Analyze the Nifty Movement and it's Related factors

Here we are analyzing few factors related to Nifty Index or whole  market movement. Or what are the conditions that create a market or index movement. Below are the things we are going to analyze in this chapter.
  1. Things or Factors to Consider for Analyzing Market/Nifty Index Movement 
  2. What are the Condition or factors should be met for a Positive(Upside) Market or Nifty 50 Movement.
  3. The good market condition leads whole market(Index) movement. sometimes sector wise rally leads index movement. And Nifty Technical Factors also influence index Movement
Things or Factors to Consider for Analyzing Market/Nifty Index Movement 

                  Determine the Trend of the Market - Analyze and Determine the current trend of the Market whether is moving Upward or Downward direction. Price creating series of Higher High and Higher Low in Upward Movement and Lower Low and Lower High in Downward Movement.

                   Define Support and Resistance In Various Price trend - In Uptrend(HH HL Pattern), Last Higher High act as Resistance and Last Higher Low act as Support. Like in a Downtrend(LL LH), Last Lower Low act as Support and Last Lower High act as Resistance. In a Range bound Market, Price Retraces and Pullback area known as Support and Resistance.
                   Find Where we are in the trend - In an uptrend, We may be in between Last Resistance and Support. Means in Between Last Higher high and Previous Higher High. Or Last Higher High and Last Higher Low. In a Range bound Market, We may be in the rage or just Out of the Range
Where We Are In The Uptrend
Current Price Trend
Support And Resistance
Above Last Higher High
Price is Moving Upward
Price is Above resistance (Last HH is resistance)
In Between Last Higher High and Previous Higher High
The Trend is Still UP
Price is in Between resistance and First Support (Last HH is First Support and Previous HH is Second Support)
In Between Previous (not Last HH) Higher High and Last Higher Low
The Current Price Trend is in Jeopardy or Exhausted(May be just a Consolidation or Sideways Action after a big Price Move)
Price is in between Below first Support and Second Support (Previous HH is first support and Last LL is Second Support)
Below Last Lower Low
The Current Uptrend is Ended and Price reversed
Price Below second Support (Last LL)

 Advanced Decline ratio
              Look and count the number of Advancing Stocks and Declining stocks in Various Indices Nifty 50 and broader market.
Other Indices and Broader Market
          Bank Nifty, Nifty Auto, Nifty metals and Commodities... etc are Broader market Indices. Nifty 100, Nifty 500, Madcap 50, Small Cap 100, Liquid 15 are other Indices

 Foreign Market Movement like Asian, European, American Market Movement

 Political and Corporate News and Company Results


Comments

Post a Comment

Popular posts from this blog

How to Confirm a Trend Change. Method to identify momentum change

Image
Condition 1 From down trend to Uptrend, At least one higher Low is essential for trend change. And followed by Higher High will confirm the trend change Condition 2 From down trend to Uptrend, Last Lower high in downtrend should break to confirm the trend change.(In the above picture, LH  Just before the Last LL ) Condition 3 1 2 3 PATTERN OR SWING LOW PATTERN CAN BE USED TO IDENTIFY MOMENTUM CHANGE Condition 4 Use trendline Break with above rule together for true result By checking and ensuring the above condition whether the conditions are met or not met will help you to identify the trend change. we ca not get to the conclusion with only one condition above. for example, we can not say that trend has changed if the trendline is breaked
Read more

Trade on Trends and Trade Against the Trend Pros and Cons

Image
Price is always trending. When the price trends or move in a direction, it provides the opportunity to trade. "Understand well the which direction is the price is trending or Moving" is the first step to the success. These major price trend or price movement, whether it is up or down, creates trading opportunities on both direction. IE. In A trending market, it gives 2 side trading opportunity. Trade on the direction of major trend Trade on the Opposite direction of trend Price moves by waves creating swing lows and swing highs (Higher high Lower Lows). Here we know that the Trading on the direction of trend is more easier and smoother than trade against the trend. Below picture shows it more conveniently In the above Picture, Price is moving downwards that's why the major trend is to down. Eventhough the trend is down it felicitate trading opportunities on both side. Trade on Trend and Trade Against the Trend. The Point 1,3,5,7 are the shorting trade poi...
Read more

Distinguish Retracement and Doubletop. trend or momentum is changing or not

Image
In an Uptrend (or Downtrend), retracement will be happened. But At    a point there may be double top indicating the trend change.here are some feature of both to identify the pull back which is a retracement or it is for trend change(Doubletop) Double top only happened on the top of a move. Ie. it happened only after a clear move to up or down. And the point of doubletop will be long in distance for a sideways move or volatility. While the retracement happened in every up move that may happened just above(below) the sideways channel In double top, last resistance will not be broken in up move In retracement, every resistance will be broken in up move In double top, last support may be broken in pull back just for a while indicating trend change In retracement, last support will not be broken indicating healthy trend Double To Usually leads to trend Reversal or Change in Momentum while retracement may not lead to trend reversal In Retracement, Price m...
Read more