volume After that there was a pullback, and retest of the level around 113, which has now turned into support After the retest, vol also increased indicating bullish strength Oscillators are also in favour of bulls Level of 129.8 (white horizontal line) is the next resistance after 122.8 (previous high) All the white lines marked are further resistance levels Keep SL of 113, Keep RR Ratio of 1:1 or above For a Short Term Trade keep tgt 124 Tgts can be increased to further resistance levels depending on risk profile
NSE:GAILLong
by zenni_10
USDINR-Weekly Outlook-Venkat's BlogPast week saw continued buying interest and the pair hit the high of 82.93 and closed at 82.85. The buying interest continues as the market fears breach of 83 which might have catastrophic effect. It is evident from the market action that the declines are used as opportunity to hedge the Imports. Markets are confused on the logic of this magic numbers 81.70 & 83.00. This time around the pair is at a crucial juncture and the weekly charts show signs of potential breach on the upside if the pair stays above 82.05 on closing basis which may trigger a spike towards 83.30 and beyond. Expect the range of 82.55-83.30 to hold for the week and there could be choppy moves within this range. A close outside this range requires re-assessment of risk/direction and target. A few more observations: As noted in the previous blog, continue to keep the following input for quick reference. Market is expecting 81.70-83.10 will be protected. If appears that the same kind of yo-yo moves may continue till one more quarter if we do not see a close below 81.70 The 82.75-83.25(with error adjustments) zone is the Fib projection of July 2011 to July 2013. Alternatively, the Fib projection of the move from Jan 22(Low) to Oct 22(High) and Nov 22 low also suggest the projection as 82.92. Hence, the importance. If breached, we may see another spike towards 85.70. Neither the moves in Dollar Index-DXY nor the equity have direct correlation A decisive week ahead. We are close to the Top of the Triangle/Rectangle and the Oscillators in the weekly charts show indications of higher levels The narrowing of the Bollinger Bands suggest we can expect sharp moves sooner. 85+ or 80- is a strange puzzle. Disclaimer: The views expressed here are personal and not connected to SYFX Treasury Foundation. The views are for learning and reference purpose only.
by SYFXTF
NIFTY-Weekly Outlook-Venkat's BlogThe past week saw a repeated attempt of 19620-650 range and got sold-off. The selling pressure is expected to continue till we see a spike above 19640-770 range on a closing basis. The Index made third bearish candle on weekly chart. It remains to be seen if this fall is account of profit booking or a reversal. A few observations from the weekly charts are: The index moved in a range of 233 points viz. between 19645 and 19412 The oscillators of different time frames are showing negative signals Option open interest to drive the direction of the market Expected scenarios for the ensuing week The Index closing below the crucial 19520 is a sign of weakness The only saving grace is that it is just hanging around the lower end of the channel Index may find supports at 19320, 19180, 19040 and the index could face resistances at multiple levels19640,19770 and 19810 Additional interesting observations The outlook for the Index presently a neutral bias as long as the range of 19300-19700 remains intact There has been a few Gaps created in this bull run 18818-18908 (28th Jun 23) far off for now 18972-19079 (29th July 23) far off for now 19189-19246 (3rd July 23) * at risk Final Note The Index has stayed well above the long-term trend line and the 200 DMA at 18280 and 55 DMA at 19177 Index is moving in an ascending channel having a depth of about 700 points. The top of the channel at 20140 the lower end at 19440 and median at 19790 Currently the Index is below the mid-point of the channel, Whereas, in the daily charts we observe a descending channel with 450 points range with range from 19440-19990 Ensuing week is crucial for a tuff fight between the Bulls and Bears for control The line of control is 19700 for the Bulls to regain the power and it needs to be in a quick with sharp move else we may see second bout of sell-off Index made an inside candle though it is a bearish one The is scenario currently tilted in favour of Bears and is at the crucial support Will the Bulls breathe fire like Indian Hokey team? Will be known by this week A daily close below 19420 would see the Index drift towards 19030 Need to remain vigilant as drag can be on both sides Expected to consolidate remain in the range of 19230-19730 and any close outside the range requires re-assessment of risk Apparently there appears two distinct fault lines-the lower one at 19420 an the top one at 19720. There are chances of 200 points move if either of this is breached on a daily closing basis. #Stay Safe Disclaimer: The views expressed here are personal and not connected to SYFX Treasury Foundation. The views are for learning and reference purpose only.
