Here's why:
Regular followers of my comments on this blog and on Just Nifty would know the similarity of this chart with the one I posted last Thursday, exactly a week back.
To be noted is the location of the POC very near to VAL and in a downtrend implies that strong hands were buying into the close.So I had to let go of a few shorts...
For tomorrow if we get an open around POC, one can buy for a quick 30-40 points with a Sl just below today's day lows.Remember open has to be around the POC.
Last Friday, the index moved between the two ends of the bracket 5305-5395 and subsequently we have moved the same range all these days up until today afternoon.
I expect the tape to check for unfinished business at the lower end of this bracket (5305 thereabouts).From here it can be value area high or today's lows depending on who prevails.
Below 5260, the high volume POC at 5225 calls.
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5 comments:
thanx viren,
so nice of u that while on move ur giving this chart and ur expert comments.
ur VAH, VAL and POC has changed my style of trading.
keep it doing , we eagerly wait for ue comments.
hi viren
i am a justnifty blogger friend pl today VAH,POC,LAH.
tsrini74@gmail.com
Gm Viren.
Thx for your sugestions.
Dr Saurabh, Musti,
It's my pleasure.
Tsrini,
The purple lines on the charts are the value areas and the yellow is the POC.
Markets seem to have not done anything to justify the late day buying seen yesterday.
Prices have been below the POC from yesterday, implying that sellers have had the upperhand, but it is clear that the buyers have not let go..
I will ideally like to see the bottom of our bracket been tested at 5305 levels ( +/-).
The bracket is the larger value area from the past 2 weeks.
It also implies that prices below the bracket indicate seller dominance from a swing trade perspective.
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