June 3, 2016

Nifty June 2016 Trend Overview – Top Down Approach

If you are trading any charts to get a clear view about the trend it is good to start with Dalton’s Top Down Approach. In the top down approach we will start the day by looking into the monthly, weekly and then daily to understand the overall state of the trend. From top down approach one can understand the state of long term trend, intermediate trend, short term trend and gives you a fair perspective about the market rather than doing a bottom down approach. Lets understand the state of trend with Nifty Spot Charts and the sentiment associated with it.

Nifty Monthly Charts

Monthly timeframe tracks the state of long term trend. Nifty Spot on the monthly charts is on one timeframing mode i.e in the last 4 month nifty is consecutively making higher high and higher low so far. It should be noted that previously nifty spot is in downtrending one timeframe mode for almost 6 months till Feb 2016 followed by a strong trend reversal on the monthly charts.

The Current One timeframing setup is quite alarming and doubts the continuation of the up-trend and the current uptrend could be limited/capped. Potentially we could balance in a larger range. Sentimental indicators are holding positive so far.

Read more at http://www.marketcalls.in/futures-and-options/nifty-trend-overview-top-approach.html

About Rajandran: Rajandran is a trading strategy designer and founder of Marketcalls, a hugely popular trading site since 2007 and one of the most intelligent blog in the world to share knowledge on Technical Analysis, Trading systems & Trading strategies.

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