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How Closing tells defines strength in Nifty?

Wednesday, August 17, 2011 | | |

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Dear market student,
In market I always heard that closing price is most important. But don’t know, “How to use it?”,
“How to analyze the closing price for future moves?” and “what really closing price denotes?”  Same question may arise in your mind also regarding Nifty.  We all know that closing price is very important market. Closing price is last emotion of market movers in market recorded on last time. So closing price helps us to define future.

Closing Price is denoting finger toward future.  Just we have to watch it carefully. I am telling here about closing price with keep in mind NIFTY. You may use it for another any instrument or stock also. I like to initially declare that it is not secret formula. It is one of the common techniques which are use by most wise trader. So while make analyze technically consider this trick also.

To make little simple calculation, we have to know some information of regarding closing price.
Those are as follows;
High Price
Low price
Closing Price
For example Today’s;
High Price =5112.15
Low Price=5017.25
Closing Price=5056.6
If you are watch above prices with out any pre condition, then we should unable to come on any conclusion. Some simple mathematical steps are helping to find out, firm ground to step on tomorrow market.
Just check it out
To find out range of market,
Range of Nifty= High Price – Low price
In our case
Range =5112.15-5017.25
            =94.9
To take averages divide it by 2
=94.9/2
=47.45
Add this average value in Low Price
=5017.25 +47.45              
=5064.7
It is our last value coming by manipulation with high and low price
It is center of today’s Nifty movement. Now check closing where it closes.
In our case Nifty closing Price is 5056.6.  It is below our center point 5064.7.
That simply denotes that weakness in market, but wait for some time to come final conclusion.
Closing price is very little distant from our center price 5064.7. So it also indicates that market sentiment is still in bearish but it is above previous price. That means  tomorrow  opening will be higher but with weaker trend.

In this way use it for analyze and judge market future. Over the experience you should able to predict right trend of Nifty. Your own experience is must. There is no “Chirag of Alladin” . You have to make your own with own experience.

In experiment mode (as beginner of market student, avoid to take position). Make your base firm then only try to swim in market, else you will loose money.

Hope you like it. Try new own ideas also. One day we would succeed to achieve right path.
Till then keep checking Money Drives Life!!!



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