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, January 7, 2011

7.01.11-Nifty's steep fall



The Move of Nifty was really swift and steep today.Expected a small bounce today but the markets makes its own moves.The price moved past 5950 which was the extreme support expected for today and closed at 5888.My shorts were closed yesterday anticipating minor pullback today and alas,I missed a good 50 % of the downmove :-(( .It shows the need to follow my rules and not get swayed due to intraday actions .Learning everyday....

The Lower Median Line is the next support level at around 5850 .This swing down is an exact parallel move of the swing down from 6070 to 5721 .Expecting supports at 5850 levels and on confirmation of entry triggers ie crossing over of EMA's in the lower timeframe and higher time frame , will enter new long positions.

Posted by at

2 comments:

  1. veerJanuary 7, 2011 at 10:20 PM

    Hi Kavima,

    As Nifty daily- some more steam left - if can go down still further-because of two reasons-one as Ilango has pointed out it could be third wave- and the second the way US Doller Index is blasting, it looks to me more bearish- resembling Jan,2008 as one of the visitor pointed out in JN. Let us see. Market is supreme.

    Regards,
    Veer

    ReplyDelete
  2. KavimaJanuary 8, 2011 at 2:27 PM

    Hi veer

    Yes the down move is still on with the bearish engulfing weekly bar and close below W5EMA .My plan is to sell on any rise for positional trades and short term long trades with strict stoploss.If this ongoing swing pattern probability is a symmetrical wave of the previous down wave the targets are 5570 levels.

    ReplyDelete

Subscribe to: Post Comments (Atom)