What does the most basic indicators Foretell
[11/05/2009 07:20:00 AM | 5 comments ]

5/13 EMA most basic indicators applied to Nifty weekly charts. And the crossover of 5/13 EMA gives
buy or sell signal.
 
5 EMA - Blue line
13 EMA - Red Line
 
If 5 EMA(shorter time frame) crosses 13 EMA(longer time frame) Buy Signal is produced
If 13 EMA(longer time frame) crosses 5 EMA(shorter time frame) Sell Signal is produced
 
In Bull Market 5 EMA and  13 EMA will act as support and in bear market 5 and 13 EMA
will act as resistance.
 
For time being Nifty is trading below 5 EMA Weekly(4839) and 13 EMA Weekly(4785). So nifty could face resistance at these levels as per 5/13 EMA principle. The Ideal strategy for investors should be in cash and traders can short nifty until nifty to sustain above these levels
 

5 comments

sriganeshh said... @ November 5, 2009 at 8:41 AM

Rajandran,

//In Bull Market 5 EMA and 13 EMA will act as resistance and in bear market 5 and 13 EMA
will act as resistance.//

i think there is typo error as it should be in bull market 5 and 13 ema will act as support...

sri

mahis said... @ November 5, 2009 at 10:12 AM

hi raj

good one.

rashmi said... @ November 5, 2009 at 11:29 AM

dear rajandran,thnx a lot fr ur call on aban,i exited around 1600 levels,now its over 1200 so does it qualify fr a buy
regds rashmi

Rajandran said... @ November 5, 2009 at 5:36 PM

@Sri Ganesh.
Thanks for the correction its done now

Rajandran said... @ November 5, 2009 at 5:40 PM

@Rashmi... Its rather good to miss a rally
rather getting strucked at higher levels.
Lets wait and watch how the market behave near the
4785-4810-4840 Zone's Lots of resistance need to be broken so that we could think about buying stocks.

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