and what do you have to say about the reversals that took please in the time of 12 and 1:30
what are the cause of that sudden breakout...either downward or upward
with in span of 10 or 15 minutes nifty came down around 55 points appx....why does that thing take place....
thats the thing i want to know
for this purpose u will need to know about the patterns the institutional investors / smartmoney follows , and how mass people react to a certain price levels .
it is nothing new , if u look back for last four days it is continuously happening , the difference is that today it was a free fall from top to bottom while in other days it happened from bottom to top .
these days market is range bound i.e., it is moving within a specific support and resistance. it is due to the fact that bulls and bears are fighting for their different causes , bulls are buying at the bottoms i.e., at supports and are selling at resistances .
another purpose of such markets are generally to decrease the volatility of market by making it to move within some specific ranges , as a result the option premium decreases and the people starts writing options and the smart money generally picks these all and gives a direction to the market either by breaking the top or the bottom , and a new trend starts , (in technical analysis such study can be carried out with the help of
bollinger bands and
adx , ) and they harvest all the money .
the market moves in sentiments and emotions , when people see huge selling volumes in market ,and 20-25 point dip in nifty in some few moments , people starts exiting longs and making shorts in panic and result is a free fall as it happened today .
abhi:clap: