My Indicator Signals Hurdle at 20,366 on Nifty
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It’s jashan on D-street as the Nifty achieved an all-time high, hitting records of 20,291 that have left many traders optimistic.
According to my trading system, the level of 20,366 might pose a significant hurdle in the upcoming week.
For Trend Traders, the Super Trend indicator is an indispensable tool in their arsenal. What sets it apart is its ability to factor in market volatility when determining trends. This results in a smoother and more effective trend-following indicator than traditional methods.
To read more about Super Trend, Click here https://www.definedgesecurities.com/library/super-trend/
Let’s understand how the Super Trend works in the current Nifty scenario
Source: TradePointThe default period for Super Trend is set at 10 periods. However, my preference leans towards a 13-period setting for medium-term analysis and a 5-period setting for short-term insights.
Why these specific numbers? The rationale is quite simple – both 13 and 5 are Fibonacci numbers, chosen for their unique mathematical properties that align well with market dynamics.
As of now, the 13-period Super Trend is highlighting a bullish trend, signalling positive sentiments in the medium term. But, the 5-period Super Trend is pointing to a potential resistance level at 20,366. If bulls manage to breach this level, it could trigger a rapid and forceful rally in the market during the upcoming week.
Ending the Year on a High Note:
The indication of a potential breakout above 20,366 implies that the Nifty might be wrapping up the year on a high note. The market's reaction to this resistance level will likely set the tone for the beginning of the new year, shaping trading strategies for the months ahead.As we are in the last month of 2023, What levels can we expect on Nifty?
Share your predictions in the comments below. -
@Brijesh-Bhatia Sir! What should be the multiplier for 13 and 5 period?
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@Yogesh Vinayak Joshi Default - 3
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@Brijesh Bhatia Thank you sir!
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