How can I know whether the market is Volatile or Trending before it opens?
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If we observe the Nifty and Bank Nifty charts, there are around 6 to 8 trending days in a month. Identifying the trending day before the market opens gives good returns to the day traders.
How to Identify Trending Day?
We cannot predict the market 100%, but most probably the Nifty and Bank Nifty are expected to be trending after a range bound market.
The price action of the market is in an order of Range Bound – Trending – Volatile.
The above order repeats most of the times but not all the time.
Most of the Weekly and Monthly Expiry days i.e., Thursdays are Range Bound.
A day before Expiry days are mostly volatile as per my back tested data.
So, mostly we can expect volatile market on Wednesdays and range bound market on Thursdays.