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...

Sunday, September 11, 2011


Daily Chart
Last weeks price action - Made a low earlier in the week and zoomed above median line and has closed near the median line at 5059 levels.
For a long term upmove the retest of low of 4720 is expected.So next week the price can attempt to go down till 4850 - 4800 levels.
Trade Outlook : Sell at 5120-5150 levels for targets 4850 levels and lower
.So beginning of week expect the price to move up to retest the swing high .
Stoploss for sell will be at 5160.
SAR - 5175 for targets 5400 levels.

Hourly chart projections

Charting the hourly with the median lines , with the momentum of the last days move , price can attempt testing 5000 levels , bounce back to 5100 - 5150 levels and then fall down further towards 4850.If it breaksout of 5175 after touching 5000 then upmove can be expected upto 5400 levels.
Trade Plan:
1.If price reaches 5100-5150 levels on Monday / Tuesday then,

1.a.Sell sept futures at 5120-5150 levels + Sell PE 5200 at 5120 levels - SL 5160.
Target 4850 ...Stoploss 5160. SAR 5175
When in profit by 50 points close PE 5200 and sell PE 5000.

2.If price reaches 5000 levels on Monday / Tuesday then,

2.a.Buy Sept futures at 5000 levels + Sell 4900 CE at 5000 levels - SL 4950
Target 5100-5150..Stoploss 4950. SAR 4940
When in profit by 50 points close CE 4900 and sell CE 5200.

Maximum points for stoploss to be 25 points per combination.

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