Hi all,
I want to share an info that worked for me even on today's (5-May-2015) Nifty trading
Nifty opened at 8350.10 and at 9:25am, Low was 8335.60 and High was 8363.10
Later it went upto 8397.50 (dayhigh) and came back to 8309.15 (Daylow). I can say that it came down to hit Average(SMA & EMA). Want to know why and how?
SMA = 8302.83 & EMA = 8337.54. Please note that EMA was covered in the morning as low was 8335.60. At that time, the average 8320.19 wasn't covered..
So know that either EMA or SMA is hit, Average of EMA&SMA will certainly hit..I have noticed this in other day too. Just before hitting R2, Nifty came down to hit average(EMA & SMA). Once you saw EMA or SMA hit, you can keep the Average as target and go for a trade. In my opinion, there is little risk involved..
You can check my Excel Lite version at http://blog.wayanad.co.in/downloads/ and know how it worked today..I have added EMA, SMA, Fibo pivot, resistance and support levels, Williams %R indicator etc. to show light for any Nifty newbie.
Image updated after the fall of Nifty on 6-May-2015