Nifty UP move continues

Nifty continues its move up and broke out of a narrow range it has been in for the last few days. The trend is clearly UP and its best to stay with the trend till the market tells us that the trend is now DOWN. The trend is your friend till the end when it bends!

The next target for this up move is 5300.

Timeframes for trading

Often one hears one Technical Analyst being bullish (going long) on Nifty while another being bearish (going short). While this may appear confusing and paradoxical it is possible both will eventually end up making money. The reason being each person trades in his own timeframe. Broadly speaking the following timeframes exist:

1) Long term traders : timeframe of greater than 3 months
2) Momentum traders: timeframe of 1 week to 3 months
3) Day traders: all positions squared off by 330pm
4) Scalpers: They enter and exit markets in a matter of few minutes

The key is to identify your timeframe and trade according to a well tested sytematic plan. Then watch those Nifty points pile up!