Nifty P&F analysis - Non trading zone!!

Non trading zone!!

Date: 23rd Dec 2014

Nifty last closing price: 8267

Daily chart

Figure 1 is 10 box value chart plotted with daily closing prices. Low pole has been formed above trend line which is a bullish pattern. But this is not the signal to trade. Positional traders need to wait for next basic signal to be formed and avoid trading till then. It is very important for a trader to know when not to trade. Charts indicate non trading zone.

1 Min Chart

Figure 3 is 5 box value chart plotted with closing prices of every minute. Retracement to down leg has happened. Recent Triple top buy signal has been negated and a sell signal is triggered that opens count of 8075 for short term traders. This count will be negated if Nifty trades above 8300.

There are opportunities for short term traders but trend on all time frames is not the same. Sometimes it is important for a trader to stay away and wait for a favorable setup to be developed. Merry Christmas to all!!

Figure 1: Nifty daily 10 x 3 cl Point and Figure Chart

Figure 2: Nifty 1 min 5 x 3 cl Point and Figure Chart

 -  Prashant Shah, CMT, CFTe

Disclaimer:
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.