Thursday, January 5, 2012

TRADING WITH TREND LINES

NIFTY HOURLY CHART
If u learn technical analysis, sometimes u can use simple techniques to time entry and exits. If u observe the above chart of nifty when it taken out resistance line 1, it is entry point for target of resistance line 2, which all ready achieved. ( u have to book profit here according to this technique, and wait patiently for next set up to develop).

Now if resistance line 2 is taken out, then what will happen? For answer see next chart.

As shown in the chart it will target resistance line 3.
For all this trades u have to use proper stop losses. Will write regarding stop loss in future.
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2 comments:

suhask said...

Sirji,
The next target should be aroud 4850 tomorrow if 4770 is taken of. On daily chart it has formed higher lows but the higher high is not formed. Let us wait.
Dr.Suhas Kothavale.

January 5, 2012 at 9:54 PM
kolhapuritrader said...

@ suhask, Today as mentioned @kolhapurinifty, it taken out 4630, so now this up move is in danger, unless otherwise 4740-50 is taken out. As shown in above post instead of breaking resistance 2, it got resisted, now it may target support line.

January 6, 2012 at 2:28 PM

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