Bank Nifty Chart
Bank nifty chart is used to track the live price movement of bank nifty future or index. Bank nifty represents the overall movement of all banking stocks. some of the banking stocks are:
In this chapter, let us see how trend lines help in deciding the break out points. Before proceeding to trend lines, two important terms we need to know are support and resistance lines. Support line is the one which acts as support for the stock from falling further down and resistance line acts as a force to stop the upward movement of the stock. Basically, trend lines are drawn to find the support and resistance of the stock horizontally or tangentially. The line developed up on a connection from two or more candles (highs or lows) is called a trend line. Trend lines are drawn by connecting all highs or lows of a trend. It could be higher highs, lower highs, lower lows or lower highs.
Some of the ways trend lines can be drawn are:
* Trend lines can drawn by connecting high highs
* Trend lines can drawn by connecting high lows
* Trend lines can drawn by connecting lower highs
* Trend lines can drawn by connecting lower lows
* Parallel trend lines are the another way of predicting the break out for a trend
* Some of the patterns like triangle can be predicted using trend lines.
There are also many other types of trend lines that can be drawn on a nifty chart resulting in tangential connections. Using trend lines in combination with other indicators might produce great results.
Posted on: 2016-11-25 16:23:13 Updated on: 2016-11-25 16:23:13