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Buy sell decision? If the current price is above 1X4 trend line i.e. 8767.94 in the above table then trade will sell for target of 1X1 trend line i.e. 8797.75 and final target 1X16 trend line i.e. 8820.70.
If the current price is below 4X1 trend line i.e. 8782.32 in the above table then trade will buy for target of 1X1 trend line i.e. 8754.58 and final target 1X16 trend line i.e. 8737.83 What the trader will do if all targets are achieved? In This case the trader have to derive the price reference for 2nd cycle by changing the opening price with the final target price of the 1X16 or 16X1 trend line . Below table explains the 2nd cycle price points for uptrend and downtrend.
Second cycle uptrend
|
|
|
|
Price |
|
|
|
|
|
Price Range |
|
|
86.25 |
8820.70 |
86.25 |
|
|
|
|
|
Degree |
Degree Factor |
Resis tance |
|
|
Degree Factor |
|
|
|
16X1 |
86.25 |
0.48 |
95.38 |
8866.40 |
1X16 |
86.25 |
0.48 |
77.58 |
8783.53 |
8X1 |
82.5 |
0.46 |
94.97 |
8864.23 |
1X8 |
82.5 |
0.46 |
77.95 |
8784.97 |
4X1 |
75 |
0.42 |
94.16 |
8859.93 |
1X4 |
75 |
0.42 |
78.68 |
8787.91 |
3X1 |
71.25 |
0.40 |
93.76 |
8857.81 |
1X3 |
71.25 |
0.40 |
79.05 |
8789.41 |
2X1 |
63.75 |
0.35 |
92.95 |
8853.62 |
1X2 |
63.75 |
0.35 |
79.80 |
8792.44 |
1X1 |
45 |
0.25 |
90.96 |
8843.44 |
1X1 |
45 |
0.25 |
81.67 |
8800.28 |
1X2 |
26.25 |
0.15 |
88.98 |
8833.68 |
2X1 |
26.25 |
0.15 |
83.56 |
8808.51 |
1X3 |
18.75 |
0.10 |
88.20 |
8829.89 |
3X1 |
18.75 |
0.10 |
84.33 |
8811.92 |
1X4 |
15 |
0.08 |
87.80 |
8828.02 |
4X1 |
15 |
0.08 |
84.71 |
8813.64 |
1X8 |
7.5 |
0.04 |
87.03 |
8824.33 |
8X1 |
7.5 |
0.04 |
85.48 |
8817.14 |
1X16 |
3.75 |
0.02 |
86.64 |
8822.50 |
16X1 |
3.75 |
0.02 |
85.86 |
8818.91 |
Second cycle downtrend
|
|
|
|
Price |
|
|
|
|
|
Price Range |
|
|
86.25 |
8737.83 |
86.25 |
|
|
|
|
|
Degree |
Degree Factor |
Resistance |
|
|
Degree Factor |
|
|
|
16X1 |
86.25 |
0.48 |
95.38 |
8783.53 |
1X16 |
86.25 |
0.48 |
77.58 |
8700.66 |
8X1 |
82.5 |
0.46 |
94.97 |
8781.36 |
1X8 |
82.5 |
0.46 |
77.95 |
8702.10 |
4X1 |
75 |
0.42 |
94.16 |
8777.06 |
1X4 |
75 |
0.42 |
78.68 |
8705.04 |
3X1 |
71.25 |
0.40 |
93.76 |
8774.94 |
1X3 |
71.25 |
0.40 |
79.05 |
8706.54 |
2X1 |
63.75 |
0.35 |
92.95 |
8770.75 |
1X2 |
63.75 |
0.35 |
79.80 |
8709.57 |
1X1 |
45 |
0.25 |
90.96 |
8760.57 |
1X1 |
45 |
0.25 |
81.67 |
8717.41 |
1X2 |
26.25 |
0.15 |
88.98 |
8750.81 |
2X1 |
26.25 |
0.15 |
83.56 |
8725.64 |
1X3 |
18.75 |
0.10 |
88.20 |
8747.02 |
3X1 |
18.75 |
0.10 |
84.33 |
8729.05 |
1X4 |
15 |
0.08 |
87.80 |
8745.15 |
4X1 |
15 |
0.08 |
84.71 |
8730.77 |
1X8 |
7.5 |
0.04 |
87.03 |
8741.46 |
8X1 |
7.5 |
0.04 |
85.48 |
8734.27 |
1X16 |
3.75 |
0.02 |
86.64 |
8739.63 |
16X1 |
3.75 |
0.02 |
85.86 |
8736.04 |
The above example is being taken from the 18th March 2015 nifty future data. This is also the proof of the success of this trade.