Nifty P&F analysis - 'X' controlling all time frames

'X' controlling all time frames

Date: 24th Aug 2014

Nifty last closing price: 7913.20

Daily chart

Chart 1 is 10 box value chart plotted with daily closing prices. Price never came below bullish line in this chart after a breakout in Feb 2014. I mentioned about setup near trendline in last write up. We have got bear trap bullish pattern that has formed higher mini-bottom. Higher counts are activated and open. High pole reversal level is at 7745 at current box.

Hourly Chart

Chart 2 is 10 box value chart plotted with hourly high-low prices.  Anchor Point that we have been discussing has worked wonderfully and actually in a bookish manner. Price bounced from that point and made new high. Non achievement of bearish count was another evidence of reversal. It has formed mini bottom at 7860.

1 Min Chart

Chart 3 is 5 box value chart plotted with closing prices of every minute. Negation of bearish pattern that I mentioned in the last post worked nicely. That was the first confirmation of a trend reversal and indicated a support taken at anchor point of higher time frame (hourly chart). Rally generated higher counts that stand closed (achieved) now. 8055 will be activated if price trades above 7930.

Breadth & Volume Charts

Figure 4 is P&F chart of 10 day average of Advance Ratio. 35 – 50 band works well in this chart and patterns above or below this band give indications. Current setup is bullish and Advances turned up from lower band earlier this month. Figure 5 and 6 are 0.15% chart of Nifty OBV and Accumulation Distribution line respectively. Both charts are bullish and show the volume pattern that support prices.

There is uptrend in all time frames and ticks above 7930 will activate more counts. Bearish signal on lower time frames below 7860 will change the trend for short term traders. Any bullish setup above 7745 is an opportunity to trade long for medium term traders.

Figure 1: Nifty daily 10 x 3 CL Point and Figure Chart Figure 1: Nifty daily 10 x 3 CL Point and Figure Chart Figure 2: Nifty 60 min 10 x 3 HL Point and Figure Chart Figure 3: Nifty 1 min 5 x 3 cl Point and Figure Chart Figure 4: NSE – 10 d SMA of Advance Ratio 1% x 3 P&F Chart Figure 5: Nifty OBV 0.15% x 3 P&F Chart Figure 6: Nifty Accumulation Distribution line 0.15% x 3 P&F Chart

 -  Prashant Shah, CMT, CFTe

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All information provided above is for general information purposes only and does not constitute any investment advice. Company or Author shall not be liable for loss or damage that may arise from use of information provided above. The report is purely for information purposes and does not construe to be investment recommendation/advice or an offer or solicitation of an offer to buy/sell any securities. The readers of this material should take their own professional advice before acting on this information.