Saturday, October 8, 2011
Median Lines and Stochastics for finding Trade entries and targets.
Attached is 60 min Bank nifty chart , where the method of finding trades using combination of [B]Median lines, Stochastics and 50 sma[/B] is explained.
The point emphasised is to be on the lookout for a confluence of triggers like Horizontal resistance / support lines with stochastics OB / OS zones and the meeting of price bars at the Median Lines,Upper median lines,Lower median lines .
The trades with entry points with a stoploss point giving a higher Risk:Reward ratio of minimum 1:3 are to be taken rather than with a lesser ratio.