Last week's close suggested a downward momentum to continue with a close below "5825". However, the Short term TA, with a close above DLEma on 14th, suggested a bounce till middle of this week and market did move upto 5863 on Tue & bounced upto 5828 yesterday and now poised to head lower.
EW's pref. view has been the completion of "iv"th @ 5863 and a move down.
TA, as shown in EOD's trend chart, has been down with Hour TA reaching OB & reversing.
JNSAR traders would experience an adverse gap down which happens occasionally in "Mechanical trading system which should be managed during pull backs; some would have saved their "shorts @ 5791" with a filter @ 5831.
Gap @ 5730-40, if not held, it could head to new lows below 5683 either today or tomorrow.
Weekly channel support is @ 5635 approx.
Strength above 5804(JNSAR/ 200dsma), weakness below it.
------------------------------------------------------------------------------------------Trendlines can be drawn on all "time frame" charts such as month, week, day, hour & minute.
The larger the time frame more valid the supports & resistances.
The correct way to approach this is to know your time frame of trading and adopt it accordingly.
The best way is to keep all time frames side by side and take a cohesive study of them which could give clues to market's choppy actions.
For eg: Just looking at the 5-minute & hour trendlines/ channels, market could bounce many times and may look choppy but if you study it together with a day channel, it would look within that "day trendline" and you will be able to accept those choppiness as part of a corrective within a trend.
How to draw trendlines:
Initially you wait for a higher low to be made in an uptrend and then connect the lowest point to the higher low point. The more points the trendline takes support, more significant it becomes.
Once a high and a higher high is in place, a trendline could be drawn connecting the two highs and then take a parallel line of it to the "low point" to arrive at an alternative support trendline.
Many parallel lines could be drawn to find various supports & resistances. Using one's imagination, creativity, thinking out of the box, the trendlines may be drawn in various ways but they must result in arriving at critical points which should coincide with divergences/ OB or OS nature of TA.
How to draw channels:
When a parallel line of a trendline(connecting the bottoms) is done connecting the tops, it becomes a channel and a trending stock/ index will generally move within such a channel. Break of such a channel may warn us of a weakening of the trend and a new channels may then be drawn and if the new channel too is broken, a trend reversal may be taking place. More lengthier the channel, more significant its break down or break out.
You can see examples of these trendlines and channels in most of my charts. There are no secrets in them except your own imagination and experience.
Finally, use these in conjunction with other TA indicators and if possible Elliott wave possibilities(in fact, trendlines form the most basic & integral part of waves identification), the results will be extraordinary.