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...

Monday, February 21, 2011

21.02.11_Monday


60 min chart

Price was supported exactly at the schiff median line support.The price zoomed up as soon as it reached 5400 levels.Now closer to Orange median line the probabilities of Long and Short trades still exist.Will let the price action on tuesday confirm the trend.Price being higher than 50 sma , the Long option is stronger.Also a possible head and shoulder pattern is seen.Break of neckline is at 5600 levels which can add to the momentum.
If it gaps up, enter / add to long position.
If price goes below 5 ema / 20 ema then look out for crossover of 50 sma downwards to aim for the lower targets.
Daily Chart



Looking at the downsloping channel, the swing count is 4 swings only.Normal count is 3 / 5 / 7 swings which makes this major downswing incomplete.The 5th swing will be formed if it touches 5100 levels .Will the price touch the trendline?


2 comments:

  1. Hi Kavima,

    There are some Gartely and Bat patterns visual. Do you study that as well to estimate the probable targets? I am yet to understand those patterns.When pitch fork is undecided, these patterns will help us to decide the probable course.

    Regards,

    Veer

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  2. I have not done any indepth study of gartley projections.Strictly speaking , targets and levels from charts with technical analysis are "predicted" well by many but the success lies in entering and exiting at the right places.I too have a long way to go and learning everyday.

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