Wednesday, May 27, 2020

When to expect a big move in the market

Today i spent little time on noticing when does the market makes a big move.

I found below main patterns (Checked on BankNifty)
  1. When there is an unusual silence or no move for 1-2 days.
  2. Unexpected Big move against market trend.
  3. Near Support and Resistance levels 
We should never trade blindly and
  1. Always use technical indicators to confirm the move
  2. Use appropriate risk defined strategy to trade the move.

Silence and Big Move

The Circled point shows how a big move came after period of 1-2 days silence.



Unexpected Big move against market trend


Support And Resistance Line

References

  1. https://www.elearnmarkets.com/blog/nr4-and-nr7-trading-strategy-setup/

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