Friday, February 17, 2012

Nifty and NSE500 Charts

Continuing with last week's post about trend charts - I am posting a couple of slightly different charts - the algo to judge the trend is the same but these charts utilise an additional algo which compresses original price data based on the underlying volatility - so not all bars are taken (and are not visible either) - although I have taken care to include the highs and lows which may have formed on these "missing" bars - the final result is a much more compressed version of the original price data. This has limited use in end-of-day time frame (even though it changes the chart quite a bit) but is infinitely more useful in looking at intra-day price charts - especially if looking at time-frames like 1 minute charts  - where, often periods of low activity completely destroy the charts and any associated indicators.

Take a look at Nifty and NSE500 EOD charts. By the way, I think, sometimes the NSE500 is more useful in judging the overall market trend than Nifty.


Nifty Compressed Chart with Trend

NSE500 Compressed Chart with Trend

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