Basis this theory, on 30th march 2012, the low is 5203.65 which is greater than previous days(29/3/12) high of 5194.30. Therefore trend was reversed to UP.
Similarly on 4/4/12, the high is 5338.40 which is less than previous days (3/4/12) open 5353.20. Therefore the trend is reversed to DOWN.
At the moment the trend is down.
Now if we compare the last two days figures;
If the trend has to be reversed to UP, then tomorrows low should be more than 5306.75 which means that there should be huge gap up opening which doesn’t look possible at the moment. So it may take a day or two for clear confirmation of reversal of trend as per this method.
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normally a short term trend reversal happens, when today low is higher than yesterdays high.
But if you look at todays nifty figures so far, then low of nifty is 5208.35 which is lower than yesterdays high 5233.50.
Therefore as per this method, there is no cofirmation of trend reversal yet. But this is not the only method to identify trend reversal. There are many methods to identify trend reversals. This is just a simple method so that one can understand easily. Thats it
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