Nifty Weekly Patterns.

ANAS asks:
”is nifty making a making an ASCENDING CONTINUATION TRIANGLE on WEEKLY charts , from may 09 till date.??” I request your kind comment.”
My Notes:
I am giving the weekly chart for the Nifty. With some regret, I have to say that I could not identify such a pattern. Have a look at the chart.

Resistance holds on

On the Nifty charts, we have 4950 as a pivot point. This level is part of the lower highs pattern. In order to break the current downtrend, two events are required. 1. The Nifty should make a pattern of higher lows. This has been done. 2. The Nifty should have a pattern of higher highs. This works out if and when the Nifty moves above 4950. Over time, these numbers will change.

The trader can classify the current trend as sideways (one of the two patterns for an upmove are in place) or down (higher highs not made).

In either case, a sign of weakness is a selling opportunity. Keep proper stops.

WIll the markets trend, or will the remain choppy? The trader has to answer this question every day. If there is a trend, apply trend indicators / simple price analysis. If you sense a choppy market, use oversold-overbought indicators to enter and exit.

Trading requires practice, lots of it. It becomes easy when you have done the same thing a thousand times.

If you are a member of the ATA, you will have access to a recording of the presentation made by Robert Grigg, president of the Australian Association of Technical Analysts, which is scheduled for Saturday Feb 20, Please visit http://www.taindia.org/ for more details.

Have Fun!