Consecutive closes

Here's a chart of the Nifty Spot which shows the number of days the market went in one direction between open and close.


Consecdirdays Consecutive Closes


What we have done in the above chart is that we have taken only the direction between the open and the close and not between the previous day's close and the current day's close.


This gives us a firmer idea of the directional conviction during the day and takes away factors like gaps etc.


So a close which is less than the open price of the day will be marked in red is the second pane and shows a seller being more dominant in the day.


Likewise a close higher than the open is blue and shows a buyer in control of the action,


The recent down move from Diwali day is now at number 6 and is the highest since the upmove began from 5120 levels.


There was a period in August when the market went down from 6100 to 5500 and that was 10 straight down sessions.


It's a simple way to see where the control is.