A number of events and emotions of traders made Nifty move in opposite direction. In the chart attached it is
touching the LBB in monthly chart. If this LBB has to budge the primary condition is that the MACD signal has to
enter inside the histogram below 0. It has not happened and does not seem it can happen in a month or two as
the signals are far away from 0.
A bounce from here is expected and when the histogram opens above 0 the speed picks up. Timing market is
not easy however by August Market may cross the ATH and this time it will be a new impulse taking it up much above ATH.
A simple method was given earlier here in one of the posts that :
Using Heikinashi candles in daily chart a trend reversal can be identified whenever the candles 2 times below or above 5 sma.
In smaller time frames also it can be used for intra day trades. In smaller time frames read it with MACD to avoid whipsaws.
Another method is for positional trades for indices, scripts and commodities:
Use weekly chart with 5 and 10 SMA. The cross over of these decides trend for months together. For these safe trade entry
the market may have moved up 300-400 points up/down creating a doubt on the traders mind. Back test its behaviour to understand more about it and if any doubt you can post in the comments below.
touching the LBB in monthly chart. If this LBB has to budge the primary condition is that the MACD signal has to
enter inside the histogram below 0. It has not happened and does not seem it can happen in a month or two as
the signals are far away from 0.
A bounce from here is expected and when the histogram opens above 0 the speed picks up. Timing market is
not easy however by August Market may cross the ATH and this time it will be a new impulse taking it up much above ATH.
A simple method was given earlier here in one of the posts that :
Using Heikinashi candles in daily chart a trend reversal can be identified whenever the candles 2 times below or above 5 sma.
In smaller time frames also it can be used for intra day trades. In smaller time frames read it with MACD to avoid whipsaws.
Another method is for positional trades for indices, scripts and commodities:
Use weekly chart with 5 and 10 SMA. The cross over of these decides trend for months together. For these safe trade entry
the market may have moved up 300-400 points up/down creating a doubt on the traders mind. Back test its behaviour to understand more about it and if any doubt you can post in the comments below.