Nifty:Retracement or Reversal....

Hi,
Game is still on between bulls and bears. Still can't decisively say that these are just retracements or reversal signs. But yes in short run we had an intermediate bear run from 4700 to 4200 approx means 500 points rally. This may turn to further weakness below 4200 if broken but on weekend it managed to stay above 4300 crucial mark indicating bulls have something for the next week.

(PS: basically what I mean by support n resistance is that you get wick/shadow or body bounce of 10 min candle from your lvls, not all the time u get lvls exact but if you are lucky enough to get then always go heavily for it as I do....this is the first test of support/resistance calculated by any method second test is that if support broken it should act as resistance on the respective time frame) hey btw please add your observation too in comments, will be glad to hear that coz i love experimenting and may be i can add something to your methods....so what r u waiting for make it a two way process...

Ok going by last post we have 2 swings from 4300 support of 50 and 70 points each. But nifty couldn't hold 4300 long and breached the support to test next support of 4230. See charts 4300 support acting as a resistance when broken. I loved trading in this range. Honestly most dramatic move was on last hours of Friday. It breached 4230 but couldn't extend further losses and later in the last hour we get a body bounce from exactly 4230 lvls which broke 4300 on upside and also managed to close above it. Now sometimes these are the crucial swings for a day trader like me as it is hard to decide if support/resistance is taken out or not. But if u can observe the charts closely then u can see that once a complete 10 min. candle leaves crucial lvls(i'm talking about support n resistance lvls be it fibs, pivots, moving avg or any other) then most likely it will trend in the direction of candle. Its not exactly some thumb rule but just an observation :) use it at your own discretion. There are many methods to avoid whipsaws like filters but I would like to keep things as simple as possible.



Interpretating above charts if Nifty successfully holds 4390 and reverts back then this time we can head southwards and can break recent lows. I'm just experementing with lvls on both side but yes if it goes in this order its a sort of reversal for sure.

Nifty Retracements

Here we go once again. Everytime when candles around 23.6 retracement people doubt this time its going to break down. My say is that even if we get one more daily candle in upper direction we may see a new high!!! Everytime its V shape recovery from these fibs lvls. Lets see how long can you hold Mr 23.6 (ha ha)


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Happy Trading.