Nifty Future - Intraday - Conditions for Longs

Excellent conditions for long were visible this morning on Nifty Future 3-minute chart, that encouraged long trades for intraday only. Overall, the trend is still bearish, and unless we close above yesterday's highs one cannot expect to take overnight longs.

Nevertheless, watch the ADX and see the point at which the +DI crossed upward over the -DI, and ADX started to gain strength. Remember ADX is only a strength indicator and not direction. Which means, whichever way the trend may be (indicated by the DI lines), the blue ADX merely tells the strength.

Check how the RSI has shown divergence with the Nifty future price. These were conditions that built a case for intraday longs.

On a moving average basis (values that are analyst AP's secret), any retracement of this rise is a buy, provided stop losses are maintained, and further on an Elliot wave, the 3-minute charts have just above completed the wave 3.