iCharts Discussions

[svkum]

attached chart for nifty weekly chart
pl notice the bullish engulfing candle earlier on 8/6/12

we have the same icidence now only.
pl see the movement in short term and in long term thereafter .

can we assume the similar action ? then can we hopr for 6500 and 7000 in 6 month and year respectively.

[vinay28]

It's improper to assume that history will repeat and that too in identical fashion since circumstance are totally diferent e.g. the June '12 candle was at the end of a downtrend after the first rally subsequent to a major downtrend, unlike now.

I feel a major correction of about 15-20 % is required, albeit due, before a long term healthy rally can start.

[ProTrader]

There is nothing like improper.
TA is all about probabilities and there is a lot you learn from the past. Feelings.emotion..could be..would be..possible...may be..ifs and buts .

[vinay28]

thank you for your expert and experienced advice, PT BUT it is definitely improper to assume history will repeat identically since circumstance are never the same, whether anyone likes it or not. That probability is zero.

[svkum]

Trading is all about testing probabilities , hence application of stoploss, but its upto anybody if he ventures to test the same or want to keep on sideline , guessing , analysing , and drawing inferences , ohh it was that , or should not be like that .
further to support vinay dought , i asked a qtn , not made definate statement.
If history is not repeating , then why experts apply age old support resistance theory , which is based on past occurances only.

[PRALO007]

If we join the bottoms of candles from 1 june the currunt candles fall below the line and will act as resistance line. In current situation the resistance seems near 6100. I think so.