December 10, 2015

NIFTY futures intraday charts

- first box defines initial range
- break below box immediately attracts buying
- first arrow shows buying signal
- another buying happens on break below small line

Note in above setups, the downside break is usually a sell signal. However the next bar closes very nicely above the high of the previous down bar. This is a strong indication of buying happening.

On a ten minute chart, the candlestick would have looked like a "pin bar" or hammer. Infact, I have another post on pin bar trading strategy.

Hourly chart:

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