Take a look at below charts and see if you can find a common theme! Based on the historical data, what would you expect to happen in our market? Would you BUY now or wait for confirmation!!!
Take a look at below charts in 3 various periods:
- Observe market behavior around MA(100)
- Correspondingly look at McClellan Index before and after trend change
Take a look at below Nifty charts in 3 various periods:
- Observe market behavior
- Correspondingly look at RSI & PPO before and after trend change
We can observe a common theme:
Based on this information what would you conclude!!!
- Before start of any major BULL rally, McClellan index has to move above EMA(59) and Market has to remain above MA(100)
- Before major trend change in Market, we can spot divergences in RSI and PPO with respect to Market
Based on this information what would you conclude!!!