Trading with Median lines is a system and a leading indicator suitable for Swing trading.I am following this strategy for Nifty and Bank Nifty with good results.Those interested to trade with Charts and Price action to analyse target price, support and resistance levels will find this strategy very interesting.

Feedback welcome!Happy trading...

Friday, May 6, 2011


30 min chart
Trade probability 1- Case for Long trade - Short term
Down Swing - 5892-5444=448 points.Trend - Down
This will have to be short term counter trend Long trade as Pitchfork is sloping downwards .

My trigger for a long is a price cross at 23.6 % levels of the swing considered which has happened today at 5499.The price can reverse down to test the Swing low.If so, will enter a long at 5485 levels with a stoploss of 25 points , just below the Swing Low .After that price moving forward can hit resistance levels at 5590-5620 levels.Which is at the Red median line.
Trade Probability 2
Price moves forward to 5620 without trying to test the swing low.
1.Price meets 5620 levels , moves down to 5570 which will be my Short trigger level.My entry for Short will be at 5600-5580 levels.Target1 will be swing low of 5470-5440 levels.
2.If swing low at 5443 levels break, then earlier projected levels of 5300-5350 will be the target 2.

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