This is Sudarshan's blog - www.sudarshanonline.com. It discusses the technical analysis of Indian Stock Markets emphasising on online day trading and futures trading strategies.
Thursday, November 11, 2010
Contraction and Expansion
The cycle of contraction and Expansion is probably the most reliable pattern in the Market. I am giving the 60 minute chart for the Nifty Futures. Note how prices contracted into an extremely narrow range before breaking down.
The Trend (Expansion) and Range (Contraction) process lies at the core of short erm trading. Develop a practised eye to detect this pattern.