March 20, 2014

Intraday analysis

Today was a confusing day as markets kept breaking day's high/ lows only to reverse. Fortunately the reversals were kinda warned of in candlesticks.

Here first circle gave a break of day's lows but candlestick did not close at the low. So short trade was ignored. Second circle have a break above day's high but candlestick did not close at the high. So longtrade was ignored.

At this point, experience indicates markets are likely to be rangebound so I decided to ignore all signals. Later on, when I saw the market, I saw there were 2 more sell signals which did not move much.

Of course, one can always make a case for shorting at day's highs and then covering at market close but this is not something which can happen with certainty once you have a system.

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