Bollinger Bands, Moving averages
and patterns if applied correctly can provide amazing trade setup and can
indicate starting of a trending move which can be useful for intraday traders
as well as swing traders.
We use any and every technique
that carries ability to provide good trade setup. Elliott wave and Neo wave are
advanced concepts of technical analysis but by using patterns, Bollinger bands
and Moving averages as well one can derive very prudent trades. Look at the
below chart of Nifty with the applied methods:
Nifty hourly chart:
In the above chart you can see
clear patterns. The first pattern is the wedge shaped upward sloping pattern.
During the formation of this pattern the Bollinger bands continued to narrow
down thereby providing squeezing behavior and later on there was a big
expansion. This was the confirmation that a strong trending move is emerging.
Also during trending move on downside we can clearly see that prices continue
to move between the lower end of the bands and also the 10 days Moving average.
Similar development was seen
later when Nifty formed a Flag pattern. Break below this pattern was again
associated with strong trending move on downside along with Bollinger bands
expansion and prices clinging towards the lower end of the bands and the moving
average. It is only on break above the moving average we get an indication that
the down leg is over and retracement is starting.
Get access to the Intraday calls
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portfolio that will outperform when the broader market cycle turns positive. See more details here
In the latest training on Master
of Technical analysis (MOTA) held on 20-21st July many such methods
were discussed with very specific rules that can be followed immediately which
will help increase in taking some amazing trades. Even the stock selection algos
were created.
Do not miss the opportunity to
learn the most advanced methods of technical analysis in the upcoming training scheduled
on 3rd – 4th August 2019 at Hotel Radisson Blu on Elliott wave, Neo wave, Hurst’s Time cycles combined with Ichimoku Cloud. Know more details here
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