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Mar 7, 2017

3 Indicators To Help On How To Trade In Nifty Futures [Video]

In this article, I am going to share how to trade in nifty by using 3 simple and powerful indicators on a technical chart.

Do you use too many indicators, oscillators to identify the trend?

Then watch this video, on which I have briefly explained the Nifty future movements from the recent uptrend which started in January 2017.

Which will help you take right decision to know whether Nifty is a bullish or bearish trend?
How To Trade In Nifty Futures Tutorial

After watching this video you will see how simple it is to know the trend of Nifty and take your decision on how to trade in nifty.

So which are those three indicators that can help you identify the trend?

  • Bollinger band
  • Parabolic stop and reverse dots
  • Relative Strength Index 
I can provide weekly trend for your chosen stocks with nominal fee check it here

Bollinger Band

This tool was invented by Jhon Bollinger, this is plotted by two standard deviations away from simple moving average.

The price of the stock is bracketed by two bands that are upper and lower band with 21-day simple moving average.

When volatility falls to low levels then it forms squeeze and becomes narrow, which provides an opportunity to take the trades based on squeeze opening.

Which could result in a positive or negative trend of chosen stock. 

Parabolic Stop And Reverse Dots (PSAR Dots)

This is a popular indicator which most traders use to identify the future short-term movement of a chosen stock.

This tool was invented by Welles Wilder, he calls this tool as Parabolic Time or Price system. 

As per mathematical terms, this is known the exponential rise and when Parabolic advance is identified as advance or bullish trend.

When these dots form above the candlesticks it indicates that the possibility of a trend reversal.

And dots are formed below the candlestick then we can see the possibility of an upper trend.

When this is co-related with Bollinger Band, it makes it easy to identify the trend.

Relative Strength Indicator 

This tool was developed by Welles Wilder as a momentum oscillator which measures the speed and change of price movements.

RSI is considered overbought when it crosses 70 and oversold at 30 levels.

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