The Slide Continues !
Due to certain personal matters of unavoidable nature, this post is late and consists of only the basic charts and system update.
Nifty Futures Daily Chart
S&P CNX Nifty Index - Weekly Chart
Tuesday, August 16, 2011
Friday, August 12, 2011
Update for 12th August 2011
An Inside Day Candle !
Yesterday's trading lead to the formation of an inside day candle in the daily charts. Astute traders may note that an inside day candle near the Bollinger Band, and that too after a significant move in any security may, sometimes, indicate a short term reversal. Please read this old post which dealt with the subject of inside candles for more information. However, as matter of abundant caution, it is also stated that these patterns are not foolproof and sometimes these fail too. In case of a reversal triggering, anywhere near the middle average becomes the first target. And in case of the reversal continuing further, the other Bollinger band becomes the next target. Above all, if the pattern fails after triggering a reversal trade, it may indicate the continuation of the previous trend. The daily chart of Nifty Futures given below shows a shaded area as an example of a recent reversal from the Bollinger Band after the formation of two inside day candles. ( Please click on the chart enlarge and examine the previous low. ) However, the short term resistances detailed in the previous post may still act against such a short term reversal, if triggered.
Nifty Futures - Daily Chart
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