NSE:NIFTY
by SYFXTF
EURUSD sellers prepare for entry, 1.0930 and US inflation eyedEURUSD bears appear running out of steam during the fourth weekly loss as it grinds near the key support confluence within a five-month-old bullish channel ahead of the US inflation. In doing so, the Euro pair seesaws between a three-week-old falling resistance line and a confluence of the 100-DMA and a rising support line from November 2022, respectively near 1.0970 and 1.0930. It’s worth noting that the MACD and RSI signal the return of the buyers but a clear downside break of 1.0930 could quickly challenge the bullish channel by poking the 1.0760 mark comprising the stated channel’s support line. In a case where the Euro bears ignore oscillators and break the 1.0760 support, May’s low of 1.0688 may act as an intermediate halt before dragging the quote toward the lows marked in February and January of 2023, close to 1.0515 and 1.0480 in that order. On the flip side, a clear upside break of the aforementioned three-week-old descending resistance line, close to 1.0970 at the latest, becomes necessary for the EURUSD bull’s return. Following that, the tops marked in February and April, near 1.1035 and 1.1095 in that order will gain the market’s attention. In a case where the Euro buyers dominate past 1.1095, the yearly high marked in July around 1.1275 and the previously stated bullish channel’s top line, close to 1.1285, should lure the bids. Overall, EURUSD is hitting strong support ahead of the key event that’s likely to underpin the US Dollar pullback, which in turn requires sellers to remain cautious before taking a fresh short position.
by MTradingGlobal
USDINR-Weekly Outlook-Venkat's BlogPast week saw continued buying interest and the pair hit the high of 82.89 and cooled-off to close at 82.65. As has been continuously highlighted in the previous Blogs, it is evident from the market action that the declines are used as opportunity to hedge the Imports. Markets are confused on the logic of this magic numbers 81.70 & 83.00. This time around the pair is at a crucial juncture and the weekly charts show signs of potential breach on the upside if the pair stays above 82.95 on closing basis which may trigger a spike towards 83.25. Expect the range of 82.15-83.20 to hold for the week and there could be choppy moves within this range. A close outside this range requires re-assessment of risk/direction and target. A few more observations: As noted in the previous blog, continue to keep the following input for quick reference. Neither the moves in Dollar Index-DXY nor the equity have direct correlation The 82.75-83.25(with error adjustments) zone is the Fib projection of July 2011 to July 2013. Alternatively, the Fib projection of the move from Jan 22(Low) to Oct 22(High) and Nov 22 low also suggest the projection as 82.92. Hence, the importance. If breached, we may see another spike towards 85.70. Market is expecting 81.70-83.10 will be protected. If appears that the same kind of yo-yo moves may continue till one more quarter if we do not see a close below 81.70 A decisive week ahead. We are close to the Top of the Triangle/Rectangle and the Oscillators in the weekly charts show indications of higher levels The narrowing of the Bollinger Bands suggest we can expect sharp moves sooner. 85+ or 80- is a strange puzzle. Disclaimer: The views expressed here are personal and not connected to SYFX Treasury Foundation. The views are for learning and reference purpose only.
