Nifty: Chart view & key takeaways...!!!

2020年4月29日

Nifty

Not so long ago on 18th April we had highlighted that staying above 20 day EMA will increase the chances of testing 50 day EMA in the next 14 days. Not that we have reached there but we are very close to it. In case you missed, you can follow the link below

It did give a scare by dropping below 20 day EMA but next day itself it recovered. We were able to spot that the breakdown was a fake breakdown and adjusted our trading strategy accordingly.

Although we are still to cover some distance, here are some live current examples where the hypothesis worked out very well.



1 DAX, Germany chart - a picture perfect trade

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2 Taiwan - it tested 50 day EMA before time. Could not survive the 3 day confirmation. Fell down towards 20 day EMA, took support and regained energy to reclaim 50 day EMA on the 14th day
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Dow Jones - again similar to Taiwan index was ahead of it's time . Regained strength and came back to conquer 50 day EMA on the 14th day.

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Hangseng - a little bit tricky but again on time to conquer 50 day EMA on 14th day



Not 1 but 4 charts are in front of you. The point I am trying to highlight here is you don't need any tips or any insider info to make money. Charts can be your biggest source of information provider. They do try to communicate with us. They try to tell us a lot. Are you ready to listen...???


What's my view on Nifty going forward...

- we are reaching at a zone which has multiple resistance now

Important levels on the upper side 9627 / 9685 / 9735
Important levels on the lower side 9493 / 9452 / 9396 / 9325

In best case scenario, over the next 2 months there is a case of Nifty heading towards 10200-10435 levels.

- Understand this is not a buy recommendation for tomorrow. In all the above 4 charts Dax, Taiwan, Dow Jones, Hangseng notice the re-testing of 20 day EMA. So plan to buy only on dips towards 20 day EMA . That will provide better risk::reward ratio.

- Trading is all about probabilities and managing your risk. Identifying levels which provide good risk::reward ratio


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2 key takeaway leanings.

-- Moving Averages are less effective in a sideways market but when the gap between 2 Moving Averages is significantly large that's when M.A can be your best friend. (for beginners - 5 day, 20 day, 50 day, 200 day Moving Average are most common)

- 3 day confirmation - with over 14 years of observation can tell you that most of false breakout / breakdown give up within 3 days. If it can survive beyond those 3 days you have a stronger confirmation and a higher probability of a winning trade.


There you go. Note it down... Make your own diary & keep learning

Getting a lot of request for presence in telegram. Thank you all for showing the interest and support.Will surely consider & keep you guys notified.
You can always connect me here at tradingview.

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