Tuesday, October 9, 2012

Nifty Astro Technicals Momentum play

Stochastic movements in different time frames could give us clues to the immediate market moves.
See chart above. There is a negative divergence and the daily 9 period slow stochastics is getting ready to move down.
Look at the chart below:

The 5 min stochastic is pretty over bought. Now when it starts reacting downwards from the high that is when a short trade could be thought of.Confirmation will come when the previous bar low is taken out.

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