NIFTY ANALYSIS : 26th March 2020

                                   

Here is the Nifty 50 chart of 3 minute time frame.
So, the first thing to needed to start analysis of charts is the opening ,closing price for tomorrow as well of today.

We gonna discuss some important parts of trading that was observed today,

1.) Open Range Breakout
2,) Trading Range
3.) Fibonacci Retracement Levels


OPEN RANGE BREAKOUT

The opening range is the high and low of the given period and its mostly first 30 to 60 
minutes. like here its 15 mins.
The importance of this level is when the price breaks this range, it follows the trend for the next
couple of sessions and its the best time to enter the trade.

Today, the opening range was 8299 - 8468, after it broke 8468 level , reached to 8739 level.
So it showed a movement of  271 points.
So it was worth to enter after it broke mentioned level.


TRADING RANGE


Trading Range is the range of high and low and in between price oscillates  and most of
the attempts fails to come of the range, i.e the breakout from the range fails very often.

Like today, price was floating in between 8752 - 8455 and there were 5 attempts to break the
range but it was unsuccessful.
To enter the trade in such case try to enter at the prices very much closer to the range .
I will cover it in detail on further blogs.


FIBONACCI  RETRACEMENT LEVELS.

A Fibonacci retracement is term refers to the support and resistance levels.
It uses horizontal lines to indicate where the possible support and resistance levels are.
The Fibonacci retracement levels are 23.6 %, 38.2 %, 61.8% and 50% .

But as per my experience tells , 50% and 61.8% levels acts crucially in deciding a support and resistance level

Like in the todays chart,
I have drawn the fibonacci level from 8307 to 8755, as 8307 is the lower price for today and
8755 is the higher price.
After getting these two prices we draw this levels to predict the possible point at which the price
can come, most of the time it comes to 50% and 61.8% like you can see in the chart.
at 8527 i.e 50% level and  8447 i.e 61.8% level. price reverse.
And this happens very often.


Vivek Patel,
Yotube Channel : https://www.youtube.com/channel/UCBlc3B1iGZggU2liMlhqvuA