How to Know Bull or Bear Market with a Simple Indicator

Dear Investor,

This is the most importance chart you will learn in your investment career. I learned this late in my trading life. You must learn this right. The question you will always have is about how to identify the bull markets.

I have two lines drawn on the following screen. The blue line is a actual NIFTY closing for past 10 years. What do you see? Green arrows are the days when the Crash happened. One of the most fearful days and what did you do then? Didn't you sell your stocks and got out of the market. And just after next day the market resumed its uptrend while leaving you behind.

NIFTY Chart for past 10 years with a 400 day moving average red line

(click on the image to see it bigger)


We sell off because of fear. Stocks move up and down. You need to catch the trend though. Red line above is a trend line. Trend of past one year. Why does the market stop correcting exactly at the 400 day red line? Don't you wonder.

Well, that is the time when the mutual fund owners load up on their stocks and kick you out.

Following is the live link to this chart. Bookmark it and check it every week to make sure we are above the red line. If we are then we are in bull market. You should be less afraid of your stock positions.

http://finance.yahoo.com/echarts?s=%5ENSEI#symbol=%5ENSEI;range=my;compare=

NIFTY CHART

You can use the link check your stocks as well.

Check out the Reliance Chart

http://finance.yahoo.com/echarts?s=RELIANCE.NS#chart1:symbol=reliance.ns;range=5y;indicator=ema(400);charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

I will sharing more details on short term trading once the subscribers reach 500 count. You could help me by asking your friend to subscribe. Forward this email to all your email contacts. Until then we will discuss something else.

Thanks
Anil

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