"Biggest money is made in the markets with divergence play, both positive & negative".
Negative divergence results in quick money as fear spreads very quick and the falls are always sharp and they are generally sudden.
Now, we should look for a positive divergence to develop for a short reversal..
Nifty after falling sharply at the open, rallied to the resistance zone suggested @5025-5050 and resumed the fall to close at the lowest level. Have you sold at the resistance zone..???
This 5 minute chart has proved the efficiency of channel trading and a minor negative divergence at the top to boost your confidence to sell the rally...It leaves us with few options once again..3 options confuses, two would have made it easier. We should know by morning how many are left.
Resistances can be picked out of this tech table ....4990-5015-5070. Last support around 4920-4930.
6 comments:
Dear Ilango Sir,
How do we pick up the Resistance and Support Levels from the Table
With Regards
Sathya
Hi..Sathyamuthie,
Once Nifty trades below the 5-ema, the high ema becomes its resistance. Besides the 5 day avg acts as intra day resistance along with 10 DMA once Nifty closes below 5 avg.
You combine these with some channeling works, you have good trading levels.
sir which is the best software to track live charts,I couldnt see the nefative at 5030,can u guide me.
In a single word.... " Your work is really beautiful"....
Go ahead boss...
Thanks & regards,
www.nifty-with-ghosh.blogspot.com
Hi..Satya,
Under "Market Statistics" section in my blog, there is this link for "Nifty Intraday charting".
http://www.nsetracker.blogspot.com
I watch Nifty movements through this page only, though there must be better "intraday charting software" in the market such as "icharts.com"(Rs.350 monthly), Quotetracker.com(free but delayed by a minute).
I am adding a chart to this post itself to point to you the negative divergence spotted in this downtrend in yesterday's intra rally which should not be missed. I have always stressed the point that "Biggest money is made in the markets with divergence play, both positive & negative".
Negative divergence results in quick money as fear spreads very quick and the falls are always sharp and they are generally sudden.
Now, we should look for a positive divergence to develop for a short reversal..
Hi..Shirshendu Ghosh,
Thank you.
Thanks for clarification sir
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