Consecutive days of Wins and Loss in Nifty

 

When Nifty closed in Red on Friday (8th Nov 2013), it was the 37th occasion that we have seen Nifty Current Month running futures close in negative for the 5th day running. The chart below (which is plotted on Log Scale) shows the occasions of number of Winning / Losing streaks. 1 means that the Win / Loss was just one day before it turned around. 

Image

 

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About Prashanth

Have been a full time participant in the stock markets since 1996. Run a Yahoo Group where focus is exclusively on discussions of the Indian Markets using Technical Analysis as the tool (groups.yahoo.com/group/technical-investor)
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5 Responses to Consecutive days of Wins and Loss in Nifty

  1. paddock says:

    Hi, a bit confusing to understand.. what’s the x-axis? historical data dates back to when? little help pl.. thanks.

    • Prashanth says:

      Sorry, missed mentioning that data 🙂

      X is the consecutive days of fall (Starts at 1 and ends at 11).

      Data is from Start of Nifty Futures (16-06-2000) till Yesterday (08-11-2013)

  2. Anand says:

    Do you think we could build a simple strategy around this (especially where X= 3 to 5). Just a thought that I could think off:-
    – Plot a partner chart for consecutive Open to Close( same day) to gauge the trend for the day. vtrender blog had posted this at http://www.vtrender.com/content/consecutive-closes.
    – Plot this when the consecutive close to close is 3,4,5 (i.e say when the consecutive close to close is 3, what is the probability of current day’s move being in the direction of current day’s open
    – Based on the above, can we look at the open and take a trade for that day.

  3. Prashanth says:

    Interesting. Let me see what I can do on that front.

  4. Anand says:

    You are an expert in AB, but just in case these are the two high level indicators I have for the two partner charts 🙂

    // Consecutive closes
    ConsecUp = BarsSince(C Ref(C,-1));
    Plot(IIf((C >= Ref(C,-1)),ConsecUp,-ConsecDn),”ConsecutiveUp”,ParamColor(“ColorH”, colorDarkRed), ParamStyle(“StyleH”, 0, maskAll ));

    // intraday Open to close
    ConsecUpIntra = BarsSince(Close Open);
    Plot(IIf((Close >= Open),ConsecUpIntra,-ConsecDnIntra),”ConsecutiveUpIntra”,ParamColor(“ColorH”, colorDarkRed), ParamStyle(“StyleH”, 0, maskAll ));

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