NIFTY INDEX trading can be made easier with the help of trading patterns.
Trading patterns are charted form of the fluctuation in market which changes the share price over a period of time. This trading chart patterns varies day by day.
It is categorized into three types
Trend days – this trading pattern indicates the upward and downward movement of the market. The impact of news and events on daily basis can change the market either bearish or bullish. The up or down trend usually does not exist for more than two days.
Reversal days – when the stock reaches a high price on a trading day and then price reduces it is known as reversal trend. These price hikesare termed as shooting stars or hammers on daily nifty chart.
Range days – it is otherwise termed as consolidation. This trend follows a trend day pattern and does not have any significant changes due to market sentiment.
Understanding Nifty Trends
The trend is NIFTY options and NIFTY future can be figured with the help of online calculator when the data is entered. The market scenarios is divided into three which are common
On the below chart we have demonstrated the three dimensions of the market.
The first is range bound market – where the market will not break neither high or low but the trade happens on a particular support and resistance.
The second is bull trend, which is leaded from the range market trend. the bull trend always makes the market to reach higher and higher price.
The third is bearish market-The bear trend starts where the bull trend ends. the bear trend always makes the market lower and lower price. This cycle continues there on.
The bull and bear market are primary trend. The range market is high volatile market, which is considered to be unsafe to trade on. The range market varies on long pace in short period. IntradayTrading is based on the market trends and technical analysis help to study these trends and use wisely. Enrich market hunt trading software to provide these charts facility. It is also important to note that market does not always move on trends, professional trades adapt to the market trending to make profits.