Saturday, March 7, 2020

Sensex Trading Range Indicator + INDUSINDBK,BANDHANBNK & CESC

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 7000+ 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 BollingerBands 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 EODdata.

GenerateChart.png

The following are the charts & levels for  INDUSINDBK, BANDHANBNK, CESC:

INDUSINDBK09-Mar-20
Low Price913.8
X986.5
Z1009.3
Last Close1014.8
High Price1030.95
Y1080.1

INDUSINDBK.png
BANDHANBNK09-Mar-20
Low Price388.15
Z396
X400.3
Last Close403.9
High Price408.9
Y414.6

BANDHANBNK.png

CESC09-Mar-20
Low Price587.65
Last Close592.7
X596.7
Z601
High Price609.9
Y624.4
CESC.png
     

If you would like to use the Trading Range to trade in your choice of stocks/futures, then leave your details here: http://blog.raghavs-picks.com/p/sensex-trading-range.html

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