(Click to enlarge)
IMPORTANT POINTS FOR TRADING
- In above Daily chart one can see that Banknifty is continuously making 'Flag Pattern' within a ascending triangle pattern (one can see 3 flag patterns). what is 'flag pattern'? for that one can read below link http://justbanknifty.blogspot.in/2012/03/flag-pattern-banknifty-daily-chart.html#more Flags are among the most reliable of continuation patterns and only rarely produce a trend reversal" This note on Flag pattern was given when banknifty made first flag pattern in above chart and since than uptrend is intact.
- Hence, two parallel lines of flag pattern act as support and resistance and one can trade accordingly till the time it is correcting within parallel lines and when it breaks out from resistance line new flag is made.
- Now ascending triangle is getting narrow.
- Today on downside banknifty is having a support at 11250 where as immediate resistance will be 11475-11495 zone.
- CONJBNSAR on 26th oct triggered a sell signal @11500.
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