The Outperforming Bullish Sector for February can be...
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When analyzing sectors relative to the Nifty50, technical analysts often rely on ratio charts to identify outperforming and underperforming sectors. But what if we could go a step further and spot a bullish setup on these ratio charts? Such setups could strengthen our medium-term view on which sector is likely to outperform.
To identify a strong sector, use the following parameters on a ratio chart and scan them using tools like RZone:
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Golden Cross: When the short-term moving average crosses above the long-term moving average on a ratio chart, it signals a potential long-term bullish trend for that sector.
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RSI Positive Crossover: Look for the RSI crossing above 50, signaling that momentum is shifting in favor of the bulls.
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RSI Above 50: The RSI should stay above the 50 midline, confirming that the sector is in a strong bullish phase.
This combination of indicators is a powerful setup for identifying sectors likely to outperform for an extended period.
Here is the sector found using the scanner.
Nifty Financial Services / Nifty 50 Ratio Chart:
Want to learn how to scan for these setups? Let us know in the comments below!
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good one brijesh bhai
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Always interested to learn
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Always look forward to learning from you Brijesh bhai
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looking forward from you.
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Interested to learn the trade through the setup. Thank You !
