March 17, 2015

NIFTY intraday spot charts

- markets break out from yesterday's range (first big box)
- intraday previous day's resistance become initial support for the day
- note first big bar... this was buy bar (first arrow)
- breakout above second box failed indicating warning
- reverse trade to short on break below second box (second arrow).
- retest and break of day's low  but overlapping bars near supports
- breakout above 3rd box was bullish (third arrow)...

In all these, look for candlestick behavior which indicates or hints at failure of current trend to move or price action happening contrary to trend. For eg., within an uptrend, look for events like candlesticks showing selling at higher levels (upper tails - these were prominent in second box).

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