Wednesday, February 24, 2010

Update on The Ultimate Momentum Signal


Nifty Futures Daily and True Range (TR) Averages 


The Nifty  future is trading absolutely flat nowadays. It closed at 4867.2 points on 28th  January, 2010, the expiry day of January series. Today, the future closed at 4866.1 points, almost equal to the last settlement level.  It hasn't moved much during the month. The above chart also includes a panel

showing the different averages of the daily True Range (TR). The TR seems to be in a  declining trend which also indicates the sideways trading. It is also interesting to note that the TR generally declines during the up trends and increases when there is a downtrend. These diverging movements of the futures and the short term average of TRs are marked by the arrows on the chart.  



The Updated Momentum Signal Spreadsheet 

The updated spreadsheet showing the Momentum Signal as on the close of  24th, Feb. 2010 is given below.
 
The Momentum Signal returned a neutral values for both the future and the index today, indicating the lack of momentum.

 Projected Momentum Signal Close Values

The projected levels of closing values required for momentum shift / neutrality / continuation as on the close  of trading as on 25th, Feb. 2010 are given in the table below. The table also include the projected closing values of BSE Sensex required for momentum shift / neutrality / continuation.

You can click on the table to enlarge. 

 
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