March 7, 2019

Market outlook

Market outlook:
- trend is up on daily charts
- today markets closed flat at 11058
- AD was flat

- option writers expect 11000 to hold this series

- swing low 10600 resistance 11200 region

5 min charts:
- first bar set  the tone for the day (sell)
- but till 12pm nothing happened
- and then a break of the lows followed by buying
- exited positional trade in 11200 CE between 11100-11110 F

- kplswing would have given a whipsaw in this
- this is because in rangebound markets, the sell signal comes near the support and buy signal near resistance
- the way to resolve this is to shift to lower time frame (eg 1 min) and trade long near supports and short near resistance (N=20)

Another workaround is to simply reduce N=5 and take buy signals near support (I prefer this)

These are just some ideas coming in my mind. I will write a post on this... double bottom buy or sell...

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