February 13, 2014

Intraday analysis

Break of previous day's low (first line) was a probable short signal. However I did not consider this as the bar which formed subsequently looked bullish (thanks to lower tail).

Break of the second line was a short signal.... covered around 6050. In hindsight the covering did not make sense as the trailing SL was never triggered and there  was no buy signal through out the day.

Note that it was difficult taking a short signal after 11 am as the swing highs (resistance/ SL) were all close to each other and normally  a behavior like this points to a trend reversal (which never happened). So on days like this you are in money if you take the first 1-2 signals and thereafter it becomes difficult to trade.

Overlapping moves are always tricky as markets reach or attempt to reach an equilibrium and you really don't now who is in charge.

This is normal and my personal feeling is if you are not comfortable with initiating a position because of peculiar charts or patterns, then it is all right to stay out of the market rather than be in trade and wish you were not.

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