Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in)

Nifty-5EMA-Doji

54 sec read


[wp_ad_camp_5]

 

Nifty Daily Charts chart shows that whenever Doji's are formed in nifty its good to apply the 5 EMA rule to nifty daily charts.
 
Whenever doji's are formed in nifty with a huge difference between the nifty closing and 5 EMA then possibly trend reversal could happen or a sideways movement can continue till the candle touches 5 EMA line. Because it is already proved that 5 EMA
act as a gravitational field in my previous post What could be the reason for Consolidation in Nifty?
 
Currently there is a huge gap i,e (3342-3254= 92 pts) between nifty closing(3342) and 5 EMA(3254). so two types of  patterns are possible
 
1)Either monday Nifty should directly test the 3254 levels to meet 5 EMA line even if nifty opens gap up…..
2)Nifty should consolidate for one or two days around 3300 levels so that 5 EMA line will move towards the candle
 
So how a trade could be intiated at this level on monday?
1) If there is a gap up opening then then there is a good chance to short this market… coz a gap up opening will once again widen the gap between the 5EMA and the candle closing which provides us a good shorting oppurtunity
 
shows that trend reversal could happen any time soon.
 
So a gap up opening in nifty is a good oppurtunity to shorters this monday for a target of 3300 and 3250. Also RSI-2(96.26) and CCI-4(185.6) indicate heavily overbought levels.
Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in)

Nifty and BankNifty 90 min charts update for 16th…

Nifty turns to sell mode on 90 min charts with trailing resistance coming near to the 5500. Similarly Bank Nifty too in sell mode...
Rajandran R
10 sec read

Nifty and BankNifty 90 min charts update for 15th…

Nifty turns to buy mode with cloud supports coming near to 5460-5470 zone. And Bank Nifty still in sell mode with resistance near 10900....
Rajandran R
8 sec read

Nifty Week End Review

Nifty week end review on daily and 90 min timeframe and Nifty Option Details
Rajandran R
32 sec read

2 Replies to “Nifty-5EMA-Doji”

  1. sir, your analysis is great . i am a regular reader of your analysis. it is very helpful in understanding the market.its my first comment. thanks. hitesh dhamecha email; [email protected]

Leave a Reply

Get Notifications, Alerts on Market Updates, Trading Tools, Automation & More