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Buy Signal for Nifty

Discussion in 'Forum Posts Worth Reading' started by amit_taneja1100, Jul 7, 2015.

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  1. amit_taneja1100

    amit_taneja1100 New Member

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    Hello All.I am new to the world of technical analysis. I have just read this ebook.So according to eBook if price moves along with upper Bollinger band and also if Lower SMA crosses upper SMA from below its a buy signal.I have attached 3 month nifty chart which is showing above mentioned conditions. SO does it mean we can go long in nifty or are there any more twists.If yes then what should be tgt and SL.
     

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    amit_taneja1100, Jul 7, 2015
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  2. shabbir

    shabbir Administrator Staff Member

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    Trend looks ok but then it could be faky as well and so try to use stop loss very strict.
     
    shabbir, Jul 8, 2015
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  3. amit_taneja1100

    amit_taneja1100 New Member

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    indeed... it was a fake one....:confused:
     
    amit_taneja1100, Jul 8, 2015
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  4. shabbir

    shabbir Administrator Staff Member

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    :)
     
    shabbir, Jul 9, 2015
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  5. Suresh_Sinha

    Suresh_Sinha Active Member

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    How could you predict that it would be a fake one so early?
     
    Suresh_Sinha, Jul 9, 2015
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  6. shabbir

    shabbir Administrator Staff Member

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    Had no reason for a turn around from a down trend to be breaking.
     
    shabbir, Jul 9, 2015
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  7. amit_taneja1100

    amit_taneja1100 New Member

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    Shabbir in your book it says that if stock price touches the upper Bollinger band its a buy signal but somewhere i have read that if it touches upper band it is considered overbought and can be a good exit point.check this link for more details.. tutorials.topstockresearch.com/TutorialsOnBollingerBand/TutorialOnBollingerBand.html
    This is quite confusing for me.Can u pls guide ne here.
     
    amit_taneja1100, Jul 11, 2015
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  8. shabbir

    shabbir Administrator Staff Member

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    Read usages of bollinger band in that link and it says.

    b. They can be used for to determine trend reversal. When stock breaks upper band and stay above it for few trading sessions then it is considered to be bullish and when stock breaks lower band and stays below for some trading sessions bearish signal is generated.
     
    shabbir, Jul 12, 2015
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  9. nakkeeranjohn

    nakkeeranjohn New Member

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    nakkeeranjohn, Sep 13, 2016
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