November 11, 2016

Market outlook

Daily charts
- trend is down on daily charts
- today, island reversal effect kicks in
- markets close 3% in negative
- AD obviously negative, VIX up 12%
- so now we have 2nd weekly close below 8500
- trend remains down ... till it reverses.



5 min charts
- break of initial trading range was sell signal
- cover at close


7 comments:

  1. so it means NIFTY ,bnf both r sell on rise ,bsce bnf is still bullish .there seems to be divergence between the two .so now if nifty creates a lower swing high below nifty 8700 it should be sell ?

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  2. Sir Bullish Island Reversal or Bearish Island Reversal??

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  3. Replies
    1. So Bearish Island reversal means that Bearish trend is going to reverse ? or the Bullish trend has reversed to Bearish

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    2. No... this means trend will remain down. Island reversal means the trend will reverse.

      However I would like to add an exception to this... that the markets are trading within the range of the master candle so the internal movements can be ignored by experienced traders.

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  4. Sir
    What's your view on bank nifty ?

    ReplyDelete
    Replies
    1. Posted at http://www.vfmdirect.in/2016/11/bank-nifty-weekly-charts_13.html

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