By Waves Strategy Advisors, For more information on daily research reports on Equity, Commodity and Currency visit www.wavesstrategy.com or write to helpdesk@wavesstrategy.com
Trendlines and Channels are one of the very basic concept of technical analysis but at the same time extremely crucial.
Any advanced technique cannot be used in isolation by ignoring these basic important concepts. The below chart of Nifty was published on 17th May 2013 in “The Financial Waves” daily research report. The report also showed different plausible scenarios:
Nifty weekly chart:
Wave Analysis:
The above chart clearly shows how well trendlines and channels have been working on Nifty. Prices have been taking resistances on the extended trendline since late November 2009. Thistrendline has been successful in halting the rally of January 2012, entire rally of Jan 2013 also halted just near this trendline resistance and prices are now again approaching towards the same line.
The entire fall of 2011 was also perfectly channelized and if you try drawing trendlines and channels on daily chart you will get amazing results that need little explanation.
Case in point: Advanced technical concepts should not be used at the cost of basic very important techniques that work very well in this complex trading environment.
The above article is picked from research report “The Financial Waves” of 17th May 2013 that shows how we are combining the basic techniques along with Advanced concepts like Elliott waves. For more information on subscribing to this daily research report that has Nifty and 3 different stocks write to helpdesk@wavesstrategy.com
.png)
No comments:
Post a Comment