There is a well known saying that in investing you shoul buy when others are selling and sell when others are buying. I feel it is true in some sense for trading the bottoms or when looking for entry for a trade.
Nifty got sold off aggresively on 12th Nov and it tested the 20 hourly MA on 60 min charts. The index was down by more than 1% in one hour. The breadth was totally skewed to declines. It seemed that the market will move down from here.
But well Nifty is now above more than 2% from those levels. So what seemed like selling/shorting point was in fact the buying point for the next rally.
There were many indications for the same. Major one was holding of the 20 hour MA on intraday charts and the quick reversal form the down candle. Second one was that the Nifty never broke down form the first Support pivot on that day. Moreover there was a perfect hammer candle on 15 min charts.
Altough I do not usually see charts below the 60 min but some times the action in 15/30 mins do provide a real good view when the market is at crucial support levels as Nifty was at 20 MA support on that day.
This shows the convergence of multiple signals which become powerful to trade.
Nifty got sold off aggresively on 12th Nov and it tested the 20 hourly MA on 60 min charts. The index was down by more than 1% in one hour. The breadth was totally skewed to declines. It seemed that the market will move down from here.
But well Nifty is now above more than 2% from those levels. So what seemed like selling/shorting point was in fact the buying point for the next rally.
There were many indications for the same. Major one was holding of the 20 hour MA on intraday charts and the quick reversal form the down candle. Second one was that the Nifty never broke down form the first Support pivot on that day. Moreover there was a perfect hammer candle on 15 min charts.
Altough I do not usually see charts below the 60 min but some times the action in 15/30 mins do provide a real good view when the market is at crucial support levels as Nifty was at 20 MA support on that day.
This shows the convergence of multiple signals which become powerful to trade.
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