In My last article, I mentioned about trading budget and market related to budget. In this one I will shed light on the stocks in my radar screen which I feel would provide some trade opportunities post budget.
Banknifty future from chart above looks like making a head and shoulder formation which is in its last leg of forming the right shoulder (which it should, to become a valid pattern). As per the chart above 19450 is tough line of resistance for bulls only once this level is sustained close basis the next up leg shall begin, till that the bank nifty is sell on rally and around 19000 there is a strong support from where it becomes a buy towards this resistance again.
Yeah, if you believe that I am good at writing controversial articles, I can’t say no. But while doing so, I try to expose real face of the markets and some of the most used conventional wisdom which is nothing but just a useless trap. Today let me stir a bit on Chart patterns and why the so-called “Patterns” are useless to make money. Before doing so I would like to warn the average reader that chart patterns are useful only if you’re making money out of it or else throw them away.
If you are a regular reader of my articles, then you know “I hate technical indicators”. They are a derivative of price action, nothing more than a mathematical complex paralysis. My clients frequently question me-“Hey do you use any indicator”? Most probably my reply will be no-because majority of you guys know, I am a pure Price action trader!
Dow Theory is one of the most important trend following theories ever. As market evolved, the concepts of Technical analysis became more elaborated and complex, most essential foundation was forgotten in the Market literature.Even with much complexity nothing beats the Dow Theory on odds and logic. It’s around for over 100 years and still important as it is, even today
Anyone who loves to track NSE FNO Futures and Option Charts on the move is quite easier now as we provide our readers access to all the NSE FNO Futures and Option Charts (includes stock options too) with a base interval of 5min. Currently Charts supports Multiple timeframes (5m, 10m, 15m, 30m,60m,120m,240m, Daily,Weekly) which generally favors DIY FNO traders.
If Nifty Future remains below 8295 Future level the bears are in control and market is weak for more correction. The supports at 8180 and 8060 the upside potential will open up once nifty future sustains above 8295 this will make bears exit the shorts and above 8370 we expect a big rally again to begin.
If there is one thing that bugs a lot of market participants is the credibility of the Technical Analysis and understanding whether is it useful or not in actual application.Here I am trying to map out the exact myths and facts of Technical analysis in simple terms which might help us to grasp the key points.It is not the first time such a debate is proposed under the table.