Monday, July 16, 2012

Heikin Ashi Candle Analysis of Nifty for 16-07-2012


Candle formation for Nifty on 16-07-2012 – Giant red candle with large real body, no upper shadow and a large lower shadow. This indicates a strong downward trend. However we need to keep in mind that market took very nice support as shown in the daily candle chart.

Nifty Hekin Ashi Candle for daily chart:


Heikin Ashi candles on hourly chart – Observe how nicely the doji [following the hollow candles] provided an indication of the reversal. Following which Nifty headed down and again took support near the previous low at 5217 and seemed like bouncing. But this is yet to be confirmed by the Hekin Ashi candles. 
Nifty Hekin Ashi Candle for hourly chart:

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