Is the NSE Nifty 50 headed for 1750?
See attached chart below:
Description and analysis of attached chart
If one draws a trendline connecting the three swing lows one gets a upward sloping trendline. Drawing a parellel trendline to this line gives us the target for the upmove.
The trendline is a primary tool of technical analysis and the channel line a secondary one.
When constructing a channel line, it should be drawn absolutely parallel to the basic trendline or at minimum very close to parallel. A channel line sloping at one angle, while the trendline is sloping at another, is not correct and can lead to misleading conclusions.
When drawn correctly, the channel or return line represents the point at which reactions start against the current trend. The trendline and the channel line together define the area called the trend channel or simply the channel.
The failure to reach a channel line provides warning that the current trend is losing strength. If, on the other hand, a stock breaks out of the channel line, it is a sign the current trend is accelerating.
A channel line is a secondary tool to the trendline. When drawn properly, however, it can benefit the swing trader in identifying support or resistance. It can also help you gauge whether when the trend is losing steam or accelerating. Construct channel lines effectively and they can be an important part of your technical analysis toolkit.
Have a question please post them here.
Attn: Technical Analyst: can you please post images of other indices or stocks forming a similiar pattern? I would appreciate if more members would participate in this forum as a community.
See attached chart below:
Description and analysis of attached chart
If one draws a trendline connecting the three swing lows one gets a upward sloping trendline. Drawing a parellel trendline to this line gives us the target for the upmove.
The trendline is a primary tool of technical analysis and the channel line a secondary one.
When constructing a channel line, it should be drawn absolutely parallel to the basic trendline or at minimum very close to parallel. A channel line sloping at one angle, while the trendline is sloping at another, is not correct and can lead to misleading conclusions.
When drawn correctly, the channel or return line represents the point at which reactions start against the current trend. The trendline and the channel line together define the area called the trend channel or simply the channel.
The failure to reach a channel line provides warning that the current trend is losing strength. If, on the other hand, a stock breaks out of the channel line, it is a sign the current trend is accelerating.
A channel line is a secondary tool to the trendline. When drawn properly, however, it can benefit the swing trader in identifying support or resistance. It can also help you gauge whether when the trend is losing steam or accelerating. Construct channel lines effectively and they can be an important part of your technical analysis toolkit.
Have a question please post them here.
Attn: Technical Analyst: can you please post images of other indices or stocks forming a similiar pattern? I would appreciate if more members would participate in this forum as a community.
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