Bank Nifty Analysis- 28May2020

Bank Nifty moved by 2000 points from 17300 to 19300 in two days of 27-28 May 2020.

This was a big move and such a big move can be tracked and traded using a non-linear indicator like the Parabolic SAR. This indicator is not useful in rangebound markets but it can be very useful in trending marketing, like in the above chart.

The challenge is to board a rapidly moving market. Traders have to take the risk of riding the parabolic upmove and once the parabola breaks, that’s the Stop.

We had posted on Twitter in advance last week that 2000 point upmove is visible in the coming days during June 2020, but the upmove came within last week of May 2020!

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