Bank Nifty Chart
Trading system for all Indian stock market bank nifty future traders using yahoo chart:
- Top chart is for intraday bank nifty trading and the bottom bank nifty chart is for positional traders.
- Note that both of the above charts are related to bank nifty spot.
- On intraday chart, resources provided for trading are moving averages, slow sochastic and fast stochastiv oscillators.
- On positional chart, 200 MA, stochastic indicator and relative strength index are present.
- Moving averages crossover can be taken as buy or sell signals in intraday bank nifty chart.
- If 5 min MA cuts 10 min MA towards the lower side, sell the stock and when if 5 min MA cuts 10 min MA upperside, buy the scrip.
- In other words, if 5 min MA is below 10 min MA, sell the stocks and if 5 min MA is above 10 min MA, buy bank nifty.
- As per stochastics, buy bank nifty future, it the oscillator touches 20 (over sold zone) and starts travelling in the towards 80 level.
- Sell the stock if the stochastic indicator touches 80 (over bought zone) and reverses its direction towards 20 level.
- Both slow stochastic and fast stochastic oscillators has the same formula but only difference that movement of slow stochastic is less when compared to fast stochastic.
- Follow same rule for RSI indicator also except that oversold zone to be taken as 30 and over bought level as 70 instead of 20 and 80 as in case of stochastics.
- It is important to note that combination of an overlay (Moving averages) and a lower indicator (slow stochastic or fast stochastic) gives us the best result.
- Positional chart has a single moving average of 200 min instead of 2 moving averages as in case of intraday bank nifty chart.
- As long as the stock price is above 200 min MA, it is in bullish phase and when scrip dips below 200 min MA, one can expect fall in the stock.
- Stochastic and RSI indicators act same as said above for intraday bank nifty chart.