How to predict this week trend and break out

This is just an information for those who are new to trading. Most of the daily traders must be aware of this basic information:

How to predict the break out or break down of Nifty / Bank Nifty or any scrip?

Note down the previous week high and low.  See the price where it is trading during this week.  If  it breaks the previous week high, then you can go long. If it breaches previous week low you can go short. This helps you to avoid wrong trades and take quick decisions in time.

For example I have noted  down the previous week high low of Nifty, Bank Nifty and HDFC Bank.

                                                       High           Low               CMP on 09.10.17   

Nifty Future                                 10017.8       9838.2                     10020

Bank Nifty Future                        24580.0     24003.0                     24306

HFC Bank                                       1813          1789                         1796

You may observe that Nifty future is all set to move high where as BNF is still in the mid point of previous high and low. If you apply Fibonacci calculator then 61.80% of 577 ( 24580-24003) must be crossed to confirm the bullishness. 24003+356= 24360.

The major bank which is deciding the trend of BNF is also trading in the mid of high and low. This is the reason for sluggish moves in BNF and Nifty yesterday.

Use this simple tool to know the trend. 

Learning is Knowledge and knowledge is power.