Sunday, 5 August 2012

Nifty Trading Range-06-08-2012


Most of the time, the Nifty trades between and around x,y & z Whenever the Nifty crosses above all 3, a correction sets in sooner than later and vice versa when the Nifty goes below all 3. This technique has been back-tested for the last 1300+ trading days with consistent accuracy.During periods of sustained rallies and extended corrections - the 3 variables - x,y&z stood as signposts for probable Nifty levels. When the Nifty manages to hold itself above all 3, keep the trailing stop loss at the highest of the 3 variables - x,y & z. Similarly,when the Nifty is below all 3, the variable immediately above the Nifty acts as a Resistance for the index.
NOTE-Black line is Nifty.

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