As you can clearly see we have operated this entire week well within the 10960- 10380 range set on the 14th of Jan.
Today the bank Nifty stayed above the 10488 point of control of the balanced profile on the 17th of this month( brown dashed line). Infact it was the low of the day today.
Relatively speaking it was much stronger than the Nifty future which broke below it’s level of 5661 in early action today. The high of the day today was actually the point of control of the profile dated 14th of November ( brown dashed line from 14th ).
Much of what can happen tomorrow will depend on how well the Bank Nifty can negotiate with the seller at 10920-10940.Success here will easily bring 11040 and 11185/ 11270. If the Bank Nifty does manage to do that, then we will be witness to the nifty future flying over the 5750 level.
Both of them are forming bell shaped curves, indicating balance coming back to the markets.Whilst this does not discount the possibility of another sharp spike lower, today’s action does indicate exhaustion of the dominant trend.
If the market needs to go down , it would be new sellers who will have to enter to bring it lower, but any good upmove will put 5745 and 5815-30 back in play.
If you have been studying profile , it wouldn’t have been difficult to figure the 80 points from close to close. Or the fact that we stopped 3 points away from the 5745 level ( why ?) or the low of today was value area high from yesterday ( how ?).
I had posted a chart earlier on the impact value areas have on the motion of the markets.You can find that same chart here
These markets can be tamed and you can be profitable as much as any big institutional player or fund house.
You just have to choose the correct way.
Order Flow charts of today :
Bank Nifty :
Charts need to be read as blue for buyers and red for sellers. More details about OrderFlow are there in last night’s post.
I have received a number of emails on the subject of these orderflows.
I wish to touch on a few points.
1) Even though I use the word “indicator” to describe the OrderfLow, it actually is a trading system designed for trending & non-trending days in the market and even two types of intra-day traders.
2) The Order Flow is actually a trend indicator and one of the most powerful out there.
3) The flexibility we have is our advantage to see both of them work together in live markets and in different situations.It’s like riding this market in 2 “gears”. One needs to use the right gear whilst trading the market
4)The smaller green-pink is for range bound days and the larger Blue-red is for trending environments.Use the lower gear for range bound markets and the higher one for fast paced trending markets.
4) The Order Flow is the general buying and selling of the markets. The Markets are driven in the direction of the larger demand or supply.Since OrderFlow tracks changes to the same, it cannot go wrong.
5) The OrderFlow trend indicator system will work in all markets and every timeframe.The past two days of activity -trending & volatile on friday and non trending & volatile activity of today are the best barometers to check the utility of these systems.