Rajandran R Follow 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 and Co-Creator of Algomojo (Algorithmic Trading Platform for DIY Traders)

Nifty Positional Long and Short Based on TRIN

December 18, 2008 32 sec read

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Chart Shown here is the Nifty chart in comparision with 10 day SMA of TRIN.

Red Line – TRIN

Blue Line – Nifty

Here is a simple view for you when to initiate positional longs/shorts based on 10 day SMA of Trin

Initiate Positional Shorts if 10 day SMA of TRIN crossed above 1.0(Overbought)
Initiate Positional Longs if 10 day SMA of TRIN dips below 1.0(Oversold)

check here for 10 day SMA Trin Charts for nifty

In short a rising Trin signals that the Bears are beginning to take control. Likewise, a falling Trin tells us that the Bulls are taking control of the direction of the market because a falling Trin shows us that more volume is flowing into advancing stocks than declining stocks.

And Current trin setup shows that there is a rising trin towards 1.0 which shows that
bears will be visible in couple of days.