Sensex Analysis Part II
Let's look at following charts, it should give us some idea about where is the market headed for next 6-12 months. In every chart below, top chart represents BSE Sensex (dark brown line) and bottom charts represents McClellan Summation Index (dark blue line). The thinner lines on both charts represent either MA (simple moving average) or EMA (exponential moving average).
How to Identify Market Direction: (Observations)
1. McClellan indicator (dark blue line) and BSE MA1(100) (thin blue line) are moving in same direction
If we want to follow a more simpler system then simply follow option "2" shown above.
Where to find this chart???
Unfortunately, you cannot find both the charts above at any website. No website offers the charts we need for free. But not to worry, as we have created the charts in next section which is updated on daily basis after the market close, Simple eh!
If you are only going to follow Option "2" above to keep things simple then you may want to use below link for updated BSE Sensex Chart:
In next section, we can view actual charts and see historical performance.
1. McClellan indicator (dark blue line) and BSE MA1(100) (thin blue line) are moving in same direction
- Every time McClellan indicator (dark blue line) crosses McClellan indicator EMA2(59) upwards, its our BUY signal
- Every time McClellan indicator (dark blue line) crosses McClellan indicator EMA2(59) downwards, its our SELL signal
- Every time BSE Sensex (dark brown line) crosses BSE MA1(100) (thin blue line) upwards, its our BUY signal
- Every time BSE Sensex (dark brown line) crosses BSE MA1(100) (thin blue line) downwards, its our SELL signal
If we want to follow a more simpler system then simply follow option "2" shown above.
Where to find this chart???
Unfortunately, you cannot find both the charts above at any website. No website offers the charts we need for free. But not to worry, as we have created the charts in next section which is updated on daily basis after the market close, Simple eh!
If you are only going to follow Option "2" above to keep things simple then you may want to use below link for updated BSE Sensex Chart:
In next section, we can view actual charts and see historical performance.
