Trend on
BNF as per
Daily Charts:
- BNF is in a clear downtrend till 27 June 2013.
- The Gap-up and strong close on 28 June 2013, should be considered as a rally in that down-trend.
- The High made in that rally on 02 July is a Lower Swing Pivot High on daily chart.
- If the price now closes above that, we will consider the low made yesterday (04 July 2013) as a Higher Swing Pivot Low.
- Effectively the down trend on daily ends only with a close above 11750.
- (If that happens) After that the market may go on into a sideways zone or start an uptrend . . .
- New higher swing highs & higher swing lows will define the up-trend
- But based purely on historical data, a close above the previous swing high i.e. 12000 (17 June 2013) will put us into an uptrend.
- Now before any of that can happen if we break yesterdays lows (04 July 2013) we just continue with the current down-trend
Edit: Will put up the daily chart after the market
But we can see from the levels its tough to trade these far-off levels, the position sizing considering the risk etc . . .
Then how do we use time frame amalgamation . . .
I consider a Rally on Daily to be equivalent to an up-trend on hourly/30 minutes.
Similarly a Decline on Daily is equivalent to a down-trend on hourly/30 minutes.
Use bigger position sizing when we have a Rally in an Uptrend or there is a decline in a down trend on daily charts.
Happy