There are so many things that can happen in the Share market in 2022.
For starters, the Share market can make new highs and make every investor pretty wealthy.
The share market can crash and show us the new bottom due to this pandemic and other disasters going on in the world.
So What should we do in this year?
I am glad you asked!!!
Let me guide you in this journey.
First thing first, we can never determine what will happen tomorrow in the market. But we can have the slightest idea due to our knowledge and experience.
But when it comes to a longer time frame we can be more sure about the market. Because the share market always repeats history. And by watching previous data we can determine what can possibly happen in the market in the upcoming months.
There is one more thing, Whenever we analyze a longer time frame, we become more confident about our study. Because a long time frame is always reliable.
So one thing is for sure, we should not stop trading or invest due to this pandemic or any other reason.
What is the chart saying about future?
To find the answer to this question, let’s take a look at the chart of Nifty 50 in the different time frames.
1. The 1-Day Time Frame–>>
Above is the 1-Day Time Frame chart of Nifty 50.
Do you see any pattern here?
Can you draw any trendline or zone in this chart??
If yes the very good. If not then let me show you.
As you can see in the image above, I have created a trendline and a zone.
Does it seem good to you?
It does not matter, Because every person can draw trendlines and zone as they like.
But those zones and trendlines should be correct.
So What does these line tells us?
The Blue Trendline tells us that market has been taking rejection from that trendline.
We can see that the last 1-Day Candle is formed at the trendline.
By our theory, we can estimate that the next 1-day candle can form below that trendline.
That’s what history tells us.
But what will happen if the next candle breaks that trendline and goes up?
Has our study failed us?
No buddy, that’s the time where our zone will come into play.