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 6192+ trading days [since January 1991] 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. This technique is slightly finer than Bollinger Bands and can be calculated on the EOD data using a simple spreadsheet.
It can be used on any liquid stock, index or future with at least 21 days of EOD data. Inbox me if you like to use this indicator for any stock/index or future of your choice.