Bollinger Bands, Moving averages and patterns if applied correctly can provide amazing trade setup and can indicate starting of a trending move which can be useful for intraday traders as well as swing traders.
We use any and every technique that carries ability to provide good trade setup. Elliott wave and Neo wave are advanced concepts of technical analysis but by using patterns, Bollinger bands and Moving averages as well one can derive very prudent trades. Look at the below chart of Nifty with the applied methods:
Nifty hourly chart:
In the above chart you can see clear patterns. The first pattern is the wedge shaped upward sloping pattern. During the formation of this pattern the Bollinger bands continued to narrow down thereby providing squeezing behavior and later on there was a big expansion. This was the confirmation that a strong trending move is emerging. Also during trending move on downside we can clearly see that prices continue to move between the lower end of the bands and also the 10 days Moving average.
Similar development was seen later when Nifty formed a Flag pattern. Break below this pattern was again associated with strong trending move on downside along with Bollinger bands expansion and prices clinging towards the lower end of the bands and the moving average. It is only on break above the moving average we get an indication that the down leg is over and retracement is starting.
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In the latest training on Master of Technical analysis (MOTA) held on 20-21st July many such methods were discussed with very specific rules that can be followed immediately which will help increase in taking some amazing trades. Even the stock selection algos were created.
Do not miss the opportunity to learn the most advanced methods of technical analysis in the upcoming training scheduled on 3rd – 4th August 2019 at Hotel Radisson Blu on Elliott wave, Neo wave, Hurst’s Time cycles combined with Ichimoku Cloud. Know more details here