Nifty Point & Figure analysis: Triangle at Anchor Points!!

Triangle at Anchor Points!!

Date: 17th May 2015

 

Nifty last closing price: 8262.35

 

Daily chart (Medium - Intermediate trend)

Figure 1 is 10 box P&F chart plotted with daily closing prices. Nifty observed strong supply and turned down exactly from 8330 level of Mini-top discussed in the last post. Mentioned that charts are neutral and I expect column consolidation which is what actually happening. Figure 2 shows that there is no trade signal in last 3 columns. They remain neutral at the moment with triangle formation in making. It will generate buy signal above 8330 and sell signal below 8120. Positive breakout in current column of 'X' will also form of Double top buy after Low pole that will open much higher counts. Trend is down being below 45 degree trend line and active lower count of 7930.

 

Basic signal after such kind of consolidating columns are worth taking. My observation is also that first breakout after such columns often prove false or witness sharp pullback. But idea is to follow every basic signal after breakout which should eventually give us directional move in favor. Chances of failure of first attempt are increased if more time is spent in the range (column consolidation) and when columns are wide.  

 

1 Min Chart (Short term trend)

Figure 3 is 5 box P&F chart plotted with closing prices of every minute. Trend is up on this time frame with open counts up to 8330. Trade above 8275 will trigger triple top buy.

Figure 4 and 5 are showing Anchor Points on daily and 1 min charts respectively.

Period on daily chart is of last one year for Anchor point. It is drawn from current top of 8830 on lower time frame. Anchor points are basically price levels where maximum activity is seen in that period. Both time frame Anchor points are around current levels where price has seen strong supply pushing back the prices. Breakouts will be interesting.

Trade is coming.. basic signals are tools!!



Fig 1: Nifty dly 10 x 3 cl Point & Figure chart




Fig 2: Nifty dly 10 x 3 cl Point & Figure chart



Fig 3: Nifty 1 min 5 x 3 cl Point & Figure chart



Fig 4: Nifty dly 10 x 3 cl Point & Figure chart



Fig 5: Nifty 1 min 5 x 3 cl Point & Figure chart

 

-  Prashant Shah, CMT, CFTe

 

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