The kplswing indicator has given a sell signal on nifty today.
There is a good chance of a whipsaw as markets are rangebound for sometime. At times like this, it is normal for the indicator to give a sell near a support or a buy signal near a resistance.
This is because the indicator uses 20 days as a rolling period and if markets trade in a range, you will get false signals. Risk management is the only thing which will save you from a string of whipsaws.
BTW the trading range is 9700 to 10200.
Note that if markets are ranegbound in one time frame they can be trending in another timeframe.
There is a good chance of a whipsaw as markets are rangebound for sometime. At times like this, it is normal for the indicator to give a sell near a support or a buy signal near a resistance.
This is because the indicator uses 20 days as a rolling period and if markets trade in a range, you will get false signals. Risk management is the only thing which will save you from a string of whipsaws.
BTW the trading range is 9700 to 10200.
Note that if markets are ranegbound in one time frame they can be trending in another timeframe.
For eg., here is the nifty futures chart in hourly timeframe. If you are a F&O trader, you should be using 15 min or hourly charts.
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