Sunday, May 24, 2015

Sensex Trading Range - 22-05-2015

Most of the time, the Sensex trades between and around x,y & z.

Whenever the Sensex crosses above all 3, a correction sets in sooner than later and vice versa when the Sensex goes below all 3.

This technique has been back-tested for the last 5800+ trading days with consistent accuracy.

During periods of sustained rallies and extended corrections - the 3 variables - x,y&z stood as signposts for probable Sensex levels.
When the Sensex manages to hold itself above all 3, keep the trailing stop loss at the highest of the 3 variables - x,y & z.
Similarly,when the Sensex is below all 3, the variable immediately above the Sensex acts as a Resistance for the index.

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