This blog if you noticed on the mast-head above is about reducing noise from the markets through the use of Market profile and inter-market relationships between commodities / currencies and the equity markets.?
Girish’s latest post this morning is another example of the same.
For you week-end analysis have a look at these charts :
The chart below is the Bank Nifty with a weekly value area.
12370 is the weekly value high for next week. Only an auction below this can bring levels of 12218/ 12175 which are the lows of last week.
It will be buy on dips till this point. (12370)
?
The next chart is that of the Nifty weekly.
6090 is the weekly value high and any dips back to this point have to be bought.It’s also the 2nd seller zone above 6048 noted by Shai in his previous post.
And here is the chart more relevant for Monday action.
There may just have been some big sellers who initiated a short position at the close in the Bank Nifty yesterday.
Watch 12600 for some day time weakness of about a 100 points.
And the Nifty which rocketed off the value high from Thursday will show slight weakness on an auction below 6160 on Monday.
The purple horizontal lines are the value areas and the yellow line is the POC.
In the weekly charts, the shaded regions are the value areas, with the upper limit as value high and lower limit as value low.
Remember, the most basic rule of Market Profile :
Buyers are in control above value high and sellers in control below value low.?
That rule by itself, will ensure that you do not end up on the losing side on most trades..
