MAGIC OF TRENDLINES

Identifying the technique how to draw trend lines, and channels and using them for entry and exits may be one of easy technique for trading purpose.

NIFTY DAILY

The above chart is daily chart of NIFTY.

(A) When it closed above trend line 1, u can buy with stop loss close below trend line 1, for target of trend line 2. See on 30/3/12 it closed above trend line 1, and yesterday it reached trend line 2 and got resisted there so profit should be booked at yesterdays close.

(B) Yesterday it touched trend line 2 and got resisted there so sell at yesterdays close with stop loss close above trend line 2. This position will be for targeting trend line 1 once again.

POSSIBLE FUTURE TRADES ---

(C) If closes above trend line 2, then buy with stop loss close below trend line 2. Target we may post later on if this happens.

(D) If takes support at trend line 1, buy with stop loss close below trend line 1 for target of trend line 2.


(E) If closes below trend line 3, sell with stop loss close above trend line 3 for target of trend line 4.

 DISCLAIMER: This Blog is meant for sharing my trading ideas only and no calls to be taken as trading recommendation. Visitors please do your own research or consult your advisers for safe trading.