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...

Wednesday, January 11, 2012

11.01.2012 Wednesday

A dull day with range bound movement . As expected a mild tug of war between bulls and bears trying to test each other's support and resistance levels.
Earlier in the morning the 5 min chart indicated a double top where I entered a Short for intraday.
Price moved further sideways out of the blue Median line channel .The breakdown did not happen .Instead price went up further , tested the LMLH and reversed down again.The mood is of indecision on both sides I presume - bears want to go down but bulls are still gunning for an upmove till 4900 .We'll know which side wins tommorrow.
My bias is a retracement towards 4830-4800 level before the next upmove.This corresponds to Fib R % levels 4835 - 4807 ( 23.6 % and 38.2 % R of low on 8th january to today's high.
So holding shorts also for short term to manage the retracement.

5 min chart

60 min chart

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