by SYFXTF
NIFTY-Weekly Outlook-Venkat's BlogThe past week saw a sell-off on three out of five sessions. The selling pressure was more when the Index breached 19520. The Index made second bearish candle. It remains to be seen if this fall is account of profit booking or a reversal. A few observations from the weekly charts are: The index moved in a range of 499 points viz. between 19795 and 19296 The oscillators of different time frames are showing negative signals Option open interest to drive the direction of the market Expected scenarios for the ensuing week The Index breaching the crucial 19520 and the Index making lower lows and lower highs after 18 weeks are signs of weakness The only saving grace is that it bounced back from the lower end of the channel Index may find supports at 19320, 19180, 19040 and the index could face resistances at multiple levels19630,19770 and 19810 Additional interesting observations The outlook for the Index presently a neutral bias as long as the range of 19300-19700 remains intact There has been a few Gaps created in this bull run 18818-18908 (28th Jun 23) far off for now 18972-19079 (29th July 23) far off for now 19189-19246 (3rd July 23) * at risk Final Note The Index has stayed well above the long-term trend line and the 200 DMA at 18230 and 55 DMA at 19063 Index is moving in an ascending channel having a depth of about 700 points. The top of the channel at 20070 the lower end at 19370 and median at 19720 Currently the Index is below the mid-point of the channel, Whereas, in the daily charts we observe a descending channel with 450 points range with range from 19230-19680 Index still has an unfinished agenda of scaling 20K Ensuing week is crucial for a tuff fight between the Bulls and Bears for control The line of control is 19700 for the Bulls to regain the power and it needs to be in a quick with sharp move else we may see second bout of sell-off A health consolidation would prove the strength of the move A daily close below 19320 would see the Index drift towards 19030 Need to remain vigilant as drag can be on both sides Expected to consolidate remain in the range of 19230-19730 and any close outside the range requires re-assessment of risk Apparently there appears two distinct fault lines-the lower one at 19320 an the top one at 19720. There are chances of 200 points move if either of this is breached on a daily closing basis. Daily close above 19770 required for further gains #Stay Safe Disclaimer: The views expressed here are personal and not connected to SYFX Treasury Foundation. The views are for learning and reference purpose only.
NSE:NIFTY
by SYFXTF
CONCEPT OF TWIN TRENDLINES - A BULLISH CASE CONCEPT OF TWIN TRENDLINE Long term wealth is generated through capture of trending move in a stock. The skill is in reading the chart and determining whether the trend has commenced. There are several means which are widely used to find the trend:- -Oscillators -EMA and its slope. -Darvas box -HH & HL market structure -Formation of pivots -Elliot Wave All above methods are effective and can be used to take trade. However, to effectively time the trade I have put forth this concept of twin trendline. This is not a holy grail and several variations of this concept can be seen on the charts. The cardinal rule for following twin trendline concept is that the price shouldn’t have broken the previous swing low on weekly charts for a bullish long. At times price breaks the box only to fall back in the box. It is not necessarily a false breakout but price needs more time to complete accumulation thereby preparing for next move. Twin trendline works best in such cases. This concept with its variations is applicable on all timeframes and on all asset classes. The twin trendline works most of the time but sometimes when the correction is deep even triple trendlines can be seen. The price before trend reversal goes through motions of divergence, basing, retracement and time corrections. The stock alternates between time and price corrections within the box. After an extended price correction or retracement the price moves along the trendline thereafter to give a breakout from the first trendline to form a false higher high structure and later only to continue the trend along second trendline. (See above example) The example of exide industries chart classically depicts the twin trendline concept. Reflex point (WILL ELABORATE SEPARATELY AGAIN) is penultimate point on the first/second trendline which needs to broken for establishment of trend. When price is consolidating a reflex point can be seen along second trendline. This point then forms a crucial pivot to understand the turn around in the price structure. In instant case of Exide industries 215 is the crucial resistance level(False HH) which needs to broken and sustained till the price reaches the mean of pitchfork ie around 240 levels. This will definitively give a HH structure for the stock. Confluence of factors – Box being broken which should be with momentum and on volumes, reflex point on second trendline being broken, the price touches the mean of pitchfork, formation of HH structure.(One needs to monitor the period of time for all these happenings). Time to take trade. It is felt after this price correction there may be a time correction wherein price may fall back to the box. A doji/hammer followed by a weekly green candle would be a time to take trade for capturing long term move or big move. RSI. On both monthly and weekly charts is pointing northwards which is sure sign that stock should catch momentum. It is found that low priced stocks take time to catch momentum burst which happens only intermittently. The angle of twin trendlines also matter to understand the geometry of vibration as to whether the stock is trending. Acute the angle longer it will take to catch momentum, obtuse the angle faster will be the move. The time spent in the box is also a measure for trend qualification. Sometimes extended time correction in the box is owing to bad results, overall directionless market, sector rotation or some bad news. When stock is in momentum the price at times crosses the reflex point on first trendline only to continue the trend. Summary - Watch market structure of twin trendlines, wait for price to cross reflex point on second trendline, price should form HH structure, validate it through pitchfork, wait for retracement back to box, wait for candle sticks pattern of a doji and momentum candle on weekly chart to take trade. Views Welcome Regards Disclaimer : This post is for educational purposes only
NSE:EXIDEINDLong
by upendravisal