Saturday, August 20, 2011

Head and shoulder ..reversal signal

yesterday I passed  ..
kailash123p (8/19/2011 9:40:35 AM):  when market opens gap down ..there are three possibilities..
1 trade in range
2 fill the gap means recover
3 fall more...
so wait and watch for direction...
Have a look on Dow chart  ..opened gap down ..moved up to fill the gap..created by gap down opening..last close level worked well in both directions..first resisted  for up move and secondly  acted as support to stop fall ..
In this move head and shoulder pattern was created ..and Head and shoulder pattern worked well ..200 points fall was noticed  from the level of neck line...


Nifty too moved up after gap down opening but negative inflow of news ..take it to southward direction..

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