"Everyday is a new day" goes a saying.
This is not exactly true in stock market!
Every morning appears to be a fresh day but it is not so in reality.
In reality, it is the contiuation of the painting it was drawing the previous day, rather, since last few days.
The overnight global happenings only distort the picture with temporary hikes or dips.
.....
Just imagine you draw a long up and down snake on a paper from left to right end.
Now draw four vertical lines from top to bottom at equal distance on the paper, dividing it in 5 equal parts.
Each of this section represents one day's graphical movement.
The graph of every new day seems to be continuing more or less from where it had left yesterday!
The new day's graph is like another piece of the bigger jigsaw puzzle being added.
5-day intraday graph is the best tool to predict or estimate the likely movement of the price today!
Go to (http://www.google.com/finance?q=NSE:.NSEI), click on 5d and you will see what i am talking about.
Just remember, all price movements happen like waves, like a ball moves bouncing forward.
Just like the bouncing ball touches the ground at single point after some distance, each wave has to move on pencil heal bases! Expect and anticipate these pencil heal bases.
The continuation pattern of 5-day chart alongwith the anticipated touch-down points can estimate the price movement beautifully!
The price movement in the first 1-2 hours of the new day further confirms the estimation.
Also, increase the time period of the graph gradually from 5day to 1 month to 3 month to 6 month....and you will see the amazing continuity.
No comments:
Post a Comment