- Nifty after breaking out above 5604 is giving confusing signals.
- But the above charts suggest a trade between 50 and 200 Day Moving Averages.
- A bigger move can be expected when either of these levels get violated.
- For levels one should watch out 5604. If price stays above this level Bulls are clearly strong. They should cross 200 DMA @ 5750 and head higher.
- Closing below 5604 will favor bears.
- DOW JONES WEEKEND UPDATE
GOOD CHARTS, SIMPLE PRECISE
ReplyDeletei am trading using 50 simple moveing average.but some times s/l was biggers.in combinaction with 50 what moveing average line i have to watch to get perfect trand.your charts was good.
ReplyDelete@vinayak
ReplyDeleteAlways use a combination of indicators or moving averages. Dot use too many of them. If you use only 50 DMA you will either have a big profit or a big loss. and many whipsaws in between So you should try to develop a balanced system. A system should be suitable to your style and you should test it out with many different setups. For example if i get a breakout above 50 dma i may use a trailing stop loss in hour chart like a 50 Hour moving average or a 20 Hour moving average.
Finally something which is successful for me may not suit your trading personality at all so you have to find and test the setup which is suitable for your style of trading.
Thanks