The chart presented illustrates the comparison between the Nifty index and the 10-day Simple Moving Average (SMA) of the TRIN (Trading Index).
- Red Line: Represents the TRIN.
- Blue Line: Represents the Nifty index.
This visualization offers a straightforward approach to determining the optimal moments for initiating positional trades based on the 10-day SMA of TRIN:
- For Positional Shorts: Consider taking a short position when the 10-day SMA of TRIN crosses above the 1.0 mark, indicating an overbought condition.
- For Positional Longs: A long position may be favorable when the 10-day SMA of TRIN falls below 1.0, signaling an oversold situation.
To explore the 10-day SMA TRIN charts for Nifty, follow the provided details.
In essence, a rising TRIN indicates increasing bearish control over the market. Conversely, a declining TRIN suggests that bullish sentiment is gaining strength, as evidenced by higher volumes moving into advancing stocks compared to declining ones.
Currently, the TRIN setup is showing an downward trend indicating a bullish trend overall in the short to medium term.