September 6, 2010

Price and moving average of NIFTY

  • This post is to show a simple trading method of price crossing a major moving average works.
  • Sometimes it is as simple as the cross over on the left side of the second chart. But sometime it takes one or two attempts before price takes a new direction.
  • In this case nifty has given a whipsaw But if the high's are not taken out in a hurry another test awaits the moving average. 
  • As shown in the first chart price violated the supporting trend line once. But if gets violated again then price may cross the moving average.

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