This weekly profile chart of the Nifty future shows a buildup of Tpo's at 6185-6200 , and relatively light at the bottom.this meant that the market was top-heavy at the start of the week and should have auctioned to the lower end at 6124 which it eventually did.
The purple zones are the value areas where the market found acceptance or traded 70 % of the time that week.
At yesterday's close we were within the value area created in the week beginning 27th Dec. This would give the market an 80 % probability of auctioning till the lower end of that value area or the pink / brown lines of 6040-6020 as shown.
Only a strong volume move above yesterday's level of 6124 given in this post here will erase that possibility.
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For our budding profilers, a technical picture posted on V2.
what I understand that from that weekly profile chart is that once came below 6195 (VAH) - one could have shorted anywhere as eventually it will hit 6020 (VAL) - it has already come till 6047 and maybe today it will hit 6020? interestingly shai has given a long call around 6068 for 6106/28 - that means a whipsaw trade? and from there it will continue moving down?
@ Janak,
Larger TF is always right.,,and it pays to look at the Pounds instead of the pennies.
Thank fully we are back on the right side...
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