Trend Line Shifting Continued......

Hi,
So trend line shifting is one of the nice concept seen at every exchange, be it Nifty or DJIA.
Shifting rules of trendlines are quite handy. You just have to take into consideration 2-3 broad parameters and you'll be done.
1st - You got to know which phase of the market we are in. Like talking about Dow its in the phase of accumulation and after a sustained bullish rally it is seen in the range of 78-7900 to 8000-8100 range. Now point to note here is that when an index or scrip rallies so much it needs to take a breather, so it continues to move upwards or stays in broad upward channel but shifts its bullish trendline to a bit on lower side. See the below chart:


2nd: Its strange but true when everything is going fine bad news eventually fades. Now once we are on bullish trend you'll hardly witness any major blows anywhere in the world. So Indices stays in profit booking sessions and its the best time to mint the market as you can easily make bucks simply by keeping up with the range created by market trading on either side until the major news or event occurs which might shift trendline upward or downwards.

3rd: Shifting trendline is easier and quite obvious through charts. Once the market corrects intraday let it reach its downside limit and once it makes two consicutive higher lows just draw a parallel line which got to be in sync with the previous upside trend line. Same thing holds true when we are in bearish market.

Minting is an Art:
As I said above if you know which phase of market we are its easier than ever to mint money. Here is the intraday chart of 27th April - part of the 5 day chart above. Once you know the range techinicls will help you in minting money. Only you need to be in frame of mind that market is not going anywhere and you know what is happening (easier said than done but its true!)

Note: same concepts can be applied in our loving Nifty too. :)


Hope You Loved Reading It.
Happy Trading.