NIFTY Patterns you must watch

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Dear Investor,

Certainly there is not a single reason to be investing aggressively under current market conditions. As if the tide is waiting for earnings reports. Well, It just occurred to me that we have already priced in the earnings growth into the shares prices. Well, I leave it to you to think about it.



Today I want to explain to you a technical indicator called bollinger bands.

These indicators are displayed in green color in following chart. This indicator is very good at detecting the trend change. Please remember only trend change that does not mean uptrend or downtrend. Only indicates trend change that means something new is going to happened to upside or downside. Currently we are exactly at the same spot.

Look above, every time the bands compressed together there was a major trend change. We are on the verge of such a new trend change. It could be up or down. This indicator can't tell that.

Check the Live Bollinger Band for NIFTY

Bookmark the above link to check periodically where does the current trend stand So you know from above chart the trend change is in cards.

Lets try to learn other chart pattern called Rising Wedge Pattern (Reversal)




The pattern created by connecting previous lows with current lows is a lower support line.
The upper resistance line is create by connecting previous high with current high.

As soon as the stock break out below the support trend line a big sell off would begin. This patten is one of the very risky patterns to form. Very few stocks survive this kind of pattern.

Well, all this makes us cautious about current situation. The uptrend is not broken yet. The excitement is reduced and big fight of bulls and bears is going on.

Be cautious. Don't hurry.


Best Regards
Anil


Anil


Thanks
Anil



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LIVE NIFTY CHART (Spot the buy point)

LIVE NIFTY CHART (Short Term)


Disclaimer: Please trade with your own judgment or with the help of investment advisor. We are not responsible for any financial losses.

Stop Loss: Sell Stock if it closes below this price. It tells you that market has proved you wrong. Accept it.