The wise old, founding fathers of Technical Analysis had written ages ago that the Price likes to move along the line of least resistance. With so many resistance levels lined up overhead no wonder that Nifty wanted to move down, where it was least likely to encounter any problems! Nifty opened with a gap up and looked strong throughout the day. At one point it looked as if today’s gap was not closed we would have a small bullish Island Reversal! Well this was not to be, and we gave up the gains we had held so steadily till 3 p.m. We closed the gap too. Maybe all this was profit booking or like I said earlier, maybe this was indeed the path of least resistance! Above we have the 5 minute and Hourly chart. The 5 minute chart is adequately marked showing today’s moves and patterns. Look at the hourly on the right. If you remember in yesterdays post I had mentioned that the falling 50 period EMA (blue) is likely to provide resistance to the price and push it back to the comforting hug of the 20 period EMA (green). It looks like Nifty did just that today. We have a cradle support on the hourly chart. On the daily chart shown below we have a shooting star. The roadmap as suggested yesterday still remains, albeit the move up looks laborious and tiring! At the risk of sounding repetitive, I would say the Price needs to discover its Path of Least Resistance or make one!
Belief like any other moving body follows the path of least resistance.
Samuel Butler
Daily chart trendlines(Channel) shown is good!
ReplyDeleteWe should rise to 4500 levels! or pullback to 50 EMA in coming days! Right!
What option do you use from Investbulls for real time data?
ReplyDeleteBaby Pips was nice link to clear some basics. Your page has been a learning experience!
Once doubt you said you are full tim working, then how you look at intraday charts? or you just analyze them EOD only?
Man4urheart Hello,
ReplyDeleteI am happy that this blog is useful to you. After all we are sailing in the same boat and learning from each other.Ok now to answer your question about me working full time.I am in business of fresh flowers. So I start my day at 4 a.m. and I am done with my flower trading by 9 a.m. This gives me ample time for the markets.
Yeah I do analyze intra day action while doing some office work.If I see a very convincing set up I do day trade but I really don't like day trading.Its exciting but then it has been my nemesis.Its just that after lot of attempts at day trading I realized that I am not temperamentally suited to day trading.Why do I analyze the intra day charts?They give me practice to see patterns unfolding and identifying trade setups in smaller time frames.After all the very same patterns also unfold in higher time frames.So you can say I am doing net practice!
Anything else I can do for you?I will be glad to help.
Regards
Hey! nice to know you! And thanks for answering my doubts!
ReplyDeleteI am full time IT Consultant in banking space! I cannot analyze Intra day and also found that it is not for me!
I started looking at 60 Min chart to take a more deep view to daily to check my position entry since last week!
I do position/Swing trading as they call it!
I wanted to know more about Investbulls real time data. What are you using they have 4 options for intrday data? Any Experience?