NIFTY CHANNEL TRADE SETUP
Updated
NIFTY EOD 03/05/2016
DETAILED REPORT AT
amgonifty.wordpress.com/2016/05/03/nifty-eod-03052016/
On the trading day of 03/05/2016 Nifty opened gap up & quickly surged through our X – X line & went up to 7889 where it had a resistance of our 250% Fibonacci level & rest is the story. So we guessed the complex correction correct. Any one carrying longs must have profited. But after the rise to go short was critical decision as this rise has not even hit 61% fib retracement level of fall from 7991 to 7777. But the grid helped me a lot.
Since I have found out this grid for budget rally same grid is helping me to take good trading decisions.
Nifty intraday low was 7735 & close in lower range.
Key points to remember now:
1> Nifty broke 7780 fibonacci grid level & closed below it. So stop loss for small positional traders will be 7780 + 10 points above it is 7790.
2> If you see my midterm chart then nifty has broken the red channel lower line. So this is an important guide line for me.
3> Now supports which are apparently immediate are 7717 which is gap area lower line then 7680 then 7630 then 7590 then 7516.
4> Any move of nifty above 7780 now will call for a fresh look at the chart.
DETAILED REPORT AT
amgonifty.wordpress.com/2016/05/03/nifty-eod-03052016/
On the trading day of 03/05/2016 Nifty opened gap up & quickly surged through our X – X line & went up to 7889 where it had a resistance of our 250% Fibonacci level & rest is the story. So we guessed the complex correction correct. Any one carrying longs must have profited. But after the rise to go short was critical decision as this rise has not even hit 61% fib retracement level of fall from 7991 to 7777. But the grid helped me a lot.
Since I have found out this grid for budget rally same grid is helping me to take good trading decisions.
Nifty intraday low was 7735 & close in lower range.
Key points to remember now:
1> Nifty broke 7780 fibonacci grid level & closed below it. So stop loss for small positional traders will be 7780 + 10 points above it is 7790.
2> If you see my midterm chart then nifty has broken the red channel lower line. So this is an important guide line for me.
3> Now supports which are apparently immediate are 7717 which is gap area lower line then 7680 then 7630 then 7590 then 7516.
4> Any move of nifty above 7780 now will call for a fresh look at the chart.
Note
NIFTY EOD 04/05/2016: REPORT AVAILABLE AT : amgonifty.wordpress.com/2016/05/04/nifty-eod-04052016/
On the trading day of 04/05/2016 Nifty opened gap down as expected as nifty closed below 7780 yesterdays. So morning only it has given 60 points if we are short yesterday. Then nifty made intraday high of 7749. Today was again a neo wave pattern observed which diametric bow tie shape pattern. Which resulted in good short trade after completion of G wave & brake of red trend line as shown on chart.
Key points to remember now:
1> Nifty broke 7741 fibonacci grid level & closed below it. So stop loss for small positional traders will be 7741 + 10 points above it is 7751.
2> If you see my midterm chart, nifty has broken the red channel lower line. So this is an important guide line for me.
3> Now resistances which are apparently immediate are 7717 which is gap area lower line & 7741 which is our fibo grid line. Then next targets can be then 7680 then 7630 then 7590 then 7516.
4> Any move of nifty above 7741 now will call for a fresh look at the chart.
Note
NIFTY EOD 06/05/2016: REPORT AVAILABLE ON amgonifty.wordpress.com/2016/05/06/nifty-eod-06052016/
On the trading day of 06/05/2016 nifty opened gap down at 7695 & further made a new low exactly at our 200% Fibonacci level which 7679. Then for whole day nifty was in uptrend.
On one-minute chart I am observing a neo wave symmetrical 9 leg pattern. If we are correct in identifying the pattern, then index should fall in coming session from intraday high which was 7737 which was 4 points below our imp Fibonacci level 7741 which will act as resistance now. For me key level to watch is index crossing 7780 again & then only index will show strength to rise further. Till that time sell on rally approach seems to be working fine for positional traders.
To trade the index on intraday after gap down or gap up is really difficult task as in last week we have seen almost 3 neo wave Elliott patterns one was diametric diamond shape, then was diametric bow tie shape & today is probably 9 leg symmetrical. All these patterns are really difficult to day trade as these patterns cannot be guessed prematurely unless you are a professional Elliott wave analysist.
So to trade these days we have to have hold on Fibonacci levels & trade with them with conviction with searching the possibility of low risk trade.
Key points to remember now:
1.> Nifty touched our target of 7679 & did not brake 7742 levels on bounce back.
2.> So next target on down side which are open now 7631, 7588 & 7516
3.> Any upside can be seen when index brakes 7741 then 7780 first.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.