Live Market

Thursday, July 15, 2010

"Implode to Explode"

A leasson we can learn form today banknifty price actions.The Term is called 'Implode to Explode".
If, you would have observed the price movement between 9928 to 9952 the price was in swing from ups and downs.The banknifty is locked itself yesterday during closing down to the 400 EMA.Now, it is aiming to break/cross over this hurdle for which it tried its level best to gather strength - and came down and went up .still, unable to go beyond this roof(Resistance).
The fall is called implode & the breakout is called explode. If, i translate this, into a simple term> "The Bow & Arrow principle" (or)
if you have seen the Cat or Tiger(before it jump to catch somthing) - it squezzes and move backwards its whole body and legs (back legs) and have a firm foot on the ground and take a jump up forward.This is also can be called 'Implode to Explode' face this now we are ready for any direction.
As we are ready and in short mode(placed SL- Double buy) the market Imploded to 9875 and covered our shorts.The banknifty failed to explode.

No comments:

Post a Comment