T4J, What is the significance of Daily GFZ? I tried searching the original thread and also here, but not finding answers. Appreciate if you can explain or point me to the right place.
I am not sure! But I think we can use the daily GFZ to keep a lower target upto which nifty can possibly go in case there is a downtrend.
Suppose nifty started downtrend yesterday. As per 30 mins, nifty can go upto 5026. But as you must have seen previously, sometimes nifty does touch the GFZ bottom, but then it continues on the GFZ border for the next few candles, some of the candles being extremely long ones (For extreme bearish situations).
As mentioned in today's GFZ data, 4666 is the daily GFZ bottom. Now in the situation mentioned above, you will be sure ... ok nifty is going down sharply, but then we will have a support at 4666. As seen in daily, the volatility of nifty's price along the GFZ band is limited in the daily GFZ chart when compared to the 30-min chart. So the probability of nifty going below 4666 is limited (I am not saying it will not go still lower).
Also, we can make note of this fact and go long with more lots than usual if the daily GFZ bottom is hit.:lol:
So it is always wise for a trader to keep this information under the belt so that you can utilize it when situation arises. Thanks T4J for regularly posting it.:thumb: