May 26, 2014

Intraday analysis

Crossover above initial high at 7465F was bullish and a buy signal. This got stopped out on break of 7485F.

Breakout of day's low at 7440F was a sell signal...

Note that in normal circumstances, one would avoid the sell as the broader trend is up. But today, we saw the markets giving up all the day's gains and the breakdown bar became a large one... a big/ tall candlestick usually signifies a trend change so one can short with the high of this candle as SL.

Note that the chart for the first part of the day looks small and muddled up... in reality, this portion of the chart had occupied the entire window... it is also because of the sell off that as the trading range expanded, the earlier bars starting looking smaller and smaller.

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