CHART-II
- Nifty Futures hits the channel top.
- Confirmation of a break from this pattern can be confirmed only when spot nifty reaches 200 DMA. We shall see how nifty spot behaves near its 200 DMA.
CHART-I
- Nifty futures 4 hour chart with price moving towards the top of the channel.
- If today's GAP does not fill then bulls will have an easy path towards 5640 - 5650 level.
Hi San,
ReplyDeleteCan you please explain me why we shouldn't look @ EMA's on daily charts for 50 & 200 MA's ?
and why are we looking only @ DMA's for 50 & 200 ?
On NIFTY SPOT Daily charts are above 200EMA, even though 50EMA still didn't crossed 200EMA bullishly... can we assume the situation will be bullish hereafter ?
Correction: *On NIFTY SPOT Daily charts, NS value is above 200EMA,
ReplyDelete@Mehar
ReplyDeleteAs far as longer term MA's are concerned it is a personal choice. As you watch charts for months and years you will be comfortable with certain settings. If EMA works fine for u that's great. I am using Simple moving average in daily charts and EMA's for intraday charts.
EMA's are little faster than SMA so EMA can get extra points. But i still believe 200 SMA is watched by more people than 200 EMA. So the psychological effect of 200 SMA is larger hence more effective.
Thanks San.....
ReplyDelete