High Pitch Momentum Set Up Can You Understand ?

 High Pitch Momentum Set Up Can You Understand?


 



NIFTY and BANK NIFTY

Movement is becoming Crunchy.

Volatility has been for falling every day, every week, every month and for last couple of years.

At point of time Annualized Volatility was over 30 and today Nifty Annualized Volatility is 16.60.

Daily Annualized Volatility is now 0.87 which squeezed movement regularly with occasional spike, but it dies out back to falling manner.

As a result of which purely intra-day traders may have to look for various time frame to get into movement to get directional movement very early.

In current context may have to use 3 min and 1 min charts.

New Trend always start from Oversold and Overbought conditions.

or from Positive/Negative Divergence on indicators.

By default, we talk and indicator RSI. Other indicators can be used with similar logic.

Further trader can user Traditional Pivot Levels Standard as Developed by Wilder.

R1-R2-R3 and S1-S2-S3 to be used.

In Conjunction with the overbought and oversold.

Further Lagging Indicator confirming the reversal.

Dow Theory - Reversal Concept needs to be applied. Identify Lower top post oversold and post positive divergence.

FOR HIGH PITCH MOMENTUM

RSI enter overbought zone and Lagging confirms in 2 ways. Lagging Crosses Zero line and Lagging Crosses it averages.

The same can be applied to various timing.

Keep flipping time frames.

Keep managing risk well.




For further information and training can communicate











Comments

Post a Comment

Popular posts from this blog

Near term to Short Term Negative Divergences

Image
  NIFTY MICRO CAP 250. at critical point Currently 18900 is critical by the end of the week it has been tested fall and close today or by end of the week can extend the correction to 16814 cmp-19097 Daily chart RSI nearing oversold Dynamic Trend and Lagging Trend currently down therefore support is under pressure. hourly chart of NIFTY MICROCAP 250 in oversold NIFTY MICROCAP 250 morning high crossed on closing time then could be pullback resuming for micro-cap. under performance seen in micro-cap. small cap market RS dropped sharply. if the recovery has to happen then now in 1-2 days for scap  NIFTY TOTAL MARKET INDEX pattern on hourly not encouraging could be bearish breakdown. recovery from low seen in NIFTY TOTAL MARKET INDEX. RISING WEDGE A BEARISH PATTERN only pullback surely objective is to book profits apart from intra-day trading of up and down or 1-2 day trading of up and down Negative Divergence also well in place for NIFTY TOTAL MARKET INDEX
Read more

Oversold /Overbought

Image
 In oversold- on any time frame. Sentiment are weak. Fear. Market in doldrums. mindset. Feeling of unlikely to recover - deeper deeper levels- pessimistic mindset develops In Oversold drag continues down. Later develop positive divergence and still some drag down till reversal is not witnessed by lower top cross over Oversold on hourly oversold happens frequently. Oversold Daily may be once in 2-3 months Oversold and Oversold Exit becomes opportunity. In Oversold good to get ETF or index based stock. In Oversold Exit good for trading pullback or new trend in that time frame Overbought is euphoria and over optimism. Generally, lead to fall towards oversold. 
Read more