The broader market, CNX 500, on this 2-day timeframe (I had to use this timeframe as the platform doesn’t accommodate complete data on daily timeframe and identified some surprising structure) when Momentum Indicator, RSI (standard 14 period) breaches below 25 and turns up that indicates the end of the market crash, and the beginning of a new uptrend. Of course,...
ED occurs at the end of an Impulse. Falling volume in wave e is an additional sign of loss in momentum. An actual price reversal is needed to confirm the pattern in the coming days.
NIFTY500 QUARTERLY CHART
As marked by the ellipse, the mentioned levels have acted as resistance in previous two occasions & is likely to see some profit booking going forward in NIFTY 500 INDEX.So a caution advised.
Its only my observation & not any suggestion or recommendation.
Unfortunately, less importance is given to this index by the community.
May be because we do not have FO segment for this broader index.
Things will change though, as India is shining.
Best to watch it for study purposes.
This is an attempt to visualize. BMI which is having largest domain of the Indian Stock Market.
As disclosed in the chart drawing, I feel, it has broken the zone and now testing the same.
It is worth watching the indices for study purpose.
Since the year 2000, when NIFTY 500 was born, the last peak was always touched before upwards and onwards. That is the entire living history of NIFTY.
NIFTY 500 is the broadest perspective of the market, so there's a 90% chance your stock is in this index.
This time, it's different?
RSI has shown a descending triangle - upward breakout
TSI has already given a +ve crossover and now has moved over the 0 line
Similar signal in KST Indicator
Waiting for action signal on NIFTY500 is must before long entry is made
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DISCLAIMER: I am not a SEBI...
Nifty 500 is a large domain index, it tend to guide overall sentiment of the Indian Market. Will be watching it approaching an important support zone twice.
Add ADX with 14 period
Add 20 SMA
Watch for these to setup trade
ADX above 30 level (manually add 30 level)
Price above 20 sma
Wait for a pullback that touches 20 sma
Place a buy stop above the high of the candle that touched the 20 sma
Stop Loss below the 20 sma
Take Profit up to you
TP can be price crossing below 20 sma
TP can be a 1 x 2 risk reward ratio
TP...
