Here I try to show how whenever there is a Median formation due a big day for the Nifty, it usually gets converted into a MSP for future trading sessions.
In the first exhibit, the previous day( 18th Dec 13) was a big day for Nifty and thus it had a median at 6207.
On 19th Dec 13 we had a BOF PDC and Nifty had a vertical fall. At around 2:20-2:30, the prices started flirting with previous day median (PDM). Finally we had a BOF and Nifty started drifting lower.
In the second exhibit, on 20th Dec 1 Nifty opened near PDC and rallied. At around 11: 40-11:45, the Nifty broke PDM and tested it only to rally further. At this point the PDM gets converted into MSP.
The big day of 19th Dec 13 made a median at 6232. On 20th Dec we already saw how the Median on 6207 became MSP. On the same day after rallying past that point of 6207 prices went past 6232 for a bit and tested it, which was the PDM(for 19th Dec). Nifty rallied from 6232 and went till 6250 and again retreated to test 6232 to rally further to form HOD at BRN. Again the PDM of 6232 gets converted into MSP.
The third exhibit is a club of both the days.
I urge traders to keep a close eye on the median of a big day for Nifty. More often that not that point/zone gets tested before moving on and in due course forming a MSP.