IMPORTANT POINTS FOR TRADING
- In above chart, one can see that From 24th sep 2012, Banknifty is trading in a broad range of 11250 to 11550 (ignore freak transaction day). On 4th oct 2012 it tried to brokeout from range and made high of 11685 but on very next day freak transaction has loosen the confidence of rally and now again banknifty came back in that broad range.
- So when the banknifty is trading in a range its quit possible that it triggers stop loss or even give a whipsaw in CONJBNSAR. But than one has to keep following and believing in own strategy or system because there by only one can track the big rally.
- Now range has become very narrow. For today Range will be 11340-11390 to 11430-11490. Break down from range will take to 11270---11225---11130 and break out on upside will take to 11550-11590.
- CONJBNSAR for 15th oct 2012 is 11469 and after filteration stop loss for Long position comes to 11400.If it triggers than one should come out from Long position and wait for CONJBNSAR to trigger once again.
- In daily chart Banknifty has made inverse head and shoulder pattern and also broken the neck line which gives target of 12500 in medium term.
NOTE: Banking stock recommendations based on Pair Trading strategy started and detail of its trade diary will be given under tab 'Banking stocks'... Plz observe it for sometime.. and do give your feedback.